Companies Need Expertise, Software, to Handle Consumer Use Tax, CCH White Paper Advises
Friday, January 29, 2010
Posted by: Boomer Consulting, Inc.
Mishandling the use tax that they owe as consumers can land businesses in audit trouble or lead them to overpay, according to a white paper from CCH, a Wolters Kluwer business and a leading provider of tax, accounting and audit information, software and services (CCHGroup.com). To access the white paper, click here.
In the white paper, CCH Sales and Use Tax Product Manager Phil Schlesinger notes that while companies have well-established procedures for the sales taxes they are obliged to charge their customers, they are often not so well equipped to deal with purchases they make on which a sales tax has not been charged, but which might be subject to use tax.
"Some companies rely on accounts payable personnel to make taxability decisions related to untaxed pur chases,” Schlesinger observes. "Unfortunately, accounts payable personnel are usually not tax experts; consequently, the risk of either under or over self-assessing consumer use tax is high.”
An effective consumer use tax system should perform many tasks, from determining whether use tax is due based on pre-determined tax rules to handling use tax accruals. Items not previously taxed which should be scrutinized range from fixed asset purchases to product samples that are given away free of charge.
Schlesinger believes that the best solution is to combine software with human expertise.
"The best approach is to automate the process as much as possible using a consumer use tax software system,” Schlesinger said. "Such a system can greatly minimize or even eliminate self-assessment risks by automating the process based on the judgment and interpretation of highly qualified tax professionals.”
About the Author
Phil Schlesinger has been in the sales and use tax field for 22 years and has extensive knowledge and experience in sales and use tax compliance, audit, tax research and automation, both in a corporate environment and in a consulting role. While in consulting, he prepared taxability matrixes for dozens of companies representing numerous types of industries such as software, manufacturing, services, food, medical, advertising and construction. Over his career, Schlesinger has also been heavily involved in the design, testing and operation of several sales and use tax software tax calculation engines and tax return processing systems.
For More Information
Members of the press interested in speaking with CCH’s Phil Schlesinger should contact: Leslie Bonacum at 1-847-267-7153, email@example.com; or Neil Allen at 1-847-267-2179, firstname.lastname@example.org.
For information on CCH CorpSystem sales and use tax solutions, call 1-866-513-2677 or visit salestax.com.
About CCH, a Wolters Kluwer business
CCH, a Wolters Kluwer business (CCHGroup.com) is a leading provider of tax, accounting and audit information, software and services. It has served tax, accounting and business professionals since 1913. Among its market-leading solutions are The ProSystem fx® Suite, CorpSystem®, CCH® IntelliConnect™, Accounting Research Manager® and the U.S. Master Tax Guide®. CCH is based in Riverwoods, Ill.
Wolters Kluwer is a leading global information services and publishing company. The company provides products and services for professionals in the health, tax, accounting, corporate, financial services, legal, and regulatory sectors. Wolters Kluwer had 2008 annual revenues of €3.4 billion, employs approximately 20,000 people worldwide, and maintains operations in over 35 countries across Europe, North America, Asia Pacific, and Latin America. Wolters Kluwer is headquartered in Alphen aan den Rijn, the Netherlands. Its shares are quoted on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Visit www.wolterskluwer.com for information about our market positions, customers, brands, and organization.