Reinforce Your Tax Position & Recover Your Overpaid State Income Taxes
Although companies have their clients' best intentions, it can be difficult for some companies to ensure proper tax compliance across multiple states and jurisdictions. Process errors left uncorrected can build up over months, or even years, affecting cash flow and financial statements. Common exemplification of these errors comprise failure to take available credits or deductions, invalid tax rate or apportionment factor calculation based on special industry requirements, tax returns filed without a nexus needs and/or imprecise net operating loss treatment. In some cases, these errors can expose opportunities for business tax recovery, whereas other times, they may reveal your business to audits and penalties. In all cases, an inverse income tax audit can shine light on the process improvements that may improve the all-inclusive precision of your state income tax compliance function while making cash tax and effective tax rate savings.
SG INC CPA is competent and confident enough to minimize your tax deficit and help you to save your income.
In our expertise, audits that emphasis on state income tax recovery are specifically beneficial to companies with any of the following:
- Large state income or franchise tax liabilities
- Recent participation in a disposition, merger or other transaction
- Recent changes in business model or locations
- Frequent changes in tax personnel or leadership turnover
- Current or recent state income tax audit
Keep in mind that the state is only tasked with identifying underpayments during an audit and is not required to notify you for overpayment. By conducting a reverse income tax audit, companies may be able to reclaim overpaid tax–and the resulting refunds can help offset any liabilities assessed by the state. Our reverse income tax audit method is economical, efficient and orderly, requiring minimal time.