Partnering With Sales Tax Specialists While Having A CPA
If you want to comply with the state sales tax, partner with a sales tax specialist. But how about you already have a CPA? Complying with state sales tax involves well-informed counsel. A person who can help determine your nexus and what you need to pay. Somebody who is even more specialized than the CPA you employ. In this post, you’ll find out why you need both.
Certified Public Accountants – CPAs are the pillar of the accounting services industry in the United States. If you run a business, you probably employ a CPA to help you with preparing tax, including income tax etc. But in spite of this wide range of expertise, there’s one type of tax that accountants normally avoid getting involved in, i.e., state and local sales tax (SALT).
Reasons CPAs Avoid Sales Tax
According to experience, it has been found that most CPAs knowingly keep clear of touching sales tax. Usually, they have limited understanding or interest in it, but the majority of CPAs shy away from taking it on as a full part of their practice. They often explain it like this: “I'm so busy with other tax matter I'm doing that I just can't get up to date on that!”
Due to this, most CPAs know sales tax is complex and no joke. But they have limited knowledge or background in it. They cannot spare the time. Besides, when you consider how quickly tax codes change and the endless regulations you must stay on top of it seems right why CPAs wouldn’t provide sales tax services Michigan.
State sales tax is not an easy specialty to handle. It has always been complex. However, in the present times sales tax has expanded with regards to the nuance and rate at which regulations change. Since South Dakota v. Wayfair, nexus boundaries, policies and amnesty programs are altered regularly throughout all 50 states. As a result, CPAs usually collaborate with sales tax specialists.
A Sales Tax Connection
The connection between CPAs and sales tax specialists is like medical care. The ordinary person has a primary physician that they trust for most general health issues. But if you require specialized treatment, they’ll refer you to a specialist. Because that’s what you need at the moment. In the world of taxes, CPAs are professionals who ensure the financial health of your business. To fulfill this role more efficiently, many CPAs are creating partnerships or doing referral efforts to connect their clients to professionals specializing in sales tax services Michigan. They do so to protect clients from the vulnerabilities of sales tax liability.
Conclusion
Not acting on sales tax is the leading tax risk your business faces up to. A surprise audit or latent unpaid liability can unexpectedly arise, crushing margins and eating into cashflow. If you suspect you probably have sales tax liability in one or more states, you should immediately get in touch with a sales tax specialist. Doing so is vital to securing the financial health of your business.
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