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Sales & Use Tax Tip for March 2007
Filing A Return Limits Look-Back: When it comes to Sales Tax, there's one consideration all businesses should make a priority - properly register and file Sales & Use Tax returns. Whether intentional or unintentional, the
financial consequences of not filing when required to do so can be enormous.
If you've never filed and are audited, most states have unlimited look-back. They can backtrack to your first taxable sale in the state and assess tax, penalties and interest. Sales Tax is your customer's obligation. It only becomes your
expense if it is not properly collected and remitted to the state.
Registering for Sales & Use Tax purposes does not resolve prior liabilities and should only be done after a careful evaluation of your exposure situation and the possible exposure resolution alternatives available to you. This
evaluation should be done with the help of a qualified Sales Tax professional. Registering prematurely and indiscriminately can severely limit your options and any positive financial benefits. In fact, it can easily result in negative consequences.
Evaluate and resolve past liabilities, register and file a return, limit the look-back period, and minimize your future liability.
* This tip is intended to provide general information only and is not to be considered as a substitute for professional advice.
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Olivier & Associates Sales and Use Tax professional for a no-obligation consultation about your Sales & Use Tax issues.
