2 min read

Tips to Ensure You Don't Mishandle a Sales Tax Audit

By Robert Dumas on Thu, Sep 02, 2021 @ 11:00 AM

Managing a sales and use tax audit can be challenging. And many businesses mishandle the process, making it all that much more difficult on themselves.

Topics: sales tax compliance sales tax audits
3 min read

3 Benefits to a Voluntary Disclosure Agreement

By Robert Dumas on Tue, Jun 29, 2021 @ 11:00 AM

A voluntary disclosure agreement (VDA) is a legal means for taxpayers to self-report back taxes owed for income, sales, property, and other tax types. In exchange for voluntarily reporting the tax due, states offer a waiver of some penalties and other benefits to the business. If back taxes are not disclosed but are instead discovered through an audit, the taxpayer is at a disadvantage and will end up being assessed various penalties plus interest plus all historical tax due.

Topics: sales tax audits VDA
7 min read

Don't Test Your Luck with Non-Compliance

By Robert Dumas on Tue, Mar 16, 2021 @ 11:00 AM

This St. Patrick’s Day, don’t look to four-leaf clovers, pots of gold or leprechauns to bail you out of trouble with sales tax. If your company has sales tax obligations and doesn’t have a process yet in place, plan for the risks of non-compliance.

Topics: sales tax compliance sales tax audits
4 min read

Understanding Use Tax

By Robert Dumas on Thu, Feb 25, 2021 @ 11:00 AM

You may think that if you do not have physical or economic tax nexus in a state, you do not have any tax obligations. However, this may not be the case. You can still have obligations to the certain tax authorities in a state even where you do not have nexus and are not required to collect and remit sales tax in the state.  

The reason? Use tax. Specifically, consumer’s use tax.

Topics: sales tax compliance sales tax audits
8 min read

Sales Tax Audits - The Danger Grows

By Robert Dumas on Tue, Feb 23, 2021 @ 11:00 AM

Many industry experts believe that as state tax revenues continue to dry up from the economic shutdown and continuing pandemicstate sales tax audits are likely to increase sharply in the coming months. States are in the same boat as many businesses when it comes to the stress and financial strain that comes along with the pandemic, and an increase in audits would help states recoup lost revenue and minimize budget deficits.

Topics: sales tax compliance sales tax audits
6 min read

Get Ready for Audits as States Keep Losing Sales Tax Revenue

By Robert Dumas on Thu, Jun 25, 2020 @ 11:00 AM

This article was written with contributions by Clark Calhoun of Alston & Bird. 

Topics: sales tax compliance sales tax audits
3 min read

Top Tips for Managing a Sales Tax Audit

By TaxConnex on Tue, May 19, 2020 @ 11:00 AM

Topics: sales tax compliance sales tax sales tax audits
3 min read

States Getting Tougher on Marketplace Facilitators - What Does This Mean for You?

By TaxConnex on Thu, May 14, 2020 @ 11:00 AM

What is a marketplace facilitator?

Topics: sales tax compliance sales tax sales tax audits
3 min read

Determining Who is At Risk for Responsible Party Laws within Your Company

By TaxConnex on Thu, Apr 23, 2020 @ 11:00 AM

If your company sells into multiple states and has established sales tax nexus, it is critical that you evaluate your business’s exposure to sales-and-use-tax liability as soon as possible. There are more than 10,000 taxing jurisdictions and many have their own unique set of rules and interpretations. Not taxing a product or service appropriately could lead to significant exposure over time. And, you may be the person on the line to pay the penalties and interest, not your business.

Topics: sales tax compliance sales tax sales tax audits
2 min read

How to Correct Previous Non-Compliance with Sales & Use Tax

By TaxConnex on Tue, Mar 17, 2020 @ 11:00 AM

Maybe you’ve just figured out that you have nexus and were non-compliant without realizing it, or maybe you’ve been rolling the dice and crossing your fingers you won’t get audited – no matter your situation, if you have established nexus, are selling a taxable product or service into multiple states and aren’t complying with sales and use tax laws -  you have the potential to owe quite a bit in penalties and interest if caught. 

Topics: sales tax compliance sales tax audits VDA
3 min read

Responding to a Sales Tax Audit

By Robert Dumas on Thu, Feb 27, 2020 @ 11:00 AM

It happened.  You received a sales tax audit notice from a jurisdiction.  What do you do?

Topics: sales tax compliance sales tax sales tax audits sales tax filing
3 min read

4 Tips to Avoid a Sales Tax Audit

By Robert Dumas on Thu, Feb 20, 2020 @ 11:00 AM

It’s been over a year since economic nexus was put into effect, and state and local jurisdictions have started knocking on doors to start collecting. Whether you are intentionally or unintentionally neglecting your sales tax obligations, the chance of audit is continuing to grow.

Topics: sales tax audits Now it's all on us
1 min read

Surviving a Sales Tax Audit

By Brian Greer on Mon, Jul 10, 2017 @ 10:30 AM

For small to medium-sized businesses with fewer resources and smaller teams a sales tax audit can be a major distraction to their normal operations.  Audits can be extremely time-consuming.  The list of tasks is seemingly endless – pulling records, answering questions from the auditor, and potentially negotiating the outcome of the audit.  All of the above is time-consuming and potentially risky.  So what is the best way for you to manage a sales tax audit?  Here are a few things you can do. 

Topics: sales tax audits
1 min read

Frustrated with Your Sales Tax Audit?

By Brian Greer on Thu, Sep 22, 2016 @ 11:23 AM

Sales Tax Audit Assessments - How to Avoid An Uphill Battle

Recently, I’ve had several discussions with companies about a sales tax audit assessment they’ve received.  They come to me in an attempt to negotiate a settlement with the state.  The problem is that they were clearly at fault and are now struggling with the reality of paying the back taxes, penalties, and interest. 

There’s typically not much I can do in this situation unless they are willing to pursue an offer in compromise which requires the tax payer to share their financial details with the state…essentially proving that the full payment of the assessment will put them out of business.  The angle is that the state is better off accepting some percentage of payment on the initial assessment while keeping the company in business long-term…ideally yielding a bigger financial gain long-term.

Voluntary Disclosure Agreements White Paper

Topics: sales tax sales tax audits
2 min read

Top Tips to Avoid Sales Tax Audit Assessments

By Brian Greer on Wed, Aug 10, 2016 @ 02:00 PM

Sometimes a sales tax audit is unavoidable.  Perhaps an auditor has audited one of your customers and discovered one of your invoices without sales tax applied.  Maybe you’re unlucky and you were selected in the audit lottery.  Perhaps a disgruntled employee blew the whistle on you.

Topics: sales tax audits
2 min read

What Triggers a Sales Tax Audit?

By Brian Greer on Wed, Jun 29, 2016 @ 11:38 AM

A sales tax audit can be your worst nightmare as a business owner or operator. Even in the best case scenario, you’ll lose incredible amounts of productivity cooperating with state authorities who have an unbelievably frustrating eye for detail.  In the worst case scenario, you’ll end up with a huge bill you weren’t expecting.
Topics: sales tax sales tax audits