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Master State and Local Taxes for Your U.S. Expansion

This article is part of an ongoing series, “Navigating the Complexities of Setting Up a Business in the USA”. View all the articles in the series here.

Key Takeaways:

Understand economic nexus to avoid unexpected tax liabilities when expanding your business into the United States.
State-specific sales tax rules vary widely; compliance avoids penalties and streamlines operations.
Consulting with tax professionals can help you navigate complex state and local taxes, enhancing your U.S. expansion strategy.

The U.S. continues to captivate global businesses, attracting significant foreign direct investment (FDI). It’s easy to understand why: Entering the U.S. market is a strategic move that gives your business access to a vast customer base and a thriving economy. However, this opportunity also comes with the challenge of navigating a complex tax landscape. Understanding the nuances of state and local taxes is crucial to maintaining compliance while refining your U.S. operations.

This article explores critical aspects of state and local tax issues — focusing on economic nexus, sales tax obligations, and the importance of consulting services in navigating these challenges.

Overview of State and Local Tax Complexities

The U.S. tax system is uniquely intricate, with businesses required to navigate not only federal taxes but also the varying tax rules of 50 states and many localities. As a strong influx of FDI drives more companies to establish operations in the U.S., many of these businesses find themselves unprepared for this complex tax environment. Companies must stay compliant across multiple jurisdictions — a challenge that can significantly impact your overall tax burden.

Consider a European company expanding its e-commerce operations into the U.S. The company quickly discovered that a lack of understanding of state-specific sales tax obligations led to non-compliance, resulting in costly penalties and accumulating interest. By consulting with tax professionals, the business streamlined its tax compliance processes and reduced its overall tax liability — highlighting the importance of professional guidance.

Economic Nexus

Definition and Implications of Economic Nexus

Economic nexus refers to a business’s economic activity within a state, which may create a tax obligation regardless of physical presence. This concept gained prominence following the 2018 Supreme Court decision in South Dakota v. Wayfair, Inc., which allowed states to require businesses with significant economic activity in a state to collect and remit sales tax (even if the company has no physical presence in the jurisdiction). Since the Wayfair decision, an increasing number of states are applying economic nexus for both sales and use taxes as well as state income taxes through the use of a factor presence nexus standard.

State-by-State Nexus Thresholds

It is crucial to understand each state’s threshold for economic nexus. It’s also important to understand that the economic nexus threshold for sales and use tax may not be the same as the threshold for income tax. For example, in New York, a business with more than $500,000 in sales and 100 transactions within the state must collect and remit sales tax. However, a corporation is not subject to New York corporate income/franchise tax unless its New York receipts equal or exceed $1,000,000. Other states may have higher or lower economic thresholds. Keeping track of these varying standards is essential for proper compliance.

Impact of Legislation

Changes in state and local tax laws, such as those resulting from the Wayfair decision, have far reaching implications for businesses — especially in e-commerce. Your company must continually monitor changes in state tax laws to remain compliant and avoid unexpected tax liabilities.

Infographic-Master-Taxes-for-U.S.-Expansion_v01-11-14-2024

Sales Tax Obligations

Sales tax requirements in the U.S. are state-specific, with each state setting its own rates, rules, and exemptions. This can be particularly challenging if your company operates in multiple states, as you must manage varying tax obligations depending on the jurisdictions where you conduct business. For instance, while a good or service may be subject to sales tax in some states, it may be exempt in others.

Examples of Compliance Challenges

Compliance with state-specific sales tax rules can be complex and time-consuming. For instance, a company might face challenges in categorizing products or services as taxable or nontaxable according to each state’s tax code. Additionally, managing exemption certificates, state and local tax rates, filing deadlines, and keeping up with ever-changing tax laws can create significant administrative burdens.

Industry Specific Considerations

The sales tax challenges facing businesses vary from industry to industry. For example, an e-commerce company selling software-as-a-service (SaaS) may find its revenue is subject to sales tax in some states while not in others. To properly address the issue, the company should understand how the various states source their revenue. Then the company should review those identified states’ laws to determine how they define taxable products and services. Finally, the company needs to understand how each state applies similar laws in their own unique manner. Understanding these nuances is critical for correct tax collection and reporting.

Consulting Services

Role of Consulting in Navigating State and Local Taxes

Given the complexities of state and local tax laws, consulting with tax professionals is crucial. They can help your business understand its tax obligations, develop strategies to minimize your tax burden, and verify you are compliant with evolving state and local tax rules and regulations.

Consulting Strategies for Compliance

Nexus studies: Consultants can conduct nexus studies to determine where a business has tax obligations, helping you avoid potential penalties for non-compliance.
Automation tools: Consultants can assist you with implementing tax automation software to streamline the process of calculating, collecting, and remitting sales tax across multiple states.
Audit representation: Consultants can aid with state tax audits by helping to prepare all necessary documentation, confirm the company is fully compliant with tax laws, communicate directly with the auditor, and provide nuanced arguments regarding tax positions taken.

Tax Credits and Incentives

Consultants can help businesses take advantage of state-specific tax credits and incentives, which could be a deciding factor for where to set up a new facility. For example, states like California offer significant credits for research and development (R&D) activities. Your business should conduct a comparative analysis of the tax incentives offered by different states. A state currently receiving high levels of FDI may offer significant tax credits for R&D activities or job creation, which could be critical for manufacturing companies deciding where to locate their operations. These incentives are often part of state-level strategies to attract more foreign businesses.

Emerging Trends and Future Considerations

Changes in State Tax Policy

One emerging trend is the increasing reliance on sales tax by states due to declining income tax revenues — a shift that may be partially influenced by broader economic trends, including strong FDI inflows into the U.S. Your business can prepare for these changes by staying informed about legislative updates and adjusting your tax strategies accordingly. A state and local tax consultant can play an instrumental role in assisting your company in keeping up with these trends.

Impact of Remote Work

Since COVID, the rise of remote work has further complicated state tax obligations. Companies with remote employees in multiple states may face new tax liabilities even if the business has no other physical presence (like an office). Additionally, as remote work becomes more prevalent, the tax obligations for companies with employees in multiple jurisdictions are becoming increasingly complex, further underscoring the need for proactive tax planning.

Tax Treaty Considerations

While primarily a federal issue, international tax treaties can influence state tax obligations indirectly. For instance, income tax treaties might mitigate double taxation. Although states are not parties to foreign tax treaties, your business should be aware of how state and local taxes may interact with these income treaties.

