6 min read

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

By TaxConnex® on Thu, Apr 11, 2024 @ 03:15 PM

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 collecting tax on a product or service appropriately could lead to significant exposure over time. And you may be the legally responsible person on the line to pay the penalties and interest, not your business.

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

Surviving a sales tax audit

By Robert Dumas on Thu, Mar 14, 2024 @ 12:09 PM

The fear of a sales tax audit from one of the country’s thousands of tax jurisdictions is legitimate. Audits can disrupt your business and potentially cost you thousands of dollars.

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 Thu, Dec 21, 2023 @ 11:00 AM

It’s the end of the year and as we all start to think about our New Year’s resolutions, it’s also a good time to start thinking about correcting any sales tax missteps your business may be facing.

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

Sales tax ‘responsible party’ laws still going strong

By Robert Dumas on Tue, Dec 12, 2023 @ 11:21 AM

Business truism has it that limited liability corporations and similar entities shield the personal property and assets of their owners and major shareholders from company bills and missteps. That’s true for many of the fiscal messes that can befall a company.

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

Sales Tax Horror Stories: Audits

By Robert Dumas on Tue, Oct 24, 2023 @ 12:39 PM

“Scary” has five letters. Know what word in sales tax also has five letters?

“Audit.”

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

Sales Tax Horror Stories: M&A

By Robert Dumas on Thu, Oct 12, 2023 @ 11:16 AM

The past two years have seen nearly 46,000 M&As in the United States. It's clear that nothing can boost a business like the right merger or acquisition.

Yet many of these deals tank: as many as 70% to 90%, Harvard Business School has reported. And one thing that can pound a stake through the heart of a promising M&A is unearthing past tax liability during due diligence.

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

Managing Exemption Certificates – the importance of validation

By TaxConnex & CERTifyTax on Tue, Aug 08, 2023 @ 11:04 AM

Valid exemption certificates from your customers are critical in managing your overall sales tax risk. Yet a surprising number of companies have inadequate processes to receive, validate, maintain, and update exemption certificates.

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

Exemption certificate management and audits

By Robert Dumas on Thu, Jul 20, 2023 @ 11:24 AM

Maintaining current, valid exemption certificates is critical in managing your overall sales tax risk. Under audit, an otherwise exempt sale will be deemed taxable without such documentation from a customer – and just a few missing certificates can result in large penalties and interest.

Topics: sales tax compliance sales tax sales tax audits exemptions
4 min read

5 Tips to Minimize Risk Associated with Sales Tax Audits

By Robert Dumas on Tue, Apr 11, 2023 @ 12:52 PM

If you are a business that must collect and remit sales tax, an audit is probably one of your biggest fears. In fact, our annual survey of financial professionals on sales tax trends has ranked sales tax audits as a top worry for the third year in a row. Yet, when asked if they’ve seen audits increased, they’ve continually said the amount of audits they’ve seen has remained the same (66%). If the number of audits has remained the same, why is it a top worry?

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

Six tips to respond to a sales tax audit

By Robert Dumas on Tue, Apr 04, 2023 @ 11:00 AM

You just got notice of a sales tax audit. What now?

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

Top Tips to Prepare for an eCommerce Audit

By Brian Greer on Tue, Nov 29, 2022 @ 11:00 AM

*as previously posted on the Retailist – check out the article there - https://retailistmag.com/top-tips-to-prepare-for-an-ecommerce-audit/

Data shows that the likelihood of your business being audited is low, but that likelihood has been increasing in recent years. If you sell online across multiple states and have met economic thresholds or have a physical presence, you definitely don’t want to take that chance.

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

How not to tank your sales tax audit (part 2)

By Robert Dumas on Tue, Sep 20, 2022 @ 11:00 AM

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)

By Robert Dumas on Thu, Sep 15, 2022 @ 11:00 AM

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
5 min read

Sales Tax Risk Mitigation: Your need-to-know guide

By TaxConnex® on Thu, Jul 28, 2022 @ 02:00 PM

Failure to comply with the applicable sales tax rules can have a devastating effect on a business, but they’re often overlooked because they’re considered “pass-through” as the business is responsible for collecting the applicable taxes which pass through the business and are subsequently turned over or paid to the states. While these pass-through taxes are not meant to create a financial burden on a business, failure to comply can create significant risk.

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

5 Common Sales Tax Mistakes That Can Put You At Risk for Non-Compliance

By Robert Dumas on Thu, May 05, 2022 @ 11:54 AM

You’re trying to run a business and sales tax is not at the forefront of your plans. Nevertheless, you can do a quick check for the most common errors. Make sure you aren’t making these common tax mistakes to ensure you have sales tax in order and aren’t at risk for penalties and fees in the case of an audit.

Topics: sales tax compliance taxability sales tax audits
5 min read

The new breed of audit

By Robert Dumas on Thu, Apr 28, 2022 @ 11:30 AM

In years past, auditors could show up at your door asking to look at your records. Now that’s much less common. Usually, you learn about an audit through a notice or letter from the state or jurisdiction in question with instructions on how the audit will proceed.  Many audits are conducted remotely, and an auditor never visits your office. Audits remain an important tool for tax jurisdictions to evaluate the level, or lack thereof, of sales tax compliance within a business. Even though many audits have shifted to remote audit, the fundamentals of the sales tax audit haven’t changed. 

Topics: sales tax compliance sales tax audits VDA