COMMON AUDIT ISSUES
Sales Tax
We would like to thank all the departments who assisted us in last summer's review of our reporting and remitting of sales tax. Overall we found the campus doing a good job of handling sales taxes. In fact, for the few instances where problems were found, it was usually that of collecting and remitting on activities that were not taxable. Most of these cases were the result of a change in activity, rather than initial errors in handling sales taxes. We did see one case in our testing where a department was selling handouts to students and assumed since it was educational material it was exempt. This misconception almost has "urban legend" status, but has always been wrong. If you sell copies, unless the buyer is tax exempt, the sale should generally be considered taxable.
If you are unsure
of the taxable status of what you are selling you should contact
Jose
Carus in Cash Management.
Business Services News - December 2001