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Understanding state sales tax exemptions for nonprofits

I often remind nonprofit leaders that the privilege of being exempt from federal and state income tax does not extend to other areas of taxation. IRS tax-exempt status does not apply to most payroll taxes, certain excise and business income taxes, and state sales tax, which is today’s topic. In fact, we are seeing heightened compliance efforts by state and local governments nationwide with respect to sales tax audits of nonprofits. 

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