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
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
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
4 min read

All You Need to Know About VDAs

By Robert Dumas on Tue, Aug 31, 2021 @ 11:00 AM

A Voluntary Disclosure Agreement (VDA) can be a great tool to address past sales tax obligations, but it’s important to consider all the pluses and minuses and ensure you make the right decision for your business when it comes to mitigation efforts.

Topics: sales tax compliance VDA
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
2 min read

5 Myths About Voluntary Disclosure Agreements

By Robert Dumas on Tue, Dec 08, 2020 @ 11:00 AM

Voluntary disclosure agreements (VDAs) can be an effective way to mitigate prior period sales tax exposure. They can also come with a lot of misconceptions.

Topics: sales tax compliance VDA
5 min read

Sales and Use Tax FAQs - Risk and Liability

By Robert Dumas on Thu, Nov 19, 2020 @ 11:00 AM

When it comes to managing sales tax compliance, for most businesses there are really three ways you can do it.

  1. Attempt to manage everything in-house
  2. Outsource sales tax compliance
  3. Do nothing and roll the dice.

So what happens if you attempt to manage the process in-house but lack the expertise and bandwidth to manage it effectively? Or what if you do nothing and decide to roll the dice? What are the risks associated with non-compliance? We’ve compiled some of the top questions we get from clients on the risk and liability of sales tax non-compliance.

Topics: sales tax compliance VDA
3 min read

Is a VDA Right for Your Business?

By TaxConnex® on Tue, Aug 11, 2020 @ 11:00 AM

Is a Voluntary Disclosure Agreement right for you? Voluntary Disclosure Agreements (VDAs) can be an effective tool in mitigating prior period sales tax exposure, however it may not always be the best solution.

Topics: sales tax VDA
2 min read

Your Top Questions on VDAs Answered

By TaxConnex® on Thu, May 07, 2020 @ 11:00 AM

All states that impose sales tax have a VDA program, or Voluntary Disclosure Agreement, to help alleviate the penalties of non-compliance and encourage businesses to comply. A VDA can be a very attractive option for businesses who have many years of non-compliance or that have collected sales tax previously but failed to remit.  But what exactly is a VDA? Why is it beneficial? Keep reading for answers to our most frequently asked questions on VDAs.

Topics: sales tax compliance VDA
1 min read

Voluntary Disclosure Agreements (VDAs) Can be a Good Business Decision

By Brian Greer on Wed, Jul 19, 2017 @ 10:45 AM

Many businesses engage in interstate commerce and are liable for sales taxes in one or more of those states.  It’s becoming more and more common, especially for small businesses who sell via the Internet, to create sales tax nexus.  In some cases, these businesses fail to file sales taxes in states where they should.  It comes as a surprise that they owe sales taxes at all and often the time to file has passed.  If you own a company involved in multi-state transactions and you find yourself owing past sales taxes, filing a voluntary disclosure agreement could be a great option.

Topics: VDA
2 min read

Sales Tax Compliance and the Amazon FBA Seller

By Brian Greer on Tue, May 23, 2017 @ 10:00 AM

I recently met with a company that has been growing their business primarily through Amazon’s FBA program.  As like many nascent businesses, sales tax compliance was not a significant concern as they were launching and taking off.  They collected sales tax in their home state and the state where they shipped their inventory to Amazon.  Unbeknownst to them (or perhaps a calculated business decision), they had created sales tax nexus in multiple states and had not been collecting the sales tax due.


Topics: sales tax compliance VDA sales tax news
2 min read

Sales Tax Voluntary Disclosure Agreements

By Brian Greer on Tue, Mar 01, 2016 @ 10:30 AM

VDA’s (Voluntary Disclosure Agreements) are a hot topic so far in 2016. I believe companies that have been out of compliance historically use the beginning of the year to course correct and get on the right footing from a sales and use tax perspective.

Topics: sales tax VDA
1 min read

Recommended Sales Tax Beach Reads

By Brian Greer on Tue, Jun 02, 2015 @ 10:00 AM

Sales tax compliance often takes a back seat to income tax compliance.  While you work to reduce your effective income tax rate, sales tax liability may be growing exponentially.  If left unchecked for too long, sales tax can have a significant financial impact on an organization.  With average, combined sales tax rates in the 9% range + penalties and interest - an unexpected sales tax audit could easily reach 15% to 20% or more of revenue in a state.

While these white papers may not be on Amazon's top recommended beach reads... you might find they save you significant money and excruciating pain in the future.

Here is a list of TaxConnex's top downloaded Sales Tax white papers:

  • Top 5 Sales Tax Nexus Creating Activities - Sales tax all begins with nexus.  This white paper provides a great overview of the common areas where we see companies get tripped up from a sales tax nexus perspective.
  • 5 Steps to Sales Tax Compliance - Keeping with the "5" theme, this guide overviews how to achieve sales tax compliance for a business that is currently out of compliance.
  • Voluntary Disclosure Agreements - This popular white paper outlines the VDA (Voluntary Disclosure Agreement) process and provides simple steps to follow along the way.

Hope you enjoy!

Topics: sales tax nexus sales tax compliance sales tax VDA
1 min read

Is A Voluntary Disclosure Agreement Right For You?

By Brian Greer on Wed, Feb 25, 2015 @ 11:04 AM

Is a Voluntary Disclosure Agreement right for you? Voluntary Disclosure Agreements (VDA's) can be an effective tool in mitigating prior period sales tax exposure, however the following steps and factors should be part of any decision to pursue a VDA.

Topics: VDA
1 min read

Webinar "Five Steps to Sales Tax Compliance" - November 14

By Brian Greer on Tue, Nov 12, 2013 @ 03:15 PM

TaxConnex, LLC, America’s leading independent sales and use tax outsourcing and consulting firm, and Business Licenses, LLC invites sales tax and licensing professionals to a webinar - “Five Steps to Sales Tax Compliance."

Topics: sales tax nexus sales tax compliance VDA Now it's all on us
2 min read

Stepping Through Sales Tax Nexus

By Brian Greer on Tue, Nov 08, 2011 @ 07:26 AM

It seems as if everyone is looking for a simple answer or an easy fix these days.  Determining sales tax nexus is no different.  Understanding the general concept is quite simple but applying it to your unique situation is where the difficulty arises.  The reality is that there’s rarely a clear-cut answer.  Sales tax nexus always works in shades of gray.  Sure, having an office in a state will give you sales tax nexus in the state.  But what about a sales rep that travels into the state?  What about having a subcontractor install or repair a piece of equipment for one of your customers.  These are all variables that should be factored in when reviewing sales tax nexus.

Topics: sales tax nexus sales tax taxability VDA