Multistate tax You must be vigilant in managing your state and local - PDF document

including up-front sample period negotiation, detailed review and analysis of • Provide experienced negotiation services for all types of tax settlements, including “high-risk” controversies. Personal income tax, ment of certain high-risk audit positions and tax assessments when litigation Perform the audit for a client (afuer receiving a notice of audit or pro-actively Sales, use, gross receipts, • Support • Resolution • Negotiation • Outsource Sales, use, gross receipts Sales, use, gross receipts, • Prudently litigate tax assessments through all levels of appeal. • Work closely with tax ofgicials to reduce assessments during and afuer an audit. Multistate tax You must be vigilant in managing your state and local tax liabilities and exposures – which can be a daunting task. Tax law in and of itself can be difgicult to understand. Our multistate tax professionals have worked both inside and outside government agencies, and can leverage their knowledge and experience to help you with your complex multistate taxes. We’ll even work to see if you are entitled to any refunds or have any possible exposures. 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: We assist clients with the following tax controversy services: Service Description Tax Types Audit defense Represent the client to achieve maximum reduction in audit assessments by working directly with government tax agents and using audit best practices, income, franchise, real property, personal agent findings and error ratios, legal research, negotiation of issues, and filing property, unclaimed protests and appeals, as necessary. property Managed or participatory audits approaching the government) rather than the government tax agent in states in those states that that provide for managed or participatory audits. Benefits provided typically provide for these include penalty waiver, significant interest waiver and control of the audit types of audits process by McDonald Hopkins. 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, income, franchise, real as necessary. property, personal property, unclaimed property High-net worth individual- Defend against income tax audits and assessments related to various types of audit defense and deferred compensation, stock options, or changes in tax domicile. Includes state and local appeals working with tax ofgicials to negotiate settlements or litigation of assessments to any level of appeal. High risk controversy Assist clients in developing their legal positions and pursuing favorable settle - Any tax type that has been assessed or has risks and costs are high. been proposed for assessment mcdonaldhopkins.com Chicago | Cleveland | Columbus | Detroit | Miami | West Palm Beach

Sales, use, gross receipts, Service Sales, use, gross requirements (i.e., nexus) and an estimated tax risk computation. Sales, use, gross receipts, Negotiate with state and local jurisdictions to mitigate historical tax obligations Benefits typically include penalty waiver and limited look-back periods. Provide a “reverse” tax audit service designed primarily to identify refund and Tax Types Description Sales, use, gross receipts, Conduct a proactive analysis of a client’s Ohio Commercial Activity Tax (CAT) • Assist clients with addressing the causes of the refunds or exposures so they can be in compliance prospectively. • Develop strategies to resolve any exposures identified as part of the evaluation. • Work with the applicable multistate and local taxing jurisdiction to obtain refunds of any overpayments. In-house training Sales, use Sales, use, gross receipts, Provides management with the necessary back-up for more in-depth analysis Sales, use, gross McDonald Hopkins Multistate tax 2 Tax evaluation The myriad of multistate tax laws can be difgicult 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. We assist clients with the following tax evaluation services: R.A.C.E. TM -Refund Analysis & Compliance overpayment opportunities, secondarily to identify areas of significant risk. income, franchise, real Evaluation property, personal property, unclaimed property CAT scan TM payments and filings to determine optimal filing positions, identify potential receipts, income, refunds, and mitigate future exposure. franchise Multistate nexus review Analyze a client’s activities to determine those states in which the client has filing income, franchise, real property, personal property, unclaimed property Voluntary disclosure for a client that has failed to file for various taxes where an obligation exists. 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. income, franchise, real property, personal property, unclaimed property 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 overpayments and unexpected tax liabilities in the future. 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. receipts, income, franchise when necessary and allows for efgicient updating for future law/regulatory changes.

Sales, use, gross receipts, State and local credits associated with business expansion (gross business volume, new products, • 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. Analyze (on a proactive basis) multijurisdictional opportunities and exposures Simplify and lower the cost of a client’s use tax compliance by developing an light of the sale of a business or pending retirement of a high-ranking company Perform an analysis of the impact of changing one’s tax domicile, especially in 3 McDonald Hopkins Multistate tax Tax planning We believe that even in an environment of increased scrutiny of tax structures and increased enforcement efgorts by government tax ofgicials, significant tax saving opportunities still exist. We work proactively with clients to: We assist clients with the following tax planning services: Service Description Tax Types Multistate tax planning Review a client’s operations, identify alternative legal structures, and implement those structures to take advantage of state tax benefits. income, franchise, real property, personal property, unclaimed property Residency planning Personal income taxstate and local leader. Assist individual clients with the specific steps necessary to efgectively establish tax domicile in another state. UCO-Use Tax Compliance Use Optimizer-efgective efgective tax rate agreement with the state taxing authority. rate agreements Business expansion All appropriate taxes for planning industry new marketing methods or new locations). Relocation analysis Analyze and compare state and local tax costs related to alternate locations being All appropriate taxes for considered by a client. industry Review client’s tax filings to determine the availability of unclaimed state and All appropriate taxes for and incentives local tax credits or incentives. industry as well as other non-tax Assist a company with obtaining tax incentives when expanding an existing incentives facility or building a new facility.