Income tax often seems to grab most of the headlines, but sales tax can make for a hefty crime – and punishment – too. A famous case recently examined in the TaxConnex podcast It Depends episode, “Sales Tax Crimes - Pt. 2: The Eccentric TYCO CEO’s Sales Tax Scheme,” clearly shows how you shouldn’t do the sales tax crime if you can’t do the time.
2 min read
The Hidden World of Sales Tax Crimes
By Robert Dumas on Tue, Oct 15, 2024 @ 11:00 AM
Topics: sales tax compliance sales tax sales tax audits sales tax filing
2 min read
How Does My Business Get Flagged for an Audit?
By Robert Dumas on Tue, Jul 23, 2024 @ 11:00 AM
Sales tax audit changes have occurred over the last several years, post-Wayfair. Prior to Wayfair, a significant component of sales tax audits was focused on use tax. Specifically, tax due on purchases that were not charged since the vendor did not have nexus in the state of the sale.
Topics: sales tax compliance sales tax sales tax audits
4 min read
How to Maintain Compliance Documentation for Sales Tax Audits
By Robert Dumas on Thu, Jul 18, 2024 @ 11:00 AM
Maintaining sales tax compliance documentation is crucial for businesses to ensure smooth and successful audits. Proper documentation allows auditors to interpret and verify your financial transactions accurately. Unfortunately, many businesses find themselves unprepared when faced with an audit, lacking the necessary documentation. This can lead to auditors assuming transactions are taxable, or making historical projections or arbitrary assessments of taxable sales.
Topics: sales tax compliance sales tax sales tax audits
6 min read
Determining Who is At Risk for Responsible Party Laws within Your Company
By TaxConnex® on Thu, Apr 11, 2024 @ 03:15 PM
If your company sells into multiple states and has established sales tax nexus, it is critical that you evaluate your business’s exposure to sales and use tax liability as soon as possible. There are more than 10,000 taxing jurisdictions and many have their own unique set of rules and interpretations. Not collecting tax on a product or service appropriately could lead to significant exposure over time. And you may be the legally responsible person on the line to pay the penalties and interest, not your business.
Topics: sales tax compliance sales tax sales tax audits
3 min read
Surviving a sales tax audit
By Robert Dumas on Thu, Mar 14, 2024 @ 12:09 PM
The fear of a sales tax audit from one of the country’s thousands of tax jurisdictions is legitimate. Audits can disrupt your business and potentially cost you thousands of dollars.
Topics: sales tax compliance sales tax sales tax audits
2 min read
How to Correct Previous Non-Compliance with Sales & Use Tax
By TaxConnex® on Thu, Dec 21, 2023 @ 11:00 AM
It’s the end of the year and as we all start to think about our New Year’s resolutions, it’s also a good time to start thinking about correcting any sales tax missteps your business may be facing.
Topics: sales tax compliance sales tax audits VDA
4 min read
Sales tax ‘responsible party’ laws still going strong
By Robert Dumas on Tue, Dec 12, 2023 @ 11:21 AM
Business truism has it that limited liability corporations and similar entities shield the personal property and assets of their owners and major shareholders from company bills and missteps. That’s true for many of the fiscal messes that can befall a company.
Topics: sales tax compliance sales tax sales tax audits
2 min read
Sales Tax Horror Stories: Audits
By Robert Dumas on Tue, Oct 24, 2023 @ 12:39 PM
“Scary” has five letters. Know what word in sales tax also has five letters?
“Audit.”
Topics: sales tax compliance sales tax sales tax audits
3 min read
Sales Tax Horror Stories: M&A
By Robert Dumas on Thu, Oct 12, 2023 @ 11:16 AM
The past two years have seen nearly 46,000 M&As in the United States. It's clear that nothing can boost a business like the right merger or acquisition.
Yet many of these deals tank: as many as 70% to 90%, Harvard Business School has reported. And one thing that can pound a stake through the heart of a promising M&A is unearthing past tax liability during due diligence.
Topics: sales tax compliance sales tax sales tax audits
2 min read
Managing Exemption Certificates – the importance of validation
By TaxConnex & CERTifyTax on Tue, Aug 08, 2023 @ 11:04 AM
Valid exemption certificates from your customers are critical in managing your overall sales tax risk. Yet a surprising number of companies have inadequate processes to receive, validate, maintain, and update exemption certificates.
Topics: sales tax compliance sales tax sales tax audits exemptions
2 min read
Exemption certificate management and audits
By Robert Dumas on Thu, Jul 20, 2023 @ 11:24 AM
Maintaining current, valid exemption certificates is critical in managing your overall sales tax risk. Under audit, an otherwise exempt sale will be deemed taxable without such documentation from a customer – and just a few missing certificates can result in large penalties and interest.
Topics: sales tax compliance sales tax sales tax audits exemptions
4 min read
5 Tips to Minimize Risk Associated with Sales Tax Audits
By Robert Dumas on Tue, Apr 11, 2023 @ 12:52 PM
If you are a business that must collect and remit sales tax, an audit is probably one of your biggest fears. In fact, our annual survey of financial professionals on sales tax trends has ranked sales tax audits as a top worry for the third year in a row. Yet, when asked if they’ve seen audits increased, they’ve continually said the amount of audits they’ve seen has remained the same (66%). If the number of audits has remained the same, why is it a top worry?
Topics: sales tax compliance sales tax sales tax audits
5 min read
Six tips to respond to a sales tax audit
By Robert Dumas on Tue, Apr 04, 2023 @ 11:00 AM
You just got notice of a sales tax audit. What now?
Topics: sales tax compliance sales tax sales tax audits
5 min read
Top Tips to Prepare for an eCommerce Audit
By Brian Greer on Tue, Nov 29, 2022 @ 11:00 AM
*as previously posted on the Retailist – check out the article there - https://retailistmag.com/top-tips-to-prepare-for-an-ecommerce-audit/
Data shows that the likelihood of your business being audited is low, but that likelihood has been increasing in recent years. If you sell online across multiple states and have met economic thresholds or have a physical presence, you definitely don’t want to take that chance.
Topics: sales tax compliance sales tax audits ecommerce
3 min read
How not to tank your sales tax audit (part 2)
By Robert Dumas on Tue, Sep 20, 2022 @ 11:00 AM
The sales tax audit can be one of the scariest – and costliest -- things an online business ever goes through. If you do get hit with an audit, it’s critical to handle the process correctly.
Topics: sales tax compliance sales tax audits
4 min read
How not to tank your sales tax audit (part 1)
By Robert Dumas on Thu, Sep 15, 2022 @ 11:00 AM
If you are a business that must collect and remit sales tax, an audit is probably one of your biggest fears. Rightly so: Sales tax audits can find fault with a variety of your operations and can cost you big– if the determination goes against you.