12 BWD | FALL / WINTER 2017-2018
By Michael Bannasch , CPA , MST
Do you know where your business is ?
Where is your business located ? This question may seem straightforward , but when it comes to state and local taxes , answers — and borders — can start to blur . Consider the following scenario :
A debt collection agency located in Michigan was seeking to grow and willing to find that opportunity anywhere in the U . S . To prepare for any opportunity that might present itself , the business , unbeknownst to its CPA , registered to do business in all 50 states and became licensed as a collection agency in each state requiring a license . As a result — without even having clients , employees or property outside Michigan — the business went from only having to file a Michigan income tax return to having to file returns in nearly 20 states .
ABOUT THE AUTHOR
Michael Bannasch is a state and local tax ( SALT ) senior manager , providing consulting services to help clients minimize tax and manage risk . These services include structural and operational strategic planning , audit representation and appeals , nexus studies and reverse audits . Contact him today at michael . bannasch @ rehmann . com .