Businesses must be vigilant and careful in managing their state and local tax liabilities and exposures. We understand this can be a daunting task. McDonald Hopkins Multistate Tax Services provides a broad range of state and local tax services including tax controversy, tax evaluation, tax planning, and tax policy. With professionals who have worked both inside and outside government agencies, our multistate tax team leverages its knowledge and experience to help clients control their complex multistate taxes.
Tax Controversy
Even with thorough tax planning, some companies may find themselves under examination or in litigation with state and local governments. To minimize the impact of tax examinations and tax litigation, our professionals:
- Work closely with tax officials to reduce assessments during and after an audit.
- Prudently litigate tax assessments through all levels of appeal.
- Provide experienced negotiation services for all types of tax settlements, including “high-risk” controversies.
We assist clients with the following Tax Controversy services:
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Service
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Description
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Tax Types
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Audit Defense
- Outsource
- Negotiation
- Resolution
- Support
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Represent the client to achieve maximum reduction in audit assessments by working directly from government tax agents and using audit best practices, including up-front sample period negotiation, detailed review and analysis of agent findings and error ratios, legal research, negotiation of issues, and filing protests and appeals, as necessary. |
Sales, use, gross receipts, income, franchise, real property, personal property, unclaimed property |
| Managed or Participatory Audits |
Perform the audit for a client (after receiving a notice of audit or proactively approaching the government) rather than the government tax agents in states that provide for managed or participatory audits. Benefits provided typically include penalty waiver, significant interest waiver and control of the audit process by McDonald Hopkins. |
Sales, use, gross receipts in those states that provide for these types of audits |
| Tax Appeals |
Represent the client in the appeal of tax assessments or denied refund claims from tax administrative appeals through the state and U.S. Supreme Court, as necessary. |
Sales, use, gross receipts, income, franchise, real property, personal property, unclaimed property |
| High Net-Worth Individual-Audit Defense and Appeals |
Defend against income tax audits and assessments related to various types of deferred compensation, stock options, or changes in tax domicile. Includes working with tax officials to negotiate settlements or litigation of assessments to any level of appeal. |
Personal income tax - state and local |
| High Risk Controversy |
Assist clients in developing their legal positions and pursuing favorable settlement of certain high-risk audit positions and tax assessments when litigation risks and costs are high |
Any tax type that has been assessed or has been proposed for assessment |
Tax Evaluation
The myriad of multistate tax laws can be difficult to comply with on a consistent basis. Our professionals assist clients with evaluating their current multistate tax positions to determine if they are entitled to any refunds or have any possible exposures.
Our professionals:
- Partner with our clients to analyze tax filings and tax payments made to vendors to determine if the appropriate amount of tax has been paid.
- Work with the applicable multistate and local taxing jurisdiction to obtain refunds of any overpayments.
- Develop strategies to resolve any exposures identified as part of the evaluation.
- Assist clients with addressing the causes of the refunds or exposures so they can be in compliance prospectively.
We assist clients with the following Tax Evaluation services:
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Service
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Description
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Tax Types
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| R.A.C.E.TM - Refund Analysis & Compliance Evaluation |
Provide a "reverse" tax audit service designed primarily to identify refund and over-payment opportunities, secondarily to identify areas of significant risk. |
Sales, use, gross receipts, income, franchise, real property, personal property, unclaimed property |
| CAT ScanTM |
Conduct a proactive analysis of a client's Ohio Commercial Activity Tax (CAT) payments and filings to determine optimal filing positions, identify potential refunds, and mitigate future exposure. |
Ohio Commercial Activity Tax |
| Multistate Nexus Review |
Analyze a client's activities to determine those states in which the client has filing requirements (i.e. nexus) and an estimated tax risk computation. |
Sales, use, gross receipts, income, franchise |
| Voluntary Disclosure |
Negotiate with state and local jurisdictions to mitigate historical tax obligations for a client that has failed to file for various taxes where an obligation exists.
Benefits typically include penalty waiver and limited loo-back periods.
|
Sales, use, gross receipts, income, franchise, real property, personal property, unclaimed property |
| Due Diligence |
Analyze a target's tax audit exposure and potential successor liability issues relating to the client's purchase of target. |
Sales, use, gross receipts, income, franchise, real property, personal property, unclaimed property |
| In-House Training |
Design and deliver a customized sales and use tax training program specific to the client's industry and work environment. The client benefits by avoiding tax over-payments and unexpected tax liabilities in the future. |
Sales, use |
| Tax Compliance Matrix |
Research and complete an easy-to-use determination tool for use in tax compliance by the client's accounting, and/or tax personnel.
Provides management with the necessary back-up for more in-depth analysis when necessary and allows for efficient updating for future law/regulatory changes.
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Sales, use, gross receipts, income, franchise |
Tax Planning
We believe that even in an environment of increased scrutiny of tax structures and increased enforcement efforts by government tax officials, significant tax saving opportunities still exist. We work proactively with clients to:
- Identify and implement tax reduction strategies consistent with business operations.
- Review existing tax planning structures to ensure their integrity upon examination.
- Minimize multistate tax consequences of business transactions.
We assist clients with the following Tax Planning services:
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Service
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Description
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Tax Types
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| Multistate Tax Planning |
Review a client's operations, identify alternative legal structures, and implement those structures to take advantage of state tax benefits. |
Sales, use, gross receipts, income, franchise, real property, personal property, unclaimed property |
| Residency Planning |
Perform an analysis of the impact of changing one's tax domicile, especially in light of the sale of a business or pending retirement of a high-ranking company leader.
Assist individual clients with the specific steps necessary to effectively establish tax domicile in another state.
|
Personal income tax - state and local |
| UCO - Use Tax Compliance Optimizer -Effective Rate Agreements |
Simplify and lower the cost of a client's use tax compliance by developing an effective tax rate agreement with the state taxing authority |
Use |
| Business Expansion Planning |
Analyze (on a proactive basis) multijurisdictional opportunities and exposures associated with business expansion (gross business volume, new products, new marketing methods, or new locations). |
All appropriate taxes for industry |
| Relocation Analysis |
Analyze and compare state and local tax costs related to alternate locations being considered by a client. |
All appropriate taxes for industry |
| State and Local Credits and Incentives |
Review client's tax filings to determine the availability of unclaimed state and local tax credits or incentives.
Assist a company with obtaining tax incentives when expanding an existing facility or building a new facility.
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All appropriate taxes for industry as well as other non-tax incentives |
Tax Policy
Businesses today struggle with ever-changing tax laws and government policies in multiple jurisdictions. Our multistate tax professionals have a wealth of experience in dealing directly with government leaders in most states and Washington D.C. to address tax policy matters. Working closely with professionals in our Government Affairs Practice, we work with clients to:
- Develop and advocate strategic tax policy positions.
- Monitor and impact tax law developments and trends.
- Negotiate valuable tax incentives to support business expansion and growth.
We assist clients with the following Tax Policy services:
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Service
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Description
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Tax Types
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| Tax Policy Advocacy |
Draft legislation language and lobby state and local officials to enact legislation that protects the interests of our client, promotes a more positive tax environment, or clarifies applicability of existing tax laws. |
All taxes |
| Industry Tax Impact Analysis |
Develop a white paper analysis related to current or proposed tax laws which apply to an industry for consideration by government policy makers. |
All taxes |
| Association Tax Counsel |
Operate as "special tax counsel" for a business association, which includes monitoring and analyzing state legislative and tax developments. |
All taxes |