- Taxpayers conducting multistate business operations in the US are subject to various business taxes
- Some states impose gross receipts taxes in addition to traditional income-based taxes
- Failure to comply with state gross receipts taxes can result in penalties and interest
- Taxpayers with gross receipts tax exposure may have remediation options through voluntary disclosure agreements or tax amnesty programs
- Gross receipts taxes are imposed on in-state sales of tangible personal property or services
- Factor-based nexus rules determine when an out-of-state company is subject to gross receipts tax
- Gross receipts taxes are imposed on all entity types and have limited options for passing the tax on to customers
- Six states currently levy a gross receipts tax, with Ohio, Tennessee, and Washington having the most compliance issues
- Oregon, Delaware, and Nevada also have gross receipts taxes with specific filing requirements.
Source: btcpa.net
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
