An Arkansas Administrative Law Court recently upheld an assessment for sales tax that was collected and not remitted. The taxpayer collected the tax for a service that he later learned was exempt from tax. After accounting errors resulted in the under-billing of his customer, the taxpayer used the tax proceeds to offset his accounting error. In addition to the assessment, the penalty for failure-to-file was upheld.
If you run into sales tax confusion in any state, or if you are facing penalties, contact your Eide Bailly state and local tax professional. We’re here to help!