Did You Know?
- Sales Tax is not your expense; it’s your customer’s! It becomes your expense if you don’t collect it properly.
- Filing a Sales Tax return starts the statute of limitations clock, typically limiting states to looking back only three to five years when assessing owed taxes. If you’ve never filed a return, states can and some do go back to day one of your operations!
- Generally, you are personally liable if your business does not properly collect Sales & Use Tax.
- A company’s value declines as the increasing liability of unresolved exposures is accrued for by the firm’s financial auditors.
- Use Tax applies to most every business, even if not required to collect sales tax.
- Traveling salespeople may create a Sales & Use Tax collection responsibility outside their home state.
- Independent sales representatives can also trigger a Sales & Use Tax compliance responsibility in states where an out-of-state company does not otherwise have a presence.
- Constant changes in Sales & Use Tax laws can make keeping up burdensome.
- Many businesses over pay their taxes because they are unaware of applicable Sales & Use Tax exemptions.
- Your business is at a competitive disadvantage by charging tax when competitors don’t. Know what’s taxable and what isn’t. Invoicing methods can make otherwise exempt items become taxable.
- Tradeshows/ Fairs – You may need a state and/or local Sales Tax license to sell your products at a tradeshow, fair, etc.
- The five questions to ask your CPA before handing over your Sales & Use Tax audit:
- What is your firm’s Sales & Use Tax background and experience?
- How successful have you been with resolving Sales & Use Tax controversies?
- What state licenses does your staff hold, and to what professional organizations do they belong?
- How do you stay current on Sales & Use Tax laws?
- Are you equipped with multi-state Sales & Use Tax research tools?
Contact us today for a no-obligation consultation about your Sales & Use Tax issues.
