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Sales & Use Tax Tips for JUNE 2007
Sales Tax Amnesty Expires. What Now?
On May 31, a one-time Streamlined Sales Tax amnesty expired in 10 states: Indiana, Iowa, Kansas, Kentucky, Minnesota, New Jersey, North Dakota, Oklahoma, South Dakota, and West Virginia.
If your company has prior Sales Tax liabilities in one or more of these states and you missed this rare amnesty opportunity, it is still generally possible to save substantial dollars in back taxes, penalties and interest, and
prospectively comply with the tax laws by taking advantage of individual state Voluntary Disclosure programs.
Voluntary disclosure programs are particularly valuable if your prior exposure is significant. These programs can significantly limit the prior look-back period, ensure abatement of penalties in most cases, and sometimes also secure
abatement or reduction of interest. To optimize results, these options generally require anonymous third party negotiations on your behalf with the respective revenue departments.
If your prior exposure is insignificant, Quiet Registration for Sales Tax purposes might make sense as a means of bringing your company into future compliance. However, Quiet Registration does not resolve prior liabilities nor does it
afford statute of limitations protection for any years in which returns were not filed. Also, quietly registering may trigger an audit of prior periods. Accordingly, this option should only be selected if prior period exposure is immaterial.
If you are financially unable to pay your prior Sales Tax liabilities, you may be eligible for Offers in Compromise programs pursuant to which states may grant partial or complete relief from your liabilities and/or agree to an
installment payment arrangement. In most cases, receiving relief from tax will require demonstration of extreme financial hardship and a long-term inability to pay. States tend to be more open to entering into installment payment arrangements.
Voluntary Disclosure Agreements, Quiet Registration and Offers in Compromise are just some of the Exposure
Resolution options you have available to settle Sales and Use Tax liabilities potentially for pennies on the dollar. These options are available to proactive taxpayers who are willing to voluntarily disclose their prior liabilities and prospectively comply with the Sales Tax laws.
If you’ve already been contacted by an auditor, help from a professional Sales Tax consultant may still be of
great benefit. See our website section on Audit Assistance & Advocacy.
Don't wait; be proactive about your business's financial health! Contact us for help evaluating your situation and
identifying and implementing exposure resolution solutions.
* 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.
