No matter the state or jurisdiction that your business resides, state and local taxes always seem to be in transition. Porte Brown’s tax experts can help your business remain compliant with state tax laws and regulations, develop innovative tax planning strategies regardless of where your company conducts business or the number of states your company may reside, perform nexus reviews, and highlight potential areas of sales and use tax exposure. Our state and local tax (SALT) specialists are not only knowledgeable about state tax and local tax planning and strategies, they are also highly experienced with a wide range of industries and business types, so you can rest assured that you are receiving the highest level of service and support.
To ensure that clients conducting business in multiple states report their income correctly, Porte Brown created its State and Local Tax (SALT) Practice Group. A company does not want to find out after the fact that their recently completed business deal has an accompanying tax exposure that they were unaware of. Our specialized expertise can help you identify these issues before they occur.
When goods and services cross state lines, nexus* comes into play and your company potentially becomes responsible for income taxes and other taxes in those states. Depending on your company’s presence in another state (via inventory, sales representatives, etc.), your company may be responsible for applicable taxes in those states. Driving your truck across a state line could cause you to have nexus, depending on which state you are traveling into. We help clients anticipate their potential exposure.
Our proactive team asks the right questions up front so that we can anticipate potential issues. We work with clients throughout the year to minimize or eliminate tax exposure at a later date. Porte Brown is dedicated to learning about your business and protecting it from unnecessary tax liabilities.
Is your company registered in all of the states in which it operates?
Porte Brown’s State and Local Tax Practice Group has experience and expertise in three primary areas:
*Nexus defined: a nexus in general means a connection. The term nexus is used in tax law to describe a situation in which a business has a "nexus" or presence in a state and is thus subject to state income taxes and to sales taxes for sales within that state.
Effective July 1, 2021, sales tax rates for many municipalities located within Illinois will increase!
Please update your cash registers and computer systems to account for the change. Make sure your sales staff knows to adjust their quotes for the change in rates if materials are going to be purchased or delivered after July 1, 2021.
Nearby municipalities that have increased their rates are Deer Park-Cook County (+0.50%), Harvey inside Harvey Dixie Highway Business District (+1.00%), Hanover Park-Cook County (+0.25%), Hanover Park-DuPage County (+0.25%), Oak Lawn-Cook County (+0.50%), and Spring Grove-McHenry County (+0.75%).
Other municipalities in Peoria, Kankakee, Livingston, Lake, Sangamon, McLean, Winnebago, Tazewell, Adams, Rock Island, and Jo Daviess counties have also changed their rates. Visit the Illinois Informational Bulletin for specifics on the business districts or municipalities impacted
Keep in mind, if you receive reseller certificate forms from your customers (CRT-61 www2.illinois.gov/rev/forms/sales/Documents/sales/crt-61.pdf), it is your responsibility to verify that their IBT number is valid. To verify a registered business, use this link to Illinois’ website and go to the “Businesses” tab. https://mytax.illinois.gov/_/#2
For assistance with State & Local Tax matters, please contact Porte Brown’s S.A.L.T. Practice Group leader, William Sebastiano, at (847) 956-1040. For information related to Tax Planning or International Tax, please contact CPA tax accountant and Porte Brown Tax Practice Group leader, Kelley Hare, CPA.
Get in touch today and find out how we can help you meet your objectives.