- Make sure you can identify all of the specific taxability scenarios to be evaluated. If a large number of cases are being evaluated, you may want to organize them into groups that have the same facts. It is much more efficient to research all your issues within a state at the same time. Make sure to use existing knowledge as a starting point for researching the new scenarios.
- With that foundation set, you can start your research. Now, you should look for provisions in all types of sources. For example, if you are researching what activities create nexus, the statute and regulations might not be clear or on point. You may find a letter ruling or court case that is more specific to your facts.
- Come to a conclusion for your facts. Your research should help you to determine the answer to your question. But it’s important to also identify under what circumstances this conclusion might change. Make sure to retain copies of all research that you used in making your decisions.
- The final step in a sales and use tax research project is to communicate your results with the appropriate staff members, and then take the necessary action steps based on your research.
Missed Diane Yetter’s previous State and Local Tax “Buzz” post? Catch it here:
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