We do not need to convince you that experience is critically important. Real world experience is really the best teacher. Track record is the best indicator of experience. There are very few CPA firms nationwide who have specialized in state and local tax for as long as PJCo. Nothing can replace the

PJCo specializes in helping clients reduce their tax liability and keeping more of their hard-earned money. We are passionate about keeping our clients in compliance with state and local laws - But Not A Penny More.

CFO
Fortune 1000 Company

• Defended Thousands of Audits
  • From Small to Multi-Million Dollar Audits
• Filed Sales Tax Returns in All Jurisdictions
• Secured Audit Refunds or Reductions of Over $50 Million Since 1992
• Trained Clients
• Filed Tax Protests
• Planned Major Asset Purchase Transactions
• Restructured Businesses
• Conducted Tax Research
• Interpreted Tax Law
• Overturned Tax Liens
• Represented Clients Before Administrative Tax Law Judges
• Conducted Nexus Studies
• Registered Clients in All Taxing States
• Filed Voluntary Disclosure Agreements
• Forecast Client Exposure
• Prepared Tax Matrices

We possess a leading-edge KNOWLEDGE of state and local tax laws. We then APPLY our knowledge on behalf of our clients and SHARE our knowledge with them through TRAINING and consulting.

In this industry, it's what you don't know that costs you money! There are volumes and volumes of laws that can potentially affect the amount of taxes you are ultimately required to remit - and those laws change more frequently than you realize.

Knowledge of these laws and staying abreast of changes is critical for our clients and is what has made us so successful. We focus all of our time, all of our money and all of our resources to a very select area of taxation. PJCo is one of the largest CPA firms in the country that limits its practice solely to State and Local Taxes.

Not only does each state have its own tax law and enforcement structure, but cities within the state may also have their own tax law and group of auditors.

You might be thinking that being a specialist in this area would be difficult; it is. Staying abreast of all the tax laws in the many taxing jurisdictions can be daunting. However, it also means as experts in this discipline, we can make a positive impact in our clients' businesses.

Because each jurisdiction has its own laws, there are many more options for clients to reduce their tax obligation.

From the way you structure your business, to how and where you sell and ship your goods, or perform your services, there are opportunities to save money on taxes.

There are opportunities in all types of taxes including franchise tax, sales tax, excise tax, communications tax, oil & gas tax, hotel tax, etc. There are tax incentives for every conceivable industry (communications, marketing, manufacturing, shipping, restaurants, travel, etc.).

Here are a few illustrative examples (this is by no means a comprehensive list):

• Some states consider construction companies the consumer of materials used in their jobs, and therefore, require that they pay tax on materials. A contractor's tax responsibility can differ from state to state depending on the type of contract (lump sum or separated contract) and the type of work being performed (remodeling or new construction project). Other states consider construction companies retailers and require them to collect and remit sales tax.

• Some states view non-capitalized repair parts for manufacturing equipment as non-taxable, while others do not.

• Some states consider restaurants processors of prepared food and allow exemptions normally reserved for manufacturers on capital equipment, other states do not.

• The definition of what is taxable in a sale can differ dramatically from state to state. For example, some tax installation, transportation, and delivery charges, while others do not.

• All states tax services differently.

As you can see, this liquid landscape of tax law can be daunting. However, the sheer variety of it gives rise to tax saving opportunities. As we stay current with new developments we are able to provide the greatest benefit to our clients. In order to serve our clients effectively, we immerse ourselves in research of state and local tax law. We pore through current industry publications, state and local tax journals, and consult with experts all over the country.

We then apply our specialized knowledge to help our clients reduce their tax obligations.

This habit of constant research has produced great knowledge that is shared during weekly training meetings with our staff. All this is done so that we may generate the greatest benefits to our clients.

If you operate in multiple states, you may not be aware of the differing tax schemes and exemptions in the various states in which you operate. Many companies assume that other states operate the same as their home state.

In one state you may be paying the appropriate tax, in another you may be paying tax when you don't have to, and in another you may be under-paying tax. You may think this all comes out in the wash until you discover to your dismay the following:

Almost every state (especially the major states), employs a sizeable group of tax auditors. They not only have tax offices in their own state, but some states have tax offices, all employing auditors to review taxable purchases and taxable sales by companies doing business in their home state.

It stands to reason that these auditors' main objective is raise money for their states. It won't surprise you when you are audited (and you can expect to be audited one day), auditors typically look in areas where they suspect you have underpaid tax, or not paid tax at all. Although some do offer advice and concessions on items discovered in an audit, generally they will conduct a thorough and complete review of your taxable sales and purchases.

This does not mean they conduct a thorough review of your entire business. They look for areas where you underpaid tax. They typically do not search for areas where you are overpaying tax. You must discover these areas yourself.

That's initially why we specialized in state and local taxation. We knew we could generate the greatest benefit for our clients when it comes to finding tax overpayments.

If you haven't yet been audited, once your company grows to a noticeable size, an auditor will eventually show up at your door. Unfortunately, and all too often, we see how states and their auditors are deaf to the pleas of companies who are ignorant to the law.

If you're in their state conducting business, it's your responsibility to understand their law.

Determining Nexus (the minimum connection to a state allowing them to require you to collect tax for them) in a state is a regular part of what we do for our clients.

Determining which items in your business are taxable and which are not and what rates apply is much of what we do - we call this putting together a Taxability Matrix.

Adding to the complexity of laws and auditors, we've also noticed a few alarming trends that can severely impact business. In a time where many states are having difficulty balancing their budgets, it would not be surprising to see states become more aggressive in their audits. It seems to us that the number of audits has increased with a corresponding decrease in willingness by states to waive penalty and interest. This increased audit activity contrasts with the general downsizing of many companies' tax departments.

Finally, state administrators are calling for "simplification" of taxes across all states through the Streamlined Sales Tax Project (SSTP) - We say, "Hold on to your wallets!" Any time government offers "simplification" it usually means more administrative headaches and more taxes.

These trends make it even more critical for your company to posses the knowledge (or at least acquire the knowledge through consultants) to not only comply, but also reduce your overall tax obligations whenever possible.

We are obsessed with reducing taxes. Ask any one of our staff and they take a great deal of pride in knowing how much they've saved companies in tax over-payments. Unlike other CPA firms, we justify our cost by how much we save companies.

Often our services are free due to high refunds found for our clients - we are rarely an additional cost. This is possible because of our extensive experience in many industries, our thorough knowledge of tax law, and our ability to apply our knowledge on behalf of our clients.

Controller
Fortune 500 Company

One of our favorite quotes is, "When performance is measured, performance improves, when performance is measured and reported the rate of performance increases." (Thomas S. Monson) Our firm is driven by its performance. Our staff is measured by their performance, and they are rewarded based on our clients' and their coworkers' report of their performance.

Unlike the big accounting firms and most other smaller firms, we've tied their progress and compensation directly to their performance. Our consultants have a personal stake in client satisfaction and client engagement. We want you to be passionate about having PJCo as a partner.