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Mortgage Banking

You May Be Overpaying Your Taxes

Mortgage banking is a highly regulated industry. Similar to the regulatory challenges faced when managing and operating your business, regulation is a significant component of tax planning and tax compliance. Convergence CPA Group knows and understands the federal and state tax laws that impact your business. Unlike many other industries, a number of federal and state tax laws were written specifically for the mortgage banking (financial services) industry. When it comes to mortgage banking tax compliance, ignorance can be extremely costly in multiple ways – if you are not working with a firm that specializes in this area, you may be overpaying your taxes or putting your company at risk.

Lead Mortgage Banking Partner: Chris Hambor, CPA, MT, AMP

The managing partners at Convergence CPA Group have over 15 years of experience working with mortgage banking businesses that have multi-state operations. Our expertise is unparalleled in understanding your business and identifying how both federal and state tax laws apply to your industry and specific entity structures. State and local tax planning plays an integral part in minimizing taxes paid by mortgage banking entities operating in multiple states. We have helped clients claim and receive millions of dollars in state income and franchise tax refunds on amended tax returns as well as hundreds of thousands of dollars in future annual tax savings. Convergence is well apprised to each state’s individual statutes, including states that have preferential statutes for mortgage banking entities, so that we can help you implement procedures and strategies during the planning process that will minimize state income and franchise tax liabilities.

Compliance Services

Provide proactive service and communication in order to meet our clients’ expectations in regards to timing and deliverables

Federal and state income tax planning meetings to communicate key tax law changes and discuss changes to your business

Preparation of Schedule K-1s, including detailed schedules related to state filings and tax payments, to assist partners and S corporation shareholders with the preparation of their personal income tax returns

Preparation and review of state and local income tax returns

Preparation and review of Federal income tax returns

Consulting Services

We help you determine that the correct and most beneficial Federal tax accounting methods are being applied on your income tax return.

Reviews of Federal Income Tax Returns and Accounting Methods

Mortgage loans held for sale

Mortgage loans held for investment

Mortgage servicing rights

Interest rate lock commitments

Hedging instruments

Reserve accounts

REO properties

Deferred compensation

Reviews of State and Local Income and Franchise Tax Returns

Verify that all categories of income (i.e. gains from loans, interest income, servicing income, hedging income (loss), etc.) are correctly sourced to the appropriate states in accordance with each state’s respective income and franchise tax statutes

Confirm that industry specific statutes are being applied in determining your state and local income and franchise tax liabilities

Determine that you are filing all required state income and franchise tax returns to protect your right to do business in each respective state jurisdiction

Review employee expense reimbursement plans to determine if they are in compliance with Federal income tax statutes

Provide consultation for business mergers, acquisitions, sales or other restructuring activities