E-COM Sales Tax

What if You’ve Been Making Sales for Months/Years in the Past and You’re Facing Significant Sales Tax Exposure if You Get Audited? You May Want a VDA. Here’s What a VDA and What You Need to Know the Process

January 25, 2019
E-COM Sales Tax
What if You’ve Been Making Sales for Months/Years in the Past and You’re Facing Significant Sales Tax Exposure if You Get Audited? You May Want a VDA. Here’s What a VDA and What You Need to Know the Process
Chapters
E-COM Sales Tax
What if You’ve Been Making Sales for Months/Years in the Past and You’re Facing Significant Sales Tax Exposure if You Get Audited? You May Want a VDA. Here’s What a VDA and What You Need to Know the Process
Jan 25, 2019
Andrew H. Johnson, CPA and Daniel M. Peisner, CMI
Show Notes

With the new sales tax laws coming into play all the time, more and more businesses are realizing that they may have exposure in a sales tax audit for taxes that were not collected for months or maybe years in the past. Businesses may want to get registered now and start collecting tax, but face a real dilemma when it comes to the question that comes up on every registration form: “When did you first begin doing business in this state”. If a business answers this with a date months or years in the past, then the state will bill them for the tax (plus penalties and interest). This can create a terrible hardship on businesses if they have to come up with sales tax from prior sales out of their own pockets. So what is a business supposed to do?  Andy and Dan have been helping clients for years determining their nexus and calculating their exposure they might have in the separate states. If your exposure is great enough you may want to request a Voluntary Disclosure Agreement (VDA) with a state. Listen in and learn what your options may be if you need to request a VDA.


Additional Questions Discussed:

What are VDAs?

What is the likelihood I could file a VDA?

What if a state find me first can I file a VDA then?

If my exposure is pretty low in a state should I still file a VDA?

Is it possible to get out of paying penalty and interest with a VDA?

Is it possible to get the tax waived with a VDA?

Is a VDA even possible if I get contacted by a state?

If I file a VDA are the statute of limitations different if a state finds me first?

Do all states offer a VDA program?


To get with us for a FREE Strategy Call go HERE.


Get a complimentary chart on VDAs - Availability and Scope of Relief HERE


Get a complimentary chart on Voluntary Disclosure Look-back Periods go HERE.




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