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Tuesday, May 07, 2013

More About The Online Sales Tax

How are States going to go about auditing the sales tax accounts of online sellers?

If memory serves, the Sales Tax audit was a big deal, and a bookkeeper or accountant set aside an entire block of time - depending on how long the auditor said it would take - from 3 days to 30 days.
What is the process to be?
How big will the penalties be?

I listened to some people talk about it, some said it would be a nightmare, and others said that there's great software around for it, and don't sweat the small stuff.

If I learned one thing in business it is that taxes are an enormous deal and it takes a lot of time and effort.
It will be a nightmare... guaranteed.
It will be such a mess that e-commerce will suffer... once again, the business people do not know what to expect from this. When implementation arrives, it will be buggy and extremely difficult.

After subjecting e-commerce to this, the States may take a step back and give online buying a little slack... at which time, the bricks and mortar retailers will set up a howl heard all the way to Washington and beyond, for now at this point the store front retailers will be held to the letter of the law, and e-commerce will all of a sudden be receiving a favor from the state government.

It won't work.


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