Sales & Use Tax

Maintain compliance and avoid penalties

In-depth sales and use tax guidance

We’ll help you stay informed and compliant.

More than 47% of Minnesota’s state revenues come from sale and use taxes. It’s no wonder that the state aggressively enforces these tax laws. If your business operates in multiple states, you may find that the inconsistencies from one state to the next are more than you are prepared to handle confidently. You are not alone. Using our in-depth understanding of sales and use tax requirements, we will help you develop a proactive approach to proactively maintain compliance and avoid penalties.

Sales and use tax services

  • Audit support
  • Sales and use tax consulting
  • Monthly filing for our outsourced accounting clients
  • Exposure resolution
  • Sales tax planning

Other services used by our tax clients

FAQs

 
What is use tax?

Use tax is basically a self-assessed sales tax. The state tax rate is generally the same as sales tax and the same exemptions generally apply. The tax applies when you buy or lease taxable items or services for your business but the seller failed to collect sales taxes.

 
Do I have to register in other states?

If you are asking the question, the answer is probably “yes.” Some research is in order. We have the resources to answer your question as well as help you with any registration process.

 
What should I expect with the sales and use tax audit?

In many cases, the sales and use tax audit is a repeat of the audit done 3 to 4 years ago as the states cycle through these audits. If it is your first one, the auditor has provided you with a “Request for Information.” Most likely, the auditor will review transaction to determine if sales tax was properly collected. For the Use tax portion, the auditor is looking for receipts for various categories of expense or fixed assets to determine if sales tax was paid. The record gathering aspect of the audit can be time consuming so you should keep detailed and organized records to limit the data gathering timeline.

Contact Barb for more info

Barbara A. Sawdy, CPA

Barb Sawdy came to Boyum Barenscheer over 10 years ago with 15+ years of business, controller, and accounting experience.  She has evolved into the firm’s leader in complex sales tax, payroll, and accounting software issues.  She also plays a vital role in the firm’s Business Advisory Services department with training and assisting our accountants as they begin their careers…