Sales Tax
January SALT Checklist
What should you be doing in your state and local tax practice this month? Here's your SALT checklist for January.
Jan. 14, 2014
SALT Checklist for January
- Check with your state and any states where you are required to file to determine if payments and returns can be presented electronically. If necessary register for online transmission of payments and forms.
- Take special care with year-end allocations for multi-state entities. Examine credit and crossover opportunities in an attempt to avoid double taxation for your clients. If you have auditors gathering information in the field for your tax clients, explain the allocation requirements for the states involved in order to make sure they bring you exactly what you need to file the state returns.
- Everyone is a SALT accountant during busy season! Make sure all of your 1040 clients have accounted properly for state and local income taxes, real estate property taxes, and deductible excise taxes paid during 2014. Also remember the optional deductibility of sales tax on Schedule A, particularly in states that don’t assess a state income tax.
- It’s time for a nexus review of all your clients with potential for tax liabilities in multiple states. Help your clients register to withhold, collect, and pay state and local taxes in any new jurisdictions, and take steps to finalize outstanding tax issues in locales where they no longer do business.
- Don’t forget to file all required franchise tax returns for your business clients. Most states require these annual returns and payments from all businesses with nexus in the state.