One of the keys to having a successful tax season is to get a handle on state and local tax (SALT) issues. Understanding these issues can mean the difference between your businesses saving thousands of dollars, and your business losing thousands of dollars. Getting a handle on SALT issues is not necessarily easy, but there is help available. Read below to find out more about how a business tax service can handle a variety of SALT issues for your company.
Allocation/Apportionment
One key SALT issue is allocation/apportionment. This has to do with how your business income is sourced. Most people use the terms “allocation” and “apportionment” interchangeably, when in fact, they are very different terms. “Allocation” means that all of your business’ income (100%) comes from a single source. “Apportionment” refers to a state specific cocktail of numbers. Knowing when to allocate your income and when to apportion it can make a huge difference when it comes to state and local taxes. This is quite a complex distinction, but luckily there are many Dublin business tax services that can help you make this distinction.
Sales And Use Tax
Of all the tax codes, sales and use tax codes seem to vary the widest from state to state. Not only that, but sales and use tax codes are constantly changing. This can make it very difficult for businesses to keep up. Keeping up with sales and use tax is important, however, because these taxes can have huge implications for your company. Did you know that it is common for local taxing authorities to use different rules for products and services going into their states and products and services going out of their states? This can make things very difficult for businesses like yours. Fortunately, a qualified business tax professional can help you make sense of it all. A sales and use tax review can ensure that your company stays compliant with these varied and ever-changing laws.
State And Local Tax Credits And Incentives
If you knew how many SALT credits and incentives are available to your business, it might make your head spin! More accurately, it might make you kick yourself for not having taken advantage of these credits and incentives earlier. Still, it is better late than never in this situation. And it is never too late to hire a tax service to help you find state and local (as well as federal) tax credits and incentives for the future. The sooner you do, the sooner you will start saving.
Audit Defense
Worried about a tax audit? Stop worrying and start reaching out. A business tax service can help you make all of the preparations necessary to handle a business tax audit. Audit preparations include:
- Assessing your audit risk
- Ensuring that your company is compliant
- Performing an audit preparedness review, or “mock audit”
- Ensuring that you have all of the right documents in the right place
All of these steps will allow you to go into your audit with confidence.