It’s a common scenario: A company has decided to sell, then due diligence turns up a $2 million risk in past sales tax obligations and compliance. The buyer looks to secure against the risk via escrow – on the conservative, high side – and requires the seller to mitigate the risk.
Robert Dumas
Recent posts by Robert Dumas
4 min read
How to manage sales tax obligations
So you’ve done the smart thing and determined that your company has sales tax obligations in various states. That’s a great first step. Now you must collect, file, and remit sales tax in multiple states.
Topics: sales tax compliance sales tax
2 min read
Amazon Warehouse Does Not Create Physical Nexus in PA
In a decision that may eventually have sales tax repercussions elsewhere, a state court has decreed that an Amazon warehouse creates no physical nexus for a group of online sellers.
Topics: sales tax nexus sales tax sales tax filing
4 min read
Risks of misunderstanding the impact of economic nexus
By now most businesses that sell online have heard about nexus, the connection that a company has with a jurisdiction that ignites a sales tax obligation. Nexus can be economic and based on a threshold of sales volume in a given time. Nexus can also be physical, created by inventory, employees or reps in a state or jurisdiction.
Topics: sales tax compliance sales tax economic nexus
4 min read
What was new in August for state sales and use taxes
There’s always something changing in the world of tax, especially sales tax. Here’s a review of some of the recent changes and updates.
Topics: sales tax compliance sales tax sales tax news
4 min read
Complexities of Sales Tax: Leasing
Sales tax is complicated no matter the industry you are in. But the leasing industry brings out even more complicated nuances depending on the type of lease, support activities and even the leased item itself.
Topics: sales tax nexus sales tax taxability
3 min read
How not to tank your sales tax audit (part 2)
The sales tax audit can be one of the scariest – and costliest -- things an online business ever goes through. If you do get hit with an audit, it’s critical to handle the process correctly.
Topics: sales tax compliance sales tax audits
4 min read
How not to tank your sales tax audit (part 1)
If you are a business that must collect and remit sales tax, an audit is probably one of your biggest fears. Rightly so: Sales tax audits can find fault with a variety of your operations and can cost you big– if the determination goes against you.
Topics: sales tax compliance sales tax audits
3 min read
Colorado: Fee or tax?
Remote retail sales just got rockier in Colorado, which has begun imposing a 27-cent fee on every retail delivery made by motor vehicle to a destination in the state.
Topics: sales tax compliance sales tax retail
4 min read
Don't forget physical nexus!
Businesses who sell over the internet must pay a lot of attention to far-flung economic tax thresholds – all states with a state wide sales tax and more than a few localities enforce them now – so it’s easy to overlook a more-obvious tripwire like physical presence.
Topics: sales tax nexus south dakota vs. wayfair retail
4 min read
3 things to remember about economic nexus
This June marked 4 years since the landmark Supreme Court decision that launched economic nexus, South Dakota v. Wayfair, Inc et al, but many businesses are still trying to figure out how to manage sales tax obligations brought on by this decision. The following is a list of 3 things you need to know to get started in understanding your economic nexus footprint.
Topics: sales tax nexus sales tax economic nexus
4 min read
App purchases and sales and use tax
Many tech companies consider themselves a service provider exempt from sales and use tax. But the 2018 Wayfair decision expanded the definition of nexus and and more of these businesses are now subject to sales and use tax collection, including on one of their product staples: apps.
Topics: sales tax taxability software
6 min read
5 reasons you need continuity in a sales tax provider
Consistent (i.e., “good”) service is a nice thing to have in any industry. In a field that changes as fast as sales tax, it’s a necessity.
Topics: sales tax compliance sales tax filing
6 min read
Four years since Wayfair: A trend takes hold
What a 48 months it’s been.
Topics: sales tax compliance south dakota vs. wayfair economic nexus
4 min read
Are travel services taxable?
Summer vacation season is here – and it’s yet another area where sales tax shows up.
Topics: sales tax compliance taxability economic nexus
3 min read
Gross vs. taxable sales: Which count toward economic nexus?
Determining your sales tax obligations hinges on if your products or services are taxable and whether you have sales tax nexus which can be defined as either a physical presence or economic presence. That by itself is confusing enough, and unfortunately it gets more confusing.
