State and Local Tax Compliance: 5 Tips to Minimize Exposure and Maximize Revenue

3. Appoint someone to track rate and tax rule changes to remain compliant and avoid exposure to audit penalties and interest.

States generally have a combination of rates (state, county, city, district and other local municipalities), and annually there are more than 700 tax rate changes that occur across the country. Pinpoint an individual to be responsible for keeping your business aware of these changes. This can be done through technology solutions or manually, although the latter puts you at significant risk for error and audit penalties.