The business publication Accounting Today calls it “a growing compliance nightmare for many U.S. companies.”
Moreover, notes the financial news outlet, it is an issue that legions of businesses across the country know very little about. And for many who are in the know, the complexities linked with compliance pose seemingly insuperable challenges.
Here’s the focal point of concern: understanding and adequately responding to the requirements of the various states related to the taxation of employees who conduct business on behalf of their employers across state lines.
And how common is that in today’s corporate world?
Accounting Today notes that, although interstate business travel “wasn’t considered a significant tax issue” even a few years ago, it certainly is today, and companies that don’t dutifully comply with the tax duties imposed by authorities in the states where they conduct business run big risks.
Like potentially losing their business licenses. Like suffering onerous tax penalties. And, importantly, like taking a high-profile hit to their reputations.
Understandably, authorities in every state are motivated to collect tax revenue from business activity within their jurisdiction, and company principals must duly understand that and implement internal programs and policies to ensure regulatory compliance in all the areas of the country where they conduct business operations.
Timely and on-point contacts with attorneys from a proven business law firm can help promote that important objective, with experienced commercial lawyers (and accounting specialists, too, as required) helping to identify risks, challenges and opportunities, mitigate potential downsides and assist business clients with implementing sound interstate travel tax strategies.
Accounting Today points, too, to an additional benefit of taking such actions. In the event of an audit, proof of a purposeful and ongoing attempt to comply with tax obligations can go far toward demonstrating a company’s good faith to tax officials.