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Multi-State Businesses: How to Know if You Owe Taxes (Video)

Posted by Jane Spradlin on Tue, Jan 15, 2019

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If you do business in more than one state, there’s a good chance you may owe taxes in another state. Instead of being issued a jeopardy assessment, it’s best to work with an experienced CPA and be proactive.

Watch the video below, or read on for more information:

New Call-to-action Companies that operate outside of their home state may have a filing liability in that other state. If they have property or sales or payroll – which would be possibly workers in their home office in another state – you could be liable for a state income tax liability or a franchise tax liability.

There are sales tax issues as far as selling across state lines, including perhaps through the Internet. This is going to be a very hot button issue in regards to state filing requirements and registering in various states that are not home states. 

Businesses should worry about registering and filing in other states because you don't want to receive a notice from that state. If a business receives a notice from a state that is not their home state, they generally get very anxious and worried about having a jeopardy assessment, which is a state's assessment of tax based on their idea of what you owe.

It’s best if we nip that in the bud and we can take care of it. It's very complicated and it's best to know what you're getting into before you get into it, because there's always preventative measures.

The professionals at Concannon Miller can help you assess whether you have a filing obligation in another state, as well as eliminating a possible jeopardy assessment by another state based on what they think you owe. At the end of the day, we want to make sure that our clients are protected and will not receive unwelcome notices or any notice for that fact that they would be unaware of.

Jane Spradlin, CPA, heads Concannon Miller's multi-state tax services. Contact her at jspradlin@concannonmiller.com or 610-433-5501 or read more about our tax services here.

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Topics: Business tax planning, Multi-state taxation

Concannon Miller’s unique, holistic and intimate approach to financial health sets us apart from smaller CPA firms with more limited resources as well as mega firms where mid-sized clients struggle for attention. Contact us here to talk about improving your business.

This communication is designed to provide accurate and authoritative information in regard to the subject matter covered at the time it was published. However, the general information herein is not intended to be nor should it be treated as tax, legal, or accounting advice. Additional issues could exist that would affect the tax treatment of a specific transaction and, therefore, taxpayers should seek advice from an independent tax advisor based on their particular circumstances before acting on any information presented. This information is not intended to be nor can it be used by any taxpayer for the purposes of avoiding tax penalties.

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