Patent Application
20180374162
Not applicable.
The present invention relates to systems and methods for calculating sales tax for businesses. In particular, aspects of the present invention relates to a web application for computation of sales tax.
The present invention is distinguished from the following prior art:
US 2017/0330286
Many states have enacted legislation to allow an increase in a state's Comptroller's ability to audit retailers. In Texas, for example, HB 11 was passed during the 80th Legislative Session in 2007. This specific piece of legislation dramatically increased the Comptroller's ability to identify, audit, and when appropriate, prosecute retailers who are collecting sales tax but not remitting the proper amount to the state. Many states have or are in the process of enacting similar legislation.
Generally, the HB 11 modifications amended the Texas Alcoholic Beverage Code and the Texas Tax Code to require distributors and wholesalers who make sales of ale, beer, wine, cigarettes, cigars and tobacco products to Texas retailers to report those sales monthly to the Comptroller's office. Those distributors and wholesalers are also required now to report that data electronically, unless an inability to do so is shown. Hence, there were modifications to reporting and taxation requirements.
As has occurred in Texas, HB 11 data, which has now been collected since January 2008, allows the Comptroller to compare the purchases that retailers have made of these products with the sales that retailers are required to report. Because both sets of data are largely received electronically, discrepancies can be more easily and rapidly identified. Rapid identification is essential so that the Comptroller auditors can begin their work to mitigate and recoup the revenue loss to the state due to any misreporting. Since fiscal year 2009, the Comptroller's office of Texas alone has identified more than $523 million due to the state that has been unpaid.
In some cases of tax avoidance, audit documentation may suggest that the taxpayer had criminal intent to evade taxes. If so, those cases could be reviewed and evaluated by the criminal investigations divisions of the governing authorities for the possible filing of criminal charges.
In some instances, if a retailer in Texas, like a convenience store, fails to maintain adequate records, the auditor could estimate sales and use taxes payable based on the purchase data collected from the convenience store's retailers under HB 11. That is, the auditor would estimate a markup on such purchase data and then estimate sales tax due based upon such marked up values. Use of these estimates could lead to higher audit assessments at the expense of the convenience store.
It has been found that one way to protect convenience stores from increased sales taxes is to eliminate the use of estimates, which can only be accomplished by keeping good records. To assist in recordkeeping and estimation of sales tax payable, several embodiments of the present invention have been developed to achieve such a goal.
In several embodiments, the present invention is a web based software application that allows those responsible for paying convenience store sales and use taxes to easily submit their sales and expenses online and obtain a calculation of sales tax payable through use of the novel and inventive system.
The present invention relates to a system for handling and automating the calculation of sales and use tax payable by convenience stores. In several embodiments, the application is web based and may be accessed by convenience store taxpayers on their own hardware via the internet. In several embodiments, convenience store taxpayers may register (and thereafter login) on a website. In these embodiments, the taxpayer can then then enter profile information (i.e. taxpayer ID, Name, Email Address), add store(s), enter purchase detail, sales markup percentage, and sales price into the application. In some embodiments, the taxpayer may also upload invoices relating to the transactions, and such invoices will be stored for the statute of limitations period relevant to maintaining tax records in order to assist a taxpayer with its recordkeeping and in the event of an audit.
In some embodiments, the system connects to a database that can use a SQL Server and taxability is determined based upon the database. In this embodiment, the database consists of product categories (i.e. Auto products, Bank Charges, Building Security, etc.) and within each product category is a list of products (i.e. Auto products category includes gasoline, inspection, maintenance, etc.). Taxability on said products can then be assigned at a product category level through use of the inventive system.
In some embodiments, the integral component of the system is a repository of products and expenses that are taxable and non-taxable. This repository is consumed by the logic used to produce the tax reports as can be generated by the end result of this system. Therefore, the ease of maintaining products, expenses, and their taxability is critical to the success of complete, accurate and efficient tax reporting as is produced by the present inventive system.
In some embodiments of the present invention, in the event a product input by the taxpayer is not identified by the database, the inventive application sends an email to the administrator. The administrator can review the product, determine taxability and update the database accordingly.
In several embodiments of the present invention, the present invention is a web-based taxation system comprising: a database; tax professional client data imported into said database from a user; said client data is transformed to support program taxability analysis; said transformed client data is assessed as taxable, non-taxable, or not-applicable and taxability rules are created and applied to client data as an indicator; said indicator is saved on said database and can be re-used to assess same or related future transformed client data; said indicator is reported to the client. In several embodiments, the web-based taxation system further comprises: automated sampling of said indicators is reviewed for accuracy of the taxability assignments; and said indicators are prepared for analysis and client presentation. In several embodiments, the web-based taxation system further contains the database which comprises product categories. In several embodiments, said database is administered externally from said client.
For a more complete understanding of the present disclosure and the advantages thereof, reference is now made to the following descriptions to be taken in conjunction with the accompanying drawings describing specific embodiments of the disclosure, wherein:
One or more illustrative embodiments incorporating the invention disclosed herein are presented below. Applicant has created a revolutionary and novel web based system that allows those responsible for paying convenience store sales and use taxes to easily submit their sales and expenses online and obtain a calculation of sales tax payable.
