S.O.S. (Sales & Use Tax Outsourced Support)
With states’ ever changing sales & use tax (SUT) exemptions and regulations, as well as expanding the scope of nexus requirements, taxpayers are left to defend potentially-hefty state sales and use tax audit assessments, plus penalty and interest. Most companies, even those with healthy tax teams, categorize SUT as a backburner issue until there is an audit. Being proactive is essential to achieving SUT compliance especially as issues arise on an intermittent basis that require expertise to ensure proper taxability.
S.O.S. (Sales/Use Tax Outsourced Support) is your on-demand resource to tackle any SUT issues in any U.S. taxing jurisdiction in order to ensure your time and personnel stays focused on other initiatives.
Whether you have a SUT team that needs additional research expertise or have no SUT manager, S.O.S. provides customized support written in plain English, citing applicable tax codes and/or laws with a two business day turnaround. Below are some examples of questions our team fields on a daily basis:
- Does use tax need to be accrued on this invoice?
- We have an independent sales representative entering State X. Will this establish nexus there?
- Our vendor is drop-shipping a product to our customer in State Y. What documentation can we give the vendor for the resale exemption if we are not registered in that State?
- The vendor says we are not tax exempt. Can you review this invoice?
- Do we qualify for an interim storage exemption?
- I am a subcontractor on this project. Am I liable for the sales tax on my purchases or do I charge the tax to the prime contractor?
- Are these software licenses and corresponding support services subject to sales and use tax?
Sales and Use Tax Consulting Services
Companies may pre-purchase blocks of time to use as needed or pre-purchase an ongoing subscription, which is cancellable at any time. Companies interested in this service should contact us at sos@taxmatrix.com for more information, including a free test drive of our S.O.S. service.