Sales tax exemptions forms offer protection should your business face a tax audit. But if you have incorrect or incomplete forms on file, they will not help you. In fact, if the forms on file are deemed invalid, your company may be held liable for the uncollected sales tax. The first step to making sure sales tax exemption forms are valid is to make sure they are filled out correctly. Some of the most common errors that cause forms to be invalid are missing signatures and dates, incorrect claim type listed, and the form not being recognized by the state authority.
Sales tax exemption forms, along with any other important forms, will not benefit your business unless they are properly completed and filed. If you have any questions about sales tax exemptions, please contact us.