We estimate that sales and use tax obligations are underreported by over $100 billion a year.
ESTIMATED 2016 TOTAL STATE SALES & USE TAX DUE
Sources: National Conference of State Legislatures 2012 survey; An examination of the Sales and Use Tax Gap Based on Minnesota Audit Experience, Amanda J. Those Imes 2013; California Board of Equalization revenue estimate for remote sales tax and use tax gap, 2013; Professor P. Cary Christian; Iowa Department of Revenue Retail Sales and Use Tax Annual Report FY 2016; U.S. Census, 2014 annual survey; Verus estimates
Verus TaxDesk uses proprietary third-party financial data and A.I.-based matching technologies to identify tax evaders and internet sellers for state revenue departments.
Identify merchants that underreport sales tax
U.S. merchants underreport sales tax liabilities by approximately $80 billion a year. This includes merchants that don’t register, register but don’t file, or simply report less than the true amount of their of taxable sales. By comparing actual sales to their reported sales, we can identify businesses within a given state that are likely evading sales tax.
Track internet merchants selling into your state
States across the U.S. lose an estimated $23 billion a year due to being prohibited from collecting sales tax on all inbound online and catalog shipments. To help address this problem, we can identify and track each internet merchant’s sales volume into any state and help ensure that the merchant complies with applicable remote sales tax laws.
Identify consumers that don’t report use tax
Nationally, an average of 98% of people don’t ever report use tax. To help improve compliance rates, we can identify consumers that make significant purchases from internet merchants that don’t collect sales tax.
Interested in learning more about Verus TaxDesk?
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