Although back-to-school sales tax holidays are over for consumers, accountants still have the responsibility of accurately reporting what is and isn’t taxable.
Sonya Daniels, Manager in the State and Local Tax department at CBIZ MHM Memphis, provided her insight on the topic in a recent article published by AccountingToday.
When filing the normal monthly tax return for stores, accountants in some states need to look out for a specific line to report sales made during sales tax holidays. “There are several states that have a specific line that they would like you to report those sales on,” said Daniels. “For instance, in Missouri, it can totally change the actual return that you file. If you normally file a short form, they can actually switch you to a long form just because of the sales tax holiday. In that particular state the local jurisdictions can decide if they want to participate or not."
Reporting sales tax holidays on returns can be quite the project. Accountants should be aware that there is no across-the-board set of rules for reporting sales taxes. In addition, ambiguity continues from year to year and across states. It is important for accountants who work for retailers—or who have retailers among their clients—to stay up-to-date on reporting sales taxes.
For questions, please contact Sonya Daniels at firstname.lastname@example.org or 901-685-5575. To view the full AccountingToday article, click the button below.