4 Steps to Audit Readiness
Request Exactly the Certificates you Need
When it comes to sales tax compliance, being proactive and collecting the right resale or tax exemption certificate in a timely manner can go a long way in reducing your audit risk and avoiding back taxes and penalties.
EXEMPTAX assists in the management of exemption certificates by automatically requesting the correct resale or tax exemption certificate from your tax-exempt customers.
With EXEMPTAX you can eliminate the guesswork for you and your customers and streamline exemption certificate management from start to finish. Whether your customers are resellers, manufacturers, or claim other tax exemptions – we help get the right certificates to you.
Collect Only Completed Certificates
Like most sales tax topics, steps to achieving exemption certificate compliance aren’t always clear and vary from state to state. One of the most common challenges in exemption certificate management involves the collection of complete and accurate resale and tax-exemption certificates from your tax-exempt customers.
EXEMPTAX helps reduce friction in this area by guiding your customers to accurately complete their exemption document through a guided tax document flow. This flow helps reduce audit risk by eliminating common errors involving logical inconsistencies and missing fields on exemption documents, saving your team time and money.
Reduce your Liabilities
With tax exemption certificate management, knowing which certificates are invalid, missing, or expiring is paramount to understanding and reducing your audit risk. This risk is often magnified as state tax auditors utilize sampling techniques when examining relevant compliance documents. With sampling, just one missing or invalid resale or tax exemption certificate can result in thousands of dollars in back taxes and penalties. It is therefore crucial to identify and remediate missing and invalid certificates before they are discovered during an audit.
Most remediation efforts begin with the following questions:
- Do we have all the right certificates on file?
- Are all certificates accurate and complete?
- Are all certificates current?
If you are unsure as to whether you can answer yes to all of these questions, EXEMPTAX’s exemption certificate management platform can help by providing real-time exposure reporting, so that no resale or tax exemption certificate falls through the cracks.
Make Your Auditor Happy
EXEMPTAX provides you with a secure and easy to use platform to access and manage your tax exemption certificates and to reduce your audit risk.
A proactive process for collecting, validating and managing exemption certificates today can save your company from significant fines and penalties in the future. Achieving compliance doesn’t have to be difficult and EXEMPTAX can provide you with the tools and processes to quickly and successfully respond to exemption certificate audits.
With EXEMPTAX you can make auditors happy by quickly providing them the exact documents they need in minutes.