Many small business are not particularly focused on sales and use taxes (on purchases from out-of-state vendors), and as result may fail to file necessary tax returns and pay the taxes owed.  This can result in:

• Personal liability for executives of the firm.
• Reduction in the value of the business if the intention is to sell it.
• Fines and penalties if state tax examiners discover the failure
  to collect or pay the taxes.

States are becoming much more aggressive about sales and use tax collections, so that it is important to understand the requirements and to establish a system for collecting and paying these taxes.  Companies may benefit by having assigned staff work with the firm’s accountants (Abo and Company at your service) in providing analysis and review services to help the business:

• Determine its use-tax obligation.
• Avoid sales and use tax based on exemption in local tax rules.
• Obtain refunds if there were overpayment of taxes.

If you have been uncertain about your sales and use tax requirements, this type of engagement focus  might provide multiple benefits for your organization.