Citrin Cooperman 2023 SALT Practice Brochure

UNDERSTANDING OUR CLIENT’S BUSINESS IS JUST THE BEGINNING

State and Local Tax (SALT)

Focused on the Right Local Tax Strategy

Citrin Cooperman’s State and Local Tax (SALT) group is comprised of professionals that are recognized state and local tax experts that can help both individuals and businesses navigate the multi-faceted area of state and local taxation. We draw on the technical skill set and experience of our professionals to achieve maximum tax savings and compliance for clients through creative and valueadded services We also regularly monitor legislative and regulatory changes, court cases, and guidance issued by state and local taxing agencies and authorities.

Today, in a digital and e-commerce world with people working in an office, at home or other remote locations across the country and world, understanding a business or business owner’s SALT responsibilities has become an arduous task due in light of the lack of uniform rules Citrin Cooperman’s SALT team aims to simplify the compliance process, while providing both technical and practical guidance to our clients in navigating the complex SALT world

Additionally, the lack of uniformity in SALT law and regulations does not only present compliance challenges, but also presents opportunities for strategic tax planning and potential tax savings The Citrin Cooperman SALT professionals are regularly looking for creative ways for our clients to take advantage of these opportunities as they expand into new states.

Our areas of expertise include: Personal and Corporate Income Tax, Sales and Use Tax, Payroll tax, Personal Property Tax, Gross Receipts Tax, Franchise Tax, Unclaimed Property, and Tax Credits & Incentives Specifically, we assist clients with:

• Nexus Review – We analyze our clients' business operations in order to determine the company's tax filing obligations across tax types

• Income and Franchise Tax – We help our clients actively manage state and local income & franchise tax burdens by identifying creative and practical strategies to help reduce complexity and generate savings. These opportunities include apportionment and sourcing analyses, preferential tax rates, and differences between federal income tax and state and local tax laws

• Sales and Use Tax – We help businesses reduce the risk of noncompliance, improve efficiency, and identify tax planning opportunities. We can also help identify a host of different savings opportunities through applicable exemptions and sourcing methodologies Our taxability reports and analyses allows us to clearly demonstrate which products should be taxable by state

• Compliance Review – We review and provide guidance on how clients can efficiently file state and local tax returns to potentially help clients save money in compliance fees and ultimate taxes.

• Audit Representation and Controversy – We have extensive experience in working with state tax auditors to help minimize any potential state tax assessments and maximize potential refunds We also regularly advocate on behalf of our clients before administrative tribunals/boards. Our services start when a client receives an initial notice through administrative review levels.

• Tax Planning – We evaluate, recommend, and assist in implementing tax planning strategies to ensure our clients legally pay the least amount of state taxes

• Voluntary Disclosure Agreements (VDA) – We help clients minimize historical state tax exposures by evaluating and, if necessary, negotiating a VDA with a respective state(s)

Our model of team continuity, deep partner involvement, and commitment to effective communication allows us to quickly respond to our clients, make decisions, and resolve issues efficiently

• Credits and Incentives Review – We assist our clients in identifying, securing, and valuing various SALT credits and other tax incentives for job creation, investment, and certain real estate projects. We also help clients with the compliance required to continue receiving such credits or incentives

• Real and Personal Property Tax – We facilitate compliance with multiple taxing authorities, identify and remove components of the tax base which should not be subject to assessment, and reduce penalties and interest for late filings and payments. We also assist with identifying exemption and abatement opportunities and other location-based incentives

• Unclaimed Property – We work with companies to implement best practices to manage gift certificates, consumer rebate programs, uncashed checks, dividend payments, inactive bank accounts, and other common forms of abandoned and unclaimed property

State and Local Tax (SALT) (Cont’d)

Our SALT Opportunity & Risk Assessment is a unique product we offer that provides a business with a high level review of the company’s SALT compliance responsibilities and potential savings opportunities, including:

Nexus

Revenue Sourcing

Product Sourcing

Product Taxability

Personal Property Tax

Critical review areas

Payroll Tax Issues in a Remote Work Setting

Unclaimed Property

Gross Receipts Tax

Tax Credits & Incentives

Audit Defense

Nexus - The term “nexus” is used to describe the minimum contact required before a state can subject a business to state taxes or require a business to collect and remit sales tax Unfortunately, there is no one universal characteristic that creates nexus. Each state has its own laws and regulations governing when a business is subject to tax. In addition, each type of tax may have a different trigger for creating nexus Additionally, recent U S Supreme Court case law has led to even more rule changes and confusion

Sales Tax Reporting - While sales tax has historically been imposed on transfers of tangible personal property, many states have imposed tax on new services and digital products The rules associated with software, SAAS, information services, catalysts and components, and digital products and advertising are especially complex and differ by jurisdiction These differences also lead to tax savings opportunities with the correct structuring and advice

Use Tax Reporting - States have significantly increased enforcement of use tax laws. In general, companies that purchase goods and certain taxable services from out-of-state vendors typically have use tax exposure At the same time, we also assist with identifying areas where use tax accruals and remittance can cease based on state law