Preparing Your Business for U.S. State and Local Tax Compliance

Successfully navigating the complexities of state and local tax is a critical part of expanding your business into the U.S. By understanding economic nexus, managing sales tax obligations, utilizing consulting services, and staying ahead of emerging trends, your business can maintain compliance, avoid penalties, and improve its operations in the complex state and local tax environment. As the U.S. continues to attract significant FDI, being well-prepared and staying informed will be key to achieving long-term success.

For further insights and guidance on expanding your business into the U.S., reach out to our International Tax team today.

Setting up a business in the U.S. requires thorough planning and an understanding of various regulatory and operational challenges. In this series, we will delve into specific aspects of this process, providing guidance and practical tips. Our next article will dive into pre-arrival tax planning.

How to Secure Your Financial Future as a Professional Gamer

Key Takeaways:

Professional gaming careers can be lucrative but short-lived, making smart financial management crucial from the start.
Mastering the intricacies of contracts, taxes, and revenue streams is essential for pro gamers to maximize earnings and avoid costly pitfalls.
Building a sustainable financial future in esports demands a strategic balance between capitalizing on current opportunities and planning to achieve long-term goals.

The rise of electronic sports (esports) has been nothing short of phenomenal. According to Variety, esports viewership increased a whopping 92% from 2019 to 2023 — with viewers watching more than 2.5 billion hours of esports events last year. Major colleges and universities like Ohio State now offer esports degrees, and brands like Intel, Coca-Cola, and Mastercard are spending millions on esports sponsorships each year.

As a professional gamer, you’re part of this fast-growing industry. But with the thrill of competition and the allure of sponsorships comes the challenge of managing your earnings. Whether you’re streaming on Twitch, competing on the esports circuit, or signing a deal with a major brand, understanding how to manage and maximize your income is crucial.

Making the Right Deal: Stream Play Versus Team Play

As a pro gamer, you’ll likely face a key decision: Should you focus on building your own brand through streaming or join a team? Both options have their pros and cons, and your choice will impact your earnings significantly.

Streaming: Building Your Own Brand

Streaming offers you the opportunity to build a personal brand and connect directly with your audience. Platforms like Twitch and YouTube allow you to monetize your content through ads, subscriptions, and donations. However, it also means you’re responsible for managing your content, marketing yourself, and properly tracking and reporting your earnings.

An additional challenge with streaming is validating that you’re getting the right percentage from platforms like YouTube. Are you confident that your views and ad revenue are being reported accurately? This is where working with a financial advisor or a business manager can help. They can audit your earnings, verify you’re being paid fairly, and help you optimize your revenue streams.

Joining a Team: Stability with a Salary

Joining an esports team can provide a steady salary and the chance to compete at the highest levels. Teams often handle sponsorships, brand deals, and the logistics of competition, allowing you to focus solely on your gameplay. However, the trade-off is that you may have less control over your brand, and the team may take a cut of your earnings from sponsorships or tournament winnings.

Before signing with a team, it’s critical to have a lawyer review your contract. They can help you understand the terms, such as how much of your earnings the team will take, what happens if you leave the team, and what other obligations you may have. Remember, a contract that seems straightforward can contain clauses that significantly impact your income and career.

Navigating Taxes in Professional Gaming and Esports

As you start earning from your gaming career, taxes are one of the first challenges you’ll face. Your earnings — whether from streaming, sponsorships, or tournament winnings — are all taxable. It’s essential to understand how taxes work in both the country/locality where you live, as well as any jurisdictions where you earn money.

Domestic Taxes: Earning Income Across the U.S.

In the United States, professional gamers are often subject to what’s known as the “jock tax.” Originally designed for athletes, this tax rule applies to individuals who earn income in states where they do not reside. Today, the rule extends beyond athletes to include high-income earners like entertainers and competitive gamers. The tax is typically based on the number of “duty days” you spend in a state for income-generating activities.

For example, if you live in Illinois and come to California for a tournament, California can tax you on that income — even if you’re only there for a few days. Enforcement of the “jock tax” varies by state and locality, and whether you are taxed may depend on how much you earn (the more you make, the more likely you are to be taxed). Because of varying state and local tax rules, you may end up owing taxes in multiple states and localities depending on where you compete and earn income.

Additionally, if you’re selling merchandise or other products as part of your brand, you’ll also need to be aware of sales tax obligations. Depending on where your customers are located, you may be responsible for collecting and remitting sales tax to different states and localities. Each jurisdiction has its own rules, and failing to comply with them could result in penalties or back taxes.

International Taxes: Considerations for Global Gamers

With esports growing globally, you might earn pro-gaming income from multiple countries — each with its own tax rules. For example, if you win a tournament in South Korea or get sponsorship from a European company, you may owe taxes in those countries. You also need to report all foreign income to your home country, adding complexity to your taxes.

Here are some considerations to keep in mind when managing international taxes:

Double taxation: To avoid paying taxes in two countries on the same income, you can use options like exclusions or foreign tax credits (FTCs). Tax treaties between some countries can also reduce your tax burden. But not all countries have treaties, and claiming these credits can involve complex filings and detailed records. Knowing your options and understanding how to apply them can help you manage your taxes strategically and minimize what you owe across borders.
Withholding taxes: Various countries impose a withholding obligation on certain types of revenue streams. This means, before you receive your earnings, the country may withhold a portion of your taxes. The rate varies depending on the type of income and local tax laws.
Intellectual property (IP): Savvy professional gamers are cognizant of IP such as copyrights and trademarks, as well as name image and likeness (NIL). Whether revenue streams like photoshoots, appearances, speaking engagements, and even your social media presence are compensated as “services” or a “right of use” can influence taxation in various countries. Having clear contracts that appropriately define income classes can help you best manage taxation and protect your rights.

Given the complexity of both domestic and international tax laws, it’s wise to consult with a tax team familiar with the esports industry. They can help you navigate multistate and international tax rules, take advantage of deductions and credits, and structure your finances in a way that minimizes your tax burden across multiple jurisdictions.

5 Common Financial Pitfalls Pro Gamers Should Avoid

In the fast-paced world of esports and professional gaming, it’s easy to get caught up in the excitement and make decisions that could hurt your financial future. Here are a few pitfalls to watch out for:

1. Don’t Rush into Contracts

It’s tempting to sign the first deal that comes your way, especially when there’s a significant amount of money involved. But taking your time to understand the terms of the contract can save you from potential headaches down the line. Work with legal and financial advisors to review any offers before you sign.

