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Washington: Attorney General wins first-of-its-kind tax-zapping case

In recent years, it has not been easy for states to collect all the sales and use tax revenues they are entitled to. This is due, in part, to the difficulty they have had asserting authority over out-of-state Internet retailers, who are not subject to the same tax rules that in-state retailers are.

A lesser-publicized problem poses another mechanism through which tax dollars disappear.  In 2012, the National Conference of State Legislatures (NCSL) issued an article warning that “[a]utomated sales suppression devices…have proliferated with the computerization of cash registers and have given retailers the ability to cheat state and local tax departments out of owed sales taxes through the falsification of electronic records of point of sale (POS) systems (modern cash registers).”

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