Sales Tax Debt Relief & Representation

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Comprehensive Sales Tax Debt Solutions
Sales Tax Resolutions from Experienced Tax Attorneys
Avoid Business Shutdown and Personally Assessing the Debt

Must meet qualifying criteria for possible reduction of debt

Sales Tax Representation You Need from Qualified Tax Specialists

Do you live in fear of state action because your business owes past sales taxes? Are you afraid of losing your business, home, or other assets because you can’t pay the amount owed?

If you owe back sales taxes, the consequences can be severe. Not only will the state shut down your business, but it can also hold you and others personally liable for the debt—meaning that everything from your bank and investment accounts to your personal property can be seized.

Key Tax Group Offers Comprehensive Sales Tax Debt Relief

Because of the serious repercussions of owing past sales taxes, you should contact an experienced tax debt relief professional immediately to protect your personal interests and business from state actions. Our dedicated team of tax lawyers, enrolled agents, and support staff is knowledgeable about the constantly changing state tax laws as well as the resolution process, allowing us to offer our clients comprehensive tax debt solutions to their sales tax debt.

At Key Tax Group, we first check and double-check to make sure that the fees charged against you are legitimate. For example, did you know that state assessments are often mistakenly made based on the square footage of the business instead of the actual amount of debt owed? We will review the charges assessed against you to ensure that they are warranted.

From there, we act quickly to stop the state taxing authority from shutting down your business. Even if a business is closed and no longer operating, the states have the authority to hold all owners and co-owners of the business personally responsible for these tax debts. If the business is already closed and the debt is personally assessed, we will work with the client to establish a resolution.

Sales Tax Compliance

Sales tax compliance can be difficult to analyze because the specific facts of every case are so important. One sales transaction may be taxable, and another sales transaction may be non-taxable, depending on the specific factual circumstances. A transaction often needs to be scrutinized by a tax professional to determine if the transaction is subject to state and local sales taxes.

Businesses may sell goods or services remotely to customers across the United States. Local and state sales and use tax laws continue to change at a rapid pace, and staying in compliance with these laws can be confusing. Businesses cannot adopt a uniform policy for organizing and paying state and local sales taxes. The majority of businesses have multistate customers, and these businesses are responsible for adhering to state and local sales taxes.

Sales Tax Audits

Sales tax audits focus on two questions: (1) did a business pay an adequate amount of state taxes on the business’s purchases and sales? (2) Can the business establish proof that it has satisfied its state tax burden? A state auditor will scrutinize financial records and business documents to determine whether a business is liable for any tax payments.

If a business does not have reliable financial records and business documents, the state auditor can examine external sources to make a determination about the business’s tax liability. Auditors can use purchase orders, statistical averages, and industry standards to estimate a business’s assets, liabilities, and sales. Sales tax liability may also cause income tax issues for a business. The audit process is important because it can often determine if a business will have income tax liability.

A tax professional can answer questions you may have regarding where an audit may be held and who should speak to the auditor. Auditors may request specific documents, and a tax professional can inform you about your obligation to submit those documents.

Sales Tax Risks

Tax authorities in each state are painstaking in their investigations regarding tax violations. Businesses face many problems.

Protect Your Business and Yourself with the Tax Professionals at Key Tax Group

If your business owes back sales taxes, don’t wait until the state takes action: Contact Key Tax Group today to get started on a comprehensive sales tax debt solution. We represent clients with civil cases regarding sales tax on an open or closed business. We also accept criminal cases in Florida on a case-by-case basis. For more information, please contact our office today for your free initial consultation.

Sales Tax Debt Relief FAQs

Q: What is sales tax debt?

A: Tax liability is the payment owed by an individual, business, or other entity to a federal, state, or local tax authority. Capital gains tax, sales tax, and income tax are all forms of tax liabilities. A business required to collect sales tax on goods and services from customers must pay sales tax and report to the department of revenue or the state comptroller’s office. Each state has different tax rates and reporting methods. Sales tax is also considered a trust fund tax. Some penalties and interest fees charged on unpaid balances may be between five percent and fifty percent of the outstanding balance.

Q: Who is exempt from paying sales tax?

A: A sales tax exemption permits a business not to pay local or state sales tax on some of the items it purchases. Retail businesses may not have to pay sales tax when purchasing wholesale goods that are going to be resold to an end user. Some businesses are not required to pay sales taxes. Also, some non-profit organizations are not required to pay sales tax on specific purchases. Schools in some jurisdictions may be exempt from paying sales tax on items the school needs.

Q: What is the penalty for not paying sales tax?

A: Civil penalties and criminal penalties may be assessed against businesses for failing to pay sales tax or failing to file their taxes. Civil penalties are often applicable when a business makes an effort to pay sales tax but is unable to satisfy payment and filing deadlines. The majority of those who do not pay sales tax must pay a monetary fine for committing sales tax evasion. Those who owe back sales tax may have to pay a higher monetary fine.

Criminal penalties are reserved for those parties who do not pay the sales tax owed, who sign a false document related to sales-tax matters, or who prepare a fraudulent tax return. Those who are found guilty of committing tax evasion may be charged with a misdemeanor. In some states, the misdemeanor conviction may be upgraded to a felony conviction if the total amount owed is greater than $10,000. A term of imprisonment is also a possible penalty for those who commit tax evasion.

Q: Can you negotiate sales tax debt?

A: It is possible to negotiate sales tax debt through various means, including an offer-in-compromise. Most cases are fact-specific, and the options available to a business that owes back sales taxes will vary depending on the factual circumstances surrounding the unpaid sales tax.

An offer-in-compromise occurs when an individual or business makes a complete financial disclosure to the taxing entity. A rigorous analysis of the business’s wages, cash flows, and other assets is performed to determine how much the business can reasonably pay.

One way to negotiate with the IRS or state tax authority is to create an installment plan. You may have up to seventy-two months to pay off your total sales tax debt. However, paying the sales tax debt using an installment plan means that the principal is still accruing interest.

Q: What are my options to repay unpaid sales tax debt?

A: If a business is responsible for unpaid sales tax, it is possible to use a company credit card to pay the full sales tax debt to avoid other fees and expenses. Most businesses can also negotiate an installment plan with the IRS. The owner of the business must contact the local or state tax authority to create an arrangement.
If a business owner does not attempt to set up an Offer-In-Compromise, the business may need to consider insolvency. Contacting the IRS regarding insolvency is imperative. If a business owner does not contact an official at the IRS, the business may be liable for more penalties, fees, and sanctions.