If you are working with a local accounting firm, it makes sense to ask whether they offer Audit Shield as relief in the payment of professional fees. You can never tell when you or your business will be subjected to a tax audit, enquiry or investigation. You need protection against the unexpected costs of an audit that will require hours of work.
People nowadays prefer to shop online because it is more convenient. However, shoppers in Illinois may find it more expensive to shop online because of the new measure passed by the state’s General Assembly on how online sales will be taxed.
The changes will require online marketplaces that include Etsy and eBay to collect state sales tax from Illinois residents who shop online. According to Rob Carr, president and CEO of Illinois Retail Merchants Association, although individual online retailers are required to collect taxes, many of them do not do so. This means that customers are not paying taxes on their purchases.
Instead of paying $10 for a coffee cup at Etsy, a customer will be required to pay $10.63 because of the 6.25% tax. Online retailers that do not have physical stores in Illinois like Wayfair and Zappos will be required collect local sales tax in addition to the state tax they already collect. A Chicago resident has to pay a total of $110.25 for a couch that is worth $100 because of the 10.25% tax on the purchase. This measure will become effective on July 01, 2020.
Since 2015, Amazon has been collecting sales tax from Illinois customers. There won’t be any changes on other Amazon items because of the physical stores on the state however; the ecommerce giant is required to collect the 6.25% sales tax on other items that have been purchased from other sellers that are not Amazon.
Professional fees are typically charged to clients when the accountant responds to audits, inquiries and investigations of lodged returns. Pulling out records for a simple audit may require hours of work. It is important to have Audit Shield as a cost effective solution to avoid disputes regarding the professional fees incurred as a result of an audit.