\n<\/p>\n
U.S. businesses continue to face the pressures to drive revenue, manage costs and increase shareholder value, all while surrounded by various uncertainties. Disruptions to supply chains brought about by the pandemic, as well as geopolitical unrest, severe weather, climate change, and trade tensions have continued into 2024. Although at a lower level than previously, inflation and elevated interest rates have made the cost of debt, goods, and services more expensive and cooled consumer spending. Fortunately, the stock market rose in 2024, and the prospect of a recession is now considered unlikely. However, the outcomes of the November presidential and congressional elections will shape future tax policies. How do businesses thrive in uncertain times? By turning toward opportunity, which includes proactive tax planning. Tax planning is essential for U.S. businesses looking for ways to optimize cash flow while minimizing their total tax liability over the long term.<\/p>\n
This article provides a checklist of areas where, with proper planning, businesses may be able to reduce or defer taxes over time. Unless otherwise noted, the information contained in this article is based on enacted tax laws and policies as of the publication date and is subject to change based on future legislative or tax policy changes.<\/p>\n
Deferring income<\/strong><\/p>\n Businesses using the cash method of accounting can defer income into 2025 by delaying end-of-year invoices so that payment is not received until 2025. Businesses using the accrual method can defer income by postponing the delivery of goods or services until January 2025.<\/p>\n Companies that want to reduce their 2024 tax liability should consider traditional tax accounting method changes, tax elections and other actions for 2024 to defer recognizing income to a later taxable year and accelerate tax deductions to an earlier taxable year. Depending on their facts and circumstances, some businesses may instead want to accelerate taxable income into 2024 if, for example, they believe tax rates will increase in the near future, or they want to optimize usage of net operating losses.<\/p>\n Purchasing new business equipment<\/strong><\/p>\n \u2022 Bonus Depreciation.<\/strong> Businesses are allowed to immediately deduct 60% of the cost of eligible property such as machinery and equipment that is placed in service after December 31, 2023, and before January 1, 2025, after which it will be phased downward over the next two years: 40% in 2025 and 20% in 2026. The first-year 60% bonus depreciation deduction is available for qualifying assets even if they are placed in service for only a few days in 2024.<\/p>\n \u2022 Section 179 Expensing.<\/strong> Businesses should take advantage of Section 179 expensing this year whenever possible. In 2024, businesses can elect to expense (deduct immediately) the entire cost of most new equipment up to a maximum of $1.22 million of the first $3.05 million of property placed in service by December 31, 2024. Keep in mind that the Section 179 deduction cannot exceed net taxable business income. The deduction is phased out dollar for dollar on amounts exceeding the $3.05 million threshold and eliminated above amounts exceeding $4.27 million.<\/p>\n Depreciation limitations on luxury, passenger automobiles, and heavy vehicles<\/strong><\/p>\n As a reminder, tax reform changed depreciation limits for luxury passenger vehicles placed in service after December 31, 2017. If the taxpayer does not claim bonus depreciation, the maximum allowable depreciation deduction for 2024 is $12,400 for the first year. Deductions are based on a percentage of business use. A business owner whose business use of the vehicle is 100 percent can take a larger deduction than one whose business use of a car is only 50 percent. For passenger autos eligible for the additional bonus first-year depreciation, the maximum first-year depreciation allowance remains at $8,000. It applies to new and used (\u201cnew to you\u201d) vehicles acquired and placed in service after September 27, 2017, and remains in effect for tax years through December 31, 2024. When combined with the increased depreciation allowance above, the deduction amounts to as much as $20,400 in 2024. Heavy vehicles, including pickup trucks, vans, and SUVs whose gross vehicle weight rating (GVWR) is more than 6,000 pounds, are treated as transportation equipment instead of passenger vehicles. As such, heavy vehicles (new or used) placed into service after December 31, 2023, and before January 1, 2025, qualify for a 60 percent first-year bonus depreciation deduction as well.<\/p>\n Repair regulations<\/strong><\/p>\n Where possible, end-of-year repairs and expenses should be deducted immediately, rather than capitalized and depreciated. Small businesses lacking applicable financial statements (AFS) can take advantage of de minimis safe harbor by electing to deduct smaller purchases ($2,500 or less per purchase or invoice). Businesses with audited financial statements can deduct $5,000. Small businesses with gross receipts of $10 million or less can also take advantage of safe harbor for repairs, maintenance, and improvements to eligible buildings.