Multi-State Taxation
Tax Planning and Compliance Services
Does your business need to file taxes in another state?
You don’t have to open another office to have tax responsibilities in another state. An employee working remotely may create a filing requirement. Inventory stored outside your home state or sales to customers elsewhere can also raise tax questions.
Wegner CPAs helps you determine where those responsibilities begin. We review your activities across states and consider sales tax alongside income tax. If past filings need attention, we help you evaluate the exposure and prioritize what to address first.
Find out where you need to file
The starting point is nexus, the connection that allows a state to impose tax obligations on your business. That connection may come from a physical presence or, for some taxes, the amount of business you do in the state.
Sales tax and income tax have different nexus rules. A requirement to collect sales tax does not automatically mean you must file an income tax return in the same state.
We evaluate which requirements apply to your business and help you identify gaps in your current filings. That gives you a clearer basis for deciding where action is needed.
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Work through the differences between states
Once you know where filing requirements apply, you need to determine how each state treats your activity.
State Income Tax Apportionment
Apportionment is the method used to determine a state’s share of your taxable business income. States may use different rules, which can affect the amount of income reported on each return. We help evaluate how those rules apply to your operations and consider planning opportunities as your business changes.
Multistate Sales Tax
A product or service may be taxable in one state and exempt in another. Software subscriptions and transactions that combine products with services can raise additional questions. We help assess the applicable treatment and exemptions in the states where you do business.
Address past filing exposure with a plan
If your business has been active in a state without filing, it’s important to understand the potential exposure before deciding how to respond.
We help evaluate the obligations and identify priorities. Where appropriate, we can assess whether voluntary disclosure offers a way to resolve past filings. We consider how sales tax and income tax decisions may affect one another before you move forward with registrations or returns.
This review can also help you plan for future changes, such as hiring in another state or moving inventory to a new location.
Let’s talk about your multistate tax questions
Whether you’re entering a new state or reviewing past activity, we can help you determine what applies and how to move forward.
For help with a state tax audit or a question about a particular transaction, explore our State and Local Tax services.
Multistate tax help for individuals
Living and working in different states can affect your personal tax returns. Income from an out-of-state business or investment may also create a filing requirement.
We help individuals determine whether nonresident returns are needed and how income should be allocated. When questions arise about the tax due, we can review applicable credits and withholding.
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Going far beyond the standard accounting and tax services, our CPAs specialize in several industry areas and are in tune with the opportunities and challenges faced by each.
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