2. Watch Out for Hidden Costs

Some deals come with hidden costs that can eat into your earnings. For example, if a team covers your living expenses but then deducts those costs from your winnings you could end up with much less than you expected. Always ask for a detailed breakdown of any expenses and how they will be handled.

3. Budget for the Long Haul

Esports careers can be short — a recent Washington Post headline read “Esports stars have shorter careers than NFL players” — with the peak years often occurring in your early 20s. This makes budgeting and saving for the future even more important.

4. Prioritize Needs Over Wants

When the money starts rolling in, it can be tempting to splurge on the latest gear or a luxury lifestyle. But remember, this income may not last forever. Prioritize saving and investing your money wisely. Work with a financial advisor to create a budget that accounts for your current needs and future goals.

5. Plan for a Sustainable Future

Consider how your current earnings can help you achieve your long-term goals. Whether you want to invest in a new business, save for retirement, or buy a home, planning ahead is key. This is where having a solid financial plan and the right advice can make all the difference.

Level Up Your Financial Strategy

Managing your finances as a pro gamer can be overwhelming, especially when you’re focused on winning and building your brand. That’s why having experienced professionals in your corner can make all the difference. Working with a team of advisors — whether it’s a tax professional, lawyer, or financial planner — can give you the peace of mind to focus on your game knowing your finances are in good hands.

How MGO Can Help

We know the unique challenges you face as a professional gamer. From reviewing contracts to navigating international taxes, we’re here to help you maximize your earnings and secure your financial future. Before you sign any deal or make a financial decision, talk to our Entertainment, Sports, and Media team.

How to Keep Your Growing Tech Company State and Local Tax Compliant

Key Takeaways:

Tech companies have historically faced complex state and local tax challenges, particularly regarding nexus and sales tax.
Understanding product and service classification, customer types, transaction documents, and research and development activities is crucial to navigating tax challenges.
Regular nexus reviews and proactive tax planning can help companies determine compliance, mitigate risks, and identify savings opportunities.

For technology companies, state and local tax (SALT) — particularly issues related to nexus and sales tax — can be a minefield. Here is what you need to know to stay compliant and avoid costly mistakes.

Understanding Nexus and Protected Activities

Nexus determines whether your company has a taxable presence in a state. For today’s tech businesses with customers spanning across the U.S., nexus can be triggered more easily than you might think.

For sales tax purposes, in addition to physical presence, most states have statutes that establish a “bright line test” based on sales revenue and/or transactions. Generally, the rule is $100,000 or more in sales and/or more than 200 transactions occurring in a state. This is referred to as “economic nexus.”
For state/local income tax purposes, in addition to physical presence, some jurisdictions also have a “bright line test” based on the presence of certain factors including property, payroll, or sales in a state. This test is referred to as “the factor presence test.”

Additionally, for net income tax purposes, there is a federal law that protects certain activities performed by taxpayers selling tangible personal property. Public Law 86-272 (PL 86-272) shields most sales solicitation activities — which would normally be subject to income tax — from a state’s jurisdiction. However, assisting with installations, calibrations, or training are among activities typically not protected (even though these tasks may support the sales process). This common selling practice in the tech industry often creates income tax nexus without companies realizing it.

PL 86-272 does not apply to service providers. Thus, to the extent the revenue generated by a tech company is for services (as defined by each state) and the company solely solicits sales in the state, the activity will nonetheless create income tax nexus in that state.

For franchise tax, gross receipts tax and other state/local taxes, nexus thresholds may be far lower than the ones discussed. In addition, the PL 86-272 protections do not apply.

The application of nexus rules by tax type to the tech industry is extremely complex and requires a review by a state tax law professional.

Navigating Sales Tax Complexities

In addition to nexus, sales tax rules can vary significantly from one jurisdiction to another, making compliance challenging for tech companies. Two main factors drive this complexity:

1. Product and Service Classification and Documentation

Different states may classify your product/service in different ways, affecting its taxability. This is especially true in the tech industry where states are continuously examining the definition of software as a service (SaaS). For example, one state might conclude your product/service is software while another state may classify it as data processing. State auditors will review your revenue streams, documentation, etc., to make the determination. This conclusion matters as some states tax data processing while others may not.

The classification also matters in the application of sourcing rules by state. For example, sourcing software revenue may differ state by state. It may be sourced based on where the software or server is located in one state and where the user is located in another state. The complexity arises in applying two (2) sets of rules on the revenue generated from the same transaction.

2. Customer Type

The taxability of your product/service can also depend on the type of customer you sell to. Nonprofit organizations, healthcare facilities, government entities, and wholesalers may be exempt from sales tax in certain jurisdictions. Keeping accurate exemption certificates is essential when selling to a mix of taxable and exempt customers to avoid over collecting or under collecting taxes.

Exploring Tax Credits and Incentives

In addition to understanding your nexus and sales tax obligations, your company may also benefit from exploring tax credits and incentives available at the state and local level such as:

R&D Tax Credits

Tech companies frequently engage in research and development (R&D), which can qualify for substantial tax benefits. Similar to federal R&D tax credits, many states offer R&D credits that can help reduce your overall tax burden.

Environmental Incentives

As your company expands, you may invest in new office space or facilities, incorporating environmentally friendly technologies. Some states offer environmental tax credits that can help you reduce costs while contributing to sustainability initiatives.

4 Key Strategies for Staying SALT Compliant

Keeping up with state and local tax laws can be overwhelming — especially when they are constantly changing. Here are strategies to help you stay compliant:

1. Understand Your Obligations

Staying compliant starts with understanding how your products and services are classified for both income and sales tax purposes. Each state may treat your offerings differently and understanding whether your product and/or service is taxable, and at what rate, is critical. Additionally, you need to assess your support and sales activities to determine whether they are protected activities, such as those covered by PL86-272, or if they create taxable presence (nexus).

2. Simplify with Software

Sales tax software can help streamline your compliance process. Many tech companies operating in multiple states use this tool to add sales tax automatically to customer invoices. The software calculates the tax rate for each location based on state, local, and district level rules. It can also help with tracking transactions and automating sales tax filings, reducing errors, and saving time.

3. Document Your Decisions

Meticulous documentation is key to maintaining compliance, especially if your company is subject to an audit. Keep records of decisions on tax classifications, nexus determinations, and exemptions. This documentation will be invaluable during an audit — helping you prove that your company acted in good faith and followed the appropriate processes.

