There is good news for law firms and providers of legal services. Since they are exempt from sales tax in all states, they are not subject to collecting and remitting sales tax.
Are You Filing Sales/Use Tax Returns?
There is good news for law firms and providers of legal services. Since they are exempt from sales tax in all states, they are not subject to collecting and remitting sales tax. However, because of the use tax (which is the other component reflected on the tax return), law firms and legal service providers should still file sales tax returns in their resident states. More and more law firms and other exempt service providers are being audited by the states for sales and use tax. These audits are resulting in firms being assessed thousands of dollars in use taxes, interest, and, in some instances, penalties.
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Sharon AckermanThis premium content is locked for LawJournalNewsletters subscribers only
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