Stevens & Lee's State and Local Tax (SALT) practice provides clients with unmatched multi-state tax capabilities. With a mix of experienced tax attorneys, CPAs, financial advisors and professionals with Big Four accounting experience, Stevens & Lee and its affiliated businesses have become preeminent providers of state and local tax advice and representation. We advise and represent clients on the full spectrum of SALT matters wherever they arise throughout the United States, including income and franchise, sales and use, personal and real property, business privilege, excise and realty transfer taxes. Additionally, our services include state and local business development and relocation incentives and unclaimed property consulting.

Our SALT practice is supported by experienced litigators. Our attorneys are licensed in 18 states and we have a referral network of reputable and knowledgeable local counsel throughout the country to ensure that your company has access to complete multi-state tax litigation coverage. Through relationships with one or more of the Big Four accounting firms, we can access tax subject matter experts for virtually every state and major city in the country.

Tax Controversies

• We provide advocacy and counsel to our clients at every level of a tax controversy to ensure the maximum possible relief is obtained, and represent clients during audits, through administrative appeals and negotiations, and where necessary, in trial and appellate litigation
• We work actively with tax accountants to provide seamless coordination when audits reach the judicial level
• We work closely with our litigation team when tax disputes include an evidentiary hearing, discovery proceedings, trial or appellate procedures, or when other litigation expertise is required
• We associate and efficiently coordinate with other counsel as appropriate

Tax Planning

• Minimizing future corporate income, capital-franchise and gross receipts taxes: We provide turnkey tax planning, from an assessment of continuing with your current position to the development and analyses of business-aligned alternatives, including "next generation" substitutes for traditional SALT planning structures. We are also experienced in the implementation of selected changes in your corporate structure transactions.
• Minimizing future sales and use taxes: We assess and, where appropriate, effect reclassifications to assist clients in meeting exemption qualifications and executing structural changes to more fully utilize resale, manufacturing, charitable, transportation and other exemptions. We also provide training to your accounting staff on major and common exemptions and tax issues for your organization's key states to avoid future tax overpayments.
• Maximizing tax and other business incentives: Whether due to relocation or retention, we'll assist you in analyzing and negotiating jobs and investment tax credits, tax-free zones, tax abatements and other state and local business incentives, such as grants, infrastructure improvements and low-interest financing.
• Minimizing real estate tax assessment: Along with your appraiser or other expert, we can review your real estate assessment and represent you in appealing and negotiating a reduction at the administrative and court levels. We also assist clients in obtaining tax-free zone designations, negotiate and draft payment-in-lieu of tax agreements and negotiate and help implement tax abatements.
• Minimizing realty transfer taxes: We help structure asset purchases and sales to minimize or avoid transfer taxes - particularly important in states like Pennsylvania which apply the tax to certain sales of "real estate companies" and have a combined state and local tax rate of up to 5%.
• Minimizing tangible personal property assessment: Where tangible personal property is taxed, we review, with your staff and appraiser, the valuation and classification of your tangible personal property, taking particular note of "ghost assets," economic or functional obsolescence and idle equipment, and represent you in the appeal and negotiation process, if necessary.
• Minimizing present and future employment taxes: We review and, where appropriate, propose and implement solutions to reduce your state unemployment compensation tax rate and assist you in planning for the impact of significant changes in employee size, whether due to reductions or expansions in workforce, relocations or entity mergers, acquisitions or dispositions.
• SALT aspects for corporate restructuring: We analyze the multi-state tax impact of proposed corporate merger, acquisition, disposition and reorganization transactions and identify and implement pre- and post-closing opportunities to avoid or minimize state and local taxes.
• Obtaining administrative rulings: We submit and negotiate favorable state and local tax letter rulings and advisory opinions from the taxing authorities.
• Initiating Pennsylvania tax policy changes: In conjunction with our Government Relations Practice, we assist in drafting, testifying and influencing the promulgation of Pennsylvania tax regulations and the enactment of Pennsylvania tax legislation.

Independent Tax Risk Management

• Financial tax provision: We independently review, analyze and, where requested, opine on uncertain tax positions and tax contingencies to assist you and your auditors determine the state and local tax provisions and reserves to be established in your financial statements.
• Tax returns: We review tax returns prepared by you or your accountant with a view for potential risks (present and past), as well as potential risk-minimization and tax savings (future).
• Taxable nexus: We review your activities throughout the United States to determine where you may have tax liability (present and past) based on statutory and administrative provisions and constitutional limitations; and then work with you to assess the potential tax deficiencies, penalties and interest based on the applicable statute of limitations.
• Tax planning check-ups: We review and evaluate the continued viability of structures that were established primarily or secondarily for state or local tax savings.
• Record retention: We advise clients on record retention requirements of state and local taxing authorities.
• Minimizing penalties and periods through voluntary disclosure agreements: We represent clients in offering, negotiating and executing tax amnesty and voluntary disclosure agreements to resolve tax and unclaimed property compliance responsibilities while minimizing look-back periods and penalties.

Discovering/Refunding Tax Overpayments

• Obtaining sales tax refunds: Our team of lawyers and consultants routinely conduct full-scale reverse sales tax audits for clients to identify tax overpayments and to obtain refunds. In addition to obtaining refunds of past overpayments, we assist our clients with implementing processes to ensure that exemptions are maximized going forward.
• Obtaining other tax refunds: We review our client's past returns to uncover income/franchise and other tax overpayments due to such matters as unclaimed tax credits and multi-state apportionment rules. After identifying overpayments, we prepare and execute refund claims from initial preparation through appellate litigation, if necessary.

For more information on our State and Local Tax Group, contact Thomas A. Bowen at 717.255.7363.