Did you know that most states require out-of-state sellers with a certain amount of sales in the state to collect and remit sales tax?
Depending on the state that certain amount varies.
What Happens When You Don’t Pay Sales Tax?
Do you know where your business has obligations to pay sales tax?
So what exactly happens when your business doesn’t collect sales tax in states where you have an obligation to?
1. A state might ask you to pay years’ worth of sales taxes.
2. Your business and personal assets could be seized.
3. You might owe more than just the taxes.
4. Other costs could add up, too.
5. You could be accused of fraud.
These consequences apply to any business not collecting and remitting sales tax even if its due to misunderstanding the law instead of ill-natured intent.
If your business sells any type of product you need to be paying sales tax. This may be done semi-annual, quarterly, or monthly depending on your volume and your state.
See the resources below for more information or contact your dedicated bookkeeper for more information and assistance.