As the year winds down, many entrepreneurs and business owners are focused on wrapping up projects, hitting sales goals, and preparing for the holidays. But before you call it a day, it’s important to take a moment and make sure your business is in compliance with local, state, and federal regulations. Neglecting these tasks can lead to costly fines, audits, or legal issues that may follow you into the new year.
In this blog post series, we’ll walk you through some key compliance tasks you need to take care of before the year ends so you can start 2025 with peace of mind.
Sales Tax Compliance
What It Is:
Sales tax compliance and filing deadlines vary by state. Typically, businesses that sell physical products or taxable services are required to file sales tax returns and remit the collected sales tax—whether monthly, quarterly, or annually.
Many eCommerce businesses, in particular, might not realize that sales tax applies to digital products in some states, such as eBooks, software, and other downloadable content. If your business is not exempt, it’s important to understand your filing obligations. Failing to file on time or underreporting sales can result in hefty penalties and interest.
If you're unsure whether your goods or services (including digital products) are taxable, check with your state’s Department of Taxation for clarification.
Why It’s Important:
Sales tax penalties can quickly snowball, especially if your business handles a high volume of sales. Filing accurately and on time will help you avoid surprises and keep you compliant with your state’s tax laws.
Action Step:
Double-check your state’s sales tax requirements and filing deadlines. You can find links to all state taxation departments here (https://www.irs.gov/businesses/small-businesses-self-employed/state-government-websites).
Need help? Visit our website at www.jbgbookkeepingservices.com/contact-us to schedule some time before year-end to ensure your sales tax returns are filed correctly and on time.
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