We receive a significant number of questions regarding exemption certificate issues - with the two most popular topics being expiration dates and drop shipments.
Today, my focus is on expiring certificates, specifically Maryland exempt organization issued state forms. If you are not aware, all Maryland exempt organization forms are expiring as of September 30, 2012. If you are familiar with the state issued form, you know that the expiration is on the top right-hand side just below the issued date. I know that you may sometimes receive a faxed copy or a copy of a copy, and it is difficult to detect. No excuse. You have to have a new form to cover new sales after September.
To make it difficult, every one of these exempt organizations has to reapply to receive a new exemption form (http://business.marylandtaxes.com/taxinfo/salesanduse/exemption/renew.asp). To make it more difficult, there is not much time for the renewal process and to obtain new forms for your records.
What if some of the exempt organizations you deal with do not renew? What are your policies to make sure you start taxing those organizations that don’t comply? A word of caution, if you start asking for them today… you may still receive the forms that expire at the end of September! So, plan accordingly and check those expiration dates.
Other recent “Exemption Certificate Mgmt.” posts by Silvia Aguirre:
- Exemption Certificates for Federal Government Purchases
- Marketplace Fairness: What Does It Mean For Exemption Certificates?
- Will Oregon Start Charging Sales Tax? If So - Are You Ready?
- Canada is Bringing Back Exemption Certificates!
- Louisiana Changes State Forms to Include Parish Exemptions
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