Sales and Use Tax (SUT) Compliance Offers a Proactive Path to Preserving Capital

Whether you are a startup, growing business, established corporation, or small business, the ever-changing laws related to sales and use tax (SUT) of products and services will vary, and most likely change across each of the United States. Sales Tax Compliance Guidance specifically related to your business model, and sales of product and services in one, several or all fifty states is far less costly than risking a large assessment from a sales tax audit that uncovered sales that were subject to tax.

SUT Non-Compliance Can Cost You Your Business

Make no mistake, state tax authorities are aggressive when they discover unpaid sales and use tax. Accrued interest and penalties on unpaid sales tax has been enough to force many businesses to close their doors…as you have likely seen in the headlines of business publications and local papers.

Sales and Use Tax Compliance is essential to Business Continuity Management and Risk Management, regardless of how small or large the business may be. It costs less to proactively comply with sales and use tax law than to catch up, or attempt to pay penalties and interest if/when tax authorities identify unpaid tax.

An Aberdeen Cost of Tax Compliance Survey revealed that the average yearly cost to manage sales and use tax (SUT) for a small organization is $63,206.24; with the cost to medium-sized companies around $67,423.08 per year.

The cost to define the proper compliant tax policy is a fraction of this cost, but labor costs related to managing tax in-house can still be significant. The cost can be calculated in hourly wages of dedicated employees plus time invested by employees focusing on tax instead of vital activities related to day-to-day operations. Management is made easier when an informed tax policy is formulated with guidance from sales tax experts.

Sometimes There is Good News

If while providing “Sales Tax Compliance Guidance” we discover that a business is unnecessarily paying sales or use tax, we recommend a Reverse Audit. The Reverse Audit enables us to identify overpaid tax eligible for refund; then prepare, file and defend the refund request on behalf of the taxpayer.

Sales Tax Compliance Experts

We help organizations identify potential exposure to prevent costly penalties and interest. We also help organizations with taxable sales that have gone unreported reconcile and negotiate with each state for which they are at risk of facing penalty and interest on taxable sales.

Could Your Business Benefit From SUT Compliance Guidance?

There are many business entities that benefit from proactive compliance guidance. For example, due to the impact of the cloud on software delivery, one of the most quickly-changing areas of sales and use tax law is related to software sales. Read more about whether SaaS is subject to sales tax.

We provide Sales Tax Compliance Guidance for a Wide Variety of Industries, including, but not limited to:

• SaaS companies
• Software companies
• Pharmaceutical companies
• Hospitality management companies
• Real estate development and management companies
• Construction companies
• B2B service companies
• IT companies
• Jewelry manufacturers and retailers
• Manufacturers and fabricators
• Party and event planning businesses
• Advertising agencies
• Hotels, motels and long-term rentals
• Fuel companies
• Retail stores
• Fitness clubs and member-based businesses
• Startups
• Small Businesses
• Entrepreneurs
• Consulting businesses with sales of product, software, books, etc.

Why risk everything you’ve worked so hard to build when you can act with confidence?

Contact us today to see if Sales Tax Compliance Guidance is in your best interest.