Reverse SALT Audits: Examining Tax Reform Positions, Sales Sourcing, Combined Reporting Methods for Potential Refunds

Businesses that have paid state income, franchise, or sales and use taxes in multiple jurisdictions can find substantial tax savings by performing a reverse audit. A reverse audit reviews SALT taxes paid to find opportunities for refunds of taxes previously paid. Potential changes unearthed for prior years are often applicable to future years, generating ongoing increased cash flow.

Recent federal legislative changes have been adopted, adopted with modifications, or ignored by individual states. The complexity of these changes has led to the missed and misinterpreted application of tax at the state level. Previous treatment of recent legislative changes and the states' current position on these changes deserve a closer look. Practitioners relying on same as last year's treatment for apportionment and allocation factors, business and nonbusiness income, and combined or consolidated reporting methods should give these a second look as well.

Businesses often overlook sales tax exemptions, exclusions, and state and local credits that can provide long-term tax savings to businesses. Tax advisers working with multi-jurisdictional businesses need to be aware of tax incentives commonly offered by states and localities.

Listen as our panel of SALT experts explains opportunities available when electing apportionment methods, the treatment of throwback sales, and SALT incentives available to mitigate the state and sales taxes paid by businesses.

1. Reverse audits
2. Sales tax
3. State income tax
4. Other taxes
5. State tax credits
6. Best practices

The panel will review these and other critical issues:

• Identifying businesses that may benefit from a reverse audit
• Reviewing tax reform positions for potential savings
• Examining returns treatment of throwback sales and nowhere income for tax savings
• Recognizing common state credits and incentives

Learning Objectives

After completing this course, you will be able to:

• Identify commonly unclaimed state credits and incentives
• Determine common state sales tax exemptions
• Decide which businesses are prime candidates for reverse audits
• Ascertain when the potential tax savings from amending state returns outweighs potential audit risks

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of SALT taxation, nexus and apportionment as it applies to multi-state businesses.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.