| Clients who purchase assets abroad, or from domestic sellers in states with a different tax rate, are subject to a use tax. State authorities regularly track U.S. customs data on imported goods to seek and identify these taxable items, and noncompliance can easily trigger an assessment notice or an audit.
Clients are often blindsided by an audit notice because they were unaware that they owed use tax on imported goods, mistakenly assuming that all tax compliance had been taken care of once they paid duty, excise tax and any related fees associated with the goods when they entered the U.S.
Download this white paper for a guide to advising clients on use tax liability – including the circumstances under which they will likely owe use taxes, how they can avoid penalties and interest on unpaid use taxes, and what to do when making higher dollar-value items shipping to another state with a higher use tax. |
