Life Of E's

Question:

When schools (or school districts) purchase products or hire me to do workshops, they are tax exempt, correct? 

I’m sure it is a good idea (and maybe required by law) to have their tax exempt information.  Is this correct?  If so, how do you go about getting that information and where do you file it?  Is there a place in Quickbooks where I can input this information?

Posted by Billy Simms | 1/29/08

Answer:

Excellent question…and I’ll ask my accountant.  However, here’s how I’ve handled it.  With schools and universities, they are so obviously (to me and I hope the IRS) tax exempt, that I’ve never asked for a letter indicating they are tax exempt.  They would have a tax exempt number that if you asked them for that, you could put it on your invoices to to the schools and then it would be stored in Quickbooks. 

I’ll email my CPA and see if she says I should have been collecting it all this time…and will post additional info when I have it. 

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Update:

Well…I asked and she said although it wasn’t really necessary, I should start asking for it…just makes all the i’s dotted and t’s crossed, she said.  So, thanks for prompting me to ask.  As I said above, it will be stored in QuickBooks because we can just put it on the invoice.

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Tags: Quickbooks, tax exempt