State and Local Taxes

Prosperity Partners’ best-in-class State and Local Tax team ensures businesses and individuals remain compliant with constantly evolving state and local tax laws. Whether seeking help with income, sales or property taxes or a complex nexus analysis, Prosperity’s clients benefit from our experience and expertise.

We assist clients with income/franchise, sales, payroll, and gross receipts taxes. Prosperity’s experts employ a rigorous process to gather information about client’s businesses to mitigate risk and state tax exposure. Additionally, with this information, we apply each state’s tax laws to generate the best possible tax planning and compliance outcomes. Our experience ensures clients pay the correct amount of state and local tax while offering planning opportunities to ensure clients do not pay more state tax than the law requires.

See below for a more detailed summary of our specific SALT services.

Income, Franchise and Gross Receipts Tax
Our state and local tax team can assist with your tax compliance requirements, mitigate tax exposure and develop strategies to confront reporting challenges. We will take the time to understand your business identify areas where you may not be reporting income in the most tax advantageous manner and eliminate risk in your state tax footprint. Our experienced state and local tax team offers the following services:

• State and Local Income/Franchise Tax Compliance
• Pass-Through Entity Tax Election Analysis
• Nexus Studies & Reviews
• Audit Defense
• Voluntary Disclosure Programs
• Apportionment Review
• Unitary Studies
• Mergers and Acquisitions
• Buy and Sell-Side Due Diligence Reviews
• Income Tax Planning and Entity Restructuring
• Residency Considerations

Sales Tax
Compliance with state sales tax rules requires organizational diligence and advance planning and is becoming a significant cost of doing business in the United States. Due to new state economic nexus rules and constantly evolving state law, compliance with sales tax filing requirements is unquestionably difficult. Our state and local experts helps clients understand their sales tax exposure, mitigate risk and establish processes to effectively manage ongoing compliance. Our experienced state and local tax team offers the following services:

• Audit Defense
• Buy-/Sell-Side Due Diligence
• Nexus Review
• Sales Tax Compliance
• Technical Opinions
• Voluntary Disclosure Programs

Payroll Tax
State payroll tax laws can be challenging for any company. Failure to comply with reporting requirements can result in multiple notices or penalties and require immediate action. Payroll tax regulations and deadlines are also constantly changing, creating potential for errors as businesses attempt to comply with payroll withholding and unemployment tax requirements. Further, remote or hybrid work arrangements increase a businesses’ compliance burden, as each state has different rules and requirements. Whether a business manages its payroll function internally or outsources to a payroll provider, there are many situations that require guidance from tax experts. Our state and local tax team has experience in helping companies identify compliance requirements, establish state registrations, develop compliance protocols, address tax notices and resolve past tax liabilities.

Credits and Incentives
Our state and local tax team works with our clients to identify credits and incentives to offset the costs of new or expanded facility investments, qualified business research, or workforce expansion. We work with our clients to understand opportunities and to help resolve the complexities and red tape of identifying and securing tax credits and incentives.

Unclaimed Property
Unclaimed property is tangible or intangible property that becomes dormant for a specific time period. Examples of property include bank accounts, vendor checks, payroll checks and unused gift cards, among others. States impose a statutory reporting requirement on every organization regardless of industry or size. Unclaimed property is not a tax, but there are numerous compliance considerations, including accurately reporting unclaimed property to the appropriate jurisdictions. Under audit, holders of unclaimed property could be subject to significant liabilities and interest and penalty that can result from periods of noncompliance.

We provide the following services:

• Audit defense
• Compliance
• Exposure quantification
• Risk assessment and process reviews
• Voluntary disclosure programs