Explore the mysteries of use tax, with a focus on practical approaches to compliance reviews, policies and procedures, with Tram Le and Connie Zoerink. Includes 110-minutes of CPE and interactive Q&A.
Thursday, November 11, 2021
1:00pm-2:50pm EDT | 10:00am-11:50am PDT
This course will provide tax professionals with effective approaches to review use tax accrual policies and procedures to improve compliance and minimize the risk of an audit assessment. The panel will discuss strategies for multijurisdictional companies, the impact of the digital economy, reporting, and other key issues.
Description
Tax professionals at many companies–big and small–might admit their use tax accrual procedures are not what they should be. This can become a dangerous vulnerability at a time when financially stressed state and local governments regard business use tax compliance as low-hanging fruit for audits.
States that charge sales tax also charge use tax and are increasing audits to enforce compliance and collect consumer use tax. Companies buying goods out of state or online must report and remit consumer use tax for the storage, use, or other consumption of property that was not subject to sales tax. The same applies when a business withdraws goods from inventory for its own use.
Companies are responsible for assessing the accrual of use taxes and remitting payments to the state and/or local tax authority. Determining the accrual of use taxes can be difficult due to swiftly evolving state laws in areas such as software-as-a-service delivery, digital assets, and new state nexus laws. Businesses involved with numerous sales for resale or purchases from remote vendors with no physical presence in their states must diligently manage the use tax accrual process at the proper tax rates.
Listen as our panel reviews common exposures in use tax accrual and offers general approaches to improvement that will benefit companies in multiple industries.
Outline
- Staff policies and procedures concerning use tax accrual
- Improved interactions with systems
- Leveraging tools such as direct pay permits
- Special issues with use tax accruals for particular industries due to evolving state tax law
Benefits
The panel will explore these and other relevant topics:
- Tracking use tax and setting policies and procedures for them
- Implementing more effective procedures to work with AP and GL systems on use tax accrual
- Structuring a better approach with vendor tax validation
- Leveraging tools such as direct pay permits
FACULTY
Tram Le, CPA
Senior Tax Manager
TaxOps
Ms. Le is a CPA and licensed attorney specializing in tax strategies for growing businesses. She works closely with clients on a variety of state and local tax (SALT) issues and assists businesses in responding to notices issued by taxing jurisdictions. Ms. Le has represented taxpayers before the IRS and the U.S. tax court and assisted clients with complex tax issues including offers-in-compromise and audit reconsiderations.
Connie Zoerink, CPA
State and Local Tax Director
TaxOps
Ms. Zoerink has years of public and private accounting experience specializing in state and local tax (SALT) research, compliance, automation and state tax business consulting. Through her prior roles with large multinational companies, the Big Four, and regional accounting firm experience, she has seen and tackled the gamut of state and local tax issues.
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