10 Questions to Ask Before Hiring a Corporate Tax Consulting Firm

1. What are your qualifications and experience in state and local tax matters?

This is the most important question you should ask any potential tax consulting firm. You want to ensure they have the credentials, expertise, and experience to handle your specific tax situation.

For instance, at DMA, we have a team of highly qualified and experienced professionals who are former state tax auditors and administrators, appraisers, attorneys, and engineers. Many also worked in the tax departments of large multinational firms. They have extensive knowledge and experience in all aspects of state and local tax, such as sales and use tax, property tax, state income and franchise tax, credits and incentives, and unclaimed property. Our experts also have industry-specific expertise in sectors such as manufacturing, retail, oil and gas, energy (both legacy and renewables), transportation, healthcare, and data centers. We are proud of the strong reputation we have built, and the recognition we have received throughout the industry, evidenced by our memberships, awards, publications, testimonials, and length of our client relationships and engagements.

2. What services do you offer and how do you charge for them?

It is important to ask potential firms about the scope and cost of services. You want to work with a firm that offers a comprehensive range of services that meet your tax needs and goals, and whose fee structure is fair and transparent.

DMA offers a full suite of state and local tax services, including:

• Audit defense
• Tax recovery
• Nexus studies
• Tax planning
• Compliance
• Advisory
• Tax software consulting

We can help you with most state and local tax issues or opportunities that you encounter, including reducing your tax liability, increasing cash flow, complying with tax laws and regulations, and resolving any tax disputes or audits. We also offer flexible and competitive pricing options, such as hourly, project-based, or contingency fees, depending on the nature and outcome of the service.

3. How do you communicate and collaborate with your clients?

Communication is key when it comes to any consulting partnership. You want to work with a firm that is responsive, transparent, and proactive. It is imperative for the overall success of the engagement to know what they are doing, how they are doing it, and what results they are achieving.

At DMA, we value communication and collaboration with our clients. Clients are always updated on the progress and results of our work—plus, they can reach us anytime and anywhere. Our online client portal gives easy access to current and past projects, billing information, and other key features. We work collaboratively, welcoming feedback and suggestions and adjusting our approach and strategy to meet your needs. We treat our clients as partners and are committed to building long-term, trusting relationships.

4. How do you stay updated on the latest state and local tax developments and trends?

State and local tax laws and regulations can change frequently and vary widely across jurisdictions. You need a tax consulting firm that is on top of the latest changes and can advise you on how they affect your business. Look for a firm that is proactive and forward-thinking, not reactive and outdated.

DMA monitors and researches state and local tax issues and trends daily. We use various sources and resources—such as state tax websites, newsletters, webinars, and databases—to keep ourselves and our clients updated on the latest developments. We also educate clients on new developments through external training programs, seminars, and publications. Our team is always ready to help our clients adapt to the changing tax landscape and seize any new opportunities.

5. How do you handle multi-jurisdiction tax issues?

You may face complex and conflicting tax rules and requirements if your business operates in multiple jurisdictions. You need a tax consulting firm that can help you comply with the laws of each jurisdiction and resolve any disputes or audits that may arise. The firm you team up with must have the experience and the network needed to deal with tax authorities and courts.

DMA has the expertise and the resources needed to handle multistate tax issues. We have a national presence with a local focus, with offices and professionals in every region of the country. We have the experience and the relationships necessary to work with state tax officials and judges. This tenured experience allows our experts to negotiate favorable outcomes for our clients. We have the strategies and solutions to help our clients minimize tax exposure and maximize tax savings across multiple states.

6. How do you customize your services to meet the needs and goals of your clients?

Every business is unique and has different tax challenges and opportunities. A true consulting partner must tailor their services to your specific situation and objectives. You need a firm that can understand your business and vision and align its partnering approach with your business strategy.

At DMA, we customize our services to meet the needs and goals of our clients. We assess their tax situation and landscape, identify tax risks and opportunities, and design a plan that fits their business model and industry. Our team delivers a personalized and customized approach that reflects the uniqueness and diversity of our clients.

7. What are some success stories and testimonials from your past and current clients?

The quality and reputation of a tax consulting firm are best understood through the feedback of its clients. Look for success stories, testimonials, case studies, and lessons learned—especially in your industry or area of interest. Specifically, you want to hear how the consulting firm helped clients achieve their tax goals and overcome tax challenges.

