Tax Publications

What Are Your Chances Of Getting a Sales and Use Tax Audit?

Posted on March 02, 2014. Category: Tax Publications

Three Main Criteria Every company “doing business” in a sales tax jurisdiction, whether registered or not, could potentially get audited.  There are three main criteria that greatly increase your company’s odds:1) A high ratio of exempt sales.  If you are consistently reporting a high ratio of exempt sales, it means you’d better have a good exemption certificate management process in place.  States like to catch companies who don’t.  Not only should you be collecting these certificates, but also they need to be validated for accuracy, updated when expired,...

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Internal Revenue Service Appoints New Deputy Commissioner

Posted on March 01, 2014. Category: Tax Publications

New Commissioner The Internal Revenue Service announced on August 26, 2013 the appointment of a new Deputy Commissioner for Services and Enforcement.   John M. Dalrymple has been with the IRS for 31 years and started his new role on September 16, 2013.  He has previously served as IRS Deputy Commissioner for Operations Support from 2003-2006.  This position is a career civil service position reporting directly to the IRS Commissioner.Functional Role As the Deputy Commissioner for Services and Enforcement, Mr. Dalrymple will oversee nine operating divisions or offices: •    Wage & Investment Division •    Large Business...

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California Manufacturing Exemption

Posted on March 01, 2014. Category: Tax Publications

In an effort to drum up business development in the Golden State, California sales and use tax will be exempted from the gross receipts of businesses that sell, use, or consume tangible personal property (TPP) via manufacturing, processing, refining, fabricating, research and development, certain contracting usage, and sale or purchase of bio-technology equipment. The exemption aims to eliminate the 7.5% California state sales and use rate for taxpayers and promote business development for the next near-decade.  It’s important to mention that other taxes may still apply on these transactions.  These sales are not exempt from local California...

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Consumer Use Tax – A Primary Target of Auditors?

Posted on February 16, 2014. Category: Tax Publications

Even though your business may have a good handle on charging its customers the correct amount of sales tax on all taxable transactions, your business purchases may not face the same amount of scrutiny.  This gap may lead to problems.  In fact, California found that for the 2011-2012 sales and use tax period audited, failure to pay consumer use tax was the number one issue for taxpayers.What Is Consumer Use Tax? Consumer use tax is simply the tax on purchases when sales tax is due but not collected.  Because it is triggered by the absence of...

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New York Readopts Emergency Rule to Enact Excelsior Jobs Program

Posted on December 26, 2013. Category: Tax Publications

The Department of Economic Development has readopted emergency rule 5 NYCRR Parts 190 through 196, effective November 13, 2013, to implement the Excelsior Jobs Program. This program adds definitions, procedures to claim the credit, and incorporates other changes and amendments to strengthen the program. Excelsior Jobs Program In a Nutshell The Excelsior Jobs Program of New York provides incentives to these targeted industries: biotechnology, pharmaceutical, high-tech, clean-technology, green technology, financial services, agriculture and manufacturing. There are four tax credits available to firms in these industries if they meet requirements related to creating and maintaining new jobs and/or making significant financial investments in...

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Are CFO’s Overlooking Free Money?

Posted on December 13, 2013. Category: Tax Publications

Knowledge of Tax Credits & Incentives Lacking among CFO’sA recent survey conducted by Ernst & Young found that there is a large gap between what a business’ tax executives know about incentives and what its CFO knows.  CFO Magazine indicates that 36 percent of the respondents to the survey said their CFO was only “somewhat aware” of potential benefits from tax credits and incentives, while 20 percent said their CFO is “not at all aware”.  The business impact of this lack of knowledge can significantly affect profitability.Use of Credits and Incentives...

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Sales Tax Voluntary Disclosure Agreements

Posted on December 10, 2013. Category: Tax Publications

Oops!  You’ve just started at a business and determined that they have had nexus in a jurisdiction for years but never registered or collected sales tax there.  What do you do?  Fortunately, most states allow for a voluntary disclosure agreement (VDA) to entice companies to self-report past discrepancies in their sales and use tax reporting.What is a VDA? A VDA is an agreement that allows a taxpayer to be granted a reduced look-back period (usually 3-4 years rather than the date the company actually began doing business – because the statute of limitations doesn...

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California BOE to Visit Retailers

Posted on March 29, 2013. Category: Tax Publications

If you are a retailer in California, you may be getting a visit from the California Board of Equalization SCOP (Statewide Compliance and Outreach Program) teams.  In a recent news release, the BOE stated that some 9,688 business owners in select zip codes will be affected.The purpose of the visit is to educate retailers about correctly reporting sales and use tax, increase tax law compliance, and continue outreach efforts to assure a fair and equal tax system for all Californians. Business-related questions will be asked of taxpayers in an effort to ensure compliance with permits, registration, and licenses.ZIP...

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Virginia – When is Idle Equipment Idle?

Posted on June 13, 2012. Category: Tax Publications

If you are a business in Virginia with idle (not in use) machinery and equipment, you may be eligible for a business tangible property tax exemption on such equipment.  Knowing the process for declaring idle equipment will save you time and money but only if you plan ahead. Virginia Code § 58.1-3507 A provides that: Machinery and tools, except idle machinery and tools…used in a manufacturing…business shall be listed and are hereby segregated as a class of tangible personal property separate from all other classes of property and shall be subject to local taxation only. ...

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Pennsylvania Remote Sellers – Got Nexus?

Posted on March 13, 2012. Category: Tax Publications

The Pennsylvania (PA) Department of Revenue (DOR) is reminding retailers who have nexus (i.e. presence, connection) with the Commonwealth to collect PA sales tax, including sales made via the internet, catalog, and telephone.  PA has long imposed a sales tax on each sale of tangible personal property (TPP) made within the Commonwealth.   The Tax Reform Code of 1971 contains provisions requiring vendors that are maintaining a place of business within the Commonwealth to collect sales tax on each retail sale.  Who Is Responsible? The PA vendor is required to collect sales tax from the purchaser and remit...

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