Exemption Certificate State Compliance Review - All States



With the economy as it is, states are looking for every opportunity they can to find additional revenue. The lack of properly completed exemption certificates is "easy pickings" for an auditor. In previous years, with a better economy auditors may have been more lenient in accepting certificates that didn't comply with the letter of the law. However, in current economic times, auditors are less likely to show any leniency on such issues. This phase of the project involves the individual analysis of every certificate to verify compliance with a particular state's requirements.

Error codes have been defined for use in identifying the most common errors that occur with exemption certificates. Using the defined criteria, each certificate will be assigned with a "pass" code or error code(s). For each state we review, we will provide the tax code/tax statute for the information we relied upon to make our determination.

Every exemption certificate type will be reviewed for compliance, includes:

• Exemption Certificates for exempt organizations
• Resale Certificates
• Direct Pay Certificates
• Manufacturer's Exemption Certificates
• Multistate Exemption Certificates

Certificates are generally reviewed for:

• State taxability compliance per industry type
• Names and addresses
• Permit numbers, if required
• Claimed exemption descriptions
• Signatures and dates
• Expiration dates

Copyright 2002 TaxAutomation Inc.