Blog with Rob: Twerk out that sales tax
Twerking is the dance that’s sweeping the nation! Celebrities are doing it. The news is reporting on it. It’s everywhere. And frankly, like any business, we don’t want to miss the boat on any craze.
Therefore, without further ado, here is the definititon of twerking we like to use at Sales Tax Defense LLC:
T – axable sales determine whether you need to file your sales and use tax returns on an annual, quarterly or monthly basis. Don’t file returns more often than you have to but make sure you filing them often enough.
W – eather, in very extreme cases, can lead to the extension of a filing deadline. However, don’t just assume bad weather has led to an extension. The Tax Department will let you know, and it usually involves FEMA and a declared disaster.
E – very single business in New York State should register for sales and use tax purposes. Starting the statute of limitation by filing returns can be very beneficial for a variety of reasons.
R – esponsible person assessments are sales and use tax assessments issued against an individual personally. Every business has at least one responsible person.
K – eeping adequate records is imperative to support your sales and use tax returns. It can also help prevent penalties from being assessed on a potential audit.
I – nterest can never be completely removed from a sales and use tax assessment. It compounds daily so it can become quite expensive.
N – ot every vendor charges tax appropriately. It’s your responsibility to self-assess use tax if the vendor fails to get it right.
G – arnishing wages is one of many collection actions the Tax Department could take. Other collection actions could include but are not limited to levying bank accounts, placing liens on property and even suspending an individual’s driver’s license.
PS – If you pay admission to see a singer and she twerks that’s not subject to sales tax. And while the admission charge to a Miley Cyrus concert is not taxable in New York, the rules governing the taxability of any type of admission charges are very complex. And sometimes it almost seems as if an auditor’s taste in music governs the taxability of the show.
Written by Joseph Calamia II, Senior Tax Consultant at Sales Tax Defense