Messina Multistate Tax LLC provides clients with “Big 4” quality state and local tax services, with the personalized attention and costs of a small firm.
Recovery Reviews – A recovery review is a thorough review of a client’s purchasing, accounts payable and capital expenditures records, to identify and quantify potential sales and use tax overpayments. The review is customized to each client’s specific industry and issues, with special attention paid to potential overpayments resulting from changes in tax laws and court decisions. Services include assisting clients in filing refund claims for overpayments identified and working with respective state tax authorities or vendors to secure the overpayments. Services may also include recommendations and assistance with corrective actions.
Tax Controversy – We assist clients before, during and after a state tax audit to minimize the tax exposure and the impact of the audit on a client’s staff and operations. Prior to the audit, we can evaluate a client’s potential exposure, review an auditor’s work plan and document request and assist staff in compiling necessary records. During the audit, we can assist staff in managing the audit and monitoring its progress, develop acceptable sampling methods and develop positions to rebut an auditor’s preliminary determination. Once the audit is completed, if needed we can represent clients at informal post-audit conferences and administrative level hearings, including preparing audit protest or position papers.
Tax Litigation Support – Should litigation ultimately prove necessary to resolve a tax controversy, we can provide litigation support to counsel, including identification of errors and inconsistencies in a states approach, assistance in development of a litigation strategy and expert testimony.
Nexus Analysis – A nexus analysis will help clients identify states where they may have nexus and a sales/use, income or franchise tax filing requirement. The analysis will take into consideration the activities of agents. The services will also include recommendations to mitigate potential exposure, including minimizing contact with states and/or utilizing state voluntary disclosure and amnesty programs.
Voluntary Disclosure – We represent clients on a “no–name” basis and negotiate to obtain concessions on prior liabilities, in exchange for voluntary registration and future compliance. Benefits can include a limited “look-back” period and forgiveness of penalties. In some cases, interest can be forgiven or prospective treatment secured.
Due Diligence and Transaction Analysis – A due diligence review is conducted to identify a target’s exposure for unpaid state tax liabilities. A state due diligence review is necessary in both a stock and an asset purchase. Virtually all of the states have successor liability statutes under which the purchaser may be liable for some or all of the seller’s unpaid taxes. Successor liability can not only apply to sales and use taxes, but to the seller’s other unpaid state and local taxes (e.g., income, property, employment, etc.).
During the transaction analysis phase, the following areas should be reviewed to determine whether state taxes will be triggered by the transaction itself and whether the form of the transaction will be respected by the relevant states: IRC §338(h)(10), carryover and value of tax attributes, casual or occasional sales exemptions and real estate transfer taxes.
Taxability Matrix and Research Services – These services include a tax determination review for both sales and use tax with respect to a client’s sales and purchases of various products or services.
Sales and Use Tax Processes Analysis – A process analysis is a review of a client’s current sales and use tax processes, to identify potential weaknesses or inefficiencies in its sales and use tax reporting system. This review will also include recommendations for process changes or other corrective actions, including technology upgrades or updates to a client’s tax determination matrix.
Tax Reserves – We can assist clients in preparing and fully documenting their state tax reserve including addressing uncertain tax positions and other important state tax disclosure considerations.