How To Understand & Manage How To Understand & Manage Sales and Use Tax Sales and Use Tax Presented By Pamela Shull 1 Any tax advice included in this written or electronic communication is not intended or written to be used, and it cannot be used by the taxpayer, for the purpose of avoiding any penalties that may be imposed on taxpayer by any governmental taxing authority or agency.
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How To Understand & Manage How To Understand & Manage Sales and Use TaxSales and Use Tax
Presented By
Pamela Shull
1
Any tax advice included in this written or electronic communication is not intended or written to be used, and it cannot be used by the taxpayer, for the purpose of avoiding any penalties that may be imposed on taxpayer by any governmental taxing authority or agency.
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The Theory of Tax The Nature of TaxThe Application of TaxThe Measure of TaxAuthority to TaxDefinitionsExemptions and ExclusionsAdministrative Issues
The Basics of Sales and Use The Basics of Sales and Use TaxTax
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What is being sold/purchased?Who is the seller?Who is the buyer?Where is the order being shipped?How is the order being shipped?When does the sale occur?Where does the sale occur?What industry are the buyer and seller engaged In?
Factors that Influence the TaxFactors that Influence the TaxConsequences of a Business TransactionConsequences of a Business Transaction
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At seller’s place of business, orThe point of delivery, orThe purchaser’s domicile
• Generally, tax is imposed at the point at which title, possession or control passes.• When the buyer becomes the owner
When Is The Tax Imposed?When Is The Tax Imposed?
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No Sales TaxNo Sales Tax
No broad-based, statewide, general sales tax is imposed in:
• Alaska• Delaware• Montana• New Hampshire• Oregon
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Sales and Use taxes are excise taxes imposed on the sale or use of tangible personal property (TPP) at retail and some services
The tax is defined by the transaction or sale
Introduction to Sales and Use Introduction to Sales and Use TaxTax
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The Nature of Sales and Use TaxesThe Nature of Sales and Use Taxes
Sales taxes are excise taxes.◦ Purpose: Generate revenue for
specified services.
Use taxes are imposed on the privilege of ownership, possession, use, storage or consumption. Supplemental to the sales tax.◦ Purpose: to prevent sales tax evasion by out-
of-state purchases and ◦ To make an equitable adjustment between
local and interstate businesses and ◦ Prevent discrimination
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Definitions You Must Be Aware of to Definitions You Must Be Aware of to Understand Legislation Understand Legislation
Sale and Purchase– Transfer of title or possession or both, exchange or barter,
license to use, license to consume, conditional or otherwise, for a consideration, including the rendering of specified services
Sale at retail (retailer/seller/dealer)– A sale of tangible personal property to the consumer or user of it
for any purpose other than for resaleUse or consumption
– Found to mean destruction by usePerson
– Includes individuals, partnerships, societies, associations, joint stock companies, corporations, estates, receivers, trustees, assignees, referees and any other persons acting in a fiduciary capacity
Tangible personal property– Something you can see, touch, feel, etc.
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UCC – Article IIUCC – Article II
Contract Takes precedence Outlines all terms Determines liability
Purchase Order In absence of contract – next in line Determines liability - FOB
States which operate generally as gross receipts (for sales taxes, not for gross
receipts taxes) include:
Hawaii and New Mexico
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Exercise 1Exercise 1
Consider the Issue of Sales Tax From the Purchaser’s Perspective
1. On a taxable sales tax transaction in a seller privilege tax state or a gross receipts tax state, where shifting is not required, absorption is allowed, separation is not required and there is no exemption certificate, the buyer should accrue and pay tax directly to the state on invoices where the seller failed to charge the tax on the invoice.
True or False
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Exercise 2Exercise 2
Sales tax not billed by the seller on a taxable sale in a consumer levy tax state should be added to the invoice by the purchaser, thereby voluntarily paying the sales tax to the seller.
True or FalseExplain your answer
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Exercise 3Exercise 3
I have decided to buy a new $20,000 car. The dealership has agreed to give me $5,000 as a trade-in value for my old car. The sales tax will be measured on:– a) $20,000– b) $15,000– c) Depends on the taxing state’s
jurisdiction
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Exercise 4Exercise 4
Buyer and seller are located in a consumer levy tax state. The buyer is set up in the seller’s records as a resale exempt customer. The buyer orders tangible personal property which will not be for resale and tells the seller to charge tax. (Salesperson forgets to tell A/R to charge the tax) When the A/R invoices the buyer, sales tax is not charged.
