Use Tax - The Hidden Dangers and Expanding Nexus
1 hour 40 minutes
Learn more about the pitfalls in sales and use tax compliance and obtain the tools needed to minimize sales and use tax exposure.
Identifying and mitigating use tax exposure requires an understanding of sales and use tax laws and a critical evaluation of purchase and sales invoices and other business records for hidden dangers. Use tax compliance requires meticulous maintenance of documentary evidence of a transaction and guides the proper application of tax. Evaluation and retention of invoices, contracts, and accrual workpapers is essential for ongoing, accurate compliance. Hidden dangers lurking in seemingly innocuous invoices can cost companies significant liabilities under audit. Examining shipping terms, defined shipping points, the nature and description of services performed, transaction sourcing, nexus implications for proper tax application, statements of tax, and the rates of tax charged is essential. Of equal importance is ensuring that the invoices and other documents setting forth the form of the transaction accurately reflects the substance of the transaction, or the agreement between the parties. Gain a greater understanding of sales and use tax compliance pitfalls and gain the tools to put this knowledge to work in minimizing your businesses’ and clients’ sales and use tax exposure.
• You will be able to define nexus and understand the difference between physical presence and economic nexus.
• You will be able to describe how a multistate use exemption certificate can be used to shift the tax burden.
• You will be able to discuss the difference between an exemption and exclusion from tax.
• You will be able to explain how the sales and use taxes compliment each other.