Lila Robbins on Why You Might Want to Hire Your Own Sales Tax Manager

It May Be Time To Hire A Multistate Tax Expert
by Lila Robbins, CPA

Are You Ready for More Aggressive Audits?

With the economy on the skids, every state is feeling the financial crunch. Consumers are spending less, resulting in less sales tax revenue to the states. Getting new laws passed to raise taxes, or create new ones, on already over taxed consumers, who are also voters, is not a popular idea. Many states have decided against new taxes, and have instead opted to more aggressively pursue taxes that are due, but have not been remitted.

Read more »

Sales/Use Tax Traps in a Merger

Recently a client asked us to comment on their proposed merger plans. Mergers are always happening, so I thought it would be worth your while for us to comment on this to our friends and clients at large.

The basic facts were that, for various reasons, our client planned to simplify their corporate structure. The old structure consisted of a number of limited partnerships, limited liability companies, corporations and even a US branch of a foreign corporation. They planned to get down to just a few legal entities in the US by contributing member interests in the LLCs and merging several corporations out of existence. The question for us to comment on revolved around what would be the sales/use tax impact of such a transaction.

Read more »

What Did The Mayan Calendar Say About State Taxes in 2012?

There's no indication that Nostradamus or the Mayans predicted anything state tax wise for 2009 , but we can make predictions based on how the economy is going.

Trouble in CA

We all know that California is in deep fiscal trouble. Back in July, 2009, CA was unable to meet its bills for the second time this year and the state started issuing IOUs. In fact, as reported by CNNMoney.com at the time, some 28,750 IOUs worth $53.3 million were to have been issued initially, mainly for personal income tax refunds. CNN said this at the time: "The state's fiscal condition is disastrous. Officials passed a budget in February, but declining tax revenues have opened up a $26 billion deficit."

California is in trouble, no doubt. But according to a study by the Pew Center on the States, so are 9 other states. It's interesting to look at what states are named and to consider what impact this will have on state taxes.

9 Other States in Trouble

Read more »

"Window of Opportunity" (Amnesty) Announced in Louisiana

It seems like these amnesties come up a lot, but in reality they don't. For example, Louisiana hasn't had an amnesty program since 2001. If you have activity in Louisiana and possible sales/use tax or income tax exposure, consider taking advantage of this opportunity. 

In fact, Louisiana is calling their amnesty program a "Window of Opportunity".  It applies to all taxes administered by the LA DOR (except motor fuel taxes). It applies to taxes that became due as of July 1, 2001, and before Jan. 1 of this year (money owed since the last tax amnesty program); taxes due prior to Jan. 1 for which the agency has issued a notice or demand for payment between July 1, 2001, and May 31 of this year; and taxes due as of July 1, 2001.

The benefits are that the DOR will waive 50% of the interest due and 100% of the penalties.

Go to this link for more details or contact us for specific questions.

So What States Have Active Amnesties in Place?

I thought it would be good to give a rundown of which states are offering amnesty programs right now and give some details from CCH on each of the programs. Many of these expire in June. Arizona's expires on June 1. Better hurry! Some of them have significant caveats associated so let the tax manager beware.

Here's the list (click on the link for additional details):

MA -- Expires 6/30/09

MD -- Expires 10/30/09

CT -- Expires 6/25/09

NJ -- Expires 6/15/09

AZ -- Expires 6/1/09

Are You an Offensive Linemen or a Quarterback?

How Do You Measure Performance?

When we talk to tax professionals in corporate America about metrics they use in measuring performance, the number of the various types of tax returns they file is usually high on the list of measurables. They usually talk about the number of people in the tax department and how they have it staffed in terms of the level of specialization. This is completely understandable. Tax people have a huge job. All these returns have to get in on time and accurately or penalties and interest is the result.

Read more »