12. The number 12 is strongly associated with the heavens—the 12 months, the 12 signs of the zodiac, and the 12 stations of the Moon and of the Sun. The ancients recognized 12 main northern stars and 12 main southern stars. Reference Encyclopedia Britannica
That’s interesting but isn’t this a tax blog? Yes, a little bit of number trivia for the accountants.
Income Tax
The income tax is only one tax period. An income tax period is usually an annual period beginning on January 1, 20XX and ending December 31, 20XX. Your company will incur expenses and realize revenue over an annual period. During the income tax period there is minimal interaction with the IRS until tax season.
Sales Tax
Every month is a separate tax period for sales and use tax compliance.
Every month is a sales and use tax period. Your company will collect, analyze, compile sales tax data, prepare a sales tax report and file a monthly sales and use tax return. Also every month your company has to pay any sales tax collected from customers and pay use tax if owed.
It’s fast paced compared to income tax. Accurate sales and use tax compliance requires monthly diligence, expertise, and very good time and resource management.
Most sales tax returns and sales tax payments are due the next following the tax period. Sales tax deadlines occur at a fast pace.
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