Corporate Tax Compliance Services

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Today’s business owners must navigate a complex world of tax laws and regulations to stay ahead. With the right approach, you can lay the groundwork to protect your financial position.

If you’re considering starting a deferred sales trust (DST) to ease your capital gains tax burden, the 453 Deferred Sales Trust Powered by Pennington Law team can help you comply with the law. Our firm offers corporate tax compliance services for businesses of any size, anywhere in the United States. Contact our office today for a confidential consultation.

Why Is Corporate Tax Compliance Critical for Your Business?

Many of our clients think of tax planning for corporations as a way to prevent long, costly audits or steep legal penalties. However, it is just as much about claiming the tax incentives you may be entitled to. If you overlook a deduction, credit, or exemption you qualify for, it could make a difference for your business’s bottom line.

Compliance is especially crucial if you’re using a deferred sales trust. Section 453 of the Internal Revenue Code outlines strict structure and reporting requirements for installment sales. If your DST is compliant, you could take advantage of deferred capital gains taxes on assets sold to the trust.

Our Corporate Tax Compliance Services

At 453 Deferred Sales Trust Powered by Pennington Law, we understand the value of DSTs and how to leverage them to our clients’ advantage. Experience counts. That’s why our firm was recognized as the Best Deferred Sales Trust Law Firm in the U.S. for 2024. We consider DSTs “The Tax Tool You Didn’t Know You Had.”

However, DSTs are just one part of a larger strategy. Our firm offers these comprehensive tax compliance services:

  • Reviewing your business’s existing tax liability and risk
  • Preparing tax strategies for the future
  • Advising on how to structure business entities to limit liability
  • Guiding you through the tax ramifications of a merger or acquisition
  • Recommending and implementing a deferred sales trust if the benefits would outweigh the risks for you
  • Representing your business during an Internal Revenue Service (IRS) audit or tax litigation

Quarterly and Annual Tax Reporting Services

Your business’s tax filings must be both timely and accurate. Late submissions or underpaid estimated taxes only lead to fees and penalties. The more complex your business’s structure, the easier it is to make a mistake.

Our corporate tax planning and management team can help you understand what to list on your quarterly and annual returns and how to calculate the taxable portion of DST installments. When laws and reporting requirements change, we’ll keep you updated so your filings stay compliant.

International and Multinational Tax Compliance Solutions

If your business operates abroad, your tax strategy should have enough layers to match. The IRS puts foreign holdings under higher scrutiny as a measure against tax evasion and fraud.

If a 453 trust involves foreign assets, the administrator or trustee may be located outside the United States. Anyone who creates, receives distributions from, or puts assets in a foreign DST must file Form 3520 with their U.S. tax returns, as with any other foreign trust. If you own the foreign trust, you must also file Form 3520-A.

Assets located abroad may also be subject to the tax laws of that country. Some countries have tax treaties with the U.S. that address compliance and reciprocity issues. Others do not, and there’s more work involved in the preparation and reporting processes.

Transfer Pricing and Intercompany Compliance

Businesses may use transfer pricing to move money or assets to subsidiaries, sister companies, or foreign countries with lower tax rates. Since bad actors can abuse the process to evade taxes, the IRS has established clear rules to follow. If a corporation uses transfer pricing, it must charge the destination entity the same amount as an unaffiliated entity. This is called the “arm’s length principle.”

Transfer pricing and 453 trusts serve different purposes. However, if a business owner uses both to limit their liability, they must structure the trust properly and stick to the arm’s length principle. Otherwise, they may incur capital gains or IRS scrutiny.

What to Expect During the Tax Compliance Process

Tax compliance is an ongoing process, not something to “set and forget.” Our attorneys take a structured, five-step approach to corporate tax planning and management:

  • Initial assessments – We start by reviewing your business’s current tax position for risks and opportunities.
  • Strategy development – Based on our evaluation, we develop a customized plan for your business’s structure and goals.
  • Executing the strategy – We work on your behalf to draft documents, file paperwork, and manage other pieces of the implementation process.
  • Monitoring and follow-up – As tax laws and regulations change, we’ll explain what’s new and adapt your strategy so your business stays in a solid, compliant position.
  • Reporting – We’ll draft reports on your tax position throughout the implementation and monitoring processes. You can act on these reports with our guidance.

When you work with us, you’ll have a nationwide team by your side with experience in each of these areas:

  • Tax law
  • Asset protection
  • Trust planning and administration
  • Wealth management
  • Estate planning
  • Insurance
  • Reinvestment
  • Financial planning

At 453 Trust Powered by Pennington Law, our professionals can manage these issues in a one-stop shop. The more people involved in your corporate affairs, the greater the chance of errors. By keeping your matters with one firm, you benefit from having numerous advisers under one roof. This approach allows for a cohesive and coordinated strategy for your business.

Ready to Simplify Your Corporate Tax Compliance? Contact Us Today

Running a business is no easy job. When you’re at the finish line or ready to sell an appreciated asset, we believe you deserve the fairest value possible and that the profits should be secure for your team and family. The experienced attorneys at 453 Deferred Sales Trust Powered by Pennington Law will guide you through corporate tax compliance issues with care and prudence. Contact us today for an initial consultation.