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Sales & Use Tax Tips for OCTOBER 2007
Business Growing? - A Sales Tax "Company Check-up" Can Really Payoff
Sales & Use Tax Diagnostic Review
Why Should A Company Conduct A Diagnostic Review?
Companies that operate in multiple states or have experienced rapid growth often do not have the time or resources to be sure they are complying with the various tax laws in each state. In addition, most states' statutes and regulations are convoluted and confusing. This results in many companies
having unrecognized Sales & Use Tax liabilities, potential Sales Tax refunds, and possible savings opportunities due to unrecognized state and local Sales Tax exemptions and/or exclusions
A "check-up" from a qualified Sales & Use Tax Consulting Firm will alleviate this burden and possibly save you tax dollars by doing a pre-emptive review of your current compliance functions. The objectives are identifying
and resolving any material Sales & Use Tax exposure, identifying states in which the company has a sufficient presence in to be subject to Sales & Use Tax compliance obligations, and evaluating which services and products are subject to Sales or Use Tax. You'll receive a comparison of a
given state's requirements with your company's current compliance practice to identify areas of potential Sales & Use Tax exposure, refund opportunities and saving areas due to an unrecognized state exemption or exclusion. Get peace of mind, lower potential tax liabilities and claim missed
overpayments!
Do You Have Nexus And A Corresponding Filing Obligation In A State?
Nexus is a term used when an out-of-state company has sufficient contacts with a given state allowing the state to require the company to collect and remit Sales Tax on taxable sales. Physical presence is typically found if a business has a permanent presence in the state such as a business
location, resident employees, tangible property (leased or owned), an independent contractor, or other third party acting as an agent for a company to conduct business on its behalf. Physical presence may also be found when the business only has temporary presence (i.e., visits by employees or
agents), provided the visits are regular and systematic.
This is a gray area with no consensus among the states regarding the minimum presence required to establish nexus. If you're concerned, we recommend a obtaining a professional review to obtain a proper understanding of your business
activities and any resulting sales tax filing requirements. If your firm is found to have unaddressed filing responsibilities and corresponding liabilities, exposure resolution options may
be appropriate.
For more information visit our Diagnostic Review webpage.
* 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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Should you have questions or require assistance please Contact us today or call 1-888-466-2829 to speak with an Olivier &
Associates Sales and Use Tax professional for a no-obligation consultation about your Sales & Use Tax issues.
