Nexus Determination Review
The successful business is one that seeks opportunity for growth and development wherever it may lie. The truth is that most businesses don’t recognize state geographical markers when implementing their strategic vision. Attention is focused on ways to execute on the company’s strategic plan, which may include growth, expansion into new areas or competitor acquisitions. Although companies often ignore state and other boundaries in the course of business, state Departments of Revenue are paying close attention. For the last several years, states have been aggressively enforcing state, franchise, use and other tax regulations where nexus exists. Unfortunately, many companies only become aware a liability exists once contacted by a state. This puts them in a tenuous position and eliminates the opportunity for effective tax planning.
Nexus Determination Study
Through a nexus determination review, the tax professionals at Hanson & Co. work with companies in Denver and across Colorado to assess and identify where sufficient connection (or nexus) with a state or local jurisdiction exists. Once a determination is made, our team works with the company to create a compliance strategy. Each state has various rules governing compliance, and some offer voluntary disclosure programs. Because the laws vary by state, the compliance strategy will differ based on existing regulations and compliance rules. Regardless of the outcome, a nexus study will remove the mystery around where the company may have issues and serve as a foundation for creating a comprehensive tax planning strategy.
The last thing any company wants is an unexpected surprise, especially when it comes to taxes. Unidentified tax liabilities can result in penalties and fees in addition to the owed taxes. If your company has employees, vendors or suppliers in other states, it’s essential to conduct a study to understand your exposure. For additional information on state nexus determination reviews or for assistance with other multistate tax issues, call us at (303) 388-1010, or click here to contact us. We look forward to speaking with you soon.