Sales and Use Tax in New York

Sales and Use Tax in New York

Gain a better understanding of your sales and use tax obligations in New York. Make no mistake: to cash-hungry tax authorities, your business represents a revenue stream, plain and simple. Their job is to maximize that stream, and a sales tax audit is one of their primary tools. In a sales tax audit, an auditor reviews your business records to determine whether you are underreporting taxes that are legally due. In addition to the costly time, effort and diversion of resources, the resulting penalties can be substantial. To you, that’s an unexpected hit to your profits; to the state it’s “found money.” This topic will explore ways to reduce the risk of being audited, minimize the economic impact of an audit, and cut the costs of compliance and defending your sales tax positions. Preparing proper documentation will streamline the audit process and help avoid audit sampling methods that may be to your disadvantage. Understanding the ins and outs of sales tax applicability, exemption and resale certificates, can keep you away from trouble. Finally, too often the goals in sales tax compliance are focused on making sure that enough tax has been paid. An analysis of your sales tax procedures may reveal that you are actually paying too much tax.

Learning Objectives