4. Conduct Regular Reviews

As your business grows, so do your tax obligations. It is important to periodically review your nexus footprint — especially when expanding into new states or hiring remote employees. A nexus review assesses your corporate and selling activities by state to determine if your company has tax nexus and therefore potential tax exposure and filing obligations. Regular nexus reviews will help you collect and remit sales taxes and pay income and gross receipts taxes in all necessary jurisdictions and avoid penalties for non-compliance.

Taking a Proactive Approach to SALT

As your tech company expands into new markets, staying ahead of state and local tax (SALT) obligations becomes increasingly important. Regular nexus reviews and proactive tax planning not only helps you avoid costly mistakes but also positions your company for sustainable growth.

How MGO Can Help

With extensive experience working with technology companies and a dedicated SALT team, we can help you effectively navigate the complexities of state and local taxes. Through our nexus review process, we analyze your multistate activities — including sales, payroll, and property presence — to develop a tailored SALT compliance plan and resolve outstanding liabilities resulting from unpaid taxes in various jurisdictions.

In addition, our Tax Credits and Incentives team can help you determine if you qualify for any state and local tax credits to offset your tax burden.

Reach out to our team today to gain clarity on your SALT obligations and protect your business.

Prepare for These Key Operational Challenges with Your U.S. Expansion

This article is part of an ongoing series, “Navigating the Complexities of Setting Up a Business in the USA”. View all the articles in the series here.

Key Takeaways:

Plan for U.S. employee benefits — they differ greatly from other countries and require employer management.
Choose the right U.S. location to improve coordination, tax benefits, and operational efficiency.
Secure proper insurance and banking solutions to avoid common challenges faced by foreign businesses in the U.S.

Expanding into the United States is a strategic move that offers your business significant opportunities for growth — particularly as the U.S. continues to attract substantial foreign direct investment (FDI). Recent data highlights the U.S. as a leading destination for global businesses, but companies entering the U.S. market still face a host of operational challenges. Careful planning and a thorough understanding of the regulatory and logistical landscape are crucial for a smooth transition.

This article delves into the operational considerations your business must address when expanding into the U.S. — focusing on employee benefits, coordination, supply chain management, insurance, and banking.

Importance of Operational Planning

Effective operational planning is the cornerstone of a successful expansion into the U.S. market, especially as FDI continues to drive economic growth in the region. This planning involves not only understanding the regulatory environment but also anticipating challenges related to employee management, supply chains, insurance, and financial operations. Inadequate planning can result in significant delays, increased costs, and potential legal issues — which can be particularly detrimental in a competitive market increasingly influenced by global investment.

Employee Benefits and Regulations

When expanding to the U.S., your company must navigate a complex landscape of employee benefits and regulations — which differ from those in your home country. In many sectors that are seeing increased FDI, such as manufacturing and technology, understanding and managing these benefits is critical to attracting and retaining top talent in the competitive U.S. job market.

Differences in Employee Benefits Between the U.S. and Other Countries: In many countries, such as those in the European Union, employee benefits like health insurance and retirement plans are often managed or mandated by the government. However, in the U.S., these benefits are typically the responsibility of the employer. This shift can be surprising for foreign companies, requiring a thorough understanding of U.S. labor laws and regulations.
Health Insurance, Retirement Plans, and Other Benefits: U.S. employers are generally expected to provide health insurance as a standard benefit — with medical, dental, and vision benefits often requiring contracts with separate insurance carriers. Employers must typically cover 50% of insurance costs (though minimum coverage varies by state). Many companies also offer retirement plans such as 401(k)s. Navigating the selection and administration of these benefits can be challenging, particularly for small- or medium-sized enterprises. You may need to consult with benefits professionals to stay compliant with U.S. regulations and remain competitive in the job market.

Logistics and Supply Chain Management

Managing U.S. operations efficiently requires careful consideration of location, coordination, and infrastructure needs. Strategic decisions about operational setup can have a notable impact on your overall business success.

Choosing the Right Location for Operations: The U.S. is a vast country with significant regional differences in cost, labor availability, and infrastructure. Selecting the right location for your operations can affect everything from shipping costs to employee satisfaction. For instance, companies focused on manufacturing might prefer regions with lower labor costs and favorable tax treatments; those in distribution might prioritize proximity to major logistics hubs.
Shipping and Inventory Management: Efficient shipping and inventory management are essential to support product flow and meet customer expectations. Foreign companies in the U.S. often rely on third-party providers to manage these aspects — especially if they lack a physical presence. However, this can create tax obligations in multiple states, as having inventory in a state may trigger state and local tax filing requirements.
Obtaining the Necessary Insurance Coverage: Foreign companies often discover their existing insurance policies do not cover their U.S. operations. It’s crucial to secure the appropriate insurance coverage — either through global policies that extend to the U.S. or by obtaining new policies tailored to U.S. risks. Your coverage needs may include general liability, property, product liability, workers’ compensation, and employment practices liability depending on the nature of the business.
Challenges in Opening Bank Accounts: Opening a bank account in the U.S. can be a complex process for foreign-owned businesses. Some banks may be hesitant to provide accounts or offer credit facilities to companies without a U.S. presence or substantial collateral. This can limit access to credit and other financial services, making it essential to plan financial operations carefully.

Setting Your Business Up for U.S. Success

Expanding into the U.S. market requires careful consideration of various operational factors — from employee benefits and logistics to insurance and banking. As the U.S. continues to attract substantial foreign direct investment, it is critical to understand and address these challenges to be competitive and position your business for successful growth. By planning accordingly, you can capitalize on the opportunities presented by this dynamic market.

Ready to launch your U.S. expansion? Reach out to our team today to learn how we can help support your operational planning efforts.

Massachusetts Tax Amnesty: What You Need to Know

Key Takeaways:

Massachusetts Tax Amnesty 2024 offers penalty relief for unfiled returns or outstanding tax liabilities from periods before December 31, 2024.
Eligible taxpayers can request waivers on penalties for personal income, corporate excise, sales and use, and other taxes from November 1 through December 30, 2024.
MGO’s State and Local Tax team can help you determine eligibility, prepare returns, and file amnesty requests for the program.

If you are a Massachusetts taxpayer who missed filing a tax return, filed an amended return, has unpaid taxes, or is currently involved in an audit or appellate review, don’t miss this valuable limited-time opportunity to get penalty relief.

