{"id":17570,"date":"2024-10-15T15:17:22","date_gmt":"2024-10-15T15:17:22","guid":{"rendered":"https:\/\/heyerinc.com\/2024\/10\/15\/sales-tax-filing-mistakes-to-avoid-in-your-southeastern-fl-business\/"},"modified":"2024-10-15T15:17:22","modified_gmt":"2024-10-15T15:17:22","slug":"sales-tax-filing-mistakes-to-avoid-in-your-southeastern-fl-business","status":"publish","type":"post","link":"https:\/\/www.heyerinc.com\/blog\/2024\/10\/15\/sales-tax-filing-mistakes-to-avoid-in-your-southeastern-fl-business\/","title":{"rendered":"Sales Tax Filing Mistakes To Avoid in Your Southeastern FL Business"},"content":{"rendered":"<div class=\"pme-content\">\n<p><span style=\"background-color:white;\">Despite being a nation that systematizes and plans, when the unexpected occurs, we still find ourselves reeling and trying to adjust. In the case of Helene and western North Carolina, it\u2019s been a difficult battle. Who could have predicted that kind of flooding and devastation?&nbsp;<\/span><\/p>\n<p><span style=\"background-color:white;\">We\u2019re still undone by the images and updates about search and rescue efforts in those areas. Our hearts and thoughts go out to you if you or anyone you know and love has been facing this. It\u2019s truly unimaginable.&nbsp;<\/span><\/p>\n<p><span style=\"background-color:white;\">The IRS is doing their part to help. First, by sending&nbsp;<\/span><a href=\"https:\/\/www.irs.gov\/newsroom\/irs-employees-help-hurricane-helene-efforts-500-phone-assistors-supporting-fema-criminal-investigation-agents-work-on-rescue-efforts-in-north-carolina-florida\"><span style=\"background-color:white;color:#1155CC;\">their own agents<\/span><\/a><span style=\"background-color:white;\"> to help with relief efforts.&nbsp;<\/span><\/p>\n<p><span style=\"background-color:white;\">Second, by extending 2024 deadlines and 2023 payments and deadlines to May 2025 for your business. This goes also if you live in South Carolina, Georgia, Alabama, and various parts of Virginia, Tennessee, and Florida. More details on that in&nbsp;<\/span><a href=\"https:\/\/www.irs.gov\/newsroom\/irs-provides-relief-for-helene-various-deadlines-postponed-to-may-1-2025-part-or-all-of-7-states-qualify\"><span style=\"background-color:white;color:#1155CC;\">their recent statement<\/span><\/a><span style=\"background-color:white;\">.<\/span><\/p>\n<p><span style=\"background-color:white;\">We know that suffering these types of moments in your Miami Metropolitan business can be difficult. But we\u2019re committed to doing what we can to help you as well. If you need guidance on anything, reach out:&nbsp;<\/span>(786) 693-9358<\/p>\n<p>Something we find a lot of retail-focused businesses struggle with is sales tax filing. It\u2019s one of the big areas that cause businesses to become audit-vulnerable and\/or pay way more in taxes than they expected.<\/p>\n<p>To know if that\u2019s you, read on.<\/p>\n<p><span class=\"text-huge\"><strong>Sales Tax Filing Mistakes To Avoid in Your Southeastern FL Business<\/strong><\/span><br \/><span class=\"text-small\"><i>\u201cThe only thing worse than being wrong is not learning from your mistakes.\u201d -Elon Musk<\/i><\/span><\/p>\n<p><span style=\"font-family:Georgia, serif;\">If you\u2019re struggling to keep your head above water with sales tax filing, you\u2019re not alone. Business owners make mistakes in this area <i>all the time<\/i> because it\u2019s so nuanced.&nbsp;<\/span><\/p>\n<p><span style=\"font-family:Georgia, serif;\">But there\u2019s good news: Filing sales tax can actually be manageable when you get a grasp on what to do (and more importantly \u2013 what <i>not<\/i> to do). Instead of constantly asking yourself, \u201cAm I doing something wrong?\u201d you can <strong>learn what mistakes to avoid <\/strong><i><strong>before<\/strong><\/i><strong> you make them.