5 Retail Tips for Tackling Tax Issues and Improving Bottom Lines

With an April 15 tax deadline looming, now is the time for businesses to address their tax responsibilities. Here are five tips to help make this a painless — and possibly profitable — experience.

1. Be aware of jurisdictional tax changes. Accurately applying tax can be complicated for retailers. Depending upon store locations and registrations, as well as product or services types and usage, retailers often need to keep abreast of hundreds of tax changes per year. In 2009 alone, there were 850 state, city, county and district tax changes throughout the U.S. When you factor in exception rules such as “tax holidays,” in which items such as apparel and school supplies are exempt from sales tax, the scenario facing retailers gets further complex.