Sales Tax Voluntary Disclosure and Nexus Studies

Is your company doing business in other jurisdictions, but is not registered to collect sales tax? Do you know if your business has sufficient activity in that jurisdiction such that you should be collecting tax? Every state has different rules about what creates this “sales tax nexus”, and you absolutely need to know those rules if you have people, property or representatives acting on your behalf in that state.

State tax departments share information, cross check with other state agencies, visit trade shows, stop trucks on the highway, and use numerous other tactics to discover companies that are doing business but are not registered for sales tax. If this is the case with your company, it is cause for concern because there is no statute of limitations on sales/use tax. That means if you have been doing business but not paying the proper taxes, the state in question can go back to day one to assess back taxes, interest and penalties.

Sales Tax Professionals can negotiate on your behalf (without revealing your company name) to limit the “look-back” period and the amount of interest and penalties with the state(s) in question.