State & Local Taxes
As your business expands, state and local tax obligations can become more complex. RKL’s SALT team helps you understand your requirements, identify savings opportunities, strengthen compliance, and resolve tax controversies.
Why Choose RKL to Handle Your State & Local Taxes?
Thousands of state and local tax (SALT) jurisdictions exist across the country, each with its own requirements, thresholds, and interpretations. Evolving nexus standards, remote work arrangements, multistate transactions, and changing business models make it increasingly difficult to determine where and how your business should comply.
RKL’s SALT experts help business owners and finance leaders navigate these challenges with confidence. We assess your activities, identify potential obligations and exposures, and recommend practical strategies tailored to your organization.
Our team offers deep experience in income tax planning and consulting, sales tax consulting, SALT controversy matters, and state and local tax due diligence. This breadth of knowledge allows us to identify planning opportunities, assess and mitigate state tax exposure, support transactions with informed diligence, and help you navigate disputes and compliance challenges effectively.
How RKL Works With You
When you work with RKL’s SALT team, we take the time to understand your business, activities, and tax needs. We evaluate relevant information to identify potential obligations, risks, savings opportunities, and areas for improvement.
Based on our analysis, we provide practical recommendations tailored to your circumstances. Whether you need assistance with compliance, planning, transactions, tax controversies, or ongoing support, our team helps you navigate state and local tax matters with greater clarity and confidence.
Our Core Services
From proactive planning and compliance to transaction support and audit defense, our SALT services help you manage obligations, reduce risk, and identify potential savings.
Nexus & Tax Compliance
Transaction Support
Tax Recovery
Consulting
Nexus Studies
- Identify state tax filing obligations
- Evaluate nexus standards and historical exposure
- Develop a plan for ongoing compliance
Voluntary Disclosure Assistance
- Evaluate VDA eligibility and potential benefits
- Prepare applications and manage state communications
- Complete required filings and transition to compliance
SALT Due Diligence
- Identify potential state and local tax liabilities
- Evaluate buyer exposure and successor liability
- Address issues before closing or going to market
Transaction Analysis & Restructuring
- Evaluate SALT implications of transactions
- Review tax provisions in transaction documents
- Identify opportunities to reduce risk and improve structure
Sales Tax Refund Reviews
- Identify overpayments and missed exemptions
- Assess refund eligibility and prepare claims
- Recommend process improvements to prevent future overpayments
Reverse Income Tax Audits
- Review prior filings and tax payments
- Identify potential overpayments
- Evaluate refund opportunities
Audit Defense & Appeals
- Respond to state tax audits and assessments
- Organize documentation and manage communications
- Support administrative appeals and dispute resolution
Apportionment, Sourcing & Taxability
- Analyze income tax apportionment and sourcing
- Determine the taxability of products, services, and transactions
- Evaluate Public Law 86-272 considerations
Pass-Through Entity Tax Analysis
- Evaluate available state elections
- Quantify potential benefits
- Support state and local tax planning
Frequently Asked Questions
What is state tax nexus?
Nexus is the level of connection between a business and a state that allows the state to impose a tax or filing obligation. Nexus may be created by employees, property, offices, inventory, customers, sales activity, or other business activities. The applicable standard can vary by jurisdiction, tax type, and entity type.
Does having remote employees create state tax obligations?
It can. An employee working in another state may create income, franchise, gross receipts, sales tax, payroll withholding, or other obligations for the employer. The specific impact depends on the state, the employee’s activities, the tax involved, and any applicable exceptions.
How do I know whether my business needs a nexus study?
A nexus study may be helpful if your business operates, employs workers, stores inventory, provides services, or sells products in multiple states. It can also be valuable following rapid growth, an acquisition, a change in business model, or the expansion of remote work arrangements.
What is a voluntary disclosure agreement?
A voluntary disclosure agreement is an arrangement through which an eligible taxpayer voluntarily reports previously unfiled state or local tax obligations. In exchange for filing returns and paying tax and interest for an agreed-upon lookback period, the state typically waives penalties and limits the number of prior years that must be filed.
Should we address a potential filing exposure before a state contacts us?
Addressing an exposure proactively may provide more options and be more cost effective than waiting for a state tax authority to make contact. For example, voluntary disclosure programs are generally available only when the taxpayer has not already been contacted by the state concerning the applicable tax. Eligibility and benefits vary, so each exposure should be evaluated individually.
Why is SALT due diligence important in a business transaction?
SALT due diligence can uncover unpaid taxes, unfiled returns, incorrect tax positions, and other exposures that may affect a transaction. Buyers may inherit certain liabilities, while sellers may face purchase price adjustments, escrow holdbacks, indemnification requirements, or delays if issues are identified late in the process.
Could our business be overpaying sales or use tax?
Yes. Overpayments may result from missed exemptions, incorrect taxability determinations, vendor errors, or inconsistent processes. Businesses with high purchasing volumes, multistate operations, frequent capital expenditures, or industry-specific exemptions may particularly benefit from a sales tax refund review.
Can RKL represent us during a state tax audit or appeal?
Yes. RKL can help manage communications with tax authorities, review and organize documentation, analyze proposed adjustments, develop response strategies, and represent taxpayers throughout the audit and administrative appeals process.
Do we need assistance with every type of state and local tax?
No. Our services are tailored to your needs. Some businesses engage us for a specific matter, such as a nexus study, refund review, VDA, or audit. Others rely on our team for assistance across multiple tax types and jurisdictions.
Meet Our State & Local Tax Leadership Team
Led by Matt Piatt, RKL’s State & Local Tax leadership team combines deep technical knowledge with firsthand experience working with state departments of revenue, tax appeal boards and policymakers. Our leaders help businesses navigate complex multistate obligations, uncover savings opportunities and resolve tax controversies with practical, tailored guidance. Connect with Matt and the SALT leadership team to learn how RKL can help you approach state and local tax matters with greater clarity and confidence.
Speak with an RKL Advisor
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