From November 1, 2024, to December 30, 2024, the Massachusetts Department of Revenue is offering a tax amnesty program. This program allows eligible taxpayers to request a waiver of penalties on outstanding tax liabilities for any filing periods with a return due date on or before December 31, 2024.

What Types of Taxes Are Covered?

This program includes a variety of tax types, such as:

Personal Income Tax
Corporate Excise Tax
Partnership Income Tax
Sales and Use Tax
Trusts and Estates
Marijuana Retail Tax
Room Occupancy Tax
Pass-Through Entity Withholding
And more (you can find a full list of eligible and ineligible tax types on the Massachusetts Department of Revenue website)

Who Is Eligible?

Taxpayers may qualify for amnesty if they have:

Unfiled returns, underreported income, or outstanding tax obligations.
Audits for periods with returns due on or before December 31, 2024.
Pending resolution or appellate tax board cases.
Open collection cases.

Who Is NOT Eligible?

Taxpayers are not eligible if they:

Received amnesty relief in 2015 or 2016 for the same tax type and period.
Are looking to waive penalties on taxes already paid.
Are requesting a refund or credit for overpayment.
Are under a tax-related criminal investigation or prosecution.
Are currently in bankruptcy.

Special Rules for Non-Filers

For eligible non-filers, the program offers a limited look-back period of three years. This means qualifying non-filers will only need to submit returns for the last three years (January 1, 2022 – December 31, 2024).

However, this limited look-back period does not apply to non-filers who have been contacted by the Massachusetts Department of Revenue about unfiled returns, taxpayers responsible for trustee taxes (such as sales and use, withholding, and marijuana retail taxes), or those filing estate tax returns.

How to Participate in the Amnesty Program

To participate in the Massachusetts tax amnesty program, you must:

Submit an amnesty request through MassTaxConnect.
Pay the full amount of tax and interest owed by December 30, 2024.
File all required returns (via MassTaxConnect or third-party software) by December 30, 2024.

How MGO Can Help

Navigating the Massachusetts tax amnesty program can be complex. Our State and Local Tax team is here to guide you every step of the way. We can help you:

Determine if you or your business have a Massachusetts filing obligation.
Analyze any nexus exposure and find potential liabilities.
Prepare and file the required returns accurately and on time.
Confirm your amnesty request is submitted properly in compliance with all state guidelines.

MGO has extensive experience helping clients with state and local tax matters, including amnesty programs. Our team is committed to helping you resolve outstanding tax issues, minimize penalties, and stay compliant with state tax regulations.

Don’t wait — reach out to our team today to find how we can help you save.

3 Game-Changing Financial Tips for Student Athletes Scoring NIL Deals

Executive Summary:

Name, image, and likeness (NIL) deals offer athletes exciting opportunities, but also potential pitfalls if not approached strategically.
Athletes should educate themselves on taxes, carefully review contracts, and budget with long-term security in mind.
With guidance on financial obligations, agreements, and smart money management, athletes can maximize NIL benefits while safeguarding their futures.

You are a talented young athlete with a growing public profile. You’ve just been offered a Name, Image, and Likeness (NIL) deal, an opportunity that can put some extra money in your pocket or even, in some cases, make a more profound impact on your financial life. It’s an exhilarating time, but it’s also crucial to approach this new chapter with the right knowledge and mindset.

New Division I NIL Disclosure and Assistance Rules

The Division I Board of Directors recently made some notable updates to its NIL rules, which went into effect on August 1, 2024. Key changes include:

Increased NIL assistance: Schools are now permitted to assist student-athletes in identifying NIL opportunities and facilitating deals with third parties, provided the athlete discloses their NIL arrangements. While schools can help, student-athletes maintain full control over the terms of their agreements.
Expanded disclosure requirements: To receive NIL-related support from their school, student-athletes must disclose any NIL agreement valued at $600 or more within 30 days of signing the contract. This applies to both current and prospective student-athletes.
New NIL reporting platform: The NCAA has launched NIL Assist, a mobile-friendly platform that streamlines NIL disclosure, provides educational resources, and allows student-athletes to review service providers.
Post-eligibility insurance: The NCAA has also introduced post-eligibility insurance for all divisions, covering injuries sustained during participation in college athletics for up to two years after graduation. This includes up to $25,000 for mental health services.

These changes are designed to provide student-athletes with increased NIL-related support and flexibility while maintaining fairness and clarity in the ever-evolving NIL landscape.

Three Essential Financial “Plays” Every NIL Athlete Needs to Know

Whether you’re a college or high-school athlete, or the trusted advisor to a young athlete, here are three critical actions you should take to avoid common financial pitfalls associated with NIL deals.

1. Recognize Your Tax Obligation

One of the first hurdles you’ll encounter in the world of NIL deals is taxes. It’s essential to understand that the money you earn from these deals is subject to taxation. Many young athletes overlook this, often because they’ve never had to deal with taxes before.

To avoid potential financial trouble down the road, consider these steps:

Educate Yourself: Young athletes receiving payments from NIL deals are responsible for paying taxes on that income just like professional athletes. Take the time to learn about taxes, especially how they apply to your earnings. Understanding the basics of taxation will empower you to make informed decisions.
Consult a Tax Professional: Before signing any NIL agreement, consult with an experienced accountant, tax advisor, or business manager. They can help you calculate your tax obligations, identify potential deductions, and develop a tax strategy tailored to your situation. Along with ensuring any federal, state, and local taxes you owe are paid on time (avoiding penalties), a tax professional can also help you navigate more complex situations – such as earning income across multiple states.
Practice Smart Spending: Resist the urge to splurge on electronics, clothes, or cars as soon as the money starts rolling in. Create a budget that considers your future tax payments, living expenses, and financial goals. Staying disciplined with your spending is key to long-term financial success.

2. Execute Agreements Cautiously

Navigating NIL deals can be tricky. There are various state laws and school policies to consider, along with a number of legal “gotchas” to avoid. Here’s how you can safeguard your interests:

Seek Legal Advice: Before signing any NIL agreement, engage a lawyer with experience negotiating NIL and brand endorsements for athletes. An attorney with expertise in sports contracts can help you navigate the important terms in an NIL deal, such as money, exclusivity, length of the agreement, how the brand can use your name, image, and likeness, and an athlete’s delivery requirements. An experienced attorney will help you spot potential pitfalls and ensure the agreement aligns with your long-term goals.
Beware of “Standard” or Simplistic Agreements: When someone refers to a contract as “standard” or provides an overly simplified agreement, that should throw up a red flag. All it takes is the slightest language in your agreement to give a company unfettered rights to use your name, likeness and image in ways you never intended.
Follow Regulations: An experienced advisor will help you navigate specific laws and policies set by your state, school, and the NCAA regarding NIL deals. For example, you cannot share photos or videos in your team uniform with logos from other brands without first getting permission from your school or the brands.