Revenue Sourcing - Many states require multistate taxpayers to apportion sales of services using different sourcing rules which look to where services are performed, where costs are incurred, where the customer is located, or where the benefit of the service may be received. This complex maze of rules can often lead to additional compliance or tax reduction opportunities

Audit Defense - Not only can we handle any type of SALT audit, whether involving personal income tax, corporate income tax, sales tax, gross receipts tax, transfer or occupancy taxes etc., but we can also provide proactive guidance and advice so companies can avoid any major SALT audit issues or inquiries

Sales and Use Tax Reverse Audit and Compliance Check Program

Sales and use taxes present a host of different compliance issues for companies involved in purchasing for their own use or selling to customers various forms of: software, software-related services, maintenance and products; SAAS and SAP services; data processing services; electronic data storage, access and retrieval services; components and catalysts for producing tangible products; and services and property pertaining to research and development and manufacturing or processing.

These issues range from whether selling such services or licensing and leasing the use of various services and intangible rights leads to a tax reporting obligation for an out-of-state company in-of-itself and whether such items are taxable, with taxability turning on method of delivery, platform, or even whether a desktop agent is provided to access information or software Further complicating the matter is determining the correct sourcing of the sale, license or lease of the product or service meaning which state is the correct one to consider for the application or exemption of sales and use tax. These determinations again also turn on method of delivery, the particular product or service, and the use of the product or service by the customer

In addition to assisting with understanding these rules from a compliance perspective, we can also assist with identifying savings opportunities through a process referred to as a reverse audit In a reverse audit, we will review a company’s record of invoices for its sales and purchases, use tax accruals, sales tax reports and remittances, and trial balance information. Through this process, we can identify potential refunds owed to the company and potential savings for its customers as well

Since sales tax is considered to be a trust fund tax collected from the customer, penalties for noncompliance can be excessive and involve personal liability for owners, shareholders and officers. Accordingly, many vendors “over-comply” to avoid having any issues with state revenue departments. As a result, often there are a number of regular business purchases that are taxed which should not be based on various exemptions, statutory interpretations and guidance from revenue departments. Such exemptions include those for resale, manufacturing, R&D, certain types of software and services etc.

Additionally, a state’s imposition of sales tax may be based on the method of delivery and place of use. These rules often lead to potential tax savings as well

Citrin Cooperman’s Sales and Use Tax Reverse Audit and Compliance Check ensures that your business will be in compliance with the applicable sales and use tax law, while also potentially generating significant tax savings for your business and your customers

DAVID SEIDEN Partner & Co-Leader,

David Seiden is the co-practice leader of the firm’s State and Local Tax Practice, and brings more than 25 years of expertise to all areas of state and local tax (SALT). He also brings a wealth of knowledge to his clients, with experience spanning a range of industries, including financial services, banking, hedge funds, broker dealers, franchising, manufacturing and distribution, staffing, and technology

Dave was previously the founding partner in a NY-based SALT consulting firm, SALT Link, LLC Prior to starting his own firm, Dave spent 17 years as a SALT partner at a Big Four accounting firm, where he held various leadership roles.

Dave has expansive expertise helping businesses navigate the complexities of multi-state income and franchise taxes, sales tax, payroll tax, and property tax. He has successfully represented taxpayers before state taxing authorities, saving clients millions of dollars in proposed assessments.

Dave has been able to obtain significant state tax incentives for his clients, working with various state and local tax and governmental agencies.

In addition, Dave has extensive experience working with individuals on issues relating to residency. Whether helping clients plan for a change in residency or representing them in an audit, he understands what it takes to successfully withstand a state’s audit challenge

EDUCATION & LICENSES

• Bachelor’s Degree, American University

• Certified Public Accountant in the State of New York

AFFILIATIONS

• Member, American Institute of Certified Public Accountants

• Member, New York State Society of Certified Public Accountants

EUGENE RUVERE Partner & Co-Leader, State and Local Tax Practice

914.949.2990 x3375

eruvere@citrincooperman.com

Eugene Ruvere is a partner in Citrin Cooperman’s White Plains office and Co-Practice Leader of the State and Local Tax Practice Eugene’s central area of expertise is state and local tax He has provided state income tax review services to both publicly and privately held companies to ascertain savings opportunities and exposures, as well as addressing client issues, from common to obscure, in regards to varied aspects of state and local tax, including income and franchise, sales and use, employment, and property taxes

He has previously held several important positions within the accounting industry, including serving as tax manager for both KPMG and Polo Ralph Lauren. Before joining the firm, Eugene held the role of senior controller, sales and property tax, at GE Capital.

EDUCATION & LICENSES

• Bachelor’s Degree, summa cum laude, Pace University

• Master’s Degree in Taxation, Fordham University

THOMAS A. WALSH Partner, Citrin Cooperman Advisors LLC

212.225.9559

twalsh@citrincooperman.com

Thomas Walsh brings over 20 years of state and local tax experience to Citrin Cooperman. Based in the firm’s New York City office, Tom has a wide range of experience in strategic direct and indirect tax planning for multinational media corporations including publishing, internet, and cable companies His areas of expertise also include manufacturing and distribution, contracting, staffing, restaurant and hospitality, and emerging technology industries.

