Voices Sales tax services should be on your recovery checklist

The COVID-19 pandemic reaffirmed the essential role accountants and tax professionals play as trusted advisors for business. As we operate through the Covid-19 recovery, one area where firms can further demonstrate their value is by guiding their clients through sales and use tax compliance, an area of increasing focus for cash-strapped cities and state governments. 

There are a few key factors to consider when providing SUT services: 

  • Sales and payroll taxes are an emerging tug-of-war among states. The rise of remote work has altered how some states view what once were full-time commuters to neighboring metropolises.
  • E-commerce is becoming a juggernaut. Retail online sales have grown steadily over the past decade and
  • States and localities are desperate for revenue. The recently enacted $1.9 trillion American Rescue Plan provides $350 billion in aid for states and localities, but most tax jurisdictions remain under great pressure. 

Most importantly, audit risks are rising. Beyond new or increased taxes, audit and enforcement activity by tax jurisdictions is expected to increase this year. As outlined by Vertex's Be Prepared: 2020 Sales Tax State Research Signals More and Varied Changes to Come, three states — Washington, Louisiana and Nevada — are particularly reliant on sales tax for revenue and “may be the most likely to increase indirect tax audits.”

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Our Global Tax Resources Related to COVID-19

In light of the current coronavirus (COVID-19) healthcare crisis impacting businesses, we have compiled a list of resources that provide information at the international, U.S. federal, and state levels.

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