<\/p>\n Change in deducting meals<\/strong><\/p>\n Beginning in 2023, deductions are now back where they were prior to 2021. The majority of business meals are now 50% deductible, and most entertainment expenses are not deductible at all.<\/p>\n Change in deducting R&D expenses<\/strong><\/p>\n R&D expenses must now be amortized over 5 years (domestic), or 15 years (foreign), beginning with tax years starting after December 31, 2021. Prior to this, R&D expenses could be deducted or amortized over time.<\/p>\n Qualified business income deduction<\/strong><\/p>\n Many business taxpayers \u2013 including owners of businesses operated through sole proprietorships, partnerships, and S corporations, as well as trusts and estates, may be eligible for the qualified business income deduction. This deduction is worth up to 20 percent of qualified business income (QBI) from a qualified trade or business for tax years 2018 through 2025. Limitations based on taxable income levels could apply. The QBI is complex, and tax planning strategies can directly affect the amount of deduction, i.e., increase or reduce the dollar amount. As such, it is important to speak with a tax professional before year\u2019s end to determine the best way to maximize the deduction.<\/p>\n Dividend planning<\/strong><\/p>\n Reduce accumulated corporate profits and earnings by issuing corporate dividends to shareholders.<\/p>\n Write-off bad debts and worthless stock<\/strong><\/p>\n While the economy attempts to recover from the challenges brought on by the COVID-19 pandemic, inflation and rising interest rates, businesses should evaluate whether losses may be claimed on their 2024 returns related to worthless assets such as receivables, property, 80% owned subsidiaries or other investments.<\/p>\n \u2022 Business bad debts can be wholly or partially written off for tax purposes. A partial write-off requires a conforming reduction of the debt on the books of the taxpayer; a complete write-off requires a demonstration that the debt is wholly uncollectible as of the end of the year.<\/p>\n \u2022 Losses related to worthless, damaged or abandoned property can sometimes generate ordinary losses for specific assets.<\/p>\n \u2022 Businesses should consider claiming losses for investments in insolvent subsidiaries that are at least 80% owned and for certain investments in insolvent entities taxed as partnerships.<\/p>\n Maximize interest expense deductions<\/strong><\/p>\n The TCJA significantly expanded Section 163(j) to impose a limitation on business interest expense of many taxpayers, with exceptions for small businesses (those with three-year average annual gross receipts not exceeding $30 million for 2024), electing real property trades or businesses, electing farming businesses and certain utilities.<\/p>\n \u2022 The deduction limit is based on 30% of adjusted taxable income. The amount of interest expense that exceeds the limitation is carried over indefinitely.<\/p>\n \u2022 Beginning with 2022 taxable years, taxpayers will no longer be permitted to add back deductions for depreciation, amortization and depletion in arriving at adjusted taxable income (the principal component of the limitation).<\/p>\n Maximize tax benefits of NOLs<\/strong><\/p>\n Net operating losses (NOLs) are valuable assets that can reduce taxes owed during profitable years, thus generating a positive cash flow impact for taxpayers. Businesses should make sure they maximize the tax benefits of their NOLs.<\/p>\n For tax years beginning after 2020, NOL carryovers from tax years beginning after 2017 are limited to 80% of the excess of the corporation\u2019s taxable income over the corporation\u2019s NOL carryovers from tax years beginning before 2018 (which are not subject to this 80% limitation but may be carried forward only 20 years). If the corporation does not have pre-2018 NOL carryovers, but does have post-2017 NOLs, the corporation\u2019s NOL deduction can only negate up to 80% of the 2024 taxable income with the remaining subject to the 21% federal corporate income tax rate. Corporations should monitor their taxable income and submit appropriate quarterly estimated tax payments to avoid underpayment penalties.<\/p>\n Claim available tax credits<\/strong><\/p>\n The U.S. offers a variety of tax credits and other incentives to encourage employment and investment, often in targeted industries or areas such as innovation and technology, renewable energy and low-income or distressed communities. Many states and localities also offer tax incentives. Businesses should make sure they are claiming all available tax credits.<\/p>\n \u2022 The Employee Retention Credit (ERC) is a refundable payroll tax credit for qualifying employers that were significantly impacted by COVID-19 in 2020 or 2021. For most employers, the compensation eligible for the credit had to be paid prior to October 1, 2021. However, the deadline for claiming the credit does not expire until the statute of limitations closes on Form 941. Therefore, employers generally have three years to claim the ERC for eligible quarters during 2020 and 2021 by filing an amended Form 941-X for the relevant quarter. Employers that received a Paycheck Protection Program (PPP) loan can claim the ERC, but the same wages cannot be used for both programs.