Our engagements are customized to meet our client’s specific business model and business needs. As a boutique Atlanta tax consultant for over a decade, Interstate Tax Strategies has the depth of experience to assist any multistate company understand and navigate their obligations for collecting, remitting, and paying sales tax on the goods and services they provide. Although each engagement is factually unique, many of them can fit into one of the following general service categories:
The shortage of state tax revenue is causing states to become very aggressive on sales tax audits as a way to increase revenue. Auditors are pushing the envelope with their interpretations of the sales tax law and in their sampling methods. Our audit management services can help you from the opening audit interview to the closing interview and beyond. If you are not experienced at handling sales tax audits, now is not the time to learn.
Companies that sell goods to customers primarily through websites are confronted with a complex set of sales tax rules. Over the past decade, e-commerce has exploded and shows no sign of slowing down. Along with the rapid growth in e-commerce revenue comes a dramatic loss in state sales tax revenue. This loss in revenue has not gone unnoticed by the states and they are making every effort they can to extract this tax from either the consumer or the e-commerce retailer. Many states are taking extreme and possibly illegal measure to collect this tax. Interstate Tax Strategies has a track record of working with e-commerce companies as they navigate the changing sales tax rules and attempt comply with the law while remaining a competitive shopping alternative. Companies that participate in the Amazon FBA program must pay particular attention to these rules. If you are an e-commerce company and have questions about your obligations, please contact us for a no-cost and no-obligation 30 minute discussion about your situation.
Exemption Certificate Analysis
How confident are you that the sales tax exemption certificates you have from your customers are valid and will withstand audit scrutiny? Many businesses are assessed taxes, interest, and penalties simply because they have invalid sales tax exemption certificates. This is inexcusable. Let us guide your business in a careful review of these documents to eliminate any possible errors that could be detected on audit.
Pre-Audit Risk Assessment
Sales tax audits are intrusive, stressful, and can be very expensive if mishandled. Unpaid tax, interest, and penalties will be imposed on your business if it fails to comply with the sales tax rules in the states where your business operates. Being prepared for an eventual audit can make the difference between success and failure. Let us help your business prepare for upcoming sales tax audits. We examine the high risk transaction areas such as invoice preparation, exempt sales, sales tax exemption certificates and capital asset additions.
Product Taxability Analysis
The taxation of products and services varies widely among the states. Having an updated sales tax matrix ensures that any sales tax issues are avoided. Failing to properly identify the sales tax rules that apply to the goods and services you provide can create situations where you over tax or under tax your customers. There may also be sales tax exemptions that are being missed. Even if you have sales tax software, the tax rules of that system must still be programmed to meet your particular business.
Sales Tax Nexus Issues
Carefully determining where a company has sales tax nexus and a sales tax compliance obligation is key to managing a company’s sales and use tax liability. Sales tax nexus studies are focused on analyzing a company’s business and advising them on what activities create a filing obligation and how to manage those activities to minimize these obligations. Nexus will impact the need to charge sales tax on internet sales and other other remote commerce sales.
Sales Tax Risk Assessments
Many small businesses “don’t know what they don’t know” when it comes to the interstate sales tax obligations their companies have. Our sales tax consulting services can provide you with an assessment of your sales tax processes that work effectively and those that do not. These assessments help companies focus their energy on correcting the problems in those areas that pose the highest financial risk to their business.
Sales tax considerations are often the last things evaluated as businesses make strategic decisions about expansions, dispositions, and acquisitions. There are significant state sales tax issues around successor and corporate officer liability and on taxes due on the transfer of business assets from one entity to another. The only time to consider these sales tax rules is before the transaction occurs. Let us help you navigate these dangerous waters to help you structure these transactions in a sales tax efficient manner.
Despite your best efforts to avoid sales tax mistakes, your business may still have underpaid the taxes due to a particular state. If these mistakes are detected on audit, the auditor may go back for many years and issue your business a tax assessment for the unpaid taxes, interest and penalties. Businesses can often resolve these problems proactively when properly handled through the process called voluntary disclosure agreements (VDA). This process can shorten the tax look back period, reduce interest cost, and avoid penalties. Our VDA efforts have saved clients untold amounts of tax, interest, and penalties. Let us negotiate these tax savings for you.
Let Us Help You
Our mission is to help your business understand and navigate the increasingly complicated interstate sales tax landscape. Regardless of your industry, if you operate in more than one state, you are an interstate business and you must evaluate the sales tax rules in each state where you conduct business. Even if you are only in one state, don’t assume your sales tax processes and procedures are correct. Each year, states collect millions of dollars in taxes, interest, and penalties on audit from businesses who thought they were handling their sales tax properly.