State and local taxes are becoming a much more significant factor to businesses of all sizes

As a result of our growing economy, more businesses are expanding outside of the boundaries of their home state for both the purchase and sale of goods and services.  Are you concerned about state and local tax issues?  You probably should be!

States are becoming more aggressive

You may have already received an inquiry from another state regarding your company's business activities in their state.  Many states have auditors whose sole activity is to audit businesses around the country that are considered to be "doing business" in their state.  This has become a significant money raising activity for these states.  Did you fill out that inquiry correctly?

Are you in compliance with your home state?

Frequently businesses purchase goods through out of state vendors and are not charged sales tax on those purchases.  Your home state probably requires that you pay use tax on those purchases.  If it is discovered upon audit that your company has not paid either sales or use tax on your business purchases the auditing state could assess sizable penalties and interest on the deficiency.

Are you paying sales or use tax when not necessary?

The rules regarding sales and use taxes are not always so easy to understand or interpret.  Sometimes businesses will err on the side of safety and collect sales tax on all sales even though it may not be correct.  The same thought process is followed by some businesses with use tax; consequently they end up paying more tax than is necessary.  Many times there are specific exemptions written into the various states laws.  Your company may qualify for one or more of these exemptions.  We can

How can Hofmann & Company help you and your business?

We can provide consulting and assistance in addressing your state and local tax issues.  By analyzing your situation, we can:

· Determine if your company is in compliance with your home state's sales and use tax laws.

· Determine if you are subject to other states' sales and use tax laws, and if so, how best to minimize your exposure.

· Determine if your company is subject to other states' income or franchise tax laws.  Failure to comply with these laws can result in rather hefty penalties.

· Provide knowledgeable representation if your company is audited by state or local taxing authorities.