&nbsp;<\/strong><\/span><\/p>\n<p><span style=\"font-family:Georgia, serif;\">(Side note: If you realize as you\u2019re reading this that you\u2019re guilty of any of these mistakes, stop and give us a call. You\u2019ve got an&nbsp;experienced Southeastern FL&nbsp;accountant here in your corner to help you fix it: <\/span><span style=\"background-color:white;font-family:Georgia, serif;\">(786) 693-9358)<\/span><\/p>\n<p><span style=\"font-family:Georgia, serif;\">Even beyond steering clear of costly penalties, learning about these mistakes can help you feel \u2013 dare I say \u2013 <i><strong>confident<\/strong><\/i> about your sales tax filing. That\u2019s the headspace I want to help you live in as a business owner.<\/span><\/p>\n<p><span style=\"font-family:Georgia, serif;\"><strong>Mistake #1: Misinterpreting exemption certificates<\/strong><\/span><\/p>\n<p><span style=\"font-family:Georgia, serif;\">Exemption certificates are the concrete proof that a buyer legally qualifies for tax-exempt status when making a purchase. These certificates often have loads of fine print, which leaves plenty of opportunities for misinterpretation.&nbsp;<\/span><\/p>\n<p><span style=\"font-family:Georgia, serif;\">This can happen when:<\/span><\/p>\n<ul>\n<li><span style=\"font-family:Georgia, serif;\">Certificates lack crucial data.<\/span><\/li>\n<li><span style=\"font-family:Georgia, serif;\">The exemption code is invalid.<\/span><\/li>\n<li><span style=\"font-family:Georgia, serif;\">The expiration date gets overlooked.<\/span><\/li>\n<li><span style=\"font-family:Georgia, serif;\">The scope of the exemption isn\u2019t clear.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-family:Georgia, serif;\">I know it\u2019s tedious, but you\u2019ve got to pull out the fine-tooth comb with your exemption certificates. Double-check everything.&nbsp;<\/span><\/p>\n<p><span style=\"font-family:Georgia, serif;\"><strong>Mistake #2: Failing to account for nexus<\/strong><\/span><\/p>\n<p><span style=\"font-family:Georgia, serif;\">The nexus issue has two main facets: Remote selling and economic nexus laws.&nbsp;<\/span><\/p>\n<p><span style=\"font-family:Georgia, serif;\">If you\u2019re selling products remotely to a neighboring state, you\u2019ve established a nexus. And it\u2019s going to cost you if you don\u2019t keep track of the sales tax you now owe there.&nbsp;<\/span><\/p>\n<p><span style=\"font-family:Georgia, serif;\">The economic nexus is that state\u2019s way of saying, \u201cHey, if you\u2019re making enough money from our residents, we want a piece of the pie.\u201d This happens when you hit a certain amount of revenue or a number of transactions.<\/span><\/p>\n<p><span style=\"font-family:Georgia, serif;\">You could try to avoid nexus-related mistakes on your own. But keeping up with changes in legislation and tracking the necessary sales data would cost you heaps of time and energy (that you probably don\u2019t have to spare).&nbsp;<\/span><\/p>\n<p><span style=\"font-family:Georgia, serif;\">I recommend calling in the experts on this one (be sure to talk to me about this) and then setting up automated tracking software.&nbsp;<\/span><\/p>\n<p><span style=\"font-family:Georgia, serif;\"><strong>Mistake #3: Miscalculating taxes on bundled sales<\/strong><\/span><\/p>\n<p><span style=\"font-family:Georgia, serif;\">Sales tax filing becomes confusing when bundled sales of products and services come into play. Think computer and software packages, or maintenance contracts involving taxable and non-taxable components.&nbsp;<\/span><\/p>\n<p><span style=\"font-family:Georgia, serif;\">So, how <i>should<\/i> you tax a product and service bundle?&nbsp;<\/span><\/p>\n<ul>\n<li><span style=\"font-family:Georgia, serif;\">Determine the taxability of each individual item (according to state legislation).&nbsp;<\/span><\/li>\n<li><span style=\"font-family:Georgia, serif;\">Use the Fair Market Value Method \u2013 allocate tax to each item based on its fair market value relative to the total value of the bundle.<\/span><\/li>\n<li><span style=\"font-family:Georgia, serif;\">Account for shipping and handling taxes based on \u2013 you guessed it \u2013 state legislation.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-family:Georgia, serif;\">Sounds like a piece of cake, right? These calculations can be potentially cumbersome, so consult with us to make sure you\u2019ve got the numbers correct.