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| Todd Workman, Managing Director of State & Local Tax, SC&H Group, a CPA and consulting firm attending the marcus evans CFO Summit XXV Fall 2012 and Tax Officers Summit XIV Fall 2012, on finding tax reduction opportunities. |
NEW YORK, N.Y., Oct 16, 2012 - (ACN Newswire) - State and local tax reduction opportunities are often buried in layers of detail, such that Chief Financial Officers (CFOs) and Tax Officers often do not have the internal resources needed to identify them, let alone pursue them, says Todd Workman, Managing Director of the State & Local Tax Practice of SC&H Group.
Although opportunities are available for taxpayers to proactively manage their state and local tax liabilities through effective planning and appeal rights, companies that are not able to spend the needed time in the details often end up overpaying, because the reporting and administration of state and local taxes is often geared, by default, to be in favor of the states and localities that benefit from the tax revenue, he adds.
From a CPA and consulting firm at the upcoming marcus evans CFO Summit XXV Fall 2012 and Tax Officers Summit XIV Fall 2012, in Las Vegas, Nevada, November 8-10, Workman highlights the tax saving opportunities that companies overlook.
- How can CFOs and Tax Officers better handle state and local taxes? What do they overlook that is costing their businesses money?
Many overlooked state and local tax costs and reduction opportunities are in the form of non-income taxes, which is an area that is often overlooked for lack of internal resources and expertise. Law and authoritative guidance related to non-income taxes such as property, sales and use, and business license taxes vary and are often inconsistent from state to state, and even from jurisdiction to jurisdiction within a state.
For a company with a multi-state network, there is often a significant amount of diversity in liabilities to manage. The result is that significant savings opportunities go overlooked, as the administration of the tax laws typically default in favor of the states or localities enjoying the tax revenue and companies do not always have the resources and expertise to identify and pursue savings opportunities.
Some companies take the path of hiring the mix of talent and experience that is typically required to manage these issues. Others cannot. For those companies, outside expertise can be found that can also help them set up processes and valuation metrics to identify and pursue savings opportunities, as well as implement processes to ensure future tax minimization.
- Why do some tax saving opportunities get overlooked?
State and local tax reporting tends to be deceptively simple. For example, states that impose a commercial personal property tax on machinery and equipment assess that property simply by applying standard percent-good tables to a cost of the property that is reported by the company. This produces a presumed value to which a corresponding tax rate is applied. This sounds simple enough, but that presumed value may be erroneous for a number of reasons. Without internal bandwidth or expertise companies are not in a position to rebut the presumed value and, by default, overpay.
In many cases, taxing authorities are reasonable and issues can be resolved when facts are presented in a compelling manner, but absent hearing from the taxpayer, they rely on the naturally biased default mechanisms to levy their taxes.
For lack of internal resources, many CFOs and even Tax Officers do not have the time to pursue the multitude of state and local tax savings opportunities that are available for their companies. Where that is the case, they should consider outside advisors who can help them achieve the savings that are available, as well as transfer the knowledge and help implement the steps to realize savings into the future.
For more information please send an email to info@marcusevanscy.com or visit the event websites below:
- CFO Summit XXV Fall 2012: www.cfosummits.com/ToddCWorkman
- Officers Summit XIV Fall 2012: www.taxofficerssummit.com/ToddCWorkman
Please note that the Summit is a closed business event and the number of participants strictly limited.
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About SC&H Group
SC&H Group is a CPA and management consulting firm advising leading companies on accounting, tax, profitability and strategy solutions that deliver exceptional business results. With approximately 300 employees, SC&H has offices in Maryland, Virginia, Georgia, Colorado, and Florida that provide services throughout the United States. www.scandh.com.
Contact:
Sarin Kouyoumdjian-Gurunlian
Press Manager, marcus evans, Summits Division
Tel: + 357 22 849 313
Email: press@marcusevanscy.com
Topic: Research / Industry Report
Source: marcus evans Summits
Sectors: Daily Finance, Daily News
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From the Asia Corporate News Network
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