Proactive Tax Planning Can Yield Significant Benefits
A Strategic Tax Assessment and Implementation (STAI) is a multidisciplinary tax approach which focuses on identifying tax saving strategies and exposure reduction techniques that can be implemented and maintained by clients. A STAI can consist of either a comprehensive review of a company’s worldwide tax position or a more focused review on a particular tax or business area.
Team to Provide Window of Opportunities
Our STAI Team has decades of experience providing strategic tax planning for taxpayers of all sizes, from the Fortune 500 to privately-held companies. We understand that “pitching ideas” is not the best approach for either of us. What works is understanding your business and your goals and working with you to find the most efficient and integrated tax plans for your organization.
Ideal Candidates for Potential Savings
The focus of a strategic tax assessment is to provide for an overall effective tax reduction in addition to cash tax savings. Typically, the eligible companies pay current federal tax in excess of $2 million dollars or state tax in excess of $500,000 and have demonstrated the ability to implement operationally-based strategies that impact taxes.
Our Approach
Our approach brings valuable and supportable planning ideas that can be implemented and maintained in a manner that allows our clients to achieve long-term benefits.
- Fees – Where appropriate and permitted, UHY Advisors’ STAI team will operate on a contingent fee basis for any services resulting in refunds. Alternatively, hourly rates or a fixed fee can be arranged. Planning and/or restructuring that leads to prospective tax savings will generally involve a fixed fee determined by the level of effort and benefit associated with the project.
- Process – UHY Advisors’ STAI team will review the information provided by our clients to identify savings opportunities and, if readily apparent, tax exposures. The review will consist of not only a review of tax return documentation, but also meetings and interviews with key personnel in the tax and operational areas of the organization.
- Initial Deliverable – We will present the savings and exposure reduction opportunities identified in the review in a brief slide presentation. We will also point out any significant barriers to implementation that were uncovered in the course of our review, enabling you to make an informed business decision on whether to proceed.
Insights of Our Seasoned Professionals
Our multidisciplinary STAI team works together to provide strategic tax planning that examines your total tax position, rather than proposing a myriad of disjointed and sometimes conflicting tax strategies. We stay in front of legislative changes that may impact your business and are aware of unique trends that affect tax planning within your industry. We have successfully used this approach to provide significant benefits to clients in most industries, including retail, manufacturing, energy, transportation, financial, construction, telecommunications and others.
Alternative Ways to Assess Potential Tax Benefits
When a comprehensive review does not meet the needs of our clients, a limited scope review can take its place. Some examples of those opportunities include, but are not limited to:
- State Strategic Tax Assessment
- Accounting Periods and Methods Review
- Production Activities Deduction
- Transaction Costs Recovery
- Transportation Tax
- Using NOL’s with Foregone Amortization
- Meals and Entertainment Recovery Services
- 10-Year Net Operating Loss Carryback
- Research and Development Tax Incentives
For more information about Strategic Tax Assessment & Implementation, contact Ted Clark, Managing Director of the State and Local Tax Practice, at tclark@uhy-us.com or call 713-407-3717.