What’s new in sales tax?
There’s always something changing in the world of tax, especially sales tax. Here’s a review of...
Understand evolving rules and regulations. The rules and regulations surrounding sales tax are constantly changing, and it requires monitoring. A sales tax professional must stay up to date on these nuances, from understanding when nexus rules change, to understanding changes in business that may expand sales tax obligations as well.
Correctly apply sales tax regulations to their business. Understanding the regulations means nothing if one is unable to apply them to specific situations. Every business is different, so it's important to correctly apply tax regulations to a business.
Manage changing tax calendars and track due dates. Tax calendars and due dates are not static. Failure to keep up with changing tax calendars can result in penalties.
Respond to notices and identify/correct past mistakes. Notice management is a considerable part of the job. Many jurisdictions relay notices through their online platforms, but mailed notices are still common. Responding to notices and remedying any errors is critical to maintaining sales tax compliance. Failure to respond in a timely fashion or put into practice updates that were sent can lead to costly penalties.
Manage the risk and liability of filing returns correctly and timely. Late returns can result in hefty fines .A sales tax director must file all returns by the correct due date and in the correct format in order to remain compliant, as well as ensure timely payment.
Understand how company growth can impact future obligations. Sales tax obligations can be impacted by a number of things, including expanded sales and growing employee headcount. Being tuned in to these developments is important to reduce risk down the road.
Keep track of state/local jurisdiction registrations. It's imperative that the sales tax manager stays up to date with all necessary registrations and renewals as the business grows and evolves.
At TaxConnex, our sole focus is on sales tax compliance outsourcing. Get in touch to learn more about how we can take sales tax off your plate.