With Maryland tax audits increasing, you should ensure your company is prepared. An ongoing, organized approach to preserving necessary documents will streamline a sales tax audit and may even lead to tax refunds. First, beware, a state auditor visiting your office for a sales tax audit isn’t required to keep the focus solely upon sales taxes. A typical audit may cover other area such as your payroll taxes, and information obtained through the audit can lead to income tax adjustments as well. So, while a sales tax deficiency may only cause a minor sales tax adjustment, the revenue and expense information obtained can lead to sizable state income tax adjustments. Further, since states share their income tax adjustments with the IRS, you may trigger a federal income tax audit and adjustment as well. Continue reading “Maryland Sales Tax Audit Defense”
Month: August 2009
Sales Tax Matrices and Taxability Guides
Your company may need a sales tax matrix or taxability guide to ensure employees know how to fullfill their sales and use tax duties. Sales and use taxes are inherently complex, in part, because each state’s rules vary. This leaves many tax departments ill-equipped to adequately maintain every tax and accounting responsibility. Sales and use tax requirements do not only concern tax departments as accurate reporting can require the efforts of any employee with the ability to pay a bill or issue an invoice. Continue reading “Sales Tax Matrices and Taxability Guides”
Voluntary Disclosure Agreements
Many companies discover they did not file required state tax returns, but they do not know how to address the issue. States understand that taxpayers often do not uncover income tax or sales tax filing obligations until a potentially large tax bill makes coming forward difficult, if not impossible. Most states provide voluntary disclosure programs to bring these reluctant, but otherwise law-abiding, taxpayers back into the flock. The voluntary disclosure programs forgive all but the most recent tax years and reduce or eliminate penalties and interest. Continue reading “Voluntary Disclosure Agreements”