<\/p>\n In response to mounting concerns over a surge in improper claims for the ERC, on September 14, 2023, the IRS announced an immediate moratorium on processing new claims for the pandemic-era relief program. The moratorium, which has now ended, aimed to protect businesses from scams and predatory tactics. While the IRS continues to process previously filed ERC claims received before the moratorium, the agency warns that increased fraud concerns will result in longer processing times.<\/p>\n However, the pause on processing new claims does not modify the statute of limitations that expires on April 15, 2024, for wages paid in 2020, and April 15, 2025, for wages paid in 2021. Therefore, an employer considering a new request for a legitimate ERC claim should proceed after carefully reviewing Information Releases 2023-169 and 2023-170, which the IRS released on September 14, 2023. For employers who would like to make a change to a pending claim that has not been processed or paid, the IRS is expected to issue guidance in the near future.<\/p>\n \u2022 Businesses that incur expenses related to qualified research and development (R&D) activities are eligible for the federal R&D credit.<\/p>\n The IRS announced the release of a revised draft of Form 6765, Credit for Increasing Research Activities, on June 21, 2024, that reflects feedback from external stakeholders. This follows the IRS\u2019s efforts to tighten documentation requirements for claiming the research credit. In September 2023, the IRS previewed proposed changes to Form 6765, adding new sections for detailed business component information and reordering existing fields. These changes aimed to improve information consistency and quality for tax administration but were criticized as overly burdensome. \u2022 Other incentives for employers include the Work Opportunity Tax Credit, the Federal Empowerment Zone Credit, and credits for paid family and medical leave (FMLA).<\/p>\n \u2022 There are several federal tax benefits available for investments to promote energy efficiency and sustainability initiatives. The Inflation Reduction Act (IRA) extends and enhances certain green energy credits as well as introduces a variety of new incentives. Projects that have historically been eligible for tax credits and that have been placed in service in 2023 or later may be eligible for credits at higher amounts. Certain other projects may be eligible for tax credits beginning in 2023. The IRA also introduces prevailing wage and apprenticeship requirements in the determination of certain credit amounts, as well as direct pay or transferability tax credit monetization options beginning with projects placed in service in 2023.<\/p>\n \u2022 Under the CHIPS Act, taxpayers that invest in semiconductor manufacturing or the manufacture of certain equipment required in the semiconductor manufacturing process may be entitled to a 25% advanced manufacturing investment credit beginning in 2023. The credit generally applies to qualified property placed in service after December 31, 2022, and for which construction begins before January 1, 2027.<\/p>\n Partnerships and S corporations<\/strong><\/p>\n Partnerships, S corporations and their owners may want to consider the following tax planning opportunities:<\/p>\n \u2022 Taxpayers with unused passive activity losses attributable to partnership or S corporation interests may want to consider disposing of the interest to utilize the loss in 2024.<\/p>\n \u2022 Taxpayers other than corporations may be entitled to a deduction of up to 20% of their qualified business income (within certain limitations based on the taxpayer\u2019s taxable income, whether the taxpayer is engaged in a service-type trade or business, the amount of W-2 wages paid by the business and the unadjusted basis of certain property held by the business). Planning opportunities may be available to maximize this deduction.<\/p>\n \u2022 Certain tax basis, at-risk and active participation requirements must be met for losses of pass-through entities to be deductible by a partner or S corporation shareholder. In addition, an individual\u2019s excess business losses are subject to overall limitations. There may be steps that pass-through owners can take before the end of 2024 to maximize their loss deductions. The Inflation Reduction Act extends the excess business loss limitation by two years (the limitation was scheduled to expire for taxable years beginning on or after January 1, 2027).<\/p>\n \u2022 Various states have enacted PTE tax elections that seek a workaround to the federal personal income tax limitation on the deduction of state taxes for individual owners of pass-through entities. See State pass-through entity tax elections, below.