DHG | Dixon Hughes Goodman LLP > Services > Tax

Sales and use taxes have become a significant cost of doing business as states scramble for additional revenues. Compliance is cumbersome and costly. Each state, and even multiple jurisdictions in some states, has diverse, complex rules regarding the taxation of goods and services. Companies need customized solutions tailored to their individual business needs, whether they are a Fortune 500 company or in the initial stages of start-up.

DHG has a dedicated group of highly trained professionals who spend all of their time in the S&U tax arena. They can assist with S&U tax issues including electronic compliance, consulting, process design and audit defense. Regardless of the size or scope of your company—large or small, public or private—our knowledge and experience can help you navigate the complex and potentially costly S&U environment.

At DHG, our professionals focus on providing customized solutions by working with your company and understanding the nuances of your business. We blend your unique situation with our tax and systems knowledge to address your company’s specific sales and use tax issues.

By remaining focused solely on the complexities of the sales and use tax laws throughout the nation, our Sales and Use Tax Group stays on top of current trends and emerging issues.

Audit Defense

The best defense is a good offense. In the S&U tax world that means knowing the issues before you are audited. We can perform a risk overview of your S&U tax function by doing a ‘reverse’ S&U tax audit – one focused on identifying weaknesses in your system AND in identifying potential refund opportunities.

When that audit does come, we can act as your representative before state sales and use tax authorities. Our professionals are available to make formal replies to correspondence regarding sales and use tax liability and to provide explanations, schedules and other pertinent documents for tax examinations.

Nexus Issues and Voluntary Disclosures

If your company operates in multiple states, whether by sales people, mail order or e-commerce, you may have unknowingly created nexus in states where you are not registered. Our team of professionals can negotiate with state officials to limit your exposure through voluntary compliance, helping you avoid forced compliance costs such as interest and penalties that may reach as high as 50 percent.

Sales Tax Recovery

We can conduct a review of your day-to-day compliance activities as part of a ‘reverse’ audit. We prepare and assist with filing refund claims with supporting documentation in order to procure your refund expeditiously. Our fees are generally based on our findings and a preliminary review can be done at no cost to you.

Sales Tax Returns Processing

Sales and use tax compliance can be a real headache for small companies. The constant worry is that you might miss something that is costly to correct, if the error is even found in the first place. For larger companies, filing hundreds of returns on a monthly basis can drain resources, and leave a company vulnerable from unexpected staff turnover. Our experienced professionals are dedicated to S&U tax and can help in any circumstance.

Sales & Use Tax Advisory Services

Our Sales & Use Tax Advisory Services streamline your procedures for properly reporting your tax liability and provide the training to the appropriate personnel. We also advise you on the effects of new S&U tax laws as they relate to your industry and assist in determining the potential S&U tax consequences before you submit that important bid.

Section 179D Program

Maximize Tax Savings for Energy Efficient Buildings; Rebates Possible Too - Read more

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Texas Adopts $500,000 Gross Receipts Franchise Tax Economic Nexus Threshold

On Dec. 20, 2019, the state of Texas amended its franchise “margin” tax nexus rule (34 TAC Section 3.586) to assert that Texas franchise tax economic nexus for foreign corporations is established by exceeding the brightline threshold of $500,000 of sales into the state. The amendment relies upon the Supreme Court’s 2018 Wayfair decision by asserting that constitutional nexus may be created without physical presence.

North Carolina Adopts Market Revenue Sourcing Provisions and Sales Tax Definition of Marketplace Facilitator

On November 8, 2019, Governor Roy Cooper signed Senate Bill 557 into law containing the following key provisions;Market-based sourcing of gross receipts for sales other than tangible personal property andMarketplace facilitator sales tax registration and obligation requirements.

Alabama Supreme Court holds that all software, canned and custom, is tangible personal property subject to sales tax

In a landmark sales tax case in Alabama, the Alabama Supreme Court (the Court), in a 5-3-1 decision, found that all software, whether canned (i.e., prewritten software) or custom, is tangible personal property subject to sales tax. See Ex parte Russell County Community Hospital, LLC, Ala. S. Ct., Case No. 1180204 (May 17, 2019).