Taxes differ based on a variety of factors. Determining, understanding and fulfilling your tax obligations isn’t always straightforward and becomes more complex as the reach of your organization grows. Through the combined efforts of our accountants and analysts, CKH ensures the correct collection, filing and remittance of appropriate tax types, in their correct amounts.
Post-Wayfair risk analysis
Sales tax laws can be extremely complicated. Not only do statutes and rates differ based on jurisdiction, the nexus surrounding them is constantly changing—evidenced by the recent South Dakota v. Wayfair case. As a result of this case, state governments can now require out-of-state vendors with no physical presence to collect and remit sales tax on items shipped to consumers in their state.
The precedent for determining nexus is now based on economic presence, measured by varying thresholds across state lines. As a result, companies—including online retailers—conducting inter-state business are at risk for increased sales tax exposure.
CKH’s team of well-versed tax analysts will help determine your company’s level of exposure post-Wayfair and provide a recommended course of action. We stay up-to-date on every state’s economic nexus provisions and reporting requirements, and maintain a keen eye on those enacting combined state and local sales tax rates for a more simplified process.
Product and service taxability analysis
As state governments seek to expand their taxpayer base to include both in-state and out-of-state retailers, they are also seeking to expand their tax base—the goods and services they deem to be “taxable.”
A sale made to a consumer in Georgia may be considered exempt, while that same sale made to a consumer in Ohio is taxable. The statutory nuances determining these differentiations are often subtle and easily overlooked, causing many companies to erroneously charge customers sales tax or unnecessarily pay use tax on exempt purchases.
Aided by our proficient use of resources like RIA Checkpoint, our team of highly-skilled research analysts will help your company identify and correct erroneous sales tax charges and use tax accruals. We assist in the creation and posting of journal entries to reverse those errors, as well as provide custom solutions to prevent re-occurrence in the future.