3. Budget Wisely for the Long Term

While newfound wealth can be exhilarating, it’s crucial to manage your finances wisely:

Prioritize Needs Over Wants: When it comes to spending, prioritize essential needs over extravagant wants. Understand this financial windfall may be a one-time occurrence, so focus on building a secure future rather than indulging in immediate gratification.
Future-Proof Your Earnings: Instead of assuming this is a continuous stream of income, treat each deal as if it were your last. Create a budget that accounts for potential future earnings and uncertainties, ensuring you’re prepared for any scenario.
Explore Tax Mitigation Strategies: Consider tax mitigation strategies, such as retirement planning and deferral opportunities, to minimize your tax burden. Consulting a financial advisor can help you explore these options.

Make the Most of Your NIL Opportunities

The legalization of NIL in college and high school sports represents an exciting shift for young athletes. It can offer game-changing money, enabling you to take care of your financial needs, along with building your brand for future growth. But with great success also comes great responsibility. Even professional athletes who’ve reached the highest pinnacles of their respective sports can end up without the financial resources they need if they don’t plan ahead.

The good news is by recognizing the potential pitfalls and seeking professional guidance early in your NIL journey, you can better position yourself for long-term financial success. Remember, it’s not just about profiting from your name, image, and likeness today, but also securing your financial future for tomorrow.

How We Can Help:

Our Entertainment, Sports, and Media practice understands the unique challenges athletes face at all stages of their financial journey. Whether you need assistance with tax planning, contract negotiations, or financial strategy, we’re here to guide you toward a successful future in the world of sports and NIL.

This article was co-authored by Leron E. Rogers, Partner at Fox Rothschild LLP.

Understanding U.S. Taxes for Your Foreign Business

This article is part of an ongoing series, “Navigating the Complexities of Setting Up a Business in the USA“. View all the articles in the series here.

Key Takeaways:

Follow U.S. tax requirements by understanding federal, state, and local obligations.

Adjust your business strategy for the U.S. market by accounting for sales tax variations.

Utilize tax treaties to minimize tax burdens and navigate international tax rules effectively.

Navigating the U.S. tax system is a critical aspect of doing business in the United States. Unlike other countries with a single national tax system, the U.S. has a multi-layered structure that includes federal, state, and local taxes. Each layer has its own set of regulations and compliance requirements, which can be varied and complex.

For foreign businesses, this system can be challenging — especially if you are accustomed to a more centralized tax framework. In the U.S., tax obligations can arise not only from physical presence but also from sales or services delivered into a state, requiring your business to report to multiple agencies. It is important to recognize these distinctions for both compliance and tax strategy.

Federal Tax Obligations

What creates a taxable presence for federal income taxes is uniform across the country. Your business must file annual income tax returns with the Internal Revenue Service (IRS), detailing your income, expenses, and tax liabilities. Federal taxes include corporate income taxes, certain payroll taxes, and other specific levies.

While federal taxes are uniform across the country, they may be overridden by an enforceable income tax treaty (more on those below). The uniformity of federal taxation is also, unfortunately, not consistent for state taxation.

State and Local Tax Considerations

State and local taxes vary significantly across the U.S. Individual states can impose income taxes, sales taxes, property taxes, and other business-related taxes on your company. The complexity is further compounded by the fact that different authorities may have unique regulations about what triggers tax obligations — such as physical presence, sales volume, or the delivery of services.

The triggers at the state level do not necessarily coincide with the federal triggers. This can be both an opportunity for tax planning for your company and a potential pitfall if you are not careful.

Value-Added Tax Versus Sales Tax

Unlike the value-added tax (VAT) systems in many other countries, the U.S. sales tax system varies widely from state to state. While businesses in places like Europe often deal with a single national VAT system, the U.S. requires navigation through state and local sales tax regulations — each with its own rates and rules, creating a complex compliance landscape.

While VAT is a tax applied at each stage of the supply chain based on the added value, U.S. sales tax is typically collected only at the ultimate point of sale to the end consumer. This distinction can influence pricing strategies, cash flow management, and overall tax planning for your business.

Impact of Income Tax Treaties

Tax treaties between the U.S. and other countries can influence how your foreign business is taxed. These treaties often provide benefits such as reduced tax rates, exemptions from certain taxes, or simplified compliance requirements. However, they require careful navigation for proper application. The presence of a tax treaty between the U.S. and your home country can affect how you should structure your business operations when entering the U.S. market.

Tax treaties aim to avoid double taxation and ease international trade. They typically cover aspects like income tax on royalties, dividends, interest payments, as well as defining what constitutes a taxable presence. Understanding these treaties is essential for improving tax liabilities and staying compliant with regulations in both the U.S. and your home country.

Navigating U.S. Taxes for Your Foreign Business

Successfully managing U.S. taxes requires a comprehensive understanding of federal, state, and local tax obligations, the nuances of sales tax versus VAT, and the strategic use of income tax treaties. To optimize your tax position and minimize compliance risks, you should prioritize thorough planning and seek professional advice.

How MGO Can Help

MGO’s International Tax team can help you navigate these complexities and develop effective strategies for your U.S. operations. Our experienced team can assist you with tax planning, compliance, treaty analysis, and structuring your business for optimal tax efficiency. For more detailed insights and help, reach out to our team today.

Unlock Savings with State and Local Tax Credits and Incentives

Key Takeaways:

Many businesses may miss out on significant savings by not fully using state and local tax (SALT) credits and incentives. But there are thousands available across state and local jurisdictions.
SALT programs offer valuable credits for job creation, capital investment, and research and development (R&D) — but companies often struggle with awareness, eligibility, and administrative challenges in utilizing these programs.
Third-party advisors can help businesses identify and maximize SALT savings while maintaining compliance. Properly leveraging SALT credits can provide a strong return on investment.

State and local tax (SALT) credits and incentives programs continue to be underutilized by taxpayers. Despite the substantial value they can add for businesses, BDO’s 2024 CFO Outlook Survey found that just 34% of CFOs plan to optimize costs by claiming tax credits in the next 12 months. This suggests that many companies could be leaving significant savings on the table.

