New Jersey Sales Tax Audits

New Jersey Sales Tax Audits

Due to the recent Supreme Court ruling the case of Wayfair vs South Dakota, we foresee a large rise in the number of sales tax audits.
In short, the Supreme Court ruling on the case Wayfair vs South Dakota overturned a case from 1992. This new ruling states that any sales created over the internet will be subject to sales tax in each state where the product is sold, even if you or your company does not have a physical presence in that state.

For example, if your company is physically placed in New Jersey, and you sell to a client who is in Pennsylvania, your company is now required to collect sales tax, for each product sold, for the state of Pennsylvania.

While this example pertains to New Jersey, this is applicable to all states that impose state & local sales tax. The exception states that do not impose a sales tax are Alaska, Delaware, Montana, New Hampshire and Oregon. If you sell to any state or locality imposing sales tax, you will be required to charge, collect, remit, report and file sales tax returns.

Receiving an audit notice can raise a lot of questions and uncertainty, but we here at GCS have the knowledge, resources, and experience, in various states, to help assist and guide all of our clients throughout the sales tax audit process to minimize sales tax liabilities and exposure.
Please don’t hesitate to contact us with questions or concerns or if you would like to meet with us to discuss this issue or any of your other financial or tax needs.

Did You Know?

Gramkow, Carnevale, Seifert, & Co., LLC provides tax and accounting services to clients from all over the country and the world.

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