State Income Tax & Non-resident Withholding Tax Return Preparation
We can work with the historic tax provider to advise on apportionment and the preparation of state income tax and non-resident withholding tax returns, to the extent applicable. However, sometimes the historic tax provider does not feel qualified to prepare the needed state returns or does not have the capacity. In these instances, we can work with an affiliated firm to input the federal returns into the software and then prepare the applicable state income tax returns. Our fees start at $1,000 per return prepared, but we must first review the federal return to determine the level of work required to get the federal returns into the system.
01
Enter the Historic Federal Returns
We enter the historic federal returns into income tax preparation software, including all depreciable assets. We work with an affiliated firm to prepare the returns, and we must review the completed returns to confirm the final price.
02
Prepare the State Apportionment
We take the historic sales, property, and payroll data by year to prepare the applicable state apportionment. For service companies, states generally use one of three methods to source in-state sales: market sourcing, majority cost of performance, or proportional cost of performance. Certain deals where we must prepare apportionment using these methods may require an additional fee.
03
Prepare the State Income Tax or Non-resident Withholding Tax Returns
We review the state income tax returns and non-resident withholding tax returns, including any required depreciation adjustments.
04
Return Approval, Signature and Filing
State income tax and non-resident withholding tax returns have to be signed. For some states, signed paper returns have to be filed, while other states require e-filing with a digital signature.