Everyone knows that there will be penalties if sales and use tax is not correctly addressed. A colleague asked if we ever heard of anyone going to jail because of sales and use tax. The answer is no. We have not run into that. But there is a myriad of things that the taxing authority can do to get their money. We talk it about it in the video.
Key Takeaways:
There are various things that the taxing authority can do to collect taxes that are owed.
Taxing jurisdictions will routinely work with business owners to structure payment plans (while charging interest) in order to collect deficiencies.
Common collection tactics include liens, freezing bank accounts and even closing the business in extreme cases.
Taxing authorities especially take an aggressive stance when it comes to “Sales Tax Collected, Not Remitted”.
Our mission to provide a resource so business owners, accountants and bookkeepers can understand sales & use tax compliance. We know that sales and use tax laws are not the easiest to understand. Our focus is on empowering you with a framework and general understanding, so you know what questions to ask and where to go to get the information you need to stay on the right side of sales and use tax compliance.