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Sales & Use Tax Tips
OFFERS-IN-COMPROMISE
September 2008
Assessed But Can’t Pay? Now What?
Offers-in-Compromise can be an effective means of exposure resolution in various states, but key criteria generally need to be met to qualify. Being properly informed ahead of time can help lead to a successful outcome. >>> continue
FIDUCIARY RESPONSIBILITY/ PERSONAL LIABILITY
July 2008
Did you know, you cannot delegate away your responsibility or personal liability?
Whether you collected or not, you can be held personally liable for sales and use taxes plus the related interest and penalties >>> continue
RECENT NEW YORK INTERNET TAX TRIGGERS CONSTITUTIONAL CHALLENGES
June 2008
Is This A “Quill vs. North Dakota” Nexus Challenge All Over Again?
Amazon.com and Overstock.com have both initiated challenges to a recently enacted New York statutory provision that requires out-of-state Internet retailers with no physical presence in New York to collect and pay New York sales and use taxes on goods purchased by New York residents >>> continue
ARE YOU REGISTERED EVERYWHERE YOU NEED TO BE?
May 2008
How Would You Know If You Have Other Sales Tax Registration Obligations? What’s The Risk?
Businesses grow and expand. Sales Tax laws change frequently. Many companies end up having unrecognized Sales & Use Tax registration obligations, significant hidden monetary and personal liability, potential Sales Tax refunds, and possible missed savings opportunities due to unrecognized state and local Sales Tax exemptions and/or exclusions. Consider a Diagnostic Review. >>> continue
INTEREST & PENALTIES - Staggering Amounts!
April 2008
Made a Mistake or Didn’t Collect or Remit Properly? - There’s more at stake than just Sales and Use Tax!
Penalties and interest are usually assessed in addition to any taxes deemed as due. They can quickly accumulate to staggering figures and jeopardize a business’ ability to survive. The problems are often compounded because the underlying failure to properly charge, collect or remit sales or use tax has been ongoing for years. >>> continue
SALES TAX NEXUS - Ignore it if you dare!
March 2008
What Is Nexus and Why Should I Be Concerned?
Certain business activities can render you responsible to collect and remit sales tax for other states or local jurisdictions. Failure to do so can leave your company and you personally liable for taxes, interest and penalties. >>> continue
Why Concern Yourself With Use Tax?
February 2008
What Is Use Tax And How Does It Differ From Sales Tax?
Sales Tax is typically imposed on sales of taxable products or service that occur entirely within a state. Use Tax is typically imposed on the use of a taxable product or on benefit derived from a taxable service. Use Tax typically applies to transactions that would have been subject to Sales Tax if the sale had occurred in the tax imposing state. The primary purpose of Use Tax is to prevent purchasers from avoiding Sales Tax through making out-of-state purchases.
Out-of-state vendors are typically required to collect Use Tax when they ship purchased products into a tax imposing state but only if they have physical presence in the destination state. Purchasers are, however, typically required to self-assess Use Tax if the vendor does not collect applicable Sales or Use Tax. They are also typically required to self-assess Use Tax when they purchase goods outside the state and subsequently bring such goods into the state for taxable use.
Why be concerned?
There are a number of reasons to be concerned with and informed about Sales & Use Tax issues. We’ve listed some of the issues below: >>> continue
Why Concern Yourself With Sales Tax?
January 2008
What Is Sales Tax And What Is It Typically Imposed On?
Currently, 45 states, Puerto Rico and the District of Columbia impose a Sales, Use or similar tax. As a general rule, Sales Tax is a tax imposed on sales of tangible personal property and specifically enumerated services. The enumerated services vary by state and in some cases by local jurisdiction. In most cases, state Sales or Use Tax applies if delivery to the customer occurs in the state. In the case of service, Sales Tax typically applies if the benefit of the service is derived in the state.
Why be concerned?
There are a number of reasons to be concerned with and informed about Sales & Use Tax issues. We’ve listed some of the issues below: >>> continue
New York Steps-Up Search for “Tax Cheats”
December 2007
Aggressive campaign may snag companies making unintentional errors.
In a significant policy change, the State Tax Department under Governor Spitzer has vowed to beef up its commitment to tax enforcement as an essential part of its strategy to close New York's multi-billion dollar tax gap -- the gap between taxes collected and the taxes actually owed. The state has
created locally based special investigation units to work with state and local prosecutors looking for taxpayers who may have engaged in tax fraud. Among other taxes the state will begin investigating credits and deductions and looking for taxpayers who have not remitted the “trust fund”
sales and use taxes they’ve collected. The State has partnered up with many state and local prosecutors in the fight. >>> continue
Taxing Internet Sales - New Law Provides Extension/ Revision of the Internet Moratorium What Is It and How Does It Affect Me?
November 2007
Internet Sales: The Myth - Internet Sales Are Not Taxable.
The reality is that Internet Sales are usually taxable through either seller collected Sales Tax or through a state's compensating Use Tax. Problems arise when a business' activities trigger nexus and a requirement to collect Sales & Use Tax for other states. Whether the obligation is ignored
or unknown, Internet Sellers can subject themselves to owing the tax they should have collected, plus interest and penalties. Though an out-of-state seller may not be required to collect Sales or Use Tax, businesses and individuals who purchase tangible personal property or taxable services via the
Internet may find themselves subject to unexpected Use Tax assessments, plus penalties and interest if not paid on time. >>> continue
Business Growing? - A Sales Tax "Company Check-up" Can Really Payoff
October 2007
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. >>> continue
Mergers & Acquisitions - Limited Successor Liability for Buyers; A Fair Price for Sellers.
September 2007
Mergers & Acquisitions - Limited Successor Liability for Buyers; A Fair Price for Sellers. Purchase contracts alone can be insufficient to protect against successor liability, leaving the purchaser with tax assessments that can reach millions of dollars.
Buyers and sellers both face the potentially costly risks of unknown tax liabilities affecting the transaction. >>> continue
Sales Tax Audits - Are you prepared?
August 2007
Sales Tax Audits - Are you prepared? Dealing with a Sales Tax audit can be intimidating and full of costly pitfalls. However, with proper representation, you can walk away from an audit with a favorable outcome. >>> continue
Understanding The New Puerto Rico Sales Tax
July 2007
Understanding The New Puerto Rico Sales Tax. Although the recently enacted Sales and Use Tax law in Puerto Rico is more than eight months old, there is still a lot of uncertainty as to how companies should proceed. >>> continue
Sales Tax Amnesty Expires. What Now?
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. >>> continue
Making Construction Issues Less Taxing
May 2007
Making Construction Issues Less Taxing. Is Sales Tax required? Who is responsible? These are common questions in this complicated area of Sales & Use Tax. The answers often depend upon a variety of factors. >>> continue
Rare Break By States Ending Soon
April 2007
Rare Break By States Ending Soon. Whether due to growth, sales force expansion, or the ever increasing popularity of Internet sales and purchasing, many companies have extended their reach into additional states. >>> continue
Filing A Return Limits Look-Back
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. >>> continue
At Olivier & Associates, we integrate experience, high-level industry standards and best practices to offer a full suite of Sales, Use & Transaction Tax services.
Contact us today or call 1-888-466-2829 for a no-obligation consultation about your Sales & Use Tax issues.
