Academic journal article Journal of Accountancy

Companies Spending More on State Sales Tax Compliance

Academic journal article Journal of Accountancy

Companies Spending More on State Sales Tax Compliance

Article excerpt

State sales tax audits are on the rise, both in dollar amount and frequency, according to a nationwide survey by Vertex Inc., a tax research group.

U.S. companies conducting business in multiple states are now spending, on average, $106,000 annually on state sales tax audit, compliance and assessment costs, while 82% of all multistate businesses reported being audited at least once in the past year.

"Accountants, tax departments and consultants are feeling the heat," according to Jon Riewe, vice-president of research for the Vertex group. "The pressure from the states is translating into costly audit bills for these companies."

Two-third of the financial executives surveyed believe audit activity has increased over the past three years and the recession contributed to the increase. A majority believe the dollar amounts of state sales tax audit assessments have risen in the same period, adding to the companies' overall tax bill. Generally, assessments are levied for unpaid taxes plus penalties and interest. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.