Discover strategies to tackle state and local tax burdens and realize opportunities
More agile tax models are needed in the face of an evolving landscape including global uncertainties, impacts from the Biden administration, Tax Reform and Wayfair to allow the tax function to effectively provide critical inputs in business decisions. Companies should consider:
Effective cash tax management through minimizing taxable income, obtaining available refunds, and reducing required tax payments
Actions to stabilize supply chains while bracing for an unpredictable revenue and profitability mix in key markets
Resources needed to meet your ongoing indirect and direct tax compliance requirements, imposed by the various taxing authorities
Opportunities focused on becoming more flexible in responding to arising uncertainties
Whether state corporate, partnership, sales tax or unclaimed property, navigating the evolving compliance process has always been challenging. Now, businesses must take what was put into place post-federal Tax Reform and post-Wayfair and adapt it to a rapidly changing situation. Meeting this challenge will require a new vision of how we work and what we are trying to accomplish.
The Tax function can be an important part in easing financial burdens when companies are looking for ways to deal with industry-based and location-based business disruptions brought on by global and economic hardships. Look for the opportunities to manage and mitigate costs and risks.
The current global and economic environment is creating uncertainty and hardships for companies and consumers alike. Business responses include streamlining inefficient processes, cutting costs/cost containment, and focusing on generating cash flow. What some businesses may not realize, is that the tax function can be a key part of this response and may offer pathways to clarity and an improved cash position.
State and local tax professionals need a strategy to stay ahead of and manage state and local tax burdens and to identify opportunities that result from evolving changes in legislation and administrative policy changes.
PwC’s State and Local Tax (SALT) practice can help you with strategies to manage your state and local tax issues by recommending solutions that are consistent with your company’s overall business objectives. We can also identify appropriate tax treatment that is consistent with good business practices and states’ applicable tax laws and rules.