<\/p>\n Consideration for employers<\/strong><\/p>\n Employers should consider the following issues as they close out 2024 and enter 2025:<\/p>\n \u2022 As a reminder, the SECURE Act 2.0<\/strong> requires 401(k) and 403(b) plans to automatically enroll participants in the respective plans upon becoming eligible (although employees may opt out of coverage).<\/p>\n \u2022 For long-term part-time workers, the SECURE Act 2.0<\/strong> reduces the 3-year eligibility rule to just 2 years, effective for the plan years beginning after December 31, 2024.<\/p>\n \u2022 Employers may allow plan participants to designate matching and nonelective contributions as Roth contributions.<\/p>\n \u2022 Small employers are eligible for a plan start-up credit, effective for taxable years beginning after December 31, 2022. The start-up credit for adopting a workplace retirement plan increases from 50% to 100% administrative costs for small employers with up to 50 employees. The credit remains 50% for employers with 51-100 employees. Employers with a defined contribution plan may also receive an additional credit based on the amount of employer contributions of up to $1,000 per employee. This additional credit phases out over five years for employers with 51-100 employees.<\/p>\n \u2022 SIMPLE and Simplified employee Pensions (SEPs) can accept Roth contributions effective for taxable years beginning after December 31, 2022. In addition, employers can offer employees the ability to treat employee and employer SEP contributions as Roth contributions (in whole or in part).<\/p>\n \u2022 Employers have until the extended due date of their 2024 federal income tax return to retroactively establish a qualified retirement plan and to fund the new or an existing plan for 2024. However, employers cannot retroactively eliminate existing retirement plans (such as simplified employee pensions (SEPs) or SIMPLE plans) to make room for a retroactively adopted plan (such as an employee stock ownership plan (ESOP) or cash balance plan).<\/p>\n \u2022 Contributions made to a qualified retirement plan by the extended due date of the 2024 federal income tax return may be deductible for 2024; contributions made after this date are deductible for 2025.<\/p>\n \u2022 Employers should ensure that common fringe benefits are properly included in employees\u2019 and, if applicable, 2% S corporation shareholders\u2019 taxable wages. Partners and LLC members (including owners of capital interests and profits interests) should not be issued W-2s.<\/p>\n \u2022 Generally, for calendar year accrual basis taxpayers, accrued bonuses must be fixed and determinable by year end and paid within 2.5 months of year end (by March 15, 2025) for the bonus to be deductible in 2024. However, the bonus compensation must be paid before the end of 2024 if it is paid by a Personal Service Corporation to an employee-owner, by an S corporation to any employee-shareholder, or by a C corporation to a direct or indirect majority owner.<\/p>\n \u2022 Businesses should assess the tax impacts of their mobile workforce. Potential impacts include the establishment of a corporate tax presence in the state or foreign country where the employee works; dual tax residency for the employee; additional taxable compensation for remote workers\u2019 travel to a work location that is determined to be personal commuting expense; and payroll tax, benefits, and transfer pricing issues.<\/p>\n IRS drastically expands electronic filing requirements<\/strong><\/p>\n Almost all federal tax and information returns filed on or after January 1, 2024, must be submitted to the IRS electronically instead of on paper.<\/p>\n Under the new rules, filers of 10 or more returns of any type<\/strong><\/em> for a calendar year generally will need to be filed electronically with the IRS. Previously, electronic filing was required if the taxpayer filed more than 250 returns of the same type<\/strong> <\/em>for a calendar year.<\/p>\n Practically all filers with the IRS of 10 or more information returns \u2014 when counting any type, such as Forms W-2, Forms 1099, Affordable Care Act Forms 1094 and 1095 and Form 3921 (for incentive stock options) and other disclosure documents \u2014 are impacted by this change for tax years 2023 and going forward. Even workplace retirement plans may need to file Form 1099-Rs (for benefit payments) and other forms electronically with the IRS starting in 2024, for the 2023 plan or calendar year and going forward.<\/p>\n In addition to the information returns that are the primary focus of this article, the new rules cover a broad variety of returns, including partnership returns, corporate income tax returns, unrelated business income tax returns, withholding tax returns for U.S.-source income of foreign persons, registration statements, disclosure statements, notifications, actuarial reports and certain excise tax returns.<\/p>\n Beneficial ownership interest (BOI) reporting<\/strong><\/p>\n The Corporate Transparency Act (CTA) requires the disclosure of the beneficial ownership information of certain entities to the Financial Crimes Enforcement Network (FinCEN) starting in 2024. This is not a tax filing requirement, but an online report to be completed if applicable to FinCEN. There are severe penalties for businesses who willingly do not comply with the requirements.