State Taxes News: Sales & Use Tax Compliance Crackdown

What do you think of the SCOP? Do you think it actually helps companies comply with sales tax and licensing laws?

What do you think of the SCOP? Do you think it actually helps companies comply with sales tax and licensing laws?

Depending on where your business is located, you may receive a visit from a representative from the Board of Equalization, California’s tax regulator. As this article explains, the organization recently rolled out the Statewide Compliance and Outreach Program (SCOP) to find businesses that are skirting state taxes and licensing and, “Bring them into compliance.” However, despite it being originally pitched as an educational program to help answer business owners’ questions and help them comply with use, sales tax and licensing laws, the SCOP has turned into intimidating in-person visits that trigger audits on state taxes.

With more than 5,000 taxing jurisdictions in the country, complete compliance is very difficult – especially as companies expand their operations into multiple cities, counties and states. As this video explains, every company’s situation is different because state taxes are driven by various facts and circumstances beyond business location; many are dependent on the company’s industry, eligible credits and incentives and more. It’s no wonder many business owners are confused!

Fortunately, this is an area in which Miles Consulting can help. We help our clients rest assured they’re adhering to income tax, sales/use tax and other franchise or licensing rules and regulation use, sales tax and licensing laws through:

  • Nexus studies
  • Taxability review
  • Exposure analysis
  • Tax credit & incentive reviews
  • Planning for future growth

Although we certainly agree every business should be in compliance, we’re not in favor of these tendencies to go door to door and “root out” offenders! What do you think? Do you like the SCOP or do you think it’s a waste of California’s limited resources?

Miles Consulting Group, Inc. is a professional service firm in San Jose, California specializing in multi-state tax solutions. Our firm addresses state and local tax issues for our clients, including general state tax consulting, nexus reviews, tax credit and tax incentive maximization, income tax and sales/use tax planning and other special projects, including the new California Competes Tax Credit and the California Manufacturers’ Partial Sales Tax Exemption. To learn more, contact us today at www.MilesConsultingGroup.com.

Photo Credit: Chris Potter

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