State and local taxes (SALT) can often equal or exceed a company’s federal tax liability. The lack of uniformity in state tax laws often complicates matters by increasing the complexity of managing operations in multiple locations.
In a climate where most states are in a revenue crunch, state governments are looking for new ways to raise revenue. SALT compliance, particularly in the area of income/franchise and sales/use taxation (including internet commerce), is being enforced with renewed vigor. Uncollected sales tax on e-commerce is currently estimated at $20 billion per year. The state of Florida, along with many other states, has expanded its audit campaign in an attempt to capture this revenue. This aggressive crusade may put your company in financial jeopardy if you are not compliant with existing SALT requirements.