<\/p>\n State and local taxes<\/strong><\/p>\n Businesses should monitor the tax laws and policies in the states in which they do business to understand their tax obligations, identify ways to minimize their state tax liabilities, and eliminate any state tax exposure. The following are some of the state-specific areas taxpayers should consider when planning for their tax liabilities in 2024 and 2025:<\/p>\n Nexus rules<\/strong> \u2022 Has the business considered the state income tax nexus consequences of its mobile or remote workforce, including the impacts on payroll factor and sales factor sourcing? Most states that provided temporary nexus and\/or withholding relief relating to teleworking employees lifted those orders during 2021.<\/p>\n \u2022 Does the business qualify for P.L. 86-272 protection with respect to its activities in a state? For businesses selling remotely and that have claimed P.L. 86-272 protection from state income taxes in the past, how is the business responding to changing state interpretations of those protections with respect to businesses engaged in internet-based activities?<\/p>\n \u00a0<\/p>\n Taxable income and tax calculation<\/strong><\/p>\n \u2022 Does the state conform to federal tax rules or decouple from them? Not all states follow federal tax rules. For example, many states have their own systems of depreciation and may or may not allow federal bonus depreciation.<\/p>\n \u2022 Has the business claimed all state NOL and state tax credit carrybacks and carryforwards? Most states apply their own NOL\/credit computation and carryback\/forward provisions.<\/p>\n \u2022 Is the business claiming all available state and local tax credits? States offer various incentive credits including, e.g., for research activities, expanding or relocating operations, making capital investments or increasing headcount.<\/p>\n Allocation and apportionment<\/strong> \u2022 If the business holds an interest in a partnership, have the consequences with respect to factor flow-through and other potential special partnership apportionment provisions been considered?<\/p>\n \u2022 If the business is a manufacturer, retailer, transportation company, financial corporation, or other special industry, have state special apportionment elections or required special apportionment formulas been considered?<\/p>\n State pass-through entity elections<\/strong> Other state and local taxes<\/strong> \u2022 Has the business reviewed its sales and use tax nexus footprint, the taxability of its products and services, and whether it is charging the appropriate sales and use tax rates? A comprehensive review of the sales and use tax function along with improving or automating processes may help businesses report and pay the appropriate amount of tax to the correct states and localities.<\/p>\n \u2022 Remote retailers, marketplace sellers and marketplace facilitators (i.e., marketplace providers) should be sure they are in compliance with state sales and use tax laws and marketplace facilitator rules.<\/p>\n Begin planning for the future<\/strong><\/p>\n Businesses should consider actions that will put them on the best path forward for 2024 and beyond. Businesses can begin now to:<\/p>\n \u2022 Reevaluate choice of entity decisions while considering alternative legal entity structures to minimize total tax liability and enterprise risk.<\/p>\n \u2022 Evaluate global value chain and cross-border transactions to optimize transfer pricing and minimize global tax liabilities.<\/p>\n \u2022 Review available tax credits and incentives for relevancy to leverage within applicable business lines.<\/p>\n \u2022 Consider legal entity rationalization, which can reduce administrative costs and provide other benefits and efficiencies.<\/p>\n \u2022 Consider the benefits of an ESOP as an exit or liquidity strategy, which can provide tax benefits for both owners and the company.<\/p>\n \u2022 Perform a cost segregation study with respect to investments in buildings or renovation of real property to accelerate taxable deductions, claim qualifying bonus depreciation and identify other discretionary incentives to reduce or defer various taxes.<\/p>\n \u2022 Perform a state-by-state analysis to ensure the business is properly charging sales taxes on taxable items, but not exempt or non-taxable items, and to determine whether the business needs to self-remit use taxes on any taxable purchases (including digital products or services).<\/p>\n \u2022 Review transfer pricing compliance.<\/p>\n Year-end planning could make a difference in your tax bill<\/strong><\/p>\n If you\u2019d like more information, please call to schedule a consultation to discuss your specific tax and financial needs and develop a plan that works for your business.<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":" U.S. businesses continue to face the pressures to drive revenue, manage costs and increase shareholder value, all while surrounded by various uncertainties. Disruptions to supply chains brought about by the pandemic, as well as geopolitical unrest, severe weather, climate change, and trade tensions have continued into 2024. Although at a lower level than previously, inflation […]<\/p>\n","protected":false},"author":1,"featured_media":76766,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11759],"tags":[11170,10922,7356,11378],"dealstore":[],"offerexpiration":[],"class_list":["post-76765","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting","tag-businesses","tag-planning","tag-tax","tag-yearend"],"yoast_head":"\n
