To fill coffers, states crack down on sales-tax cheats

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in Small Business Tax,Small Business Tax Deduction Strategies

Several states, including Illinois, California, Massachusetts and New York, are getting tough on employers that violate sales-tax laws, according to an Associated Press report.

Reason: “As their budgets quickly hit the skids and the pressure is on, they’re going to be looking to see where those dollars are,” says Verenda Smith of the Federation of Tax Administrators.

Researchers at the Tax Foundation say smaller businesses tend to be the biggest tax evaders and, therefore, are prime targets for increased collections. 

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