Sales tax nexus has a new face. Physical presence still establishes nexus, but now economic nexus is enforced making it more difficult to determine if you have exposure. If you discover you have nexus in some states, how can you lessen the financial blow?
Cherry Bekaert offers three primary services that will identify your nexus exposure and help you implement processes to comply with reporting requirements within your time and budget parameters.
Phased-In Nexus Review
Cherry Bekaert will analyze all your business activities to determine if nexus is established in a given state. We quantify your exposure and create a game plan to move forward to minimize the financial impact on your company.
COMPASS Complete Assessment
This comprehensive review identifies your sales tax nexus exposure, but it also includes an analysis of your purchases to make sure you are taking advantage of all sales tax exemptions available while not underpaying on taxable purchases. We also review the sales side of your business to identify if the correct tax rates are being charged to customers, and we verify that exemption certificates are properly managed. We present our Report of Findings, which features recommendations to improve your processes. Finally, we conduct hands-on, interactive sales and use tax training to give your employees the tools to manage your sales and use tax processes into the future.
Voluntary Disclosure Agreements
If your company faces significant nexus exposure issues, a voluntary disclosure agreement is often the recommended course of action. Most of the time, taxes and penalties can be negotiated and, if necessary, a payment plan can be established. Your company remains anonymous with the state during the process, giving you flexibility to reject the state’s offer.
Remember, if a state sends you a nexus questionnaire, your ability to negotiate a voluntary disclosure agreement is lost. Let us determine if you have a nexus problem and negotiate an agreement with the state before it is too late.
Here are two charts with the most updated remote seller nexus legislation by state.