There are myriad reasons why businesses do not take full advantage of SALT credits and incentives, even though those programs can be instrumental in unlocking cost savings for business activities such as upgrading existing facilities, relocating, building new facilities, and research and development (R&D).

There are thousands of credits and incentives available across state and local jurisdictions. Some companies lack awareness of the full range of credits and incentives available to them, while others may be aware of the programs but unsure of how to take advantage of them. The administrative burden of fully implementing awards once obtained can also be a barrier.

The benefits of tax credits and incentives can be a strong return on investment for companies able to take advantage of them, but many businesses lack the internal resources or expertise to navigate these opportunities effectively. This is where engaging with a third-party advisor may be a strategic value-adding measure.

Tax Credits and Incentives Refresher

Statutory tax credits can reduce a company’s overall tax liability — or in some cases provide a cash benefit for refundable or transferable credits — and may be available retroactively if applications are supported with appropriate documentation. Examples include statutory income/franchise tax credits and unique sales tax exemptions.

Tax incentives are generally broader than tax statutory credits and can come in the form of discretionary cash grants, negotiated abatements, unique exemptions and exclusions, and preferential tax rates. In many cases, they can offer above-the-line savings, making them appealing even to businesses operating at a tax loss. Examples include payroll tax rebates or property tax abatements.

Common SALT Credits and Incentives

The thousands of SALT credits and incentives available in the U.S. can vary widely, but some of their themes are consistent across jurisdictions. Below are a few of the most common SALT programs that are relevant to a large range of businesses.

Job Creation

Many jurisdictions offer credit and incentive programs to promote job creation. The most effective and typical incentive is a rebate of a portion or all of future payroll/withholding taxes for new jobs created for an expansion project. This type of incentive is highly lucrative because it is generally in place for at least 10 years. Negotiated incentives to reward job creation can generally be found in most states, but the Southeast continues to offer some of the best incentives.

Capital Investment

Capital investment incentive programs are designed to boost local economic development by supporting projects such as constructing new facilities, acquiring production equipment, or upgrading existing facilities. For example, an energy company that commits to a large-scale project to purchase a new piece of equipment may be eligible for income tax credits to offset a percentage of its investment costs. Other common opportunities include real and personal property tax abatements for new or improved facilities and investing in new equipment.

Utilities

As businesses across industries look to reduce their environmental impact, they might want to consider projects that may be eligible for credits and incentives, such as upgrading utility infrastructure, implementing energy-efficient systems, and enhancing water conservation. Across the nation, several jurisdictions offer utility tax credits, energy efficiency grants, renewable energy tax incentives, and utility rate reductions. These initiatives are often not limited to specific industries and can even be available to large nonprofit organizations such as hospitals, which may be eligible for a utility rate reduction without having to make any new investments.

Research and Development

States and jurisdictions across the country are vying to attract innovation by offering a variety of R&D credits to businesses in all industries. These programs can offset the cost of developing new products and processes, testing new or improved products and processes, enhancing existing products and processes, and creating prototypes. For example, an auto manufacturer seeking to develop longer-lasting batteries for electric vehicles may be eligible for credits or incentives to support researching or prototyping a new battery.

Benefits of Working with an Advisor

Lack of awareness of or a failure to understand eligibility are two of the most common reasons businesses miss out on available SALT credits and incentives programs. Many companies do not have in-house expertise to uncover these savings opportunities, but third-party advisors have the skills, relationships, and experience necessary to conduct the planning and analysis needed to determine which credits and incentives businesses should pursue.

Advisors can help tax leaders review their companies’ profiles and business strategies to uncover any past, current, or future opportunities. For example, a review of prior income tax returns could result in identifying retroactive refund opportunities.

Advisors can also review the programs offered by the various jurisdictions where the company operates, which, depending on the company’s size and scope, could represent savings opportunities in dozens of locations.

Advisors can take a comprehensive approach to reviewing all available opportunities or can tailor credit reviews to the most pertinent and strategic business needs.

They can also help leaders stay abreast of new credits in the locations where they operate and identify incentives and explore eligibility as they expand operations.

Further, advisors are critical in helping businesses collect the extensive documentation required to qualify for, take advantage of, and report their use of credits and incentives programs. This compliance work can be challenging for a company’s in-house tax team to navigate, so outsourcing it can provide valuable time savings. It can also help ensure companies are taking full advantage of their awards.

How MGO Can Help

As a third-party advisor, we uncover credits and incentives applicable to your business profile and strategy, particularly in areas where you plan to operate or expand. Staying at the forefront of new incentives and programs, our team helps you benefit from the latest opportunities — matching your needs to available programs at the federal, state, and local levels. We work with both statutory and non-statutory programs, collaborating closely with relevant authorities.

SALT credits and incentives are a critical component of tax planning and should be explored to determine how they can support your overall business strategy or create opportunities for retroactive or above-the-line savings. To learn more, reach out to our team today.

5 Tips for Setting Up Your Business in the U.S.

This article is part of an ongoing series, “Navigating the Complexities of Setting Up a Business in the USA”.

Key Takeaways:

Expand into the U.S. market to access a large and diverse customer base.

Navigate the multi-layered U.S. tax system and adapt to cultural differences.

Choose the right business entity and plan for compliance with U.S. regulations.

Expanding your business into the United States can significantly increase your market share and open the door to new opportunities. However, the process involves navigating a complex landscape of regulations, tax considerations, and operational challenges. This series provides an overview to help you understand how to successfully set up your business in the U.S.

Why Expand to the U.S.?

Expanding into the U.S. market allows you to:

Access a large and diverse customer base.

Leverage the economic scale of the U.S. market.

Explore opportunities for growth and innovation that may not be available in other countries.

Have access to what may be a significant amount of capital (whether this may be equity or debt or other arrangements).

Moving into the U.S. market can help you drive more sales and reach new types of customers. You may also launch new products here that might not succeed in your home market.

5 Key Considerations for Foreign Businesses

When setting up a business in the U.S., you must navigate a range of unique challenges — including:

1. Multi-Layered Tax System

In many countries, businesses deal with a single national tax system where their provinces or states mimic or have congruent rules with federal rules. In contrast, the U.S. has a multi-layered tax system involving federal, state, and local taxes that at many times are not congruent.

When you start a business in the United States you are dealing with 50 states (and the District of Columbia), multiple localities, and certain territories. Each state has its own set of rules and regulations applicable to income taxes, which can be quite different from a single national system (and often at odds with the federal rules).

