Dakota Business Tax is Here to Help Businesses Stay in Business
At Dakota Business Tax LLC, we recently helped a local contractor settle a tax lien with the South Dakota Department of Revenue regarding contractors’ excise taxes for 78% less than what the Department of Revenue was asking him to pay.
Some of the back taxes, interest, and penalties were a result of a licensee review conducted on the client’s business, and additional taxes, interest, and penalties resulted from the South Dakota Department of Revenue filing a jeopardy assessment for estimated taxes that the South Dakota Department of Revenue was claiming were also due.
Misunderstanding Your South Dakota Sales, Use, and Contractors’ Excise Tax Liabilities Can Put You Out-of-Business
The tax lien was for about $22,500, but the client ended up paying just a little over $5,000. Why? Because within the assessment that the lien was based upon, were taxes they did not owe.
It was not $1.75 million, or $175,000, it was $17,500 that Dakota Business Tax LLC was able to get removed from the client’s South Dakota Department of Revenue tax lien. However, $17,500 to many small businesses, especially during these trying economic times during the coronavirus pandemic, is a lot of money.
If a business misunderstands its true tax liabilities and ends up paying extra tax, interest, and penalties they did not owe, that can oftentimes be the difference between a business staying in business or going out of business.
The key for a business is to make sure you work with someone with the experience and expertise that Dakota Business Tax LLC can provide, to help you fully understand your true South Dakota Sales, Use, and Contractors’ Excise Tax liabilities.
Dakota Business Tax Can Help Your Small Business
At Dakota Business Tax LLC, we help large companies, but we are also here to help small businesses. An important point I want to make is that this small business owner with the tax lien tried to find someone to help him understand what he was being taxed on and why, even went to an attorney, but no one was interested. I do not know why he could not find help. Whether people were too busy, didn’t feel they understand South Dakota tax law well enough to help him, or what other reasons they had. Let’s make sure we help out our small businesses when we can. Small businesses are the economic cornerstones for our communities.
I had an attorney contact me that they had been contacted by a company with a South Dakota tax audit. The attorney said they were all incredibly busy and asked if I could handle this for them. I said absolutely. I worked directly with the company’s accountant. I kept the attorney updated on what I was finding during my review of the audit, along with my recommendations on how we should proceed. We were able to cut the audit assessment almost in half, saving the company almost $100,000. So, if you are an accountant or an attorney, and you’re busy, or you’re not up on your South Dakota tax law, instead of turning away that client, contact me and I can help you as a partnered resource.
State Tax Agents and Auditors Can Make Mistakes
At Dakota Business Tax LLC, we have had great success in reviewing South Dakota tax audits. We cannot guarantee results, but we are currently reducing South Dakota Sales, Use, and Contractors’ Excise Tax assessments by about 64% and $92,500 on average, while still maintaining a current 100% success rate. No one is perfect, but when state tax Auditors or Agents make mistakes and overassess, it can cause businesses to overpay their taxes for years after.
Dakota Business Tax LLC is here to help
At Dakota Business Tax LLC, we can better help ensure that what you are being taxed on is truly taxable, taxed under the correct tax laws, or what items can and should be removed from a tax assessment. The taxability of products or services is not always as clear-cut as they appear to be. It can be a challenge for any business on their own to determine what taxes they truly owe.
As a former South Dakota State Sales, Use, and Contractors’ Excise Tax Auditor for over 24 years, I bring an unparalleled understanding, expertise, and insight into the application of South Dakota tax law and audit procedures. I know how to correctly explain how an item or service is used so that the Auditor or Revenue Agent understands that a non-taxable item or service is truly non-taxable. It’s not just understanding South Dakota’s laws, it’s also understanding the administrative rules, court cases, and past state decisions.
Contact Dakota Business Tax LLC today at contact@dbtllc.com or call us at (605) 389-7345 to see how our South Dakota Audit Assistance & Defense and Consultation & Advisory services can help you, your business, or your clients, and to answer any questions you may have.