How should accounts payable handle this situation?
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APPLYING USE TAXAPPLYING USE TAX
Section 2Workbook Page 3
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Sometimes called a consumption tax
Use tax is imposed on the privilege of ownership, possession, storage or use of tangible personal property
Compliments the sales tax
The Theory of Use TaxThe Theory of Use Tax
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Nature of Use TaxNature of Use Tax
• Complimentary or supplemental to sales tax
• To ensure everything taxable is indeed taxed
• Prevent tax evasion• Even the playing field for in-state and out-
of-state sellers• Catch taxable use of untaxed items like
withdrawals of stock
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Interstate TransactionChange of intention
The Nature of Use TaxThe Nature of Use Tax
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Use Tax ExamplesUse Tax Examples
• Catalog or internet purchases• Consumption of resale property, usage of
stock• Using self-constructed assets• Transfers• Rentals from out-of-state
1. Accounts Payable examines invoice against PO for taxation billed
2. A/P makes a note on the invoice for the taxation due
3. Journal entry is generated into the tax account in the general journal as a liability
4. Tax is paid when return is filed – satisfying the liability account and paying the appropriate tax.
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Self Assessment Procedure for Self Assessment Procedure for Change of IntentChange of Intent
1. Documentation is generated by appropriate personnel regarding the change of intent and sent to accounting or tax department
2. Journal entry is generated into the tax account in the general journal as a liability
3. Tax is paid when return is filed – satisfying the liability account and paying the appropriate tax.
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Use TaxUse Tax
Use tax liability is not a question of gross receipts, but a question of sales price, purchase price or taxable measure.
Alabama basis of use tax is the sales price (Sec. 40-23-60(10))
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1. Material cost – value of raw materials at purchased cost
2. Inventory or standard cost – direct cost of placing the property into inventory
3. Full retail – price at which the property is sold to your customers
4. Fair market value5. Fair rental value – rental value of the property
in the open market
Bases for Measuring Use Tax – varies Bases for Measuring Use Tax – varies from state to statefrom state to state
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Exercise 1Exercise 1
A reseller of television sets in state A purchases its televisions from a vendor in state B. The sets are delivered FOB destination. Subsequently, the customer decides to put one of the televisions in their corporate office. Which tax would apply?– a) Sales tax– b) Use tax
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Exercise 2Exercise 2
A grocery store ordered paper towels for resale. One day an employee of the grocery store opened a case of paper towels for the grocery store’s own internal use. How would the grocery store value the case of paper towels to accrue the use tax?– a) Cost– b) Retail value– c) Fair market value– d) Depends on the state
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Exercise 3Exercise 3
A sales representative sells computers to a buyer in Texas for general office use. The computer company’s corporate office is located in California. The buyer has the invoice mailed to an address in Texas but wants the computers shipped FOB destination to their office in Mexico. The computer company has nexus and is registered in Texas and California. How should the computer company tax this invoice?– a) Texas sales tax– b) Texas use tax– c) California sales tax– d) California use tax– e) No tax
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AnswerAnswer
No tax.– Foreign commerce. No tax is required.
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NEXUS AND INTERSTATE NEXUS AND INTERSTATE COMMERCECOMMERCE
Section 3Workbook Pages 4-5
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NexusNexus
A connection that requires registration and compliance with another state tax code.
S U B S T A N T IA L P H Y S IC A LP R E S E N C E
F R E Q U E N T &C O N T IN O U S
N E X U S
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A. Ownership of property in another state1. Maintain inventory or equipment2. Own a billboard
B. A business presence in another state1. Maintain a building (office, warehouse, retail store, etc.)2. Lease or rent facilities3. Have an affiliate (parent, subsidiary, brother or sister)4. Participate in trade shows
C. Employees (or agents) in another state1. Selling, consulting, installing, training, repairing
Physical Presence TestsPhysical Presence Tests
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Physical Presence TestsPhysical Presence Tests
4. Delivering goods in another state using the seller’s own vehicles or employees
1. A taxicab company offers services across state lines2. An employee delivers repair parts to a customer across state
lines3. The seller sends its trucks across state lines to repair
customer equipment.
5. Telephone, advertising, banking, Internet Web pages in another state
1. A business advertises in the yellow pages2. A company maintains a banking relationship in another state3. A firm stores its Web page in a system in another state.