At DMA, our success is directly linked to your success. Because of this concept, we love to share and highlight client success stories across various industries and sectors, including:

• With DMA’s assistance, a national clothing and accessories retailer reduced their property tax liability by over $5 million in multiple states through successful challenges and appeals of their property assessments and valuations
• Thanks to DMA’s expertise, a global manufacturer of consumer products recovered over $10 million in sales and use tax refunds across multiple states by identifying and claiming applicable exemptions and exclusions for their purchases and sales
• Since 2013, DMA has partnered with a Fortune 1000 food manufacturer to optimize their tax processes, uncovering over $8M in overpaid taxes and securing significant refunds. By implementing a digital transformation project, DMA improved tax accuracy and became a trusted extension of the client’s tax department.
• Over $3 million in income and franchise tax savings were achieved by a regional energy and utility services provider through DMA’s optimization of their apportionment and allocation methods across multiple states
• A local distributor of food and beverage products resolved a sales and use tax audit, reducing their tax assessment and penalties by over 70%, thanks to DMA’s negotiation of a favorable settlement agreement

8. How do you handle confidentiality and data security?

Tax consulting involves sensitive and confidential information that needs to be protected from unauthorized access and disclosure. You need a tax consulting firm that has the policies and procedures to ensure the security and privacy of your data. Ask the firm how they plan to safeguard your data from any potential threats or risks.

DMA handles confidentiality and data security with the utmost care and professionalism. We store, transmit, and dispose of your data in a secure and encrypted manner, using the latest technologies and methods. We use authentication and authorization systems to limit and control access to your data, while monitoring and auditing any data activity. We also have safeguards and backups in place to prevent and recover from any data loss or damage. We comply with all relevant laws and regulations regarding data protection and privacy and respect your data rights and preferences.

9. How does your firm value diversity?

Diversity is important; not because it’s the end goal to pursue, but because it often builds a stronger team that achieves goals.

Diversity is one of the cornerstones that make DMA who we are. It enriches our work environment and strengthens our relationships with clients and communities. As fellow humans, we strive to create a culture of inclusion and respect, where everyone feels valued and empowered to contribute their best.

10. What differentiates you from other consulting firms?

This is the ultimate question you want to ask any potential tax consulting firm. You want to hear what makes them stand out from the crowd and why they are the best fit for your business. Learn more about the unique strengths, value propositions, benefits, and advantages of working with them.

We set ourselves apart from other tax consultants in critical ways, including:

• Expertise and experience: We have been specializing in state and local tax for over 50 years and have a team of highly qualified and experienced professionals who can handle any state and local tax issue or opportunity you may have. We have very low turnover and high tenure among our professionals.
• Range and quality: We offer a full suite of state and local tax services such as audit defense, tax planning, compliance, advisory, tax automation, and training. We deliver high-quality, high-value services that meet and exceed expectations.
• Communication and collaboration: We value communication and collaboration with every client, keeping them informed and involved at every step. Regular updates and newsletters are provided on state and local tax issues and events. All communication is tailored based on the needs and preferences of the client. Additionally, we offer clients access to a secure, user-friendly online portal where tax documents, reports, and invoices can be viewed and downloaded, and ad hoc requests can be submitted.
• Multi-practice teaming environment: Experts from our multiple practice areas collaborate as a team to develop a solution that solves both specific and broad tax issues, resulting in maximizing benefits for clients.
• Innovation and adaptation. We stay updated and ahead of the latest state and local tax developments and trends, helping clients adapt to the dynamic tax landscape and seize new opportunities. We leverage advanced technologies and solutions to enhance the efficiency and effectiveness of our services.
• Reputation and recognition: We have a proven track record and a stellar reputation in the state and local tax field, as evidenced by our memberships, awards, publications, and testimonials. We have the respect and the trust of our clients, industry peers, and the jurisdiction tax authorities and courts.
• Flexibility and creative pricing: We offer flexible, creative, and competitive fee structure options. Fee structures incorporate numerous project factors and client preferences addressing any situation and objective.

If you want to learn more about DMA and how we can help you with your state and local tax needs, contact our expert team. We look forward to working with you.