How We’ve Helped Our Customers Succeed
We help businesses achieve their goals by combining exceptional tax and accounting services with an eye for saving our customers a ton of money.
Annual Report Case Study
Local Business in Operation Since 1989
Problem
The client received a notice from the Jurisdiction stating
they had not filed an annual report since they started their business in 1989. The Jurisdiction demanded $55,000 in taxes, penalties, and interest.
Solution
ECS determined through research that the client did not qualify under the Jurisdiction’s definition of doing business.
Results
The client was not held liable and did not have to pay any amount ($0).
Customer’s Savings
$55,000
State Income Tax
U.S. Citizen, owner of a New York based Leasing Company, now permanently resides overseas
Challenge
Reduce the client’s New York state income tax liability by establishing that they are not a tax resident of New York State. New York tax residents are taxed on their worldwide income, while nonresidents are taxed only on New York sourced income.
Solution
ECS researched and explored ways to establish non-residency for taxpayer. ECS found a little-known rule called New York 548-Day Rule, which a taxpayer can claim non-residency if they show within any period of 548 days, the taxpayer was physically present in a foreign country for at least 450 days.
Results
Taxpayer made this claim and is considered a nonresident for New York income tax purposes.
Customer’s Savings
$200,000
Income Tax Case Study
Leasing Company Domiciled in California
Challenge
To reduce taxable income flowing through to the leasing company’s LLC members and create tax savings for the owners of the company. Due to the SALT CAP limitation, individual taxpayers are limited to $10,000 itemized deduction for state and local taxes paid.
Solution
ECS researched and explored ways to bypass the SALT CAP limitation. A new law passed in California allows a Pass-through entity to pay the state tax at the Partnership level instead of at the Partner level. The LLC gets to take a tax deduction at the entity level for the taxes paid, which reduces the taxable income flowing through to the Partners.
Results
Client elected the Pass-Through Entity Tax in California and paid tax directly to California at the Partnership level on behalf of its owners and was eligible for a tax deduction for the business.
Customer’s Savings
$150,000
Sales Tax Audit
Equipment Leasing Company Doing
Business in 73 Alabama Cities
Problem
During an Alabama sales tax audit, the auditor reviewed
the local business licenses held by the client throughout the
four-year period. The auditor assessed $22,722 of annual business license fees, penalties, and interest. The assessment was made for each city and year where the auditor believed no registration was completed.
Solution
ECS reviewed the different types of leases the client offered
in the State of Alabama to determine which items could be removed from the assessment. Subsequently, a package containing a list of necessary adjustments was prepared and presented to the auditor.
Results
Based on our research, adjustments were made to the original assessment. As the audit concluded, the total liability due to Alabama was $939.35.
Customer’s Savings
$21,782.65
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At ECS Financial Services, we’re ready to provide you with the financial and management services that grow your business.