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How Nexus WorksHow Nexus Works
Computer, Inc. sets up a display booth at a national computer conference in Las Vegas, NV. Mr. Smith from Amarillo, TX, has shown significant interest in a $100,000 system over the past several months, thanks to the efforts of your SVP of Sales, Max Jones. Max has only spoken with Smith over the phone and mailed him some sales literature. Smith is attending the trade show. Late Thursday evening, Smith is visiting with Jones in the company’s hospitality suite. All of the remaining issues have been settled, and Smith is ready to sign the contract to purchase the system. Jones hands Smith the documents, which he quickly signs. Jones starts to put the documents back in his briefcase saying, something about reviews and approvals to be done early next week back in the home office in St. Louis. Smith takes exception to the delay and presses Jones to execute the contract or he’s going to revoke his signature. Jones agrees and signs the contract.
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How Nexus WorksHow Nexus Works
• Has Nexus been triggered? Yes — in Nevada
• If so, explain why and how: Binding contract — SVP signed
• What responsibilities exist for tax collection and remittance?
Seller must register in NV.• Identify which state(s) are entitled to tax:
Unclear
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How Nexus WorksHow Nexus Works
In the above case, everyone has now returned home. Computer, Inc ships the equipment from St. Louis to Amarillo. Computer, Inc does not have nexus in Texas. The equipment is shipped FOB destination. Has nexus been triggered?
No What responsibilities exist for tax collection and remittance?
Customer self-assesses. Identify which state(s) are entitled to tax:
Texas
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Nexus and Interstate CommerceNexus and Interstate Commerce
The Federal Constitution, Federal Law, and the Federal Courts are the ultimate authority in regards to all things relating to interstate
commerce.
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Theory of Interstate Theory of Interstate Commerce TaxationCommerce Taxation
• The US Constitution and all state constitutions contain restrictions on the nature and scope of state and local taxation. Currently, the two most important US constitutional restrictions on state and local tax are the Due Process and Commerce Clauses. – The Due Process Clause concerns itself with questions
of fundamental fairness between a government and those over whom the government seeks jurisdiction.
– The Commerce Clause imposes restrictions on states with regard to interstate commerce. The Commerce Clause is one of the specific constitutional powers assigned to Congress.
No taxation may be imposed on sales made in commerce between a state and any other state, or between a state and any foreign country unless:
1. A break in transit occurs, the property may come to rest within a state and become subject to the power of the state to impose a sales or use tax
2. If interstate movement has not begun – contemplation of movement does not prevent a state from taxing the property
3. Immune from taxation despite temporary interruptions due to necessities or for the purpose of safety
4. Formalities, i.e. form of billing and changes in method of transportation
• When property has come to rest within a state and is held there at the pleasure of the owner for disposal or use – thus subject to the state’s taxing power.
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OTHER ISSUES YOU NEED OTHER ISSUES YOU NEED TO KNOW ABOUT SALES TO KNOW ABOUT SALES AND USE TAXAND USE TAX
Section 4Workbook Pages 6 - 16
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At seller’s place of business, orThe point of delivery, orThe purchaser’s domicile
• Generally, tax is imposed at the point at which title, possession or control passes.
• Most states follow the destination rule:– Sales or use tax apply at point of destination.
When Is The Tax Imposed?When Is The Tax Imposed?
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Use tax measure should not include amounts upon which the buyer has already paid sales tax to the state in which the property will reside
Use tax measure need not include amounts upon which the buyer was legally required to pay sales tax to another state.
Application of CreditsApplication of Credits
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• Caution is required not to extend the assumption of reciprocity to local taxes that do not offer it
• Careful attention must be paid to what is defined as “first use”– Reciprocity does not usually apply if the item is purchased
and used in one state and then subsequently moved to and used in another state.
– The second state has a right to assess use tax on used property, although some do not assess it, and some only assess use tax on the diminished (fair market value) or depreciated value of used property.
ReciprocityReciprocity
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• Property is purchased from a supplier in North Carolina (which has a sales and use tax), but delivery occurs in Oregon (which does not have a sales and use tax). It is not for resale but for internal use by company.
• The tangible personal property is then shipped to California, where another company modifies the property, after which it is shipped to Arizona, where the property is used for its intended purpose.
• Absent any exemption certificates, the sales and use tax ramifications are????
