{"id":2048,"date":"2024-10-16T09:25:00","date_gmt":"2024-10-16T14:25:00","guid":{"rendered":"https:\/\/www.mgocpa.com\/?post_type=perspective&#038;p=2048"},"modified":"2025-07-21T14:48:55","modified_gmt":"2025-07-21T19:48:55","slug":"case-study-reducing-tax-liability-for-a-multi-state-business-sale","status":"publish","type":"perspective","link":"https:\/\/www.mgocpa.com\/perspective\/case-study-reducing-tax-liability-for-a-multi-state-business-sale\/","title":{"rendered":"Case Study: Reducing Tax Liability for a Multi-State Business Sale"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Background&nbsp;<\/h2>\n\n\n\n<p>A client preparing to sell their business was advised by a Big Four firm representing the buyer that they faced more than $3 million in local tax liabilities across operations in more than 16 states. Concerned about this assessment, the client engaged<a href=\"https:\/\/www.mgocpa.com\/solution-industry\/state-and-local-tax\/\" target=\"_blank\" rel=\"noreferrer noopener\">&nbsp;MGO\u2019s State and Local Tax (SALT) team<\/a>&nbsp;to conduct a second review of the due diligence performed by the Big Four firm.&nbsp;<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Challenge&nbsp;<\/h2>\n\n\n\n<p>The initial assessment by the Big Four firm indicated significant tax liabilities that threatened to complicate the sale. The client needed a thorough review to verify the accuracy of these claims and explore potential avenues for reducing the liabilities for both past years and on a prospective basis.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Approach&nbsp;&nbsp;&nbsp;&nbsp;<\/h2>\n\n\n\n<p>The MGO team conducted a comprehensive deep dive into the state sales and income tax filings, uncovering inconsistencies in the original due diligence assessment. MGO found the client did not have the requisite nexus in several states as claimed by the Big Four firm. Additionally, our SALT team identified tax exemptions, secured resale certificates, and made corrections to transactions for the client\u2019s customers. We provided an extensive workbook that meticulously tracked the resulting tax reductions for each customer transaction over a four-year period.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Value to Client&nbsp;&nbsp;<\/h2>\n\n\n\n<p>Need knowledgeable and experienced tax guidance to help you navigate complex multi-state tax issues?<a href=\"https:\/\/www.mgocpa.com\/contact\/\" target=\"_blank\" rel=\"noreferrer noopener\">\u00a0Reach out to our SALT team today<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Background&nbsp; A client preparing to sell their business was advised by a Big Four firm representing the buyer that they faced more than $3 million in local tax liabilities across operations in more than 16 states. Concerned about this assessment, the client engaged&nbsp;MGO\u2019s State and Local Tax (SALT) team&nbsp;to conduct a second review of the [&hellip;]<\/p>\n","protected":false},"featured_media":2049,"template":"","meta":{"_acf_changed":false,"content-type":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"perspective_topic":[],"perspective-type":[72],"class_list":["post-2048","perspective","type-perspective","status-publish","has-post-thumbnail","hentry","perspective-type-case-studies"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Case Study: Reducing Tax Liability for a Multi-State Business Sale - MGO CPA | Tax, Audit, and Consulting Services<\/title>\n<meta name=\"description\" content=\"Facing $3M in potential tax liabilities, a seller turned to MGO\u2019s SALT team \u2014 and uncovered major savings that helped keep the deal on track.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.mgocpa.com\/perspective\/case-study-reducing-tax-liability-for-a-multi-state-business-sale\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Case Study: Reducing Tax Liability for a Multi-State Business Sale - 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