TaxConnex Releases the Fourth Installment of their Handbook of Sales Tax Issues

Atlanta, GA (PRWeb) - TaxConnex, America’s leading independent provider of sales and use tax outsourcing and consulting services, recently released the fourth installment of their series entitled “Sales Tax Handbook: A Guide to Sales Tax Laws and Current Issues” authored by TaxConnex Partner, Brian Greer, and directed to the small and mid-market business community. 

The handbook is an on-going work and directed to the lay person that needs to understand basic sales tax concepts as part of their job.  Previous installments have addressed Amazon Laws, Click-Through Nexus, Affiliate Sales Tax Nexus, and various forms of federal legislation including the Marketplace Fairness and Marketplace Equity Acts.

The current installment addresses the importance of exemption certificate management and the complications associated with resale exemptions and drop shipment rules.  The following excerpt illustrates one aspect of exemption certifications and audits:

This chapter focuses on exemptions your customers claim, as this is where companies tend to have the most risk.  To understand the degree of risk, let’s look at what happens during an audit.

During an audit, auditors assume that everything is taxable unless specifically exempted.  (This is true for tangible personal property as noted earlier.)  Any time the vendor doesn’t charge the full amount of sales tax on a taxable transaction, a properly completed, valid exemption certificate must be in place to substantiate the exemption.

The current installment provides several sources and options to help manage the exemption certificate process and the complex rules associated with drop shipments.  The complete series can be viewed on the TaxConnex website at www.taxconnex.com where each month a new article in the series will be published.

 

About TaxConnex

TaxConnex, “your outsourced sales tax department”, is America’s leading independent sales and use tax outsourcing and consulting firm. Using a team of experienced tax and accounting professionals, TaxConnex provides sales tax outsourcing, sales tax consulting and VoIP tax service to businesses of all sizes with a focus on technology companies, small and mid-sized businesses, and VoIP providers. TaxConnex provides a complete set of highly customer intimate services including end-to-end compliance, data analysis, remittance, reporting, notice resolution, question handling, proactive suggestions, straightforward advice, and audit support. TaxConnex is your “on-call” Sales & Use Tax Department.