SALT Tax Planning

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As a law firm, we have the ability to perform tax planning on a comprehensive basis, from the initial stages of evaluating options through to full implementation, including the drafting of all related legal documents. ZHF’s approach is to focus on understanding our clients’ business operations and implement strategies that are consistent with and support those business operations. Our tax strategies are also consistent with the tax laws applicable to each strategy. We take a prudent and comprehensive approach to advising our clients about tax planning strategies. State and local tax planning has evolved throughout the years because of increased scrutiny of tax structures by both government auditors and financial regulators. Even in this environment, tax planning can still provide substantial savings opportunities for businesses.

We also assist clients who have previously implemented tax planning strategies by analyzing whether the prior planning still accomplishes the intended savings or can withstand government scrutiny. We work with the client to provide recommendations of changes to ensure the integrity of the planning. We are often able to enhance the planning to achieve additional savings or ensure the savings will continue to be generated after an audit.

We also work with clients to analyze and determine the consequences of business transactions. Our analysis focuses on structuring the transactions in a manner that minimizes the amount of state and local taxes that will result from the transaction.

To further discuss our Tax Planning services and their benefits, please contact any one of the ZHF professionals.

SALT Planning

Our SALT Planning services are performed in a three-phase approach:

Phase I: Evaluation

We evaluate our client’s business, including its structure, operations, and future plans, in order to identify and design planning strategies that are consistent with the business operations. After presenting these potential tax saving options, the client then chooses which options to pursue.

Phase II: Development

We then develop a comprehensive implementation action plan for each planning strategy chosen by the client. The action plan specifies each step necessary to implement the strategies and assigns tasks and deadlines to the client, ZHF professionals, or other client service providers.

Phase III: Implementation

ZHF professionals take responsibility for the action plan to ensure that the tax planning strategies are implemented in an effective and timely fashion. We work proactively with the client to address any unexpected roadblocks to ensure a successful implementation of the tax saving strategy.

Tax planning strategies can be implemented for the following tax types: sales, use, gross receipts, income, franchise, real property, net profit, and personal property.

Individual Income Tax Planning

Individuals who are considering selling their business or high-level company leaders who are considering retirement often times want to minimize the tax impact of such actions by attempting to change their residence. We work with a client to analyze the impact of moving the client’s residency and help establish an action plan to make sure all necessary steps are followed to actually move the client’s residency. With the proper planning, tax savings can be achieved.

Effective Use Tax Rate Agreements

We work with our client and state governments to implement an effective use tax rate agreement. Depending on the state, the agreement generally allows a taxpayer to develop one rate for remitting use tax on purchases, which substantially simplifies how use tax is remitted. Businesses that implement an effective use tax rate typically no longer need to analyze each purchase transaction to determine taxability, but instead multiply monthly purchases by the effective rate and pay tax based on that rate. Not all states allow effective use tax rates and only certain taxpayers can qualify.

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