Business Tax Planning and Reverse Audits
As part of our tax planning services, WSTS associates will look at your business activities and review how you are reporting taxes to Washington state and local tax authorities. We will ensure that you are only paying your correct taxes and that your business is taking full advantage of all available tax exemptions and deductions. If your situation warrants it, we will perform a reverse audit to determine overpayments and assist your company in obtaining a tax refund.
A sample of areas that might affect how much you pay to Washington taxing authorities in state and local tax (SALT):
- The Washington State Department of Revenue (DOR) has recently changed their rules regarding apportionment of business reporting under the Service Classification of the business and occupation (B&O) tax. It is important that you understand the changes and are aware of the alternative reporting methods that are available to you.
- The Washington State DOR has unique rules relating to where delivery of goods is deemed to take place. Subtle changes in terms of delivery might materially affect your tax situation in Washington.
- Involved in manufacturing or research and development? Exemptions and credits relating to R&D and manufacturing are among the least understood in Washington business taxes. Policies and practices have continually evolved since legislation in these areas was first passed. Your business may not be taking the same exemptions and credits that your closest competitor is.
- Washington State has numerous incentive programs that can reduce your overall tax burden for both past and future periods. Staying abreast of recent legislative changes relating to the exemptions and deferrals is critical to effective tax planning.
Unregistered with the Washington Department of Revenue?
Effective tax planning might begin with minimizing past liability. If you feel that you might currently be out of compliance with a state or local tax authority, we can assist you. If you are doing business in Washington but have not registered with the Department of Revenue, WSTS can assist you in limiting the look-back period and eliminating or reducing penalties. Under the Department of Revenue’s Voluntary Disclosure program, you can remain anonymous while we negotiate the terms of a voluntary disclosure agreement (VDA) with the DOR. We can also assist your company in negotiating voluntary disclosures with other states, either by direct contact with those states or through the Multistate Tax Commission’s voluntary disclosure program.
Contact WSTS today to discuss your Washington business tax situation and find out how we can help.
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