US State Tax Compliance

State & Local Tax (SALT) Compliance

On state and Local Tax compliance Our core strength lies in identifying the Nexus with the state, compute the apportionment factors based on the specific state laws and rule and preparing the separate / combined / consolidates / water’s edge state retuns.

We can take up the following activities for State and Local Tax compliance.

- Federal Taxable Income to be used as the starting point for the State Returns. Some State Returns starts with Line 28 (Taxable Income before NOL and special deduction) and some from Line 30 (Taxable Income after NOL and special deduction)

- Prepare the nexus analysis based on the various data and state rules to identify in which state taxpayer have filing requirement. Use of the Payroll, Property and Payroll as well as the other factors and state laws to determine the nexus with the state.

- In case of consolidated federal return filed, identify if a separate return or a combined/consolidated return is required for the state with Nexus.

- Preparing the Modification workpapers and update into the tax compliance software, Examples are as shown below

- Prepare the apportionment workpaper.

- Prepare workpaper for state rates. Identify of there is any change in the state tax rate form the prior year.
- Prepare workpaper related to any credit which may be utilized like California Business credit, Research and Development credit, and update into the Tax Compliance Software.
- Set up the elimination entity in tax compliance software and updating the elimination entries.
- Rollover the Net Operating Loss Cary Over workpaper for the states and update the workpaper with the current year Taxable Income/Loss
- Preparing the state forms for various states. We have experience in preparing all the state and local income tax return, including,

We can more activities which different organizations need to do