Tax & Accounting Blog

Cross-Border Zip Codes

Blog, Indirect Tax, ONESOURCE, Sales and Use Tax May 2, 2016

Yet another bit of confusing postal geography trivia on the blog today. From time to time, a mailing address for a location does not agree with its actual physical location. It is true that a mailing address may even indicate a different state than the physical location. This seems to be especially prevalent for locations in and around Washington D.C. Among other businesses and organizations, the Census Bureau, the Pentagon, the FBI, and the USGS all have office locations that are technically located outside of Washington D.C. but use Washington D.C. mailing addresses.

Situations like these can create confusion for Sales and Use Tax purposes. Usually, when a customer provides a location, they use a mailing address. But, even though the mailing address is in D.C., the tax results should reflect Maryland or Virginia tax rates, depending on the actual physical location.