8 Ways to Increase Your Company’s Sales Tax Audit Risk
Hint: Keep doing sales tax manually.
Unless they have a vintage flair, most people wouldn’t dream of using a rotary phone when a cordless or cell phone is available. Yet the same people might not think twice about handling core business functions with similarly outdated tools. Take sales tax compliance. In many ways, using a spreadsheet to track sales and use tax obligations is analogous to using floppy disks to store data. This approach requires manually reviewing rate, rule, and boundary changes for each jurisdiction into which taxable sales are made. It also involves an encyclopedic knowledge of product and service taxability, rigorous tracking of state and federal statutory changes, and an expert-level grasp of exemptions, destination-based sourcing, and other sales tax related minutiae.
