Weekly Round-Up: How Non-Profits Can Avoid an Expensive Sales and Use Tax Surprise


In the last few years there have been some notable sales and use tax assessments made on non-profits, and this has caught both administrators of these organizations and those who sell to them by surprise, Michael Miller, CPA, a state and local tax services manager at Merit Advisors L.P., writes in this week’s issue of the Bloomberg BNA Weekly State Tax Report.

For example, a large international food distributor was hit with a surprisingly large seven-figure assessment on use tax. Another large charity hospital had a multimillion dollar assessment for sales and use tax. A manufacturer was assessed thousands of dollars for sales made to churches and related ministries, Miller writes. Finally, a famous television preacher ran afoul of the sales tax laws for selling millions of dollars in tangible personal property under an invalidated “church bake sale” exemption, Miller explains.

Any organization, even including “tax exempt” non-profit entities, can find itself in tax debt quickly when the organization fails to plan transactions appropriately. In his article, which can be read in its entirety here , Miller gives insight on how to avoid costly sales and use tax assessments by understanding general tax law provisions, knowing when and how a non-profit organization is exempt from tax and knowing when to ask more questions.

In other developments…

Idaho exempts from sales and use tax computer software delivered electronically, remotely accessed, or delivered by load and leave , a new alert by PwC provides

New York Tax Reform Made Easy: A Recap , by Sutherland SALT

Bring Back Bonus Expensing, Bring Back Jobs , by the Tax Foundation

Compiled by Priya D. Nair

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