The updated draft retains Section E from the previous version but requires additional taxpayer information. The \u201cBusiness Component Detail\u201d section, now Section G, is optional for Qualified Small Business (QSB) taxpayers and those with total qualified research expenditures (QREs) of $1.5 million or less and gross receipts of $50 million or less. Additionally, the IRS reduced the number of business components to be reported in Section G, requiring 80% of total QREs in descending order by amount, capped at 50 business components. Special instructions will be provided for taxpayers using the ASC 730 directive. The revised Section G will be optional for all filers for tax year 2024 to allow taxpayers time to transition to the new format. As outlined by the IRS, Section G will be effective for tax year 2025.
Currently, the IRS receives a significant number of returns claiming the research credit, which requires substantial examination resources from both taxpayers and the IRS. To ensure effective tax administration for this issue, the IRS aims to clarify the requirements for claiming the research credit by considering all feedback received from stakeholders before finalizing any changes to Form 6765.
In response to ongoing concerns of improper claims of the research credit, the IRS has intensified its focus on reviewing these claims for nonconformities, including conducting more audits. Navigating the complexities of the research credit can be challenging, especially with the increased scrutiny, recent case law, and the newly implemented IRS compliance measures in place.
It is important for taxpayers to accurately determine eligibility, validate and properly record contemporaneous documentation to support research credit claims, and defend against examinations. Taxpayers should partner with a trusted tax advisor to ensure compliance with IRS regulations and proper eligibility for the research credit.
\u2022 Taxpayers that reinvest capital gains in Qualified Opportunity Zones may be able to temporarily defer the federal tax due on the capital gains. The investment must be made within a certain period after the disposition giving rise to the gain. Post-reinvestment appreciation is exempt from tax if the investment is held for at least 10 years but sold by December 31, 2047.<\/p>\n
\u2022 Has the business reviewed the nexus rules in every state in which it has property, employees or sales to determine whether it has a tax obligation? State nexus rules are complex and vary by state. Even minimal or temporary physical presence within a state can create nexus, e.g., temporary visits by employees for business purposes; presence of independent contractors making sales or performing services, especially warranty repair services; presence of mobile or moveable property; or presence of inventory at a third-party warehouse. In addition, many states have adopted a bright-line factor-presence nexus threshold for income tax purposes (e.g., $500,000 in sales). Also keep in mind that foreign entities that claim federal treaty protection are likely not protected from state income taxes, and those foreign entities that have nexus with a state may still be liable for state taxes.<\/p>\n
\u2022 Is the business correctly sourcing its sales of tangible personal property, services, and intangibles to the proper states? The majority of states impose single-sales factor apportionment formulas and require market-based sourcing for sales of services and licenses\/sales of intangibles using disparate market-based sourcing methodologies.<\/p>\n
The TCJA introduced a $10,000 limit for individuals with respect to federal itemized deductions for state and local taxes paid during the year ($5,000 for married individuals filing separately). More than 30 states have enacted workarounds to this deduction limitation for owners of pass-through entities, by allowing a pass-through entity to make an election (PTE tax election) to be taxed at the entity level. PTE tax elections present complex state and federal tax issues for partners and shareholders. Before making an election, care needs to be exercised to avoid state tax traps, especially for nonresident owners, that could exceed any federal tax savings.<\/p>\n
State and local property taxes, sales and use taxes and other indirect state and local taxes can be the largest piece of an organization\u2019s state tax expenditures, even exceeding state and local income and franchise taxes. Just like state income taxes, businesses should understand and plan for their other state and local tax obligations. Some areas of consideration include:<\/p>\n