I
Serving Clients
Nationwide I
Sales & Use
Tax Tip for January 2007
Filing A Return
Limits Look-Back: When it comes to Sales Tax, there's one consideration all
businesses should make a priority - properly register and file Sales & Use
Tax returns. Whether intentional or unintentional, the financial consequences
of not filing when required to do so can be enormous.
If you've never
filed and are audited, most states have unlimited look-back. They can backtrack
to your first taxable sale in the state and assess tax, penalties and interest.
Sales Tax is your customer's obligation. It only becomes your expense if it is
not properly collected and remitted to the state.
Registering for
Sales & Use Tax purposes does not resolve prior liabilities and should only
be done after a careful evaluation of your exposure situation and the possible
exposure resolution alternatives available to you. This evaluation should be
done with the help of a qualified Sales Tax professional. Registering
prematurely and indiscriminately can severely limit your options and any
positive financial benefits. In fact, it can easily result in negative
consequences.
Evaluate and
resolve past liabilities, register and file a return, limit the look-back
period, and minimize your future liability.
* This tip
is intended to provide general information only and is not to be considered as
a substitute for professional advice.
more
Tax
Tips
Should you have
questions or require assistance please
Contact us today or call
1-888-466-2829 to speak with an Olivier & Associates Sales and Use
Tax professional for a no-obligation consultation about your Sales & Use
Tax issues.
