The Simple answer to this question is that your business may incur substantial financial losses due to paying up the tax owed plus hefty fines. In some scenarios, you may be given jail time.
This is because many States consider this a serious crime when you collect business sales tax and fail to remit. Therefore, take your business sales tax needs seriously.
A lot of business owners fail to realize that the collection of business sales taxes without remitting it can lead to detrimental impacts on their business health.
As a small business owner, one of the most challenging concepts to decipher is your business sales tax and its requirements.
Typically, it is required that your business must assess the tax on purchases, collect it and then remit it to the appropriate agency at the specified time frame.
If you deliberately fail to remit business sales tax to the State, it is considered a fraudulent activity and can indeed lead to dire consequences such as jail time. You may also receive a business sales tax lien.
However, there are certain situations where a business may unconsciously fail to meet this requirement; here are the two most popular scenarios that may arise:
Many business sales tax laws are quite complex, and the calculations resulting from this may altogether be time-consuming.
Due to this, a business owner might collate the applicable business sales tax wrongly to several degrees less than the required amount on each purchased goods.
Also, many businesses may realize these errors but might also find it challenging and confusing on how to come clean.
When your business is not in the nexus, or you have not registered your business with the State, it does not allow you to collect sales tax for the jurisdiction. You must register first with the State before you can collect business sales tax in that location. If you are enrolled in the state, you will receive reminders asking you to file remit business sales tax.
If any of the above scenarios apply to you, then there are three ways you can straighten and avoid facing dire consequences:
Are you confused about having your business registered with the state? Or have you in any way filed erroneous business sales tax returns but do not understand how to set things straight? You should seek expert advice promptly to ensure that problems do not arise in the future.
Deal with these issues timely and provide no room for hesitation. The longer you let this slide, the more business risk you incur.
To avoid future episodes, get the applicable systems in place to make it easy to harmonize your ledger accurately and timely. When you do so, the prospects of remitting less or not remitting at all will become slim.
When you need help establishing these operations, or you require assistance with errors made previously, we are available to help you resolve your business sales tax issues. You can contact us at (212) 320-8191 or send us an email at firstname.lastname@example.org
Urgent Tax Services
6009 16th Ave,
Brooklyn, NY 11204
Ph. (212) 320-8191
Fax (646) 626-6447