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>These are just a few of the potential pitfalls that can happen with sales tax filing. The more educated you are about them, the more you can stay in the clear with the IRS <i>AND<\/i> give yourself some precious peace of mind.&nbsp;<\/p>\n<p>If sales tax filing still feels daunting to you, I get it. Reach out with your questions (and even your frustrations):<br \/><a href=\"https:\/\/calendly.com\/ralfheyer\/30-minute-meeting\">calendly.com\/ralfheyer\/30-minute-meeting<\/a><\/p>\n<p>&nbsp;<\/p>\n<p style=\"margin-left:0in;\">In your corner,<\/p>\n<p style=\"margin-left:0in;\"><strong>Ralf Heyer<\/strong><\/p>\n<p style=\"margin-left:0in;\">&nbsp;<\/p>\n<\/p>\n<\/div>\n<style>.pme-content {\n\tfont-size: 1.2em\n}<\/p>\n<p>.text-tiny {\n\tfont-size: .7em\n}<\/p>\n<p>.text-small {\n\tfont-size: .85em\n}<\/p>\n<p>.text-big {\n\tfont-size: 1.4em\n}<\/p>\n<p>.text-huge {\n\tfont-size: 1.8em\n}<\/p>\n<p>.marker-yellow {\n\tbackground-color: #fdfd77\n}<\/p>\n<p>.marker-green {\n\tbackground-color: #63f963\n}<\/p>\n<p>.marker-pink {\n\tbackground-color: #fc7999\n}<\/p>\n<p>.marker-blue {\n\tbackground-color: #72cdfd\n}<\/p>\n<p>.pen-red {\n\tcolor: #e91313\n}<\/p>\n<p>.pen-green,\n.pen-red {\n\tbackground-color: transparent\n}<\/p>\n<p>.pen-green {\n\tcolor: #180\n}<\/p>\n<p>.pme-content blockquote {\n\toverflow: hidden;\n\tpadding-right: 1.5em;\n\tpadding-left: 1.5em;\n\tmargin-left: 0;\n\tfont-style: italic;\n\tborder-left: 5px solid #ccc\n}<\/p>\n<p>.pme-content .image img {\n\tdisplay: block;\n\tmargin: 0 auto;\n\tmax-width: 100%\n}<\/p>\n<p>figure.image {\n    text-align: center;\n}<\/p>\n<p>.pme-content figcaption {\n\tcolor: #333;\n\tbackground-color: #f7f7f7;\n\tpadding: .6em;\n\tfont-size: .75em;\n\toutline-offset: -1px\n}<\/p>\n<p>.pme-content .image-style-align-left {\n\tfloat: left\n}\n.pme-content .image-style-align-right {\n\tfloat: right\n}\n.pme-content .image-style-align-center,\n.pme-content .image-style-align-left,\n.pme-content .image-style-align-right,\n.pme-content .image-style-side {\n\tmax-width: 50%\n}<\/p>\n<p>.pme-content .image {\n\tposition: relative;\n\toverflow: hidden;\n\tclear: both;\n\ttext-align: center\n}<\/style>\n","protected":false},"excerpt":{"rendered":"<p>Despite being a nation that systematizes and plans, when the unexpected occurs, we still find ourselves reeling and trying to adjust. In the case of Helene and western North Carolina, it\u2019s been a difficult battle. Who could have predicted that kind of flooding and devastation?&nbsp; We\u2019re still undone by the images and updates about search and rescue efforts in those areas. Our hearts and thoughts go out to you if&#8230; <a class=\"more-link\" href=\"https:\/\/www.heyerinc.com\/blog\/2024\/10\/15\/sales-tax-filing-mistakes-to-avoid-in-your-southeastern-fl-business\/\">Read More<a><\/p>\n","protected":false},"author":2,"featured_media":17569,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-17570","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-uncategorized","8":"entry"},"_links":{"self":[{"href":"https:\/\/www.heyerinc.com\/blog\/wp-json\/wp\/v2\/posts\/17570","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.heyerinc.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.heyerinc.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.heyerinc.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.heyerinc.com\/blog\/wp-json\/wp\/v2\/comments?post=17570"}],"version-history":[{"count":0,"href":"https:\/\/www.heyerinc.com\/blog\/wp-json\/wp\/v2\/posts\/17570\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.heyerinc.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/www.heyerinc.com\/blog\/wp-json\/wp\/v2\/media?parent=17570"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.heyerinc.com\/blog\/wp-json\/wp\/v2\/categories?post=17570"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.heyerinc.com\/blog\/wp-json\/wp\/v2\/tags?post=17570"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}