WHO’S KNOCKING AT THE DOOR?
Small business owners are surprised when the tax collector shows up to collect. Our state, like many, is in a deficit and is looking for unfound money. If you owe unreported or unpaid tax it is guaranteed that they will come around.
It is always the taxpayers responsibility to make sure they are in compliance. Your accountant can only assist you with reporting and advise you on the tax law. Your accountant won’t pay the tax bill! If you underreport – you are responsible, if you under pay – you are responsible.
Being in the accounting industry for over 25 years it has become apparant that it is easier for the taxpayer to pass responsibility then it is to recognize the liability. Sales tax specifically is not money to use as part of cash flow. Did you know if you do not pass on collected sales tax to the tax agency you are committing a crime? Did you know that if you are not collecting it correctly if found, you will pay it out of your pocket?
I have been teaching and preaching do’s and don’ts with tax compliance for quite some time. I have found that the best educator to the business community is experiencing an audit or learning from others audit experiences and results. I have unfortunately had to represent clients in audit and have found that most liability stemmed from audit was no more than clear misunderstanding of the responsibilities and tax law.
If you have information to help assist the small business owner dodge the tax guy please pass it on. We are holding a seminar in February in East Greenbush, NY to discuss this issue and to share information to support minimal liability and exposure to audit.