Example:Example:
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North Carolina– No sales or use tax should be paid or
liability incurred because the delivery occurs out-of-state
Oregon– No sales or use tax liability should be
incurred because the state does not have sales and use tax.
Answer:Answer:
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If the tax was paid in Arizona first:California
– California might assess a use tax and refuse to provide a credit against the tax already paid to Arizona on the grounds that because the property was first used in California, California had jurisdictional priority.
Arizona– Because Arizona has already collected the tax, the only
question is whether Arizona would refund any of the tax based on a subsequent assessment by California. Arizona may or may not refund a creditable portion of the tax depending on whether it recognizes California’s jurisdictional priority.
Answer (continued):Answer (continued):
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If the Tax Was Paid in California First:California
– Because California has already collected the tax and arguable, has jurisdictional priority, it is doubtful that California would provide a credit for a subsequent assessment by Arizona.
Arizona– Generally, Arizona would assess its tax, offsetting
it by a credit for the tax paid to California, because California had jurisdictional priority.
Answer (continued):Answer (continued):
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Contract IssuesContract Issues
FOB– Destination or Origin
Date and Location of SaleLiability for sales taxWhat special terms of contract
existShipping instructions
What the salesperson needs to be sure is covered in the contract.Why are each of these issues important?
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Nexus Is What Nexus Is What Connects UsConnects Us
Overland Express Warehouse (located in California has sold their product to Juno Enterprises (located in Alabama).
Juno Enterprises contracted to buy the product through a salesperson representing Overland Express when the salesperson came to Juno’s offices – contract was signed by both parties. The cost was $150,000.
Overland Express ships the product FOB origin to Juno.
• Has nexus been triggered?
• If so, what was the trigger?
• What needs to happen next?
• Which state gets the tax?
• Is it sales or use tax?
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SituationSituation
ABC Company orders a copy machine from Copy America.
Copy America is located in New Mexico.
ABC Company is located in Huntsville, Alabama.
FOB is destination. Copy America ships the copy
machine from it’s warehouse in Alabama.
6 months later ABC Company moves the copy machine to their Birmingham office.
Which state is owed the sales or use tax?Is it sales or use tax?What other tax issues arise from this situation?
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InvoicesInvoices
Accounts Payable:
What issues do you have to consider with this invoice?
ABC Supply Company 5555 Any Street Milwaukee, WI 12345 Phone 555-55555
INVOICE
INVOICE #2850 DATE: MARCH 31, 2013
TO: Smith Manufacturing Inc. 456 W 56th St Milwaukee, WI 12345 Phone 666-6666
SHIP TO: Smith Manufacturing Inc. 456 W 56th St Milwaukee, WI 12345 Phone 666-6666[Recipient Name]
SALESPERSON P.O.
NUMBER REQUISITIONER
SHIPPED VIA
F.O.B. POINT
TERMS
Gary Smith 49382 Jim Boles UPS Destination Net 30 days
QUANTITY DESCRIPTION UNIT
PRICE TOTAL
12 Reams of 8 x 11 Paper 4.99 59.88
8 Cartons of Pens 6.99 55.92
4 HP 359 Black Ink Cartridges 21.95 87.80
4 HP 374 Color Ink Cartridges 34.99 139.96
12 Boxes - #10 Envelopes 5.99 71.88
TOTAL 415.44
Make all checks payable to ABC Supply Co.
THANK YOU FOR YOUR BUSINESS!
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Uniform definitions for all statesConsistent tax ratesCentral administration for all sales and use
taxes.Sourcing all sales at point of destinationLimit the scope of audits to one consistent
model.Alabama is a member of the SSTP
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Goals of the Streamlined Sales Tax Goals of the Streamlined Sales Tax ProjectProject
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Example: Drop ShipmentsExample: Drop Shipments
• A seller in Alabama accepts an order from a buyer in California
• The seller in Alabama places an order with a third party (i.e. manufacturer, etc) in Louisiana
• The third party in Louisiana ships directly to the buyer in California and invoices the seller in Alabama.
• The Seller in Alabama invoices the buyer in California
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If seller does not have nexus and is not voluntarily registered in the state where the sale occurs but…
The third party drop shipper does have nexus and is registered in the state where the sale occurs, then……
Results in conflict between some states exemption processing laws.
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Drop Shipment – What Is the Drop Shipment – What Is the Problem?Problem?
