With more than 80,000 state and local tax jurisdictions nationwide, business owners are often unaware of the significant potential tax exposure for their out-of-state activity, which is currently a target area for state tax authorities as they seek new revenue opportunities. With State and Local Tax (SALT) laws constantly changing, the complexities of these issues are often hard to navigate.
Obviously tax exposure may exist if you are receiving letters of inquiry from state taxing authorities. However, other signs of potential SALT exposure include:
Since there is no statute of limitations for failure to file, businesses can be penalized for all years not within compliance. Risks include penalties of up to 25 percent of taxes owed, legal liabilities and the risk of operations being shut down in states where your business is not registered
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
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