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Warning!!!

IRS DOES NOT SEND E-MAILS TO TAXPAYERS!

Protect Yourself from and Report Suspicious E-Mails or Phishing Schemes.

What are suspicious e-mails or phishing?  

Phishing, as it is called, is the act of sending an e-mail to a user falsely claiming to be an established legitimate enterprise in an attempt to scam the user into surrendering private information that will be used for identity theft.

Report Phishing, e-mail scams and bogus IRS Web sites.

According to the Federal Trade Commission (FTC), the nation’s consumer protection agency, phishers send an e-mail or pop-up message that claims to be from a business or organization that you may deal with — for example, an Internet Service Provider (ISP), bank, online payment service, or even a government agency. The message may ask you to “update,” “validate,” or “confirm” your account information. Some phishing e-mails threaten a dire consequence if you don’t respond. The messages direct you to a Web site that looks just like a legitimate organization’s site. But it isn’t. It’s a bogus site whose sole purpose is to trick you into divulging your personal information so the operators can steal your identity and run up bills or commit crimes in your name.

The IRS can use the information, URLs and links in the suspicious e-mails you forward to trace the hosting Web site and alert authorities to help shut down the fraudulent sites.

Please call us if you have any questions.

 

SALES TAX AUDITS

     Sales Tax Audits         

If your company has not had the unpleasurable experience of a state sales tax audit within the last two or three years, it may be time to batten down the hatches!

Across the nation, state sales tax audits have increased significantly over the last few years and that trend is likely to accelerate.  The reason is simple - sales tax audits are proven revenue generators for the cash-starved states.

State sales tax audits have increased significantly over the last few years

For years, many small businesses have grown lackadaisical toward inquiring about and obtaining exemption certificates from customers. Filing and paying use taxes on out-of-state purchases is also a practice that many companies widely neglect.  

Since states use the same cost-benefit type ratio that companies use to help determine where they focus their resources, there's little wonder that audits are on a substantial rise.  

Most states have historically concentrated their auditing efforts on the "big fish" (companies with hundreds of millions in sales), but they are now finding that the smaller companies with fewer resources available for tracking and monitoring transactions are highly profitable targets as well.

Many companies are finding that the audits aren't always "fair" either.  Even though your customer may be tax exempt, the state may still assess you for the uncollected taxes if you do not have the exemption certificate on file.  

There have also been many cases across the nation where a state has assessed both the vendor and the customer for uncollected taxes along with penalty and interest!

The auditors are also taking aggressive positions on the types of goods and services that are subject to the tax.  Most states consider services to be exempt from the sales tax, but the rules are sometimes nebulous at best and must cover thousands of different types of transactions. 

Since the rules are so vague, many companies actually pay more in sales taxes than they should.  Guess what?  Your friendly sales tax auditor will not likely look for or inform you of any instances of overpayment.  

You will definitely be informed of any underpayments, however in the form of an assessment with penalty and interest.  The audit period will generally cover prior years as well, so the penalty can be quite substantial. 

What You Can Do Now

If you feel that your company has some risk in terms of sales tax compliance, the time to act is now.  By being proactive, you can avoid much of the anxiety and potential liability that comes with an audit.

Obtain exemption certificates now for those customers that are exempt.  Go through your own records in detail and list any purchases or sales where you feel you may be at risk or where you suspect you may have overpaid.  

If you are uncertain, call us.  The state is much more likely to be lenient if you file amended returns now instead of waiting for the tax man to knock at your door.

Disclaimer

 

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