Our Services
Nexus Studies
A nexus study is the first in a series of steps towards ensuring that your business is in compliance for sales tax purposes. During a nexus study we gather information about your business presence and activities in each state (including sales, employee, independent contractor, and affiliate activities, personal and real property, financial or licensing activities, etc.) After that information is compiled we determine if your level of activity in each state is sufficient for the state to impose a tax collection or reporting obligation on you in accordance with their laws. We take into consideration all relevant sales tax provisions in the various states (including economic, affiliate, click-through, marketplace nexus, and notice and reporting requirements). You receive a written report mapping out your nexus footprint in all U.S. states imposing sales taxes along with our recommendations, as well as a video conference call to discuss the report findings and to answer your questions.
Taxability of Products and Services
As each state has their own unique set of sales tax rules, your products and/ or services may be exempt in some states, but taxable in others. A taxability review will help you determine whether what you sell qualifies as exempt or is taxable in the various states. Sales tax exemptions are typically narrow and any uncertainty as to the application of an exemption to your products would be construed against you. That could potentially result in an unexpected audit assessment for several years’ worth of tax, penalties and interest for sales you considered exempt. A taxability review of your entire product and services mix can also verify that you are not inadvertently charging tax on exempt items (which comes with its own set of risks).
Sales and Use Tax Registrations
After you have clarity regarding your nexus footprint and the taxability of your products and services we can help you register for sales tax licenses/ permits in the various states. A sales tax permit will allow you to start collecting sales tax from your customers and remitting it to the applicable tax agency. If you have material exposure for uncollected tax you may consider pursuing mitigation of that prior period exposure through a voluntary disclosure agreement (VDA) or an amnesty program (if one is available). If you choose to apply for a VDA or an amnesty program you will register as part of the program.
Shopping Cart and Platform Tax Settings Setup
We can configure the tax settings in your shopping cart(s), platform(s), and accounting software (or we can review your existing configurations) in order to ensure that you are applying tax correctly to your customers’ purchases. Our services include product tax codes mapping as well.
Sales Tax Compliance
After you have registered and started collecting sales tax from your customers you will have to periodically remit the collected tax, along with a return, to the appropriate state or local tax agency. We can help with the preparation and filing of your monthly, quarterly, or annual sales tax returns and payments (your filing frequency will be determined by the applicable tax agency). We can also assist with the filing of delinquent returns.
Use Tax Compliance
In addition to sales tax you may also have use tax payment obligations. Use tax may be due on taxable items you have purchased where the seller failed to charge you sales tax (for any reason). Our service involves an examination and analysis of your business’ purchases of products and services and the calculation of use tax due for the period in question. Use tax can be remitted to the applicable tax agency along with the sales tax collected from your customers.
Resale and Exemption Documentation Management
If you have customers who are sales tax exempt or purchase for resale you are responsible for collecting valid exemption or resale documentation from them so that you can substantiate your exempt sales in the event of an audit. This documentation has different names, forms, rules regarding validity and expiration in the various states. We can help you ensure that you have proper exemption and resale documentation of file for your past sales. We can also help you set up a process for the collection and validation of such documentation for future sales.
Sales and Use Tax Audit Assistance
In the event of a sales tax audit we can work with you by reviewing the Information Document Request and all other communication and requests received from the auditor; we can also help you prepare your responses and documentation packages to be submitted to the auditor. Finally, we can put you in touch with an attorney specializing in state tax matters should legal assistance be needed.
Interested in working with us?