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Savvy tax strategies neutralize potential nexus issues


Problem

Increased travel for business development and customer service gave rise to nexus issues, potentially exposing the company to income and sales tax in states where employees had been traveling

Solution

BerryDunn’s experts worked with our client to:

  • Perform a comprehensive review to determine what, if any, prior income tax or sales tax exposure may have existed in a particular state 
  • Quantify an estimate of the potential amount of income or sales tax in order to determine the best solution for each state

Outcome

The result included a limited lookback period and waiver of all penalties. We helped the company file a refund claim in its home state that significantly reduced the net payment of income tax, sales tax, and interest. This process has mitigated future tax issues, and the amount of total state tax burden to the company will not increase. The company is now positioned to maximize opportunities with this managed approach to tax compliance.

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