It is rare for a business to intentionally cut corners or try to escape an auditor’s radar with sales tax matters. Usually, owners or responsible parties make a concerted effort to ensure compliance across all their operations by employing CPAs or finance professionals. However, due to the complex and evolving nature of state sales tax regulations, matters can get complicated fast. And knowing when to outsource for assistance can be just as difficult to assess.
Why Should Businesses Prioritize Sales Tax Compliance?
The corporate veil does not protect against violations related to sales tax (which is a trustee tax). As such, the company officers or owners are held responsible.
Businesses Should Consider Outsourcing Compliance to an Expert When:
The company has filing obligations in multiple states.
The products or services offered have varying levels of taxability across states.
Bandwidth and resources are limited, and employees have other duties that take precedence.
The business experiences rapid growth and needs a dedicated and knowledgeable staff to keep the company compliant for sales tax purposes.
The company has been through a sales tax audit and needs the expertise to help minimize future liabilities.
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