Imaging Science and Services, Inc.

With the financial crisis looming large in corporate America, what is the general thought on sales and use tax exemption compliance? According to a new survey, the majority of corporate managers are expecting to experience some additional sales tax and use tax audit scrutiny because of state and local revenue shortfalls. Strengthening exemption certificate compliance efforts can provide a strong foundational layer upon which corporations can take proactive positions to mitigate audit exposure and risk. Remember, having the correct rates and tax calculations is wonderful, but knowing when and when not to charge sales tax–and being able to prove it when the auditor comes, is something that ought to be on the mind of every CFO, VP of Tax, Audit Director or accounting management responsible for sales and use tax compliance. This is especially true now when state and local tax authorities are going to be prowling for additional revenues to fill tax coffers.