In the following description, certain details are set forth such as specific quantities, sizes, etc. so as to provide a thorough understanding of the present embodiments disclosed herein. However, it will be evident to those of ordinary skill in the art that the present disclosure may be practiced without such specific details. In many cases, details concerning such considerations and the like have been omitted inasmuch as such details are not necessary to obtain a complete understanding of the present disclosure and are within the skills of persons of ordinary skill in the relevant art.
Referring to the drawings in general, it will be understood that the illustrations are for the purpose of describing particular embodiments of the disclosure and are not intended to be limiting thereto. Drawings are not necessarily to scale and arrangements of specific units in the drawings can vary.
While most of the terms used herein will be recognizable to those of ordinary skill in the art, it should be understood, however, that when not explicitly defined, terms should be interpreted as adopting a meaning presently accepted by those of ordinary skill in the art. In cases where the construction of a term would render it meaningless, or essentially meaningless, the definition should be taken from Webster's Dictionary, New Edition, 2016. Definitions and/or interpretations should not be incorporated from other patent applications, patents, or publications, related or not, unless specifically stated in this specification or if the incorporation is necessary for maintaining validity.
Certain terms are used in the following description and claims to refer to particular system components. As one skilled in the art will appreciate, different persons may refer to a component by different names. This document does not intend to distinguish between components that differ in name but not function. The drawing figures are not necessarily to scale. Certain features of the invention may be shown exaggerated in scale or in somewhat schematic form, and some details of conventional elements may not be shown, all in the interest of clarity and conciseness.
Although several preferred embodiments of the present invention have been described in detail herein, the invention is not limited hereto. It will be appreciated by those having ordinary skill in the art that various modifications can be made without materially departing from the novel and advantageous teachings of the invention. Accordingly, the embodiments disclosed herein are by way of example. It is to be understood that the scope of the invention is not to be limited thereby.
As shown, in several embodiments,
In several embodiments of the invention, tax associate 20 can manage client reports 21 by viewing tax payer reports 22 and adjusting submitted reports 23. Tax associate 20 can also manage products 24 by adding/editing products 25 and 26 and can directly manage products 27 through taxable implications and taxability. Tax associate 20 can also manage expenses 28 by adding/editing expenses 29 and 30 and directly managing expense 31.
In several embodiments of the invention client 40 can manage their own client account 41 by creating a client account 42, managing a client profile 43, managing a subscription 44 and making and viewing payments 45. A client 40 can also enter client products and expenses 46 by adding/editing stores 47, entering store products 48 and entering store expenses 49. A client 40 can also view taxpayer reports 50 by viewing total sales and expenses 51 and viewing total taxes due 52.
As shown, in several embodiments,
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In several embodiments, the present invention involves a software for handling and automating the calculation of sales and use tax payable by convenience stores. The software application is web based and may be accessed by convenience store taxpayers on their own hardware via the internet. Convenience store taxpayers may register (and thereafter login) on a specified website. The taxpayer can then enter profile information (i.e. taxpayer ID, Name, Email Address), add store(s), enter purchase detail, sales markup percentage, and sales price into the application (
In several embodiments, the present system connects to the database using a SQL Server, and taxability is determined based upon the database once the goods are purchased by the convenience store. The database name can be “Convenience Store”. In several embodiments, the database consists of product categories (i.e. auto products, bank charges, building security, etc.), and within each product category is a list of products (i.e. Auto products category includes gasoline, inspection, maintenance, etc.). In several embodiments, taxability is assigned at a product category level, and a company may manage the products as illustrated in
In several embodiments of the present invention, a component of the application is a repository of products and expenses that are taxable and non-taxable. This repository is consumed by the logic used to produce the tax reports. Therefore, the ease of maintaining products, expenses, and their taxability is critical to the success of complete, accurate and efficient tax reporting of goods purchased by the convenience store.
In several embodiments, in the event a product input by the taxpayer is not identified by the database, the application sends an email to the administrator. The administrator can review the product, determine taxability and update the database accordingly. To generate a report of taxability determinations, taxpayer need only checkout. “Checkout” is the time at which a user has finished entering the purchase and is ready to obtain his tax report.
In some embodiments of the present invention, the following is an overview of the application architecture.
While preferred embodiments have been shown and described, modifications thereof can be made by one skilled in the art without departing from the scope or teaching herein. The embodiments described herein are exemplary only and are not limiting. Many variations and modifications of the system and apparatus are possible and will become apparent to those skilled in the art once the above disclosure is fully appreciated. For example, the relative dimensions of various parts, the materials from which the various parts are made, and other parameters can be varied.
This patent application is a Continuation-in-Part of U.S. patent application Ser. No. 15/152,353 filed on May 11, 2016 and incorporates all content and priority of said application as if set forth in full herein.
| Number | Date | Country | |
|---|---|---|---|
| Parent | 15152353 | May 2016 | US |
| Child | 16047118 | US |
