Presentation on theme: "EVENT ACCOUNTING & SALES TAX REQUIREMENTS Kirk Eck, CPA Cook Martin Poulson, PC (435) 750-5566."— Presentation transcript:
EVENT ACCOUNTING & SALES TAX REQUIREMENTS Kirk Eck, CPA Cook Martin Poulson, PC (435)
UTAH SALES TAX UTAH CODE 59 REVENUE & TAXATION PUBLICATION 25 Sales & Use Taxes are transaction taxes - Buyer is the taxpayer - Trust Fund Tax – seller holds funds in trust - Sales/use tax are the same thing (generally) - Do you owe use tax?
WHAT AT YOUR EVENT IS SUBJECT TO SALES TAX? - Registration Fees - All products SOLD at an event including T-shirts, socks, hats, food & beverages, etc.
WHAT TYPE OF LICENSE: PERMANENT, TEMPORARY OR BOTH?
PERMANENT SALES TAX LICENSE License: “Established Presence” “Fixed Place” - Submit form TC-69 for acct. # (All online sales occur at your Fixed Place)
TEMPORARY EVENT LICENSE - Required if sales are NOT at your fixed location. - All events with multiple vendors must have a temporary license. - Events with day-of sales in a location other than sellers fixed location must have temporary license. - Temporary License covers all vendors on location. - Form TC-790C due 10 days after event. - Good for only one event. - State Special Events Unit (801)
WHAT IF I DON’T FILE/PAY? Failure to File Penalty: The greater of $20 or 10% of tax due. Failure to Pay Penalty: The greater of $20 or 10% of tax due after 90 days. Interest is charged Temporary license non-filing penalty is $40
UTAH SALES TAX FORMS TC-62S Single Place of Business TC-62M Multiple Places of Business Schedule A allocates among locations TC-790C Temporary Special Event form Get forms at: tax.utah.gov/forms Forms can be filed and tax paid online: taxexpress.utah.gov
WHEN DO I FILE? Permanent License : If total annual sales are less than $1,000, file annually. If annual sales are $1,000-50,000, file quarterly. If annual sales exceed $50,000, file monthly. Temporary Event Licenses must file within 10 days of the event.
RECORD KEEPING All records and documentation for sales and/or purchases used in calculating your sales tax liability must be kept for 3 Years from the date the return was filed.
GENERAL ACCOUNTING TIPS Use an accounting system, even if it’s just a self created excel file. Analyze results, compare year-to-year, tax preparation.
CHART OF ACCOUNTS AccountType of Account Balance Sheet Zions CheckingBank Zions SavingsBank EquipmentFixed Asset Accumulated DepreciationFixed Asset Accounts Payable Payroll LiabilitiesOther Current Liability Owner 1 EquityEquity Owner 1 DrawsEquity Owner 2 EquityEquity Owner 2 DrawsEquity Income Statement Entry FeesIncome RefundsIncome SponsorshipIncome AdvertisingExpense Bank Service ChargesExpense Club Sponsor/VolunteersExpense Computer and Internet ExpensesExpense Course AquisitionExpense Course PreparationsExpense MeetingsExpense Depreciation ExpenseExpense Directors MeetingsExpense Equipment RentalExpense Finance FeesExpense Insurance ExpenseExpense Interest ExpenseExpense Legal & Professional FeesExpense Licenses & PermitsExpense Meals and EntertainmentExpense Office SuppliesExpense Outside ServicesExpense Event ManagementExpense Fuel ReimbursementExpense OfficialsExpense Portable ToiletsExpense RegistrationExpense Timing/ResultsExpense Traffic ControlExpense Payroll ExpensesExpense PostageExpense PrintingExpense Prizes & AwardsExpense CashExpense MerchandiseExpense TrophiesExpense Race SuppliesExpense Registration SwagExpense Repairs and MaintenanceExpense Travel ExpenseExpense LodgingExpense Mileage ReimbursementExpense Web SiteExpense
EMPLOYEES OR INDEPENDENT CONTRACTORS? Mutual Understanding/IRS Guidelines Employee : Withhold taxes, pay payroll taxes & file quarterly payroll forms, W2, (use W4) Independent Contractor : Issue Form 1099MISC if over $600 (Use W9)
WHICH BUSINESS ENTITY? Sole Proprietor: pay the most tax, no liability protection, file Schedule C Partnership: no liability protection, possible tax savings, file Form 1065 LLC: liability protection, possible tax savings, file Schedule C, Form 1065 or Form 1120S S-Corporation: liability protection, possible tax savings, must pay wages to owners/officers, file Form 1120S and payroll reports quarterly