Sales Tax Services

Nexus Studies

Nexus studies are crucial for businesses operating in multiple states. They help determine where a company has tax obligations based on physical presence (like offices or warehouses) or economic presence (such as sales volume). Understanding your nexus footprint is essential to mitigate risk and ensure compliance.

These studies can identify potential tax liabilities and help businesses avoid penalties by ensuring they are registered and compliant in all relevant jurisdictions.

Sales Tax Compliance

Sales tax compliance involves ensuring that a business accurately collects, reports, and remits sales tax to the appropriate authorities. This includes registering for sales tax permits, filing returns, and maintaining proper records.

Our compliance services can help businesses navigate complex tax laws, avoid fines, and streamline their tax processes. Automated solutions and expert advisory services can significantly reduce the burden of managing sales tax compliance.

Sales Tax Transactional Consulting

Transactional consulting focuses on the tax implications of specific business transactions. This service helps businesses’ structure transactions in a tax-efficient manner, ensuring they comply with sales tax regulations while minimizing tax liabilities. Our consultants provide advice on mergers, acquisitions, and other significant transactions, helping businesses understand the tax consequences and optimize their strategies.

Utility Studies in Manufacturing

Utility studies in manufacturing are conducted to determine the percentage of utility usage that qualifies for sales tax exemptions. These studies analyze the use of utilities like electricity, gas, and water in manufacturing processes.

By identifying exempt usage, businesses can reduce their tax liabilities and potentially recover overpaid taxes. Accurate utility studies are essential for claiming exemptions and ensuring compliance with state tax laws.

Audit Defense Services

Audit defense services provide support and representation during sales tax audits. These services help businesses navigate the audit process, gather necessary documentation, and present arguments to minimize tax assessments.

Honkamp’s experienced professionals can identify errors in audit findings, negotiate with auditors, and protect the business from excessive penalties. Having a strong audit defense can significantly reduce the stress and financial impact of a tax audit.