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SALT energy savings Increase your cash flow via state and local tax strategies grantthornton.com/energy
| Date post: | 15-Jul-2015 |
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SALT energy savingsIncrease your cash flow via
state and local tax strategies
grantthornton.com/energy
The survey says…
In 2014, Grant Thornton LLP
conducted an energy industry
survey and found that price
uncertainty and reducing costs
are important industry
concerns.
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More survey findings
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Beyond costs, energy companies see 3 top
operational barriers to sustained growth:
Crude pricing worries. Regulation pressure.
Competitive M&A landscape.
Are you looking for ways to increase
your bottom line?
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Read the full survey report.
State and local tax (SALT) is
an often-overlooked avenue
for energy industry savings.
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In belt-tightening times, it's critical
to maximize SALT efficiency.
A SALT strategy can save money
Instead of reducing tax staff or buying expensive software products, start by strategizing ways to:
• Find overpayments
• Identify significant exposures
• Improve tax processes
• Seek advice on audits and representations in administrative hearings
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SALT savings and efficiencies
On the following pages, we look at
SALT strategies you can use NOW to
increase cash flow.
Read the full article now >
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Sales and use taxes
Now is the time to reinvigorate efforts to recover
cash from overpayment of sales and use taxes.
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The amounts may seem small
in boom times, but in
challenging times these funds
can make a big difference in
today's environment.
State returns
Are you filing in all the required states?
• It’s critical for operations to inform the
accounting/tax function of all states
where the company is doing business
• Make sure you are not liable for tax
penalties
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Property taxes
Property tax overpayments often entail an
excessive valuation of assets.
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“In challenging economic
times, energy companies
should focus on identifying
assets that are obsolete or
have fallen in value to find
potential savings.”
— John LaBorde, Grant
Thornton SALT Partner
• Levies are typically based on
the value of a property as of
Jan. 1, 2015
• If values have declined, seek
lower assessed values
Income, franchise and
severance taxes
Review previous tax returns for
refund opportunities and carefully
review whether you are taking all
possible exemptions.
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Resale and exemption certificates
Reach out to your customers and get all required resale and exemption certificates, especially if you are a service company.
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“If a state audit finds that a
company hasn’t been charging tax
to some customers, the company
can usually bill their customers
and recover the funds, but if the
customer is out of business or has
been acquired, the company may
simply be out of luck.”
— David Rohlmeier, Grant Thornton Managing
Director, State and Local Tax
Combining entities
Consider simplifying your entity structure and
streamlining your administrative and tax
functions.
• Operating under several entities and filing in many
means hundreds of tax returns.
• Tax benefits from combining entities could
include the immediate offset of profits and losses
as opposed to the buildup of net operating losses
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Read the full article >
David Rohlmeier
Managing Director
State and Local Tax
Grant Thornton LLP
214.561.2579
Kevin Schroeder
National Managing Partner
Energy industry practice
Grant Thornton LLP
405.415.3550
InformationContacts
John LaBorde
Partner
Tax Services
Grant Thornton LLP
832.476.3605
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