Tom handles sell side and buy side state and local tax due diligence studies and works seamlessly with the firm’s Transaction Advisory group when needed

Prior to joining Citrin Cooperman, Tom was a senior manager of state tax planning at Advance Finance Group LLC (Formerly known as Paul Scherer & Company)

Tom provides relocation and expansion services, reverse sales tax audits, product invoicing analysis, and implementation of sales tax compliance systems He also has experience in unclaimed property, including multistate tax registrations and voluntary disclosures; FIN 48; and Canadian HST/GST.

EDUCATION & LICENSES

• Bachelor of Arts, Economics and Spanish, College of Holy Cross

• CMI Designation, Institute from Professionals in Taxation

AFFILIATIONS

• Certified Member, Institute for Professionals in Taxation

• Council Member, State Taxation (COST) Committee of Unclaimed Property

• Former Co-Chair, Tax Committee of the Association of MPA – the Association of Magazine Media

JAIME REICHARDT Partner, Citrin Cooperman Advisors LLC

215.545.4800 x4520

jreichardt@citrincooperman.com

Jaime Reichardt is a state and local tax principal at Citrin Cooperman In this role, he provides consulting advice to all different types of businesses and individuals on income tax, sales tax, gross receipts tax, property tax, realty transfer tax and credits and incentives issues.

Jaime helps companies not only identify potential compliance issues and tax reporting exposures, but also assists with identifying and securing pro-active refunds, tax credits or abatements, and other incentive opportunities. He has been able to secure several million dollars in tax savings and economic development benefits. Jaime also has a proven track record of successfully resolving state tax controversies and audits with various revenue departments across tax types

Jaime has experience resolving state tax controversies and audits with various revenue departments across tax types, including corporate income tax, franchise and net worth tax, personal income tax, sales and use tax, gross receipts tax, local business privilege or earned income taxes, real and personal property taxes, and unclaimed property Additionally, he has advised multiple Qualified Opportunity Funds on tax compliance and structuring opportunity zone investments

Prior to joining the firm, Jaime practiced state and local tax as an attorney with multiple large, well-known law firms in Philadelphia. Before entering private practice, he served as a tax policy advisor to the NJ Treasurer’s Office and Governor’s Office, as well as the head tax policy and economic development lobbyist for New Jersey’s largest business association

EDUCATION & LICENSES

• Bachelor of Arts in Political Science, summa cum laude, Rutgers University

• Juris Doctor, Benjamin N. Cardozo School of Law, Yeshiva University

• Master of Law in Tax from Loyola Law School in Los Angeles

• Licensed to practice law in the States of New Jersey, New York, and Pennsylvania

AFFILIATIONS

• Committee Member, Tax Policy, New Jersey Business and Industry Association (NJBIA)

• Member, State Chamber of Commerce

• Member, Greater Philadelphia Chamber of Commerce

• Member, Bucks County Economic Development Corporation

• Member, State and Local Tax Section, Philadelphia Bar Association

• Member, Council on State Taxation

• Member, Institute for Professionals in Taxation

914.949.2990 x3364

csabol@citrincooperman.com

Catherine Sabol is a partner in Citrin Cooperman’s White Plains Office She has 19 years of consulting experience in state and local tax. Catherine has devoted her career to assisting clients manage their state and local tax burden by addressing client issues with respect to income and franchise, sales and use, employment, and property taxes

Catherine has helped both companies and individuals through all stages of complex audits, often resulting in little to no-change in tax due. Catherine also assists taxpayers in identifying savings opportunities by performing diligence reviews on previously filed returns, often resulting in refund claims.

Catherine has spent her entire career in public accounting because of the client service aspect. Prior to joining Citrin Cooperman, she was a senior manager at BDO, USA in the Northeast state and local tax group Catherine started her career as an associate in the financial services group in the state and local tax practice at PwC.

EDUCATION & LICENSES

• Bachelor Degree, summa cum laude, Binghamton University

• Juris Doctor, cum laude, Pace University

• Licensed to practice law in the States of New York

Industries We Serve

Citrin Cooperman has deep industry knowledge to understand the unique challenges and issues facing management and stakeholders operating in that space. We have dedicated teams for a broad range of industries.

Our industry practices include:

• Automotive Dealerships

• Cannabis Advisory Services

• Construction

• Digital Asset

• Entertainment, Music, and Sports

• Financial Services

Broker-Dealers

Hedge Funds

Independent Sponsors

Private Equity SPACs

• Franchising

• Government Contracting

• Healthcare

• Manufacturing and Distribution

• Not-for-Profit Governmental

• Professional Services

Architecture and Engineering

Law Firms

Staffing

• Real Estate

• Restaurants and Hospitality

• Technology

SportsTech

The combined entities of Citrin Cooperman & Company, LLP and Citrin Cooperman Advisors LLC are an independent member of Moore North America, which is itself a regional member of Moore Global Network Limited (MGNL) All the firms in MGNL are independent entities, owned and managed in each location Their membership in, or association with, Moore Global Network Limited should not be construed as constituting or implying any partnership between them