Questions about what to report as taxable purchases when filing a sales tax return? We have you covered. Watch our latest video.
Mary and Stephanie discuss sales tax exemptions for people who repair commercial property impacted by natural disasters in Texas. Click here to watch this brief informative video.
In this video, Mary addresses line 2 on the Texas Sales & Use Tax Return ⇒ Taxable Sales.
UPDATE: The deadline is April 15, 2020. Businesses may request a six-month extension by filing Form 7004 and submitting a deposit for taxes owed. Work with your tax filer to determine your best options.
I know that you are wondering if you have the right blog. You do! Nothing has changed. We do not help people with federal income tax or franchise tax matters. Both filings do impact sales and use tax matters. Here's how:
Since the Wayfair case became the law of the land, remote sellers have been as jumpy as a sinner in church about whether they must register to collect a jurisdiction’s sales or use tax. While each jurisdiction has different requirements, there are important updates. One update is the requirement that remote sellers who meet a Texas sales threshold must register to collect Texas sales and use tax.
February always brings to mind hearts, flowers, love and passion. Business owners usually start a business when they are passionate about what they are doing.For example, you love baking, so you open a bakery. You love working with your hands, laying tile or installing cabinets, so you become a contractor. You want to support your family, you enjoy nice things, and you have an idea about how to make money, so you open a business. Whatever the reason, every business owner has a story about why they hung out their shingle.
I love this question. The answer is simple. Learn the tax rules as they apply to your business. And prioritize compliance with the rules BEFORE an audit is generated.
By the time an audit is generated, your records are either good or they’re not. You have taxed the transactions in the audit period correctly, or you haven’t. You have paid sales or use tax due on your purchases, or you haven’t. You have receipts and other documentation needed to conduct the audit, or you don’t.
It is so disheartening to have someone tell me they paid someone to “handle” a sales tax audit for them and they feel cheated because nothing happened. They have a bill and no one will speak with them about it. For everyone who is going through an audit, I have a few things that you should question when hiring an advocate. The next blog will address what YOU can do to secure your best audit result.
I recently came across a recording of Wizard of Oz in my DVR and I immediately started drawing parallels between those characters and the state tax world. Some clients are like Dorothy, thrown into a strange world (state and local tax), but willing to follow the yellow brick road on what can be a harrowing journey. Others are like the Lion, praying for courage or like Oz, hiding behind a curtain and making up stories to keep everything running smoothly.
When you are a business owner, there are a million things that you must understand to run a successful business. Understanding your state tax responsibilities is normally not high on your radar. While every jurisdiction is different, there are questions that all business owners should ask about state taxes.
A really nice guy named Richard called because he was awarded a construction project in California. He stated emphatically that he wanted to do the right thing. He wanted to do his job, comply with state tax law, and rest easy knowing that he covered both his bases and those of his client.
As a construction company owner, Richard has it tough. Not only does he struggle finding skilled labor, he is also challenged with high levels of competition, decreasing profit margins and sales and use tax law complexities.
News flash! Understanding the Tax Code is not the easiest thing to do. The good news is that almost jurisdictions provide resources to help taxpayers. Websites with publications, FAQs, the Tax Code and Comptroller or DOR agents are all ready to assist you.
But, sometimes complex issues cannot be resolved by reading the FAQs section of the website or with a call to the taxing jurisdiction. Websites are only as good as the information on them. I have found old, superseded information on DOR websites. I have also found information that was just plain wrong.
Don't play Little Red Riding Hood to the Big Bad Wolf, i.e. divergent use. Divergent use is a big gotcha for companies that expand lines of business without reconsidering Texas sales and use tax consequences.
Divergent use occurs for Texas equipment rental companies when equipment purchased tax-free is used in a taxable manner. When an equipment rental company issues a resale certificate in lieu of paying sales/use tax and uses the equipment to perform services divergent use has occurred. It is common for equipment rental companies to decide to lease equipment with an operator. But when a resale certificate is issued in lieu of paying sales or use tax, a company may not use the equipment to perform services for clients without paying sales or use tax on the divergent use. Sales or use tax is owed on the fair market rental value for the “normal” term of a rental to third parties or the original purchase price.