SALT – Review Criteria Entities

Review Criteria for State and Local Tax Returns for Entities

Higher Risk State Income/Franchise Tax Returns to be Reviewed by SALT

Clients meeting ANY of the following criteria should strongly consider a SALT:
1. If the company was involved in a transaction during the tax year (buy or sell side) OR
2. If the company has CARES Act or TCJA, or OBBB implications OR
3. If the company has a complex organizational chart OR
4. If the company has Gross receipts of $25MM or more OR
5. If the company has Taxable Income of $2MM OR
6. If the company is Filing in more than 10 state returns OR
7. If the company pays a significant amount of state tax ($50K), either to a single state or in aggregate OR
8. Initial year of a state PTET election OR
Any clients utilizing any sort of Indiana certified tax credit on them (e.g. EDGE, HBI, VCI, SGO, etc.) or ANY other state credits OR any state election forms that are being filed. NOTE – the return will still need to go through normal technical tax review as SALT will only be looking at the credit forms. Please complete this SALT Help Desk Request Form and indicate in inquiry section “State Return (SALT) Review) and in the comments section indicate that this is for a credit review only.
If you have a client that meets any of this criteria and you want SALT to review please complete SALT Return Review Request Form to indicate the client name/expected timing for SALT review.

Personal Property Tax Returns

The Property Tax Department must review any returns that meet one of these criteria:
1. Returns with a taxable cost of $3,000,000 or greater and the taxable cost has changed 20% or more from previous year.
2. Returns where this is a new KSM personal property tax return engagement.
3. Any returns where a cost segregation study has been done since 1/1/2025.
4. Any non-profit exemption forms filed this year – Please note, some of these forms will have different due dates than the personal property tax return, so please verify the forms due date.
Additionally, any personal property tax incentive/abatement forms must be prepared by the Property Tax Department
For the Property Tax Department to prepare a PPT return, one of the following criteria must be met
1. Clients with multiple locations (10 or more) and one depreciation schedule with asset locations identified
2. Assets must be able to be exported and sent to the Property Tax Department in excel format

All Personal Property workpapers and returns should be stored in _PPT client folder within DMS (Ex. Client folder 12345_PPT). Personal Property returns should have a current year created in DMS and all documents should be stored in that folder. Ex. 2026 Personal Property Tax returns should be stored in the 2026 year in DMS.

If there are any personal property questions, email the personal property help desk at Propertytax@ksmcpa.com