NJ State and Local Tax Services
The Dopkin Law Firm offers the following state and local tax services to our clients:
Today’s state tax laws are complex. Are you certain which states your company is required to file tax returns in and/or remit tax to?
If you are conducting multi-state activities, do you evaluate nexus on an annual basis?
Tax attorney Matt Dopkin can perform a comprehensive analysis of your company’s state and local tax filing profile that will indicate whether exposure or refund opportunities exist. In the event of an error or omission, we will correspond with the taxing authorities to reduce the “look-back period,” which is the number of tax years for which an assessment is made. We will also assist with abating potential penalties or obtaining a refund of erroneously paid tax. We can also identify those activities that typically create sufficient nexus for future filings and develop strategies to reduce tax by eliminating or, in some circumstances, creating nexus in various states and localities.
The Dopkin Law Firm has the skills and insight to guide you through a state’s voluntary disclosure program while keeping you or your business anonymous to the state taxing authorities.
If your business has failed to file the appropriate tax returns for several years and consequently has significant state income, franchise, gross receipts, or sales and use tax exposure, you will often question the appropriate resolution. In this situation, we recommend voluntary disclosures. Matt Dopkin will represent you or your business on an anonymous basis and negotiate with the taxing authorities on your behalf. We can contact the various state revenue departments to settle unpaid and unfilled liabilities for a limited look-back period with abatement of penalties.
Tax Rulings and Advice Letters
Are you involved in a complex transaction or looking to pursue an aggressive tax return position?
Both tax rulings and advice letters enable you to make informed decisions and act with an elevated level of confidence. A tax ruling is an advisory statement written by a state taxing authority. Similarly, an advice letter is a predictive memorandum drafted after considering a specific set of facts at issue and the current state of the law.
Business owners often desire a seal of approval or documentation when planning a complex transaction or looking to pursue an aggressive tax return position. Dopkin Law Firm can assist by gaining certainty or documentation of the tax treatment and ramifications through the use of tax rulings and/or advice letters.
Reverse Sales and Use Tax Audits
Is your company properly paying vendors or accruing sales and use tax?
Do you have the research you need on your state’s or municipality’s sales and use tax exemptions for the use of equipment utilized in manufacturing, pollution control, or research and development?
Are other sales and use tax exemptions available?
The Dopkin Law Firm can perform a diagnostic review of the sales and use tax function, including interviews with the employees involved in the process, to help you answer these questions and others. If a diagnostic review identifies real and/or potential overpayments or underpayments, a comprehensive reverse audit would follow in order to quantify and qualify refunds or exposure. We also assist in obtaining refunds and resolving the exposure.
Income/Franchise Tax Reduction Studies
As a result of the complexity and diversity of state income and franchise tax rules, businesses often find that they are paying tax on more than 100 percent of their income. How do you protect your company?
Through the proactive use of certain filing options, apportionment and allocation methodologies, special purpose subsidiaries, reorganizations and adjustments to the tax base, state and local income and franchise taxes can often be managed to achieve a more tax-efficient business. Matt Dopkin is skilled and seasoned in performing diagnostic reviews of our clients’ operations and tax returns to identify potential saving opportunities.
Due Diligence Reviews
Are you comfortable with your level of tax law compliance?
Matt Dopkin works with clients to review their companies’ history of state and local tax filings in order to ascertain the level of compliance with the various state and local tax rules. As a result, we can identify, evaluate and quantify potential exposure or refund opportunities.
Merger, Acquisition and Divestiture Transaction Planning
When planning these business transactions, do you find that the focus is on reporting federal tax issues while state and local tax issues are often ignored?
In many transactions, state and local taxes are material, and proper planning is critical for the success of the transaction. The complexity and diversity of state and local tax rules pertaining to the sale of an entire business or a significant portion thereof mean organizations need assistance with structuring these transactions. Matt Dopkin can help analyze transaction costs and recommend alternative transaction strategies. Dopkin Law Firm will ensure that all state and local tax filings and notification requirements are satisfied, advise clients of applicable transfer taxes and suggest alternative strategies to minimize the immediate as well as future costs associated with the transaction.
Site/Location Selection Studies
Are you looking to expand and move your operations to a new location?
What are the tax implications of such a transaction?
Matt Dopkin can assess and compare the state and local tax effect of proposed sites based on the specific issues in a new state or locality.
Tax Return Reviews
Are your tax returns accurate?
In addition to checking returns for calculation errors, Matt Dopkin reviews various filing options such as consolidated, combined reporting and separate filing return status, regular and financial corporation status, apportionment and allocation factors, computation of state, alternative minimum taxes and minimum taxes, and proper usages of credits. Independent reviews by Matt Dopkin can lead to greater compliance with the tax law and, consequently, fewer instances of audit.
Unclaimed Property Services
Do you have unclaimed property issues?
Some examples of unclaimed property include uncashed payroll and accounts payable checks, customer over-payments, gift certificates, merchandise credits and accounts receivable balances. Generally, all businesses are required to report and remit unclaimed property, also known as abandoned property or unclaimed funds. After a certain time period, a state may legally require a holder to turn over to the state any such property that is abandoned or that remains unclaimed or uncollected by its rightful owner. The rules in this area vary by state. Matt Dopkin can review your company’s unclaimed property posture to identify and quantify your exposure as necessary, and we can then assist you in complying with such requirements.
State Tax Credit and Incentive Studies
Is there a tax credit or incentive to retain and encourage business expansion that you are missing in your jurisdiction?
The most widely sought-after tax credits and incentives include research and development credits, investment tax credits, job credits and facility expansion credits. Yet many of these credits are not claimed by taxpayers. Matt Dopkin identifies existing credit opportunities, gathers the requested information and prepares refund claims, and develops procedures for future periods, which are especially helpful since states and localities have different qualifications and filing requirements to secure these benefits.