State & Local Tax Controversy
The current economy left states with unprecedented budget deficits and the prospect of significant future budget shortfalls. Faced with this prospect, states are required to aggressively pursue tax reviews and audits to attempt to bridge these budget gaps. This environment of increased audit activity and expensive assessments will place a burden on every taxpayer to defend its tax positions and reduce its taxes.
Resolving tax audits favorably may be difficult for taxpayers in an environment when tax authorities become very creative in computing assessments.
Because tax auditors and agency administrators are on the lookout for ways to generate revenue, they resort to very aggressive tactics to enforce the tax laws. Anyone may find him/herself in the cross hairs of an aggressive state taxing agency’s auditors who are using more sophisticated methods of identifying potential taxpayers and imposing their respective laws.
Our experienced state and local tax (SALT) professionals—many of whom are former state government employees—work with state and local taxing agencies across many jurisdictions. We have developed relationships with auditors and key administrators to help you navigate, negotiate, and resolve audit and appeal issues. Our SALT team is experienced in the states’ audit techniques and can help manage an audit, negotiate with the auditors, or strategize with tax personnel to significantly reduce any tax exposure. We also work to minimize any potential liability by identifying opportunities for offsets of credits, overpayments and refunds.
Andersen Tax offers flexible pricing arrangements, in select circumstances, such as contingency pricing for our services. Our goal is to ensure that we not only meet your expectations, but also surpass them both in client service and convenience.
Andersen Tax takes a strategic approach in looking at your business to find opportunities and provide value in the following areas:
Audit Defense and Administrative Appeal
- Audit Defense Services: Our highly qualified team keeps abreast of trends and can work with the auditor and supervisory staff to help resolve the audit at the lowest possible level of administration.
- Administrative Hearings and Appeals: Andersen Tax has experienced professionals who handle all steps in the process of resolving your audit issues. We view ourselves as part of your team. We will scale our involvement accordingly based on whether you are actively involved or prefer that we manage the entire process. Our SALT professionals bring our experience and relationships with key personnel at state tax departments to your company.
- Regulatory Projects: Key issues and topics are addressed before state revenue departments to keep you up to date with the most important topics for your business when state revenue agencies act.
- Negotiated Settlements: The option to settle difficult matters often involves approaching the right people with the best alternative approach and persuasion. Our team can develop that approach with the relevant key state personnel to get you the best potential resolution without the time and expense of litigation or appeal.
Voluntary Disclosure Agreements and Strategic Refund Claims
- Voluntary Disclosure Agreements to States: Many states will limit the look-back period, negotiate resolution and waive penalties for taxpayers who voluntarily come forward to pay back taxes. Andersen Tax can also approach the state and local taxing authorities on an anonymous basis to assist you with identifying potential outcomes prior to your disclosure.
- Strategic and Protective Refund Claims: Our SALT team keeps abreast of key tax issues being appealed and litigated in your state to identify opportunities for you to file strategic claims on issues being addressed or resolved that may favorably impact your business. In addition, we can assist you in filing protective claims on important matters, navigating through the courts for you in order to protect potential refunds for prior years before the statute of limitations might otherwise expire.