Boris Benic and Associates LLP - Certified Public Accountants and Consultants - Garden City, Long Island, New York

Boris Benic and Associates LLP - Certified Public Accountants and Consultants - Garden City, Long Island, New York

   
Resources - Tax Center - Boris Benic and Associates LLP - Certified Public Accountants and Consultants - Garden City, Long Island, New York
     
 

Sales Tax Guidelines

 
 

If your business is expanding, compliance with sales tax rules can be daunting. The current economic climate has increased your chances of being audited. With so many states trying to balance their budgets, they are increasing their efforts to find unpaid tax through audits. Audits can significantly drain time and resources. Here are some points to keep in mind:

 

  • Nexus- Determine if you created nexus in any new jurisdiction. Ask the following questions to determine nexus. Have you sent an agent or sales representative to a new state? Delivered and installed a product in a new state? Did you hire new employees that work from A remote location? Answering yes may mean that you have created nexus in a new state.
  • Research the laws in the states- Contact the appropriate authorities in the state, city, county and town and identify colleagues that are located in the exact geographies to make sure there is nothing unique about that specific area's requirements.  Using zip codes may not provide enough detailed information about the rules in specific locales.

  • Documentation and keeping good records-. Make sure you have an established process for recording sales in all of your ledgers that is readily available; i.e. - accounts payable, receivable, invoices, etc., Keeping good records reduces the strain on your business should you be subjected to an audit.  Create a chart and see if you can automate a process to eliminate spending extra time when technology could be used.

  • Exemptions- Have any of the exemptions certificates you have on file expired? You will need to replace those exemptions certificates to continue not charging tax to your customers. 

  • How are you required to make payments?- Find out HOW and WHEN the authorities prefer to receive payment.  Do they want estimated payments in advance?  Also, some municipalities have the capability to receive payment via ACH or wire, others may not, which may require additional record keeping and follow up to make sure payments are received and applied, so you can reconcile and document accordingly.

  • Is the current address on file?- Make sure you are receiving notices on time and know when you should have received them.  Ignorance is no excuse under the law and for not remitting sales tax payments on time. Make sure the local authority has the proper address on file to send notices.

  • Product taxability- Know if the products you are selling are treated as exempt or taxable for sales tax purposes.  You might be pleasantly surprised..  Or not..  But it’s worth investigating before you're investigated.  

Contact Us

These are just a few items to keep in mind when you take your business across state lines. At Boris Benic & Associates, we help make sure these and many other factors are addressed so you can focus on selling and expanding your business. For additional information on sales tax matters please contact Boris Benic, CPA, at 516-248-7361, or click here to email Boris. In a brief consultation he can assess your situation and identify areas of potential opportunity and risk.

 

 

 
 

Boris Benic and Associates LLP - Certified Public Accountants and Consultants - Garden City, Long Island, New York

 

Boris Benic and Associates LLP - Certified Public Accountants and Consultants - Garden City, Long Island, New York