Common Sales Tax Pitfalls – And How to Avoid Them
March 3, 2014 – The Great Recession and slow recovery have taken a toll on state and local government revenues. Many states and municipalities have cut services and operations in response, but they’ve also significantly ramped up tax enforcement activities in an effort to secure more revenue, relying heavily on simple technology tools to automate and expedite enforcement processes.
While governments are putting technology to work for tax enforcement purposes, many small businesses have been slower to follow suit on the tax compliance side, living under the false premise that compliance technology is expensive, difficult to use, and relegated only to those large enterprises that have armies of technical and accounting staff who master the expertise to use these tools. This misperception leaves them vulnerable and at a significant disadvantage. It’s not that business leaders don’t want to leverage the best technology tools to ensure compliance: Often it’s a case of small business leaders not realizing the scope of their obligations and the many pitfalls associated with compliance, even for company leaders who have the best of intentions, and more important, that modern technologies are readily available to businesses of all sides, that are not difficult to implement and not expensive to use. Read the full post on the Retail Merchandiser Blog.