In addition, state and local jurisdictions impose taxes unique to the state and local level — including sales tax, property tax, and gross receipt tax. Finally, not all states honor the provisions of U.S. tax treaties with foreign countries.

2. Cultural and Business Practice Differences

Understanding and adapting to cultural and business practice differences is crucial. For instance, business practices that are common in Europe or Asia might not be as effective in the U.S. Additionally, legal agreements and formalities that might be less stringent abroad are often necessary in the U.S. to protect business interests.

3. Legal Structure and Entity Choice

Choosing the right business entity is vital as it affects tax obligations, legal liability, and operational flexibility. Options include C corporations (or C corps), limited liability companies (LLCs), foreign corporations with or without U.S. branches, partnerships or joint ventures, or franchising or direct importing. An S corporation (S corp) is not an option for foreign businesses due to ownership restrictions.

Each structure has its own set of advantages and legal implications, which should be carefully considered.

4. Regulatory Compliance

The Corporate Transparency Act is one newly created obligation for all businesses operating in the U.S. Failure to comply can result in significant penalties. It is important to understand the reporting requirements and file all necessary documentation on time.

In addition, you should consult a lawyer to ensure the entity form is respected — including prompt organizational filings with the Secretary of State and obtaining necessary business licenses.

These are just a few of the myriad of regulations your business must navigate. That’s why it’s critical to hire the right professionals to build your team, as missing any of these requirements may place your business in peril.

5. Operational Challenges

Operational planning is essential for a successful U.S. expansion. Key operational considerations include:

Employee benefits and regulations: U.S. regulations on health insurance, retirement plans, and other employee benefits can be significantly different from those in other countries. For example, in Europe, many employee benefits are government-run, while in the U.S., they are often the responsibility of the employer.

Logistics and supply chain management: Choosing the right location for operations includes considerations such as proximity to logistics centers and understanding regional operational costs.

Insurance and banking: Obtaining necessary insurance coverage and opening bank accounts can be challenging for foreign businesses. Some U.S. banks may not provide accounts to foreign-owned companies, and those that do might have stringent requirements. Certain banks may refuse to conduct business with certain entities in industries such as cannabis and cryptocurrency, to name a couple.

Establishing a U.S. Presence for Your Business

Setting up a business in the U.S. requires thorough planning and an understanding of various regulatory and operational challenges. From navigating the multi-layered tax system to selecting the right business entity and following U.S. regulations, each step is crucial for a successful expansion. By addressing these key considerations and seeking professional guidance, you can effectively establish your presence in the U.S. market.

For more detailed insights and personalized help, connect with our International Tax team and start your journey towards successful U.S. market entry today.

Setting up a business in the U.S., requires thorough planning and an understanding of various regulatory and operational challenges. This series will delve into various aspects of this process, providing guidance and practical tips. Our next article will discuss navi

Considering a Liquidity Event? Prioritize Sell-Side Tax Diligence for a Smooth Transaction

Key Takeaways:

If your business is contemplating a liquidity event, it is critical to prioritize sell-side tax due diligence well before entering the market.

It is especially important to focus on state and local tax (SALT) issues, as evidenced by South Dakota v. Wayfair, which widened the ability of states to tax out-of-state sales.

Seek guidance from a sell-side advisor — doing so can significantly impact the success of your transaction.

If your business is contemplating a liquidity event, prioritizing sell-side tax due diligence — with a special focus on state and local tax (SALT) issues — is crucial. Engaging in sell-side tax diligence well before hitting the market, under the guidance of a sell-side tax advisor, is a strategic move that can significantly affect the success of the transaction.

Why Focus on SALT?

The complexity of SALT liabilities can pose major hurdles during buy-side diligence. This is especially true in the wake of South Dakota v. Wayfair, which broadened states’ ability to tax out-of-state sales. Addressing these issues proactively allows sellers to navigate potential deal delays and negotiate more favorable terms, and helps ensure a smoother transaction process. This focused approach not only showcases the business as well-managed and compliant with intricate SALT complexities, but it also enhances the company’s appeal as an acquisition target.

The Benefits of a Wellness Check

Conducting a thorough wellness check on your company’s state tax posture can minimize the risk of surprises that could lead to renegotiations or even deal termination. This also can position the seller to potentially secure a higher sale price by demonstrating a comprehensive approach to SALT compliance and risk management.

Mitigating SALT Exposures

Using voluntary disclosure agreements (VDAs) and diligently collecting sales tax exemption certificates are effective strategies for mitigating SALT exposures. VDAs allow sellers to address historical sales tax liabilities under favorable terms, including the elimination of penalties. The VDA process not only remediates historical tax liabilities, but it also signals a commitment to compliance that can be reassuring to buyers. Further, maintaining sales tax exemption certificates helps ensure that exempt sales are properly classified, which can reduce the risk of future exposure.

The Risk of Noncompliance

Attempting to address past noncompliance through prospective filings, rather than by remediating historical exposures, leaves businesses vulnerable to exposure identified by state tax authorities and buy-side diligence teams. A VDA can limit this exposure by reducing the lookback period and eliminating penalties. Without a VDA, businesses risk historical liabilities that can significantly exceed those that could have been negotiated under a VDA.

Being Proactive

Ultimately, sell-side due diligence empowers sellers to be in a better position with all issues related to tax compliance. This proactive approach is far more efficient than reacting to a conservative exposure identified by buy-side advisors, which can take significant time and resources to address or refute.

Prioritization Is Key

Prioritizing sell-side tax diligence, especially for SALT issues, is a strategic move that can enhance a company’s attractiveness to potential buyers, minimize transaction delays, and potentially lead to amore favorable sale outcome.

How MGO Can Help

Preparing for a liquidity event can feel like a battlefield — dodging land mines and watching where you step. Strategic planning and meticulous attention to your tax compliance are crucial, and MGO is well-equipped to support your business in navigating the challenge of sell-side tax due diligence. With our thorough understanding of the intricate dynamics of SALT issues and the impact they can have on your organization, we provide tailored guidance to help position your business for the best sale possible.

Our team excels in a proactive approach: conducting thorough wellness checks, identifying potential SALT liabilities, and implementing effective strategies to mitigate historical tax exposures and minimize transaction delays — and enhance your company’s appeal to those looking to buy. For inquiries or support in prioritizing your sell-side tax due diligence, reach out to our team today.