Welcome

Audit Defense
 

During a state tax audit, it is vital to develop a strategy that addresses and resolves the issues raised by the auditor.  Swanson Law Group can assist you through all stages of managing the state tax audit process, from facilitating information requests, reviewing audit methodologies and schedules, addressing technical matters, filing administrative appeals, and negotiating compromises.  We have very positive working relationships with the Washington state and local government tax administrators.  Our deep understanding of state and local government organizations, people and procedures allows us to bring unsurpassed value to our clients, giving them the best chance to reduce or eliminate assessments.
 

Controversy

When an issue cannot be resolved during the audit process, an appeal may be justified.  We can help evaluate the cost/benefit and likelihood of success in considering an appeal.  We prepare and submit appeals and provide litigation support for client controversies in Washington state and local jurisdictions.  Many of our cases are resolved at the administrative level where we take the lead in negotiating compromises.

Tax Refunds

Every business understands the importance of having additional cash on hand to fund operations or make capital improvements.  Swanson Law Group’s extensive industry and technical expertise allows us to identify a wide variety of opportunities to recover overpayments in tax to state and local governments. Many of the refunds we pursue are based on our extensive audit and controversy experience as well as involvement in legislative and regulatory changes.  A typical refund project may involve reviewing current and previous audits, tax returns, workpapers and/or invoices if sales or use tax is involved. 

Ruling Requests

Letter rulings from state and local taxing authorities can provide you peace of mind in the face of ever changing and often confusing state and local tax laws and regulations.  We will prepare the rulings, submit them to the state or local jurisdiction, work with the jurisdiction to provide supplemental facts or address questions, and provide you with an understanding of the implications of the ruling response.  We typically perform these engagements on an hourly or fixed fee basis.

Strategic Planning (Mergers & Acquisitions or "M&A")

Swanson Law Group can help evaluate the state and local tax implications of any organizational changes you may be considering, including mergers, consolidations, disposition of a division or company, or expanding or contracting business operations.  We can evaluate a target company's tax attributes and provide a summary of the target's potential exposures and any possible mitigation (often referred to as "due diligence").  We can model the tax effects of these changes across all state and local jurisdictions in the United States and evaluate planning ideas to minimize the tax costs or obtain cash incentives, including credits and rebates, where available.  We perform these engagements on an hourly fee or fixed fee basis.

Voluntary Disclosure Agreements

Given the complexity of state and local taxes and tremendous changes in law that have occurred, many of our clients may find they are out of compliance with state and/or local tax laws and regulations.  Many state and local tax authorities offer “voluntary disclosure” programs (VDAs) or amnesties.  A VDA request is often initiated anonymously, and may include waiver of taxes, penalties and interest upon voluntary disclosure of unpaid tax liability.  Swanson Law Group can help you identify and evaluate the facts and filing requirements, consider filing positions, facilitate obtaining the appropriate agreements, and submit tax returns and tax payments.  In some cases, we will recommend clients consider collecting unremitted sales tax from customers to help offset the unpaid liability or contact their customers to see if they have already self-assessed the tax.

Compliance
 

Swanson Law Group can prepare and/or review your multi-state income, sales, use, excise (e.g., Business & Occupation) and personal property tax returns to help you focus your time on more strategic business and tax matters. We are experienced in utilizing various sales and use tax return preparation software applications and can prepare the returns either on-site or remotely.  Our compliance services include preparing tax returns for your signature or electronic filing that may include Electronic Data Interchange (EDI), check requests, and tax account reconciliation. We typically perform these services on an hourly or fixed fee basis.

Nexus (Taxability) Studies 

Swanson Law Group can help determine your organization's state and local tax filing responsibilities and how taxes should be reported in various jurisdictions.  Historically, companies had to have a physical presence or "nexus," either permanent or transitory, in a state or local jurisdiction to require a tax filing obligation.  Now, some state and local jurisdictions require tax filings based on "economic nexus."  The economic nexus standard only requires that a company sell to customers in that jurisdiction.  The old physical nexus and the new economic nexus standard are being applied in creative ways in some jurisdictions, and this is causing substantive tax risk for many businesses.

As it pertains to multistate sales tax collection, Swanson Law Group is intimately familiar with state tax law changes following the U.S. Supreme Court decision in Wayfair which substantially changed the rules regarding the state taxation of internet-based ("remote") sales and the determination of whether a company has “nexus” in a particular jurisdiction for purposes of sales tax collection.  Historically, companies had to have a physical presence or “nexus” in a state or local jurisdiction to require a tax filing obligation. The rules in this digital age have changed, and a company may have a tax filing obligation based merely on economic ("virtual") nexus.  Swanson Law Group can help your business identify and adjust for the potential state taxation of your internet-based sales in conjunction with a nexus study, both going forward and addressing past years since the Wayfair decision.  We will help you determine how your products and services should be taxed.

In conjunction with a nexus study, we often help our clients determine how their products and services should be taxed, particularly if a gross receipts tax is involved. We also request letter rulings if an issue is unclear and the tax risks warrant an affirmative conclusion.

Legislative & Regulatory Support Services

In a normal Washington state legislative session, and especially during periods of fiscal crisis, hundreds of tax bills may be presented to the legislature for consideration.  Many of these bills become law.  Local tax legislation is often less transparent and passes in a short time frame with little stakeholder input. We can assist clients, including industry associations by monitoring relevant tax legislation, attend public hearings and even testify in support of or against the proposed legislation.