States Finding New Ways to Catch Non-Compliant Businesses

The SALT Shaker

The Mayor of the District of Columbia (DC) has signed the “Fiscal Year 2013 Budget Support Act of 2012,” which will be sent to Congress for review. Included in the tax law changes is a requirement that all DC employers register for sales/use tax and file annual use tax forms. The budget support legislation provides that beginning with the 12-month period ending September 30 2012, any employer required to file a D.C. withholding tax return who is not required to collect and remit sales tax must file an annual use tax return on or before October 20 each year, and remit any use tax due with the return.

The states know that many businesses are buying property over the Internet and evading state sales tax. Starting next year, DC will use technology to match employer records with use tax filings to select businesses for audit.  State tax audits are costly because of lost productivity and the payment of improperly assessed taxes, interest and penalty.  The KatzAbosch SALT team has specialists that can review your business activity and determine if you are in compliance with state tax laws.   A proactive review of your business will save you money when the government comes to audit.

Please contact the KatzAbosch SALT Group if you have any questions or would like a state tax check-up.

The SALT Shaker is prepared by Andy Bareham, Chair of the KatzAbosch SALT Group

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