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Seller C, located in Alabama, does not have a nexus in California and is not registered to collect California sales or use tax
Seller C receives an order from California Customer X for construction equipment
Seller C’s retail selling price of the equipment is $50,000.
Seller C places an order to buy this equipment for $45,000 with Third Party J, a manufacturer that has a nexus in California and is registered to collect California sales tax.
Seller directs Third Party J to drop ship the equipment to Customer X’s California location where the sale occurs.
Example: States Allowing Resale Example: States Allowing Resale Certificate to Drop ShipperCertificate to Drop Shipper
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In the case of drop shipment sales, SSTP member states must allow the third party supplier to accept a resale exemption certificate from the seller regardless of whether the seller is registered to collect and remit sales and use tax in the state where the sale is made
The customer is subject to use tax if the seller does not collect the appropriate sales tax due on the sale unless the customer can claim an exemption.
Streamlined Sales Tax Project Drop Streamlined Sales Tax Project Drop Shipments RecommendationShipments Recommendation
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• The sale by Third Party J to Seller C is not subject to sales or use tax because it is for resale.
• Customer X is subject to use tax on the
$50,000 purchase price, unless an exemption applies.
AnswerAnswer
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Multistate Tax CompactMultistate Tax Compact
Facilitates determination of tax liability.
Promotes uniformity of tax systems.
Addresses the issue of reciprocity.
Joint agency of state governments established to improve the fairness, efficiency, and effectiveness of state tax systems as they apply to interstate and international commerce and to preserve state tax sovereignty.
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Taxable BasisTaxable Basis
Taxable basis is the amount on your Sales and Use Tax return from which you figure your
sales and use taxes.
Factors influence whether that figure goes up or down.
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Tax TreatmentTax Treatment
Transaction or Property
Taxable NonTaxable
Comments
ManufacturingMachinery and Equipment used in production of TPP
X Reduced rate of tax – Sec. 40-23-2(3), Sec. 40-23-61(b)
Repair or replacement parts for production machinery
X Same as above
Ingredients and component parts that enter directly into or become a part of the products produced
x Same as above
Other material used or consumed directly in production
x Same as above
Materials otherwise used orconsumed in manufacturing
x Same as above
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Transaction or Property
Taxable NonTaxable
Comments
ManufacturingTools
Same as previous slide
Fuels Same as previous slide
Containers, packing material,labels, wrappers, etc.
x Sec 40-23-1(a)(9c), Sec 40-23-60(4c), Ala Admin Code r.810-6-1-.69
ConstructionBuilding materials
Tools and Equipment
Computer and SoftwareComputer hardware
x Equipment used for manufacturing TPP is non taxable under manufacturing exemption
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Transaction or Property
Taxable NonTaxable
Comments
Computer and SoftwarePrewritten or canned software sold with tangible personal propertySold without tangible personal propertyDownloaded
X
xx
Ala Admin Code r.810-6-1.37(4)
Ala Admin Code r 810-6-1-81Ala Admin Code r.810-6-1.37(4)
Custom software x Admin Code r 810-6-1.37(6)
ServicesProfessional services
x Entertainment services are taxable
Services with respect to real property
x Janitorial services are nontaxable – ode 40-23-2Ala C
In relation to TPP x Movable TPP is taxable. If unmovable – nontaxable.
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Transaction or Property
Taxable NonTaxable
Comments
Seller’s transportation or shipping
x
Shipping and handling x Shipping charges must be separately stated and delivered by common carrier or US Postal Service. Ala Admin Code 810-6-1-.178
Third party delivery x See above
Repair labor only x Ala Admin Code r,810-6-1-.84(2)(b)
Installation charges for TPP x Must be separately stated. Ala Admin Code r, 810-6-1-81
Leases x Ala Code 40-12-222, Ala Admin Code r, 810-6-5-.09
Rentals x Ala Code 40-12-222, Ala Admin Code r, 810-6-5-.09
Maintenance agreements x
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Taxable BasisTaxable Basis
Bad Debts – This recovery may be by credit, deduction, or refund, depending
on the state. AL allows refund or credit.– To qualify for sales tax recovery, the debt must usually be
written-off for income tax purposes or qualify as an expense under generally accepted accounting principles.
Finance, Interest and Carrying Charges – To qualify, these charges must usually be a reasonable separate
and distinct charge. Some states further require the charges be optional or not be used as a means of avoiding sales tax on the property being sold. AL excludes from taxable measure as long as separately stated.
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Coupons and Cash Discounts Coupons and Cash Discounts and Trade-In Allowancesand Trade-In Allowances
• Discounts and retailers (dealers) coupons are excluded from taxable measure.
• Manufacturer’s coupons and rebates are included in taxable measure
• Trade-ins allowances are included in taxable measure. Some exclusions are allowed for certain items, e.g. parts, vehicles, trailers, and agricultural machinery.
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Returns and Returns and RepossessionsRepossessions
• Returns: Deductible if full sales price refunded.• Repossessions: Deduction is allowed for the
unpaid purchase price of repossessed property• AL Code 40-23-1
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WarrantiesWarranties
• Mandatory - No option is given to the buyer of the TPP. Most manufacturers’ warranties are “built in” to new articles of TPP and fall into this category. The value of a mandatory warranty, even if separately stated, is included in the price of the article sold and taxed accordingly.
Optional - Some dealers offer warranties with additional coverage or beyond the original manufacturer’s warranty period (if any) at the buyer’s option. This is often referred to as an “extended warranty.” The states are split on the tax treatment of optional warranties.
• All sales are taxable unless the seller receives an exemption certificate from the buyer.• Alabama recommends updating
every 3 years or according to expiration date.
• The certificate allows you to buy without paying taxes.
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Economic ConsiderationEconomic Consideration
Reduced rates for certain investments
Example:
Machinery and equipment used in manufacturing
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Social ConsiderationSocial Consideration
Provision of exempt tax status
Example:
Charitable, educational and religious organizations
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Equitable ConsiderationEquitable Consideration
Humane exemptions
Example:
Food (not prepared and sold in bulk), prescription medicines and medical products
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Exempt BuyersExempt Buyers
Buyer Taxable NonTaxable
Comments
Federal government x Sec 40-23-4(a), (17), Sec. 40-23-62(24)
State government X Same as above
Political subdivision x Same as above
Public Schools x Same as above
Other educational institutions
x Same as above
Religious organizations x Same as above
Charitable organizations
X Same as above
Scientific organizations X Same as above
Philanthropic organizations
x Same as above
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Buyer Taxable NonTaxable
Comments
For profit hospitals X
Not-for-profit hospitals x Same as above
Other organizations exempt from federal and state taxes
x Same as above
Agricultural x For use in normal course of business – Sec 40-23-4 and Sec 40-23-62
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• Allows buyer to pay tax directly to the state instead of the retailer (seller/dealer)
• Receipt of the permit discharges retailer (seller/dealer) from any duty to collect or liability for the taxes
Direct Pay PermitDirect Pay Permit
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CAN YOU SHOW A CAN YOU SHOW A “PATTERN OF BEING IN “PATTERN OF BEING IN COMPLIANCE”COMPLIANCE”
Section 4Workbook Pages 17 - 19
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Audit PreparationAudit Preparation
• Good records lead to good audits
• Preparing good records begins before the taxpayer receives an audit notice
• Keeping good records is an on-going task
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AL PenaltiesAL Penalties
• Failure to file • 10% of tax due or $50
• Failure to pay• 10% of tax due
• Intent to Evade• Up to 100% of tax due
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Accounts Receivable• Invoices and contracts
Accounts Payable• Purchases, bills of lading,
paymentsGeneral Ledger
• Cash disbursements• Cash receipts
Audits—Areas of ConcernAudits—Areas of ConcernWB-18
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Ensure commerce is always continuousNever store property, materials, or
equipment in a foreign state.Always use freight forwarder for exporting
out of country.
Tax TipsTax Tips
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10 Steps to Audit10 Steps to Audit
1. Be prepared2. Treat the auditor
as a professional3. Keep the audit
under control4. Be consistent in
answers5. Convince auditor
you are doing it right
6. Watch for overpayments
7. Negotiate8. Get help9. Climb the
ladder10.Never lie.
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Request a letter of documentation. Provide only required documentation. Establish proposed time to complete the audit Audit the auditor when necessary. Request informal meeting with auditor’s boss. Don’t be afraid of challenging the auditor. You are the expert in your business elements
Proven Audit TipsProven Audit Tips
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Any tax advice included in this written or electronic communication was not intended or
written to be used, and it cannot be used by the taxpayer, for the purpose of avoiding any
penalties that may be imposed on taxpayer by any governmental taxing authority or agency.