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You are the tax manager of Maximus & Smith CPA and have asked the two tax interns to prepare a research memo regarding the same client. You provided each the same information about the client and are using this assignment as one of the indicators to help you decide which one to recommend for a full-time position. Review the following two research memos addressing the same question.
Memo 1:
To: Tax Manager, Maximus & Smith CPA
From: Tax Intern
Date: August 15th, 2019
Subject: Research Memo Regarding Client Question
I have been asked to research the question of a client asking whether or not they need to remit sales tax on their online sales. After researching various resources, I have come to the conclusion that the answer is yes. Per current state guidelines, any business making an online sale must register for a seller’s permit and collect and remit applicable sales taxes on all transactions. The only exception would be if a specific exemption applies as outlined in section 6-6-3 of the relevant state regulations. Therefore, it is my opinion that this particular client must collect and remit sales taxes from their online sales in order to remain compliant with current laws and regulations.
Memo 2:
To: Tax Manager, Maximus & Smith CPA
From: Tax Intern
Date: August 15th, 2019
Subject: Research Memo Regarding Client Question
I have been asked to research regarding a client’s question about needing to remit sales tax on their online sales. After researching various regulatory documents and other sources of information, I have determined that this particular client must indeed collect and remit appropriate taxes from all online transactions conducted within their jurisdiction in order for them to remain compliant with local laws. This includes registering for a seller’s permit as specified in Section 6-6-3 of the relevant state regulations as well as ensuring timely collection and payment/remittance of applicable taxes due on said transactions. Exemptions may apply provided certain criteria are met such as those associated with shipping or other special conditions so it is important that these details are clarified prior to collecting or paying any related amounts due per applicable law(s).