Sharp Tax & Accounting Blog
Michigan Issues Sales & Use Tax Guidance as the U.S. Phases Out the Penny
Michigan’s Treasury has issued new guidance on how retailers should handle sales and use tax calculations during the federal phase‑out of the penny. Businesses must still compute tax using statutory rounding rules, then apply any cash‑rounding to the final total. Rounding up or down is allowed and does not change the tax owed.
Voluntary Disclosure Agreements: A Smart, Cost‑Saving Strategy for Resolving Hidden State Tax Liabilities
Voluntary Disclosure Agreements help businesses resolve past state tax liabilities on far more favorable terms. By limiting the lookback period, waiving penalties, and preventing open‑ended audits, a VDA gives taxpayers a clean slate and protects them from years of hidden exposure that could otherwise lead to costly assessments.
Texas Comptroller Issues Guidance on Sales Tax and Cash Rounding as the Penny Is Phased Out
The Texas Comptroller has issued new guidance on handling cash transactions as the federal government phases out the penny. Retailers must still calculate sales tax exactly, but may round cash totals to the nearest nickel. The state will also round down cash payments when pennies aren’t available, ensuring smooth tax compliance during the transition.