Bellatoris Consulting, LLC

Archive for December, 2011|Monthly archive page


The Fine Art of Sales Tax

In Use Tax on December 13, 2011 at 4:27 PM

There I was, strolling through the streets of Monte Carlo when I stumbled upon this spectacular art gallery.  As I walked in, I immediately saw an original Marc Chagall oil on canvas.  I had to have it!

Sorry….I got my facts mixed up for a second.  I was actually strolling down Main Street, U.S.A in Walt Disney World when I popped into a gift shop.  I immediately saw a small light box with Cinderella’s castle inside and I had to have it!

When I went to pay for the light box, I asked if I could have it shipped back to my home.  (I trust the UPS drivers way more than the airport baggage handlers!)

The cashier asked where I was sending it.  When I told her that I lived in Virginia, she lit up with joy and said, “You’re not going to have to pay sales tax now!”

I was on vacation, but the tax nerd inside of me leaped out of his lounge chair, threw his pina colada on the ground, and got into a sales tax consulting stance.

I thought to myself, “Should I tell her about the use tax I’ll have to pay to Virginia?  Should I spread the word so she can educate other guests who are in this predicament?”

Do you want to know what I said to her?  I’ll tell you, but you’ll have to buy me a pina colada first!

Artwork is a common purchase that the states track for use tax purposes.  When it comes to high dollar pieces, the states have become very aggressive in sending use tax bills to the purchasers.

Just because you’re not buying a super-expensive piece of artwork doesn’t mean that you’re out of the states’ crosshairs.  The states are getting more sophisticated when it comes to enforcing use tax laws on individual taxpayers, so be sure to pay your fair share before they come after you first.

(P.S. – If you happen to be a Disney fan like me, stop by my other blog (DisneyMBA.com) and join in on the conversation there!)


Sending Gifts to the States

In Voluntary Disclosure Agreements on December 8, 2011 at 11:22 AM

Now that December is here, you’re probably asking yourself, “Wow, where has the year gone?”

I’m right there with you!  Can you believe that it’s already time to celebrate National Voluntary Disclosure Month again?  Wow!!

After the festivities of National Nexus Awareness Month in November, it makes perfect sense to me that December would be a time to celebrate voluntary disclosures.

Here’s why I think voluntary disclosures are beneficial:

  1. You can restrict the amount of time in history that a jurisdiction can lay claim to any unpaid tax liabilities;
  2. You can have penalties abated; and
  3. You can have a third-party (ahem!) present your offer anonymously on your behalf.  This can sometimes help you get the best possible terms from his/her contacts within a particular jurisdiction.

Here’s why the jurisdictions like voluntary disclosures:

  1. It’s unfound money that they didn’t have to go looking for; and
  2. In the event a company is not registered for tax purposes in their state, this gets them into the system for prospective compliance.

Here’s why CFOs and internal auditors appreciate the fact that December is National Voluntary Disclosure Month:

  1. These agreements can trigger the release of contingent liability reserves before year-end.

If the spirit of the season is running through your company, I’d be happy to help you with your gift-giving needs this month.  Just give me a call!

You’ll sleep well knowing that you’ve handled these outstanding liabilities…leaving you well-rested for the other December Holidays!

Follow

Get every new post delivered to your Inbox.

%d bloggers like this: