Here's some news you can use! 

The following information is broken down by taxpayer situation in Texas.  Refer to the state taxing authority in all governing states.  States have different policies.

UPDATE: Until further notice, if your audit package is dated March 26, 2020 or later, the Comptroller's office is tolling the period to request a hearing if you don't agree with your audit result.  They will send notification when they reestablish the 60-day deadline to request a hearing and once we receive this notice, we will again update this post.  Be sure you are subscribed to our blog so you receive notification when this change has been made.

Here's some news you can use! 

The following information is broken down by taxpayer situation in Texas.  Refer to the state taxing authority in all governing states.  States have different policies.

  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:

Warning! It is critical that you pay attention to your sales tax accrual account.  One of the first things an auditor does when reviewing company records is reconcile your sales tax accrual account.  The auditor must make sure that all sales tax collected is remitted to the state tax authority.  

 At the end of year, everyone closes the books.  Your accountant goes over the records, you explain unusual transactions, and you enter year-end and adjusting journal entries.  Everything is great and you're ready to go.  Right?!  Wrong!...very wrong!

Congratulations! I LOVE to hear that anyone’s hard work is translating into more money.  After getting off the initial happiness high of hearing this, I go into protection mode.  What’s protection mode?  If we have ever met, you know that I guard any progress like a hawk!  I want you to keep, grow, and enjoy the fruits of your labor. 

That's right!  The picture says it all!  We are launching online classes in a few weeks.  The first class was developed for contractors with jobs in Texas.  We are going to build contractors' knowledge of Texas sales and use tax compliance from the ground up.

Nothing can kill a sugar or caffeine buzz quicker than an audit notice, right?  Not so fast!  The worst thing you can do is panic or allow an audit notice to color your day.   You've got this!!...You do!  Take a deep breath and DO NOT PANIC!

I recently spoke with a client who asked the million-dollar question:  Why do I get a different answer every time I ask someone the same tax question?  It's maddening isn't it?  Here are my top three reasons this happens:

Sometimes it seems as if we live in a world where everyone is just trying to skate by instead of striving for the best. Excellent service is rare and “okay” service is the norm. Using fillers like “um” and “you know” takes the place of concise speech. Ambiguity is valued, while being precise isn’t. While that may be okay when you are ordering a chalupa, it isn’t okay when you are dealing with sales tax.

In honor of April Fool’s Day, which is just around the corner, I thought it would be good to highlight the most foolish things that I have seen as a sales tax consultant: Lies.

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.

“Why me?!” is a typical response when people get the notice of audit.  Here are the top reasons you are getting audited.

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.