Our State and Local Tax attorneys assist our clients with a range of state and local tax issues. We frequently partner with our client’s accountants, appraisers and other financial advisors to find and implement sound solutions to their state and local tax concerns.
Personal Taxes
The firm counsels individual business owners, executives, professionals and others about determinations and changes of state of residency, multi-state filing requirements, the computation of state taxable income and the availability of state tax credits. State estate and inheritance taxes may also be significant factors in an individual’s state and local tax plan and we assist our clients in coordinating these state tax concerns with their federal estate, gift and trust planning.
Business Taxes
Kulzer & DiPadova advises businesses on their subjectivity to state taxes including their subjectivity to tax in New Jersey and other jurisdictions. We assist clients and their accounting professionals in determining regular taxable income, including proper methods of allocation and apportionment, planning for optimizing net operating losses and tax credits, alternative taxes, employee withholding, and payroll tax issues. Pass-through entities, such as partnerships, limited liability companies and S corporations, can present special state tax challenges and opportunities for the entity and its owners.
Sales and Use Taxes
Sales and use tax obligations can impose a significant burden on a business. Kulzer & DiPadova offers guidance to our clients about the taxation of their sales and purchases, the availability of exemptions, and related tax reporting requirements and procedures. We help identify when a client will charge and collect tax in other jurisdictions.
Tax Controversies
Kulzer & DiPadova represents both New Jersey and out-of-state companies before the New Jersey Division of Taxation in contesting disputed state tax audits and assessments. When an administrative resolution is not available, we represent our clients before the New Jersey Tax Court and New Jersey’s appellate courts.
Tax Amnesty and Voluntary Disclosure Agreements
We assist clients in assessing their exposure for state taxes. Where unanticipated exposures exist, we pursue compliance opportunities offered by tax amnesty and voluntary disclosure programs.
Multistate Tax Matters
Corporations, limited liability companies, partnerships, trusts, and individuals which have various levels of connections or contacts with any state could subject that taxpayer to taxation by the state. Sometimes, this may be a considerable burden to the taxpayer because of the additional record keeping and filing requirements. In other instances, this can be a planning opportunity. The rules governing a taxpayer’s nexus with a taxing jurisdiction vary from state-to-state. Further, there are federal rules limiting the tax reach of states. In collaboration with a client’s tax return preparers we can assess subjectivity.
Though record keeping and filing requirements in multiple states can be burdensome and often expensive, proper planning can reduce the taxpayer’s overall state tax expense. The taxpayer should carefully consider all aspects of multi-state taxation when expanding into a new state. Failing to properly plan and comply with state tax requirements can subject the taxpayer to substantial tax, penalty and interest liability.
