The Federal Tax Authority, a private company that aims to make it easy for online merchants to collect sales tax, has launched TaxCloud, a free sales tax calculation and remittance service.
The company, which is also known as FedTax.net, said TaxCloud can integrate with virtually any accounting or e-commerce shopping cart system, and calculate the sales tax due on any purchase in any tax jurisdiction in the U.S. Merchants who sign up with TaxCloud can calculate the local sales tax due on any transaction for over 13,000 tax jurisdictions.
FedTax.net has been designated as a certified service provider by the Streamlined Sales Tax Governing Board. The Streamlined Sales and Use Tax Agreement is the result of the cooperative efforts of 44 states, the District of Columbia, local governments, and the business community to simplify sales tax collection and administration. The agreement is supposed to minimize costs and administrative burdens for retailers that collect sales tax, particularly retailers operating in multiple states. It encourages Internet and mail order retailers to collect tax on sales to customers in the SSUTA member states. It also aims to level the playing field, so that brick-and-mortar stores and remote sellers operate under the same sales tax rules.
TaxCloud can perform all of a merchants sales and use tax functions, except the merchants obligation to remit tax on its own purchases. TaxCloud automatically monitors tax codes and incorporates any changes, so all TaxCloud merchants maintain compliance with all local sales tax laws. TaxCloud also generates reports and automatically files state-by-state Simplified Electronic Returns for the merchant. In addition, merchants who use TaxCloud will qualify for amnesty from the SSUTA member states for failing to collect sales tax in the past. TaxCloud takes advantage of an extensive cloud computing infrastructure.
For more information, visit http://taxcloud.net/.
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