Sales Tax Fraud: The Proverbial Second Set of Books

Jun 4th 2009
Sift Media
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By Scott A. Heintzelman

Secondsetofbooks During this current recession, state coffers are running short.  Most states are projecting huge deficits as a result of reduced tax receipts.  This has caused states to look for unreported income.  They are doing this in the form of amnesty programs and also much tougher enforcement measures.  I am seeing sales tax audits at numerous clients as the states know that many businesses struggle with the complex rules of what is and is not taxable. 

Well, New York has a task force that uncovered one business that apparently was unsure if the $12 million in jewelry they were selling was actually subject to sales tax.  These guys clearly need to hire better accountants in order to help them understand the complex sales tax code (sarcasm intended).

If you are struggling with what items would be subject to sales tax, please feel free to contact me.


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