Operating in home-rule states and avoiding catastrophic sales tax compliance scenarios is possible. But taxpayers need to engage in due diligence to mitigate the additional risk, Michael Miller, CPA, a state and local tax services manager at Merit Advisors L.P., states in a new article in this week’s issue of the Bloomberg BNA Weekly State Tax Report.
Often, as with many things in the indirect tax world, an ounce of prevention is worth a pound of cure, Miller writes.
For example, taxpayers should be aware of which local taxing jurisdictions engage contract auditors, and know which firms they hire, Miller says. Talk to people in the state about the reputation of the various firms so you can better prepare for each jurisdiction. Some of the contract audit firms and other local departments are very professional and reasonable. Other firms and departments have earned themselves a terrible reputation. Know what you are going to be stepping into and plan accordingly, Miller writes.
Other recommendations Miller makes include knowing how tax is administered in the jurisdiction, keeping exemplary records, knowing when to seek outside help, and generally being proactive to help mitigate issues that might come up with local taxing jurisdictions.
Miller’s complete recommendations on how practitioners can mitigate risk in home-rule states through careful planning and preparation can be read here .
In other developments…
Budgeting for the Future: Fiscal Planning Tools Can Show the Way, a new report by the Center on Budget and Policy Priorities
Hall Tax Repeal Would Improve Tennessee Business Tax Climate , according to the Tax Foundation
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