GAGNON provides a full range of tax compliance services.
Periodic and annual compliance
We prepare original income, franchise, as well as employment and sales and use tax returns using your tax systems or ours. Clients who elect to use a Big 4 provider for their federal corporate income tax return often turn to us as a more accurate, more efficient multistate income and franchise tax return preparation option.
Federal changes & other amended returns
When federal changes result in required amended return filings in multiple states, many companies turn to us to avoid this added burden on internal resources. We typically perform a contemporaneous review of previously filed returns. This often identifies tax overpayment recoveries that more than offset the cost of our services.
Unitary Taxation Diagnostic
A flurry of legislative activity is turning historically separate-filing states (where related legal entities are taxed separately) into unitary states (where related entities are grouped for tax purposes). GAGNON analyzes your current tax footprint, together with your predicted business trends, to provide your company with a customized report of the effect of this new legislation.
If your company has business activity in Massachusetts, Michigan, New York, Texas, Utah, Vermont or West Virginia, you are already affected. Maryland is requiring a unitary informational report, with significant penalties for non-compliance, which must be filed in addition to normal separate entity returns.
The move toward unitary taxation in even a single state can have a profound impact on tax liability. One of our clients calculated a $1 million-plus increase in tax in Massachusetts alone as a result of the legislative change. Fortunately, we were able to identify an allowable position that enabled the client to reduce Massachusetts cash tax liability to near-zero.
GAGNON can help you accurately evaluate the effect of state tax law changes on your organization. At the same time we can efficiently review company filing positions in all states, and we often identify and realize significant savings opportunities.
Provision/FAS 109/ASC 740-10 (FIN 48)
Our professionals have deep experience with accounting for income taxes (ASC 740) and the effects of uncertain tax positions (ASC 740-10) on your financial statements. Clients look to us to augment their internal resources in this area.
Services we provide include tax provision (ASC 740) calculation and review assistance, Sarbanes-Oxley (Section 404) tax control identification and testing, uncertain tax position (ASC 740-10 f/k/a FIN 48) issue review, assessment of risk, and monitoring of your tax positions.
Where corporate structural or transactional changes result in the need for short period filings, we can manage the added compliance burden from start to finish. We can also prepare your bulk sales reports and other transaction-based compliance documents as needed.
We identify jurisdictions in which a client is not in compliance, analyze and quantify corresponding exposure, and manage the voluntary disclosure process to minimize payments, interest, and penalties associated with coming into compliance. To achieve these savings for our clients, we leverage our long-term relationships with state authorities which may allow us to limit look-back periods and secure offsets or waivers of penalties.