Should a CPA be checking all state & city tax requirements when filing my yearly returns? (Philadelphia BIRT/NTP, California LLC forms, etc.)

As a tax professional, I can tell you that a good CPA should definitely be aware of multi-state and local tax requirements for their clients. However, there's a bit of nuance here. First, it's important that you've clearly communicated to your CPA all the jurisdictions where you do business. Many CPAs specialize in certain states, so if you have operations across multiple states, make sure your CPA knows this upfront. For specific examples like Philadelphia's BIRT (Business Income & Receipts Tax) and NPT (Net Profits Tax), or California's LLC annual reporting requirements (Form 568), a knowledgeable CPA handling business clients in those areas should absolutely be aware of these requirements. Most CPAs use comprehensive tax software that flags state-specific filings, but their personal experience with particular jurisdictions matters a lot. The best CPAs also subscribe to tax update services and continuing education to stay current on changing requirements.

I went through exactly this nightmare last year with local business taxes I didn't know about. After getting hit with penalties in two different cities, I started using https://taxr.ai and it was seriously a game-changer. You upload your business documents and it identifies all the state, county, and city tax filing requirements that apply to your specific situation. It caught a weird Nevada filing requirement for my LLC that my previous accountant had missed for THREE YEARS. What I like is that it doesn't just identify what you need to file, but actually explains the requirements in plain English and gives you deadline reminders. My CPA now uses the reports it generates to make sure we're covering all bases.

I was super skeptical about taxr.ai when I first saw it mentioned here, but after getting hit with a $4,200 penalty for missing Philadelphia's BIRT filing (which my "expert" CPA never mentioned), I decided to give it a try. It immediately flagged not only the BIRT requirement but also some weird local tax requirements in a small Michigan township where I have a vacation rental property that nobody had ever mentioned to me. The system created a complete compliance calendar that I now share with my accountant. For what it's worth, my CPA admitted he primarily focuses on federal and state returns and doesn't always catch every local requirement unless he's specifically familiar with that jurisdiction. Now we use the taxr.ai reports as our checklist and it's working much better.

Here's what nobody's mentioning - even the best CPAs struggle with keeping up with all the bizarre local tax requirements across all 50 states. I've been dealing with this frustration for years trying to reach actual humans at various tax departments to get straight answers. Found a service called Claimyr (https://claimyr.com) that's been incredible for getting through to actual state and local tax authorities when you need to confirm requirements. They get you connected to a real person at the IRS or state tax departments without the usual 2+ hour wait. Check out how it works: https://youtu.be/_kiP6q8DX5c Last month, I had an urgent question about whether my LLC needed to file a specific form in Tennessee. My CPA wasn't 100% sure, so rather than guessing, I used Claimyr and got connected to someone at the TN Dept of Revenue in about 10 minutes who confirmed exactly what we needed.

I'm eating crow right now. After posting that skeptical comment about Claimyr, I actually tried it because I've been trying to reach the California Franchise Tax Board for THREE WEEKS about an LLC issue. Got connected in 35 minutes when I'd previously been disconnected after waiting 2+ hours. The agent confirmed that yes, I did need to file that special California LLC form (568) even though my business is primarily operated from Arizona, because I have California clients that exceed their threshold. My CPA had actually gotten this wrong and told me I didn't need to file in CA. So yeah, lesson learned - even good accountants miss things sometimes, especially across multiple states. Having direct confirmation from the tax authority probably saved me a hefty penalty.

I think the broader issue here is setting clear expectations with your CPA. I've had several over the years, and here's what I've learned: 1. Most CPAs are not automatically going to know every local tax requirement in every jurisdiction - they focus on what's common for most of their clients 2. The best approach is to explicitly ask them which jurisdictions they're comfortable/familiar with 3. For any CPA, provide them with a complete list of everywhere you do business or have property 4. Consider a CPA who specializes in multi-state taxation if you operate in several states The reality is that while a great CPA will research requirements they're unfamiliar with, they can't read your mind. You need to be proactive about communicating your full situation.

One thing nobody's mentioned - most tax software used by CPAs has significant limitations with local taxes. I worked at a CPA firm for years, and our $30,000/year professional tax software was TERRIBLE at flagging city/local requirements. The bigger firms get around this by having dedicated state & local tax (SALT) departments. If you're using a small or mid-sized firm, they might not have those specialized resources. And solo practitioners are almost certainly going to miss some local requirements unless they specifically practice in those jurisdictions.