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This brief illustrates how ZIP codes can expose your company to sales tax audit risk and related penalties and fines.
ZIP codes lack the street-by-street, house-by-house accuracy provided by geolocation technology.
Overcharge customers by assigning a higher sales tax rate, they’ll get angry and complain or shop elsewhere. Undercharge customers and you’ll find yourself owing a hefty tax bill at some point down the line.
Learn why ZIP codes don't work and what you can do about it.
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