IGNORANCE MAY NOT BE BLISS WHEN IT COMES TO 'ZAPPERS' | AccountingWEB

IGNORANCE MAY NOT BE BLISS WHEN IT COMES TO 'ZAPPERS'

Taxpayers have been suppressing or understating their sales to pay less income tax and sales tax for years, but now they are using a device known as a ‘‘zapper.’’ That trend started in other countries but has become more prevalent in the United States, with 14 states recently enacting legislation to impose criminal penalties against those using the device. Based on the imposition of those new penalties and the evidence of the potential widespread use of zappers, taxpayers and tax practitioners who are not (knowingly) involved in the use of a zapper may still need to take proactive action to prevent exposure.

To read more, check out my article in Tax Analysts State Tax Notes on October 21, 2013. (the link to the article is in my LinkedIn profile)

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Brian Strahle is the owner of LEVERAGE SALT, LLC where he provides state and local tax technical services to accounting firms, law firms and tax research organizations across the United States.  He also writes a weekly column in Tax Analysts State Tax Notes entitled, "The SALT Effect."  For more info, visit his website: www.leveragestateandlocaltax.com

You can reach Brian at strahle@leveragesalt.com.

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Because state and local taxes are deceptively simple and endlessly complicated.

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