State & Local Tax

Recent events have significantly expanded businesses’ state tax compliance obligations. Since the 2018 Wayfair decision, the states have rushed to implement expanded nexus principals and enforcement procedures. These law changes have subjected remote sellers to new multi-state tax obligations in states outside of their physical locations. Simultaneously, the rise of remote work caused by the pandemic have expanded state compliance obligations in new states where employees are working away from traditional offices. States are needy for revenue as a result of the pandemic and will be aggressively looking to add new taxpayers to the rolls. Combined, these circumstances require businesses to immediately re-assess their state tax footprint for sales tax collection responsibilities, state income tax nexus and apportionment, and employment taxes and withholding.

With these and other complexities on the table, it’s easy to see how a state and local tax professional’s guidance can save you headaches down the road. If you answer yes to any of these questions, you may have recently experienced changes to your state tax footprint and corresponding filing obligations.  

• Do you sell products in multiple states?
• Do you ship your products across state borders?
• Are you an online retailer or software developer?
• Do you send employees to multiple states?
• Do you have employees working in new locations as a result of the pandemic?
• Have you considered or are you considering a permanent remote work policy?

Eide Bailly can help you understand and address these situations in a way that minimizes cost and stress. Our team can also help you navigate state and local tax credits and incentives including Statutory and Discretionary Tax Incentives.

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Nexus Studies and Diagnostics
Eide Bailly’s State and Local Tax team keeps track of the states’ continuously changing nexus policies and case law. Using a combination of technology tools and years of experience, we employ a cost-efficient approach to assessing a company’s state tax footprint and exposures. These assessments are coupled with practical consultation on how to deal with new state tax obligations, or, in some cases, terminating filing obligations in states where nexus does not exist.

Delinquent Returns & Voluntary Disclosures
Eide Bailly can help determine if an amnesty program or voluntary disclosure is right for and available to you. Our professionals will walk you through the requirements, process, registrations and arrearage returns. With your approval and input, we'll negotiate on your behalf to ensure the best possible outcome.  

Sales Taxability Analysis
Eide Bailly can help you identify your product and service taxability. We work with you to understand the services and products you sell to provide an in-depth, detailed analysis of how a taxing jurisdiction might tax your business.

State Apportionment Reviews
State apportionment and allocation rules and concepts are consistently changing. Recent years have seen a significant shift in apportionment rules designed to capture more income from out-of-state taxpayers. Eide Bailly’s State and Local Tax team continuously monitors these rules and can help your business develop an apportionment methodology or evaluate whether existing apportionment is up to date.

State Tax Audit and Notice Assistance
Receiving an audit notice or demand for additional tax can be stressful, confusing and possibly can take years to resolve. Response timing is crucial; our full support and swift communication with these entities allows you to continue business as usual without unnecessary interruptions.  Our professionals have years of experience working with State Departments of Revenue, and they understand the processes for resolving disputes. Eide Bailly's SALT team will guide you through responding to state letters, examinations and appeals, ensuring you have the support you need to feel confident in your position and response.

Sales and Use Tax Process Review
The expansion of sales tax nexus due to economic nexus and remote work has greatly expanded many businesses sales and use tax obligations. A well-developed internal process for sales and use tax compliance is more important than ever. Eide Bailly’s State and Local Tax team has a deep understanding of best practices in these processes, including internal controls and automation solutions. We can review and assess your current processes and make recommendations for improvements as well as prepare process manuals, conduct employee trainings and assist with the selection and implementation of automation solutions.

Utility Sales Tax Exemption Studies
Many states allow manufacturing companies to avoid paying sales tax on electricity and natural gas purchases. A Predominant Use Study, also known as a utility study, is an evaluation of your company’s electric and natural gas consumption that can potentially allow you to receive a state and local tax exemption. We can advise customers if they qualify for a sales tax exemption, conduct the state-mandated on-site study, and file the proper forms with the state and with utility companies in order to achieve exemptions from paying these taxes.

What to Expect When You Work with Us

Dealing with the vast complexity of state tax law requires collaboration among a network of experienced professionals with broad backgrounds and experience. Eide Bailly’s State and Local Tax team brings that to each of its clients, having years of combined experience advising companies of all sizes with a full range of state tax consulting needs. Our approach is to focus on big-picture solutions, not just the problems.