Ten Key, Inc. offers expanded services in the sales tax area! We are registered to advocate on our clients’ behalf, and we’re ready to handle this difficult and time-consuming process for you.
Sales Tax Expertise
There are no textbooks or manuals for this area of expertise. We’ve hunted down information with constant, in-depth research–many times going right to the MA Department of Revenue to find out what we need to know to serve our clients on this high level. Many of our clients already come to Ten Key, Inc. for their sales tax collection and filing processes. If you’re still trying to do it all on your own…
Here are a few facts about Massachusetts sales tax you may not be aware of…
1) Sales tax must be filed on accrual basis, not cash basis. However, most retail stores function on cash basis. That means you’ll often be turning over your sales tax funds before you get paid. Ten Key, Inc. is aware of this and can help you with cash management so this does not create hardships for your business. Separating sales tax liability allows you to pay it when it’s due. Then, you can run your actual income and profit accurately with a clear understanding of your business’ financial reports.
2) Speaking of retail, do you know the ins and outs of luxury taxes? A single item purchased for over $175 is subject to a luxury tax, but you only pay sales tax on the difference. For example, a $200 sweater will only be taxed on the $25 difference, not the whole amount. And while we’re on the subject, do you know all the exceptions to the luxury tax rules? We’re finding them out and keeping track so you don’t have to.
3) As you probably know, non-profits are tax-exempt. But did you know that in order to avoid penalties for honoring that status and not charging them sales tax, you must have an updated copy of the tax-exempt documentation on hand?
4) Business owners are expected to file a ‘timely and correct tax return,’ and the Department of Revenue can audit up to 6-8 years and review your sales tax collection processes. Typically, the Dept of Revenue will go back 3 years. Before you think, “Oh, that’s not such a big deal,” remember that if they find a mistake or a piece of information that cannot be proven correct, you will be liable for back taxes, interest, and penalties which are counted from the date it was due.
We Can Help with Sales Tax Filing
Collecting and filing sales tax is no easy job, and finding out the right info to make sure the job is done right can be even harder! But at Ten Key, Inc., we’re taking it on…for YOU. We know your business, and we are well equipped to handle this aspect of it. With Ten Key, Inc. to advise and aid you in this process, you can stay focused on your business’ success.