There is no doubt that tax compliance can be one of the most difficult challenges individuals and businesses face. The challenge is not just the financial obligation of the tax impact, but even before that, it is important to know what the tax obligations are. Then comes the administrative burden of compliance.
Every business needs to know what tax and reporting requirements they need to comply with. Taxes can apply from several jurisdictions, including federal, state and local. Further, taxes can apply for multiple activities. Hence, the tax requirements of every business are very unique and can be very cumbersome.
Federal Taxes for Businesses
At the federal level, a business might be subject to:
- Income tax
- Unemployment tax
- Social security
- Excise taxes (depending on the industry)
State Taxes for Businesses
In Florida, for example, at the state level, a business might be subject to:
- Income tax
- Sales and use tax
- Gross receipts
- Insurance premium tax
- Motor fuel tax
- Tobacco tax
- Tangible personal property and intangible tax
- Communication services tax
And, yes, there are more state taxes in Florida!
Local Taxes for Businesses
At the local (the county and city) level, a business might be subject to:
- Property tax (tangible personal property and real property)
- Intangible tax
- Documentary stamp tax
- Discretionary surtax
- Business activity tax
Taxes Are Specific to Your Business
The application of tax to any business will depend on the specific business, making tax compliance very difficult and unpredictable. Unfortunately, very frequently, business owners learn the tax nuances of their business during an audit or some other enforcement effort by the taxing agency.
To discuss tax compliance, or audit and enforcement representation for your business with an attorney who has extensive experience in business and corporate tax matters, we invite you to call our office at 954-963-7220, or to send us an e-mail at firstname.lastname@example.org.
Taking Care of State Tax Issues
State tax issues frequently go ignored until something happens to bring attention to the matter.
“Something” is usually a letter of inquiry, a Notice of Assessment, an audit or some type of collection effort on the part of the state. Hence, by the time state taxes are given attention, the liability could be significant or even crippling to a small business.
In Florida, the general revenue funds are comprised in large part by state taxes – primarily sales tax and corporate income tax; followed by other taxes that are less familiar to even most tax attorneys, such as communication services tax, documentary stamp tax, intangible tax, motor fuel tax, gross receipts tax, severance tax, insurance premium tax, discretionary surtax and the list goes on.
There are significant procedural distinctions between state tax administration and federal tax administration. Therefore, when discussing your state tax needs you should ensure that you are obtaining the advice of a professional with experience specific to state tax matters.
We have successfully handled countless state tax matters, including audit defense, appeals, protests, voluntary disclosures, ruling requests, collection enforcement, notices of assessments, representation in criminal cases, and Department of Administrative Hearings (DOAH), and other matters.
To discuss your state tax issue with an experienced tax attorney, we invite you to call our office at 954-963-7220, or to send us an e-mail at email@example.com.