Somewhere, a CFO is lying face down on a desk.
A number glows above her on the computer screen: $96,552. That’s how much it cost her company to manage a recent sales tax audit.
Could this happen to you?
It could, but it doesn’t have to. Avalara has crafted this list of critical tax facts for you, each with additional info, so that you don’t make the mistakes that can cost you in an audit.
Here are the sales tax facts you need to know:
1. 52% of accountants would rather run a marathon than try and crack the sales tax code.
2. Your sales reps can accidentally give you a sales tax obligation in another state.
3. It costs over $96k on average to manage a sales tax audit.
4. 50% of accountants admit that auditors would likely find sales tax mistakes if their company got audited.
5. A single zip code can have multiple tax rates.
6. Sales tax was 46.4% of state tax collections in 2013.
7. There are over 12,000 tax jurisdictions in North America, each with their own sales tax rate.
8. 37% of accounting professionals said a sales tax audit would be more stressful than a divorce.
9. California posts the top 500 sales tax delinquents on the web to shame them into compliance.
10. Idaho tax auditors told a 12-year-old that he owed tax from profits made at his fruit stand.
For a full list of state sales tax rates, click here.
Ready to explore an automated solution to sales tax management? Learn more about Avalara AvaTax.