Sales and Use Tax ‘Gotchas': A Taxpayer's Guide to Navigating The Chaos Theory When Reading the Tax Code Is Not Enough

Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...

Sales and use tax “Gotchas” are found in all areas of an organization directly or indirectly driving the sales and use tax outcome. Gotchas can be technical in origin—the result of poorly conceived, inconsistent tax law and operational in origin—the inability of businesses to adapt standard operating procedures to the technical requirements of the law. Occasionally, the cost of compliance is so steep that the company absorbs the tax as a cost of doing business rather than pass it along to its customer.