Gary Bode, CPA: we can help setup your internal procedures for all tax compliance. For a free initial phone consult, please call 399-2705.
We’ll look at some NC Form E-500, Sales and Use Tax issues, including common problems CPAs see with clients.
Registration for NC E-500
Start by registering online with NC DOR for an ID number that identifies your company for NC Sales Tax and other obligations. Then submit NC Form 592 to use NC DOR’s online payment system. Their local Wilmington NC office is on Jackyl Drive off Randall Parkway, upstairs from the IRS. They provide excellent customer service by phone or in person.
Determine Your Specific Requirements for NC Form E-500
NC Form E-500 covers a variety of Sales and Use tax situations. We can’t discuss all of them in this posting. I suggest looking at NC Form E-500 online and then calling them with questions on specifics.
NC Form E-500, Sales and Use Tax requires careful attention to detail including:
- Collecting the correct tax from customers.
- Tracking your company’s sales by county.
- Calculating the sales tax payment.
- Following NC DOR’s procedures.
- Paying on time.
“I suggest developing tight internal controls to deal with all State and IRS tax issues.”
Gary Bode, Wilmington NC CPA and tax accountant
Develop your Process for NC Form E-500
Here’s an example of the reporting complexity NC requires. NC Form E-536, Schedule of County Sales and Use Taxes, requires tracking sales by County. I suggest developing tightly controlled internal processes for compliance on Form E-500, other NC taxes and the IRS. Consequences can be crippling.
Problems CPAs see with Clients - NC E-500 Cash Flow Philosophy
The biggest traps with any tax process include:
- A disdain for the taxing authority leading to expensive penalties, and even criminal charges, for non compliance. There is no escape. Pay them what they require, when they require it and in the way they require it.
- Thinking of the Sales Tax, collected in Trust, as company funds. This leads to cash flow shortage when payment is due.
- Including the collected taxes in company funds and then paying taxes on the tax! Ouch.
We’re a Wilmington NC CPA firm that can help you establish internal procedures for Sales Tax. For a free initial phone consult, please call us a (910) 399-2705.
