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
3 min read

I Owe More Sales Tax? The Reality of Double Taxation

By Jeff Meigs on Tue, Mar 08, 2016 @ 03:03 PM

An oldie but goodie, worth a re-run (originally posted Sept. 13, 2013)...

In recent weeks I’ve talked with at least three companies who sell to end-user/consumers who have told me that they don’t have an  sales and use tax risk because they pay sales tax to their vendors – while they failed to charge sales tax to their customers.  They are comforted by the fact that “the state got their tax revenue and therefore shouldn’t come knocking for more”. 

When I tell them that they still have a sales or use tax liability, they are surprised.  When I tell them they may not get ANY credit for the tax they paid to their vendors, they get irate –

“What do you mean I still owe the tax – that’s double taxation!”

Sales tax is imposed on the sale at retail of tangible personal property.  Therefore, sales tax generally doesn’t apply to wholesale transactions – as long as the appropriate exemption/resale documentation is executed.  When a reseller fails to provide the appropriate exemption documents to its vendor, the vendor is required to charge sales tax to the reseller.  Subsequently, when that reseller sells to the end-user/consumer, there is a sales tax due on that retail sales price. 

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

No Sales Tax Notices…No Worries... RIGHT?

By Noelle Ard on Thu, Jan 21, 2016 @ 02:00 PM

Notices…A word that has such an ugly connotation to those of us in the compliance industry. While notices at TaxConnex have never been an issue of concern, the fact that jurisdictions are changing the way they communicate could indicate your recent lull in notice activity is giving you a false sense of security.

Topics: sales tax audits sales tax filing
2 min read

Identifying Sales Tax Risk with a Few Simple Questions

By Robert Dumas on Tue, Jan 12, 2016 @ 01:56 PM

My daughter and future son-in-law are both CPAs working for a local CPA firm. They work in audit, not tax, but we often talk ‘shop’ at family dinners. (Needless to say, my wife and other daughter do not enjoy our ‘CPA talk’ at dinner.)  

Topics: sales tax audits
2 min read

Triggering a Sales Tax Audit

By Brian Greer on Tue, Oct 20, 2015 @ 10:22 AM


We’re often asked what triggers a sales tax audit.

Unfortunately, there’s no magic formula for avoiding a sales tax audit. Here are a few things we’ve seen over the years that sometimes precede a sales tax audit:

Topics: sales tax sales tax audits
2 min read

The Reality of Double Taxation

By Jeff Meigs on Thu, Oct 01, 2015 @ 10:00 AM

I frequently talk with companies who sell to end-user/consumers who have told me that they don’t have any sales and use tax risk because they pay sales tax to their vendors – while they failed to charge sales tax to their customers.  They are comforted by the fact that “the state got their tax revenue and therefore shouldn’t come knocking for more”.  When I tell them that they still have a sales or use tax liability, they are surprised.  When I tell them they may not get ANY credit for the tax they paid to their vendors, they get irate – “What do you mean I still owe the tax – that’s double taxation!”

Topics: sales tax nexus sales tax sales tax audits