When do I need to Hire a State tax resolution services? You know that the IRS can audit you. However, did you know that the state can also audit you? Well, it's true. The state in which you reside can also come after you with an audit. However, you don’t have to worry because FinishLine Tax Solutions the nation's tax problem solver offers state audit representation.
We specialize in handling state audit representation in all 50 states. State sales tax audits can be very serious. In some cases, you can even face criminal charges for state audits. It's imperative that you do not ignore sales and use tax notices. If you do, it can result in excessive penalties and even an audit. Should you find yourself in a state audit situation, we can represent you. FinishLine Tax Solution has been representing clients in state audits for years. We are here to help you avoid state sales tax audit penalties.
What is a state sales tax audit?
As a business owner, you may think you've been doing everything right. However, it's possible that you missed something along the way. State taxing authorities take sales tax and other business processes very seriously. As a result, a state audit is of the scariest challenges you can face as a small business owner. No one wants to go through a tax audit. Fortunately, FinishLine Tax Solutions offers state sales and use tax representation. If you find yourself in trouble with the state, we can offer state sales tax resolution services.
What are some common reasons for a state tax audit?
Remember, being selected for an audit doesn’t mean you're in automatic trouble. There are multiple reasons you might be selected for an audit.
- First, it's possible it might be your turn for a state sales tax audit. Some companies undergo audits regularly as part of a cycle. In other cases, the audit selection is purely random.
- Second, your industry or your relationship with other companies can lead to an audit. If there are other individuals in your area of business under investigation. In this case, you could also be selected for an audit.
- Third, where you're located can also make you a target for an audit.
Finding state sales and use tax representation
When it comes to state sales and taxing authority systems, it can get very complicated. In that case, you should seek out state sales and use tax representation. A professional can help you resolve sales tax and use tax problems. These types of cases are very serious. Furthermore, these types of cases should be taken very seriously. You should never ignore the sales and use tax notices. As a result, you can face the assessment of large state sales and use tax debt. If you ignore these notices, you risk increasing penalties and interest. In many states, sales and use tax liability is serious. Additionally, in most states, it's as serious as employment and payroll tax liabilities.
State Sales Tax Resolution
If you are under a state tax audit or use a tax audit, it can be stressful. However, there is a state sales tax resolution available. FinishLine Tax Solutions can help lessen the burden and stress on your company. Our tax professionals have extensive experience working with state revenue agencies. Additionally, we know what to do to reduce or eliminate the stress that your company is facing. Oftentimes, a lack of documentation is what results in a state tax audit. We will work to prevent the tax audit from going any further than it needs to.
What is the difference between state tax and use tax?
Generally, sales tax applies only to intrastate sales where the seller and customer live in the same state. In this case, the seller collects the tax from the customer. Furthermore, the seller then sends the collected tax to the appropriate taxing authority. Depending on the state, there are different types of sales tax. In contrast, a user tax is a tax on the storage, use, or consumption of a taxable item. In other words, use tax compensates for a sales tax. However, a use tax does not apply if the sales tax was charged. Additionally, a use tax will apply to purchases made outside the taxing jurisdiction. However, the use tax applies only if the customer did not use the product in the state. Additionally, a use tax also applies to items exempt from tax. These types of items are also subsequently used in a taxable manner.
What if I have unpaid sales tax?
If your business must collect sales tax, you also have to report it. Your tax rates and reporting methods will vary by state. Therefore, it's beneficial to work with a tax professional regarding sales tax issues. You will need to contact your specific state for more information on state sales tax. However, in most states, not paying sales tax is a serious offense.
Essentially, a sales tax is a trust fund tax. In other words, your business is the middleman between the customer and the state. Furthermore, states generate income from sales tax. However, when the state doesn't receive sales tax, they will aggressively try to collect it.
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Are there penalties for not paying sales tax?
If you do not pay sales tax, there are penalties. The penalties involved can be between 5 and 50 percent of the balance due. Additionally, if you don’t pay sales tax, you can lose your license to operate. Lastly, you can risk closure of your business due to not paying sales tax. Additionally, the state taxing authorities can also assess the liability to parties deemed responsible for not filing and paying. Even though the tax you owe is for is a business, the individuals responsible are still liable for the tax.
What happens if my business closes?
Even if your business closes, you must still pay the sales tax you owe. Usually, a sales tax is not released unless you file for bankruptcy. In other words, the individuals found responsible will still have to pay the tax back
How do I get sales tax resolution?
The first thing to do is to stop accruing more tax liability. In other words, make sure you file and pay your current year taxes. Next, if any sales tax returns haven't been filed, make sure you file them. Even if you can't pay the taxes owed, still file taxes. Lastly, you will want to start making payments toward your tax debt. Whatever you can pay, send it in. These efforts will show the taxing authority that you're serious about paying off your debt. At the end, these efforts could seriously save the life of your business.
Need state sales tax resolution? Call FinishLine Tax Solutions
Have you been contacted by the state taxing authorities for unpaid sales tax? If so, you cannot ignore these calls. It's imperative that you call us immediately to help with state sales tax resolution. We can help you get out of state sales tax debt, also help you with other state tax issues such as state wage garnishment release. Additionally, in the event of an audit, we can help with state sales and use tax representation. We understand that running a business is hard. However, don't let your mistakes ruin your business. Our team of experienced tax professionals can help you out of the mess you're in. But to do that, you need to call us sooner rather than later. Call us today for a free consultation on your state sales tax resolution.
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