The idea for TaxConnex came from the lessons I learned at Tax Partners.
I launched Tax Partners in 1998 on the belief that sales tax compliance could be solved exclusively through technology and innovation. With our unique platform, Tax Partners became the market leader for sales tax compliance, filing over 60,000 returns and remitting over a billion dollars in taxes each month. We grew Tax Partners to $16M of annual recurring revenue and sold it to Thomson Corporation in 2005. Despite our success, I learned that sales tax is simply too complex to fully automate.
Here was the problem: each client provided sales tax data in different formats, different levels of detail and different types of data deficiencies and errors. It forced us to develop hundreds of customized data parsers and translators to get a data file that could be imported into our proprietary tax return software. Additionally, even with the preprocessing of the data files, we could not get a consistently accurate return for all companies for all periods. Each month, there were too many variables with the data and some of the tax returns themselves. Because of the inaccurate tax returns we filed, we received thousands of jurisdiction notices. Our attempts to automate did not work, and it required extensive human skills to clear the notices and manage the clients because of the notice volume.
As such, at TaxConnex, we did not build a single comprehensive tax return preparation system. Instead, we built a cloud-based workflow platform that includes various tools and applications that facilitate the development and maintenance of customized sales tax return preparation and compliance engagements managed exclusively by a tax specialist. We have created the ideal mix of technology and service.
Now, with a nationwide network of 35 practitioners, TaxConnex is helping businesses of all sizes with everything from compliance … to notice resolution … to audit support. We’re continuing to refine our platform to meet the needs of both practitioners and clients. And we’re helping more organizations than ever get sales tax off their plate.
TaxConnex | Now it’s all on us™