We had a chance to talk with Richard Fleming with State Tax Group about taxes.
Please excuse any typos below, this was a hasty transcript.
Matt Register: Welcome back to the show, Texas Business Radio.
TexasBusinessRadio.com, if you missed any portion of this you want to go back and see it, TexasBusinessRadio.com to see the entire thing in beautiful high definition video. There’s a lot of ways to get in touch with us. Telephone 844.814.8144. Twitter hash tag #TBR. Go to the Web site TexasBusinessRadio.com and get a question in and we’re going to get the experts in here to get your question answered. We’re going to talk about a topic that is very very exciting and something that everybody wakes up out of bed and is excited to pay. Absolutely. Now maybe not quite so much but it is something that’s very important and if you don’t do it you’re going to get all kinds of excitement in your life. We’re talking about taxes and very specifically state taxes there’s a lot more people understand the federal tax system than our state tax system. And it’s something that as a business owner you just need to get it right. Right? It’s going to come back and haunt you if you don’t. I am your Host Matt Register. I’m here with Jay Curry.
Jay Curry: This is something you don’t want to do it on your own. You need an expert somebody to help you. We’ve got the man.
Matt Register: That’s exactly right. So Richard Fleming is a really smart guy. He’s your guy that knows the state tax system. State Tax Group LLC in Dallas.
Matt Register: Yes.
Richard Fleming: Welcome to the show sir.
Richard Fleming: Thank you for having me.
Matt Register: So tell me what I need to know about state taxes because a lot of people don’t know everything they need to know about state taxes.
Richard Fleming: Absolutely. Well in the state of Texas, you know, we have 60 different state and local taxes. One of the main ones in the state of Texas is the sales and use tax and property tax. What I see today and the state of Texas is most corporations do not adequately manage their sales tax responsibilities. And that creates three things. Number one, if they’re overpaying their sales tax then they’re decreasing their bottom line. Number two if they’re under paying their sales tax then they’re you know make themselves subject to tax liabilities including penalties and interest which as well decrease their tax liability. And three they incorrectly price their product and or services as a result.
Jay Curry: Without even knowing.
Richard Fleming: Absolutely. Which in turn decreases their bottom line. So, and a way to prevent that, most often times they talk to their CPAs and or seek out a state and local tax firm that specializes in state local taxes.
Matt Register: Sure. And that’s where you come in. However 90 percent of people that call you, call you with a problem.
Richard Fleming: Sure. Ninety percent of the folks that call us call us because they have been selected for the Texas sales and use tax audit. And so then that’s where we come in.
Matt Register: It just sounds like fun.
Jay Curry: It is kind of after the fact though.
Richard Fleming: You know what actually, it’s a beautiful thing because they call you, you know, we know that they need help. You know, first of all State Tax Group LLC, we are a boutique state local tax advisory firm located in Dallas, Texas. And so our first services include sales and use tax audit defense services, sales and use tax compliance, specialized tax amnesty agreements, as well as voluntary disclosure agreements and property tax and appeals, you know, simply put. We help business owners and CEOs increase their bottom line for state and local tax savings. And since 2005 we have recovered for our clients 25.5 million dollars and that’s through our sales tax audit representation and sales tax recovery work.
Matt Register: So these are fees they’ve overpaid.
Richard Fleming: Yes sir. OK. Most of the time on the tax recovery fees that they’re overpaid now in the sales tax audit. It could be reducing penalties and audit liabilities things like that as well as the tax liability.
Matt Register: Well I got it. As an investment bank, we run into this occasionally in conjunction with a transaction. Right.
Richard Fleming: Right.
Matt Register: When when somebody comes in to purchase your company they do their due diligence and find out that you haven’t been paying your sales tax or haven’t been doing it correctly.
Richard Fleming: Absolutely.
Matt Register: And you got a problem but you are the answer to those problems. Right? You’re the guy I think come in and fix it and get them on the right track and train them on how to do it.
Richard Fleming: Yes.
Matt Register: Moving forward where there’s not a continuing issue.
Richard Fleming: Absolutely. Our job is to come in and help clean up the situation and reduce their tax responsibilities including liabilities and penalties and then get them going, get them compliant going forward. With our monthly and or any check ups.
Matt Register: OK. Got it. Keep an eye on it moving forward make sure they’re still on the right track. And everybody’s happy so you know this is not something that is, you know, completely sexy and exciting, however you don’t want to mess up something you got to get right. And here you have a reasonably reasonably priced effective means of keeping yourself out of some very expensive trouble. Correct.
Richard Fleming: Absolutely. You know our job is to create that value. And when you reduce the client’s bottom line then that’s what you’re effectively done. You are creating value which in turns shows the value in our services.
Matt Register: Yeah. No. No doubt. State Tax Group out of Dallas Texas, Statetaxgroup.com. Richard Fleming is the Director of Tech Services Richard, thank you for joining us.
Richard Fleming: And thank you guys having me.
Matt Register: So a statetaxgroup.com is easiest way for people to get in touch with you.
Richard Fleming: Yes, Sir. statetaxstategroup.com.
Matt Register: Statetaxgroup.com. Guys we’re going to have a link from Texasbusinessradio.com as well, so we can’t take notes just go right there for it. We’re going to take a quick break. We’re going to be back right after this. Don’t go anywhere.
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In addition to hosting "Texas Business Radio," Matt is an investment banker and serial entrepreneur from Montgomery, Texas. He is the owner of RREA Media and Register Real Estate Advisors and a Managing Director and Principal at Corporate Finance Associates. He has a BS from the United States Military Academy at West Point and an MBA from Rice University in Houston. You can read more about Matt HERE.