QUESTIONS ABOUT CORPORATE TAXES
In this section we answer corporate tax questions that we often hear.
It’s not a forum for getting detailed advice but it answers some common questions that we’ve categorized into our six service areas. Select one of the six service icons to see questions in that category.
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SALES AND USE
If you are a multi-state business, and you are a little unsure of what your filing should be, it’s wise to get professional advice.
Questions to ask your advisor: Are you covering all your risk, filing your returns where you need to, and optimizing your tax plans around reduced rates, exemptions, or other opportunities that might be available to you?
If you’re not satisfied with the answers, VPTax can help.
This is not a tax on the sale of goods and services. However, there are 46 different sets of rules as each state establishes its own laws.
Even though your product or service may not be taxable in the state, if you are registered for payroll, the state will be looking for sales tax returns.
If you are audited and do not have the proper documentation, there are several available courses to reduce your liability. If you still have a relationship with your customer, you can either obtain a copy of the certificate or obtain evidence that the customer has already paid the tax. The unfortunate reality is, the customer may no longer be around or may be unwilling to cooperate. This is a good reason to stay current on your reseller documentation.
Also consider whether property is initially purchased for inventory and subsequently consumed in research activities. Absent an R&D exclusion, use taxes are due on this consumed property.