When New York first passed its law defining what constitutes a “vendor” subject to collecting sales tax in the 1980’s, the idea of online shopping sounded like science fiction. In retrospect, NY may have effectively enacted the first “economic nexus” law when they drafted their definition of “vendor” to include a person who regularly or […]
Sales and Use Tax Filing Challenges in Manufacturing – Infographic
A recent Aberdeen Group survey uncovered sales and use tax filing challenges resulting in audit penalties and interest in manufacturing to the tune of 2 percent of revenue per year. Not surprisingly, manufacturing leaders in the tax, finance and IT functions cited tax return preparation and filing as a top drain on the business. Plainly put, there is a significant amount of risk associated with penalties from inaccurate, late, or incomplete filings. Despite this risk, most organizations continue to try and manage the process manually with people and spreadsheets.
Costs associated with these penalties can be costly, which can hinder organizations of all sizes. Expenses can include both the actual cost of fines and the missed opportunity of the investments that could have been made if those fines had not been incurred. In fact, non-compliance brings opportunity costs in both money and human resources that could be better spent elsewhere.
View our infographic below for an overview of the current challenges in sales and use tax filing compliance and how manufacturing leaders who utilize sales and use tax filing automation software significantly reduce their risk and bottom line costs.
Click here for Full Size Sales Tax Filing Infographic
With recent enforcement measures, the IRS has offered definitive proof that the Affordable Care Act (ACA) is still alive and that the agency plans to strictly enforce ACA reporting. Last spring, the agency issued Letter 226J to Applicable Large Employers (ALEs) that failed to cover 95 percent of employees. ALEs are companies with 50 or […]
UPDATE (Jan. 8): Reporting season is moving forward according to plan. The IRS has announced that it will process tax returns on schedule and without delays. While the agency will clarify its contingency plan in the coming days, organizations should proceed as planned with 1099 reporting and other seasonal filings. The IRS will recall a […]
The South Dakota v. Wayfair decision last June has created a lot of angst for indirect tax professionals and the businesses they work so hard to protect from the burdens of sales and use tax filing. Six months later as we begin the new year, that angst has not gotten any lighter. Any federal legislative […]
2018 was a volatile year in indirect tax compliance for tax, finance and IT professionals worldwide. With an increase in globalization and tax gaps surpassing tens of billions in some countries, it’s not surprising that one of the biggest challenges governments are addressing is revenue collection. Like enterprises, governments are creating new, technology-driven processes to […]