Exemption Certificate Management (ECM)

Exemption Certificate Exposure and Risk

In today’s business climate, state tax audits are becoming commonplace as taxing jurisdictions look to bolster declining tax revenues. States are more aggressive in their pursuit of sales tax revenues, so now more than ever it is critical for companies to maintain accurate and current sales records. Companies with a high percentage of tax exempt sales may be particularly vulnerable during a state audit if the proper exemption certificates are not on file.

Valid exemption certificates are proof that a vendor did not have to collect taxes from specific customers. The customer may be an exempt reseller or a non-profit entity, however they need to provide documentation to any vendor they purchase from as proof that they are exempt from paying sales tax on certain purchases. If a vendor does not maintain a valid exemption certificate for the time period when the exemption was applied, then that vendor would be responsible for paying the tax and any penalties and interest assessed by the jurisdiction during an audit.

Exemption Certificate Management (ECM) Services

Atlantax System’s ECM service reduces exposure to tax, penalty and interest assessments by making sure that your customer’s tax exemption certificates are valid, on file and match your billing system exemptions. Certificates are gathered, validated and documented for future reference and new certificates are requested before existing ones expire.

Clients who outsource the tedious and time consuming ECM function to Atlantax benefit from our cost effective alternative to an in-house operation. Elimination of the cost of software, staff training and associated overhead are just some of the tangible reasons to outsource the ECM function to Atlantax.

Just need help to get your ECM house back in order? Retain Atlantax to gather resale exemption certificates from your customers with a one-time project, no ongoing commitment.

For more information on Atlantax System’s Exemption Certificate Management service, or any of our other indirect tax services, contact our sales group at sales@atlantax.com.