With increased information sharing among states and the IRS, audits are on the rise. States target the unsuspecting business owner with a "Letter of Inquiry" to collect information on the company's multi-state activity. These letters are a precursor to an audit. Most controversies can be settled at the audit or administrative review level, once the facts and circumstances of the client's situation are effectively communicated to the taxing authority. We assist clients by providing thorough knowledge of the law and the positions and policies of the taxing authorities.
To minimize risk, a nexus review assists clients in quantifying their exposures through a state-by-state analysis of audit risk and liability magnitude. If it is determined that exposure exists, we utilize our extensive experience in negotiating voluntary disclosure agreements to settle a client's liabilities (commonly by 30-70% of the true liability) and coordinating future compliance.
