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SERVICES SUMMARY
Thompson Tax & Associates, LLC offers personalized services for your sales and use/state and local tax needs. Our expertise simplifies the resolution of your most complicated tax issues in a professional, understandable and cost-efficient manner.

Audit Management Services - We can provide whatever assistance you may need in managing your audit. From start to finish or on an as-needed basis, we have the experience to manage your audit for you. We provide assistance with all stages of an audit (sales/use or property tax) from starting with a preaudit study to identify areas of potential under or overpayment to preparing and meeting with the auditor to establish the audit scope, procedures and methodology to transferring records to our place of business to free you to concentrate on your business as well as eliminating misunderstandings by the auditor. We request a copy of your files from the state taxing authorities so we have the same information as the auditor. We can also act as a liaison between you and the audit staff during the course of the audit. We can also explore the viability of entering into a managed audit and reducing your interest liability on any underpayments by 50%! We also identify areas of noncompliance and provide suggestions for corrective measures.

Audit Defense, Appeals and Hearings - We specialize in providing expert assistance with pre-audit planning, on-going audits or recently completed audits. We conduct detailed reviews of the audit methodology and findings, correlate these findings with your books and records, and then develop arguments and positions for questionable items in the audit. In addition, we seek to identify potential overpayments to offset underpayments of tax. We also assist you in meeting important deadlines and will file an audit appeal, as well as file claims for refund. We will plan, prepare and conduct conferences and hearings on your behalf.

Accounts Payable Review - We will conduct an extensive review of your business operations for potential overpayments of tax. We invest time in understanding your operations and processes and conduct a cursory review to identify areas of potential overpayment. Overpayments may take the form of tax paid to vendors or accrued in error on non-taxable or exempt items. We then consult with you on the potential refund and provide a detailed overview of the procedures to obtain the refund. No refund claim will be filed without your consent.

If you decide to proceed with the refund, we will file the necessary claims with the appropriate state taxing authorities or vendors, whichever appropriate, and provide the support necessary to obtain the refund. Upon validation of the refund claims, we will provide you with a written summary of our findings as well as corrective measures to prevent such overpayments from occurring in the future. For this service, our fees are usually contingent upon the refund you receive, so we do not get paid unless you obtain a refund of taxes paid.

Nexus Study - Companies who have never conducted a nexus review or who have had recent changes in their business operations should consider such a review to identify or revise their sales and use tax compliance footprint. It is an especially critical tool for companies which have experienced mergers, acquisitions, divestitures, an expansion of manufacturing or distribution facilities or recent increases in their sales force.

A nexus review focuses on questionnaire responses designed to identify a company's activities or presence on a state-by-state basis through such activities as independent sales representatives, inventory, owing or leasing real or tangible personal property and other similar actions. Responses are evaluated to determine where the business has likely established nexus and when such nexus was established. The next step is a taxability study to determine whether the company needs to be registered in the nexus states identified.

Sales and Use Tax Planning for Purchases of Vehicles, Vessels and Aircraft - With careful planning and implementation, you can avoid the payment of sales and use tax on your acquisition of a vehicle, vessel or airplane. Click on the link above to learn more.

Taxability Matrix - A taxability study is simply a review of a company's revenue stream for the proper application of sales and use tax where a company has nexus. Important areas of examination include how and where products and services are provided to customers and whether such products or services are statutorily exempt from sales or use tax liabilities. Revenues from optional warranties, installation, repair, and transportation charges are also high interest areas. Taxability studies help quantify potential past liabilities as well provide guidance to the compliance function on a prospective basis. A taxability study should be updated periodically to reflect legislative, administrative and judicial changes to applicable statutes and regulations.

Voluntary Disclosures - Many states offer a voluntary disclosure program for companies not in compliance with registration and reporting of sales and use taxes. The programs generally provide a limited lookback period and abatement of interest and/or penalties. Acceptance in a voluntary disclosure program generally requires no prior registration or contact from the tax authority.

We work on your behalf by contacting the taxing authority and outlining your fact pattern. Your anonymity is preserved during this process and is not disclosed until you are accepted into the program. We assist with the preparation of the registration forms, returns and requests for abatement of interest and/or penalty for the voluntary disclosure. We can also assist with your compliance requirements upon completion of the voluntary disclosure.

Due Diligence/Transactional Analysis - We can help you evaluate the tax ramifications of a pending acquisition or disposition, whether it is the sale or purchase of assets, a division or subsidiary. Having this information will give you the complete picture as to the total cost involved rather than being surprised with a tax assessment upon sale or purchase.

Sarbanes-Oxley - The Sarbanes-Oxley Act of 2002 or "Sarbox" regulates auditors and audit firms serving public companies, among other things. Sarbox implemented new independence rules that prohibit audit firms from providing audit clients with certain nonaudit services and required audit committee preapproval of all other such services. Since we do not provide audit or attest services, we are not limited from providing any tax services which may be prohibited under the Sarbox. Thompson Tax is a great alternative to accounting firms for tax services because we provide the expertise and experience at a Big Four accounting firm level along with the independence required by Sarbox at a more competitive pricing structure. We are also able to enter into contingent fee arrangements for such services as reverse audits and audit defense.

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