Sales Tax Representation Services
When owning a small business, one of the many types of taxes you have to remember to pay is Sales Tax. Sales tax reporting is an important step in your businesses’ financials and not reporting or paying the taxes could get you into serious trouble with your state’s revenue agency. Most states require the remittance of sales tax; if you fail to file your reports, they may estimate how much you owe. If you don’t pay your required sales tax, you will likely find yourself in front of state revenue auditors. A sales tax audit can be a daunting experience for anyone, especially if you aren’t up to date on the latest tax laws.
When you are facing a hefty sales tax determination, you aren’t going to want to face it alone. That’s why it is important not only to have a trusted tax attorney to help guide you and defend you through the process, it’s also important to have tax accountants that will make sure you are compliant with all sales tax reporting and paying. In these instances, our accountants work hard for each of our clients to ensure that an accurate evaluation is reached. Our team can review the state’s findings to make sure they are accurate and there aren’t any mistakes on their end. We can also help look for years you may have overpaid your sales tax
Our office will handle all communication with your auditor and develop a plan for you and your business after analyzing the state’s findings and crosschecking them with your company’s financials.
How Is U.S. Sales Tax Charged and Collected?
Theoretically, sales tax is only charged for goods bought and sold in the United States. However, sales tax is not charged uniformly across the United States because it is calculated at a local and state level, with each state having the ability to charge its own rate. Forty-five states across America collect statewide sales tax, and 38 also collect local sales tax. Throughout the United States, there are thousands of separate taxing jurisdictions.
Businesses can also be charged use tax due to commercial connection, or “nexus.” If your business has nexus in a state, you’re liable for registering and collecting taxes within that state. While physical presence used to be a prerequisite for nexus, many states now include digital sales in their nexus.
One positive aspect of business nexuses is how they prevent small businesses from being overtaxed with tax registration threshold laws. You must make at least $100,000 in sales or 200 transactions annually before you will be required to pay tax in a particular state.
Sales Tax Representation for Businesses
Many companies find themselves in a tax audit for sales tax through no fault of their own. The IRS frequently audits businesses with abnormally high income or those who may have nexus in another state. The best way to combat fear regarding your audit is to ensure you’re fully protected by a sales tax representative who can help you prepare.
We can help you get your books and receipts in order, as well as calculate, determine, and report your estimated sales tax. We’ll help you sort through your documents and reconstruct missing records, so you won’t have to worry about falling behind. Our Experienced Tax Professionals actively step in and protect you whenever your auditor asks for information you’re not obligated to provide, ensuring you only answer required inquiries.