As businesses expand into multiple states, the question arises of whether the “foreign” states can force your company to register and collect use tax. Your company’s presence in the foreign state is referred to as “nexus.” Traveling salespersons, jobbers, repair persons, or independent contractors who perform installation or maintenance in a state where the company is not registered may create sales or use tax nexus with that state.
Nexus issues can create serious sales and use tax liabilities because companies miss the opportunity to collect tax from customers and eliminate their own burden. In addition, there is usually no statute of limitation because the company never filed a sales and use tax return in the state where it established nexus.
We analyze your multi-state activities to determine whether they meet U.S. Constitutional nexus requirements as well as the nexus requirements in each state. Next, we quantify the potential sales and use tax exposure and provide alternatives of how to