5. Lower your audit risk. Sales tax errors open the door to potential tax compliance issues, resulting in an array of out-of-pocket expenses. Audit preparation can be extremely resource-intensive, and assessments including interest and penalties can be costly. Accurate sales tax calculation and documentation can greatly reduce the preaudit information gathering process and, in turn, reduce the odds of an assessment.
While there’s no way to reduce the frequency and volume of tax changes, retailers can increase compliance and, in turn, reduce any tax-related negative impact on their bottom lines by implementing an automated tax technology system.
John Cowan is director of solutions practice at Vertex, a provider of corporate tax solutions, software and consulting. Reach John at John.Cowan@vertexinc.com.
