Sales and Use Tax Training Benefits


 

By:  Martha Jenkins

A simple $100 underpayment of tax could cost your company thousands of dollars.

Unless you happen to do business exclusively in Alaska, Delaware, Montana, New Hampshire, and Oregon (which do not impose general sales tax at the state level), you have probably had some exposure to state and local sales and use tax. However, if you are like most people, you probably know very little about these taxes except that they get added to the bill on many of your purchases. As an individual, that level of understanding may be acceptable.  As a business, you must be able to determine if a sales tax or use tax is applicable and who is responsible for paying, collecting and remitting the tax.

Not knowing can lead to overpayments...underpayments and potentially...thousands of dollars owed in taxes...

Common misunderstandings can lead to overpayments. Not knowing also, can lead to underpayments and potentially tens of thousands of dollars owed in taxes and penalties. You can avoid commonly misunderstood sales and use tax issues (e.g. taxable and non-taxable transactions vary state-by-state) by having the information communicated in laymen's terminology. 

Because most of us do not have the time and resources to stay current with the ever-changing tax environment, it is important to have a resource to help you in “Understanding and Managing the Basics of Sales and Use Tax” and a state-by-state tax reference guide to control your liability relative to sales and use taxes.

Every company must understand The Basics of Sales and Use  to ensure you do not pay any more sales or use tax than you are absolutely required to pay. Put your organization in a position to pass a tax audit with flying colors. It is important make sense of this complex topic by putting the information into easily understood examples using laymen’s terminology.

Training is not just for the accounting and purchasing personnel.

In fact, anyone involved with purchases at any level within your organization needs to understand the impact of mistakes in sales and use tax charges. They fail to recognize how a $100 underpayment of tax could potentially cost your company several thousands of dollars.

Notice:  Alliance Training and Consulting, Inc. provides the contents of this page for general purposes only. You should not substitute this information for individual consultation with a qualified professional in the field. Alliance Training and Consulting, Inc. is not engaged in rendering legal services.

By:  Martha Jenkins

© 2015 Alliance Training and Consulting, Inc.

 


 

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