You Survived Tax Season, But Here Comes Other Headaches

Tax season is over (yay!), now it’s time to review other tax needs for your clients.  Sales Tax Defense mainly focuses on sales tax issues and advice, as evidenced by our name.  Additionally, we file sales tax returns for clients, mainly for those clients that are required to file in multiple states.  But did you know that many states have other miscellaneous taxes and tax returns – which we also file for businesses.

Here are some other State taxes and returns to be aware of:

Washington – Business & Occupation (B&O) tax which is a tax on gross receipts.  It is reported on the sales tax return.  Technically the B&O tax cannot be charged to customers, it is supposed to simply be paid by the business.

Wisconsin – premier resort area tax which is a local retail sales tax.  Retailers located in certain areas of Wisconsin are required to charge and remit an additional sales tax.

California / New Jersey / etc. – many states have a tire tax, which is usually $1 or $1.50 tax on the sale of each new tire.  While the tax is not a lot, a separate tax return is required to be filed.

North Carolina – a company that leases or rents out cars is required to file a Motor Vehicle Lease and Rental Tax Return, which actually takes the place of a sales and use tax return.

Alabama / Louisiana – some states have state administered and local administered sales tax.  This means that not only does a business have to register with the State to collect sales tax, but the business also has to register with the locality and ensure local sales tax is also collected and remitted.

If you are interested in knowing what miscellaneous taxes may apply to you or your client, contact Sales Tax Defense!

Success Story

What would you do with a $450,000 refund check from NYS?

A company originally came to Sales Tax Defense to discuss whether sales tax was due on union fees.  During discussions, we discovered the company was hired by a customer to provide cleaning services.  The company hired a subcontractor to provide said cleaning services and was paying sales tax to the subcontractor, simply thinking that cleaning services are subject to sales tax. We pointed out that the cleaning services were being purchased for resale and the company should not have been paying sales tax.  As a result, it was recommended to file a refund claim for the sales tax paid for the past three years.

We obtained all of the necessary paperwork from the customer.  Sales Tax Defense prepared and submitted a refund claim.  It was cited in the refund claim guidance from New York State which said sales tax was not due when purchasing cleaning services for resale.  Less than two months later, the company had in its hand a refund check for over $450,000.

If you or your client is interested in knowing whether a refund is due, contact Sales Tax Defense. We do refund reviews at no cost!

Read Tips on How to Protect a Business as Sales Tax Audits Surge

And, in case you missed it – read Sandy Zinman, CPA, Co-Chair, National Tax Committee of NCCPAP’s letter, with helpful tips on How to Protect a Business as Sales Tax Audits Surge.  Naturally, the first suggestion is to call Mark Stone, CPA of Sales Tax Defense!