Kentucky Sales Tax On Services
The Kentucky Department of Revenue (DOR) has issued a new Sales Tax Facts summarizing recent legislation impacting the sales and use tax. This includes taxation of services, changes to taxation of extended warranty services, applications for the film refund credit, and farmer exemption numbers, among other changes. Expansion of Taxable Services The sales and use […]
Texas Sales Tax Insolvency Settlement Attorney
For Contested Sales Tax Cases The Texas Comptroller may settle a claim for a tax, penalty, or interest only if the taxpayer proves by a 51% chance that: Grounds for Insolvency Settlement 1. Collection Will Cause Insolvency The taxpayer must demonstrate that collection of the total amount due would make them insolvent and must submit […]
Texas Sales Tax Audit On Used Car Financing
Used Car Financing and Texas Sales Tax Audits If you are a used car dealer that deals with buyer financing, then you need to make sure that you are charging the correct sales tax when it comes to buyer trades. Why is This Important? Incorrect sales tax calculations on financed vehicle sales, especially where trade-ins […]
Do Contractors Create A Nexus
If your business requires contractors that get paid on a 1099 to work for you in another state, then you might have created a nexus. If that contract worker takes part in: Then, most likely, you have a nexus. Activities That Can Create Nexus If you have contractors for the purposes of: Then, they are […]
Research And Development IRS Tax Credit Audit Risk
If you are concerned about the IRS auditing you for taking research and development (R&D) tax credits, then follow the pointers below for better preparation and compliance. Key Considerations to Minimize IRS Audit Risk 1. Well-Documented Process of Experimentation 2. Compliance with Section 174 3. Association with a Business Component 4. Technological in Nature Suggested […]
How To Set Up An Invoice For A Sales Tax Audit
When issuing invoices to clients, it is imperative to break out the charges clearly. For example, if you have charges for shipping, installation, or training, you must state each of them separately. Otherwise, the entire invoice amount may become taxable. Poor vs. Proper Invoice Examples Example 1: A Poorly Written Invoice Quantity Item Price Total […]
How To Determine Nexus In Dropshipping
Overview of Dropshipping Nexus In a dropshipping setting, keep in mind that there are three main players involved: General Rule for Sales Tax Sales tax is collected at the end-state of the sale, where the customer resides. Note:If the Dropshipper has Nexus, but the Seller does not, then the seller does not charge sales tax […]
Tire Shop Sales Tax Audit
Sales Tax Audit for Tire Shops The most common problems that arise during sales tax audits for tire shops pertain to the following issues: 1. Bring Your Own Part (BYOP) If your customers are bringing in their own parts for you to simply install, it must be clearly noted as such on your invoices. Important:If […]
Convert LLC To INC In Georgia
You are very lucky that you are doing business in the state of Georgia. Not all states offer this simple method of converting your LLC to an INC. See below: Georgia Conversion – LLC to INC Fees:$95 for the Certificate of Conversion$100 for the Articles of Incorporation Required Documents: Instructions for Conversion Step 1: Prepare […]
Georgia Drop Shipping Sales Tax Rules
E-commerce grew by 41% in 2021. The most popular question that I get is:What is drop shipping, and what are my sales tax obligations around drop shipping? Understanding Drop Shipping Drop shipping involves three players: Let’s simplify this situation with these key questions: Start with Nexus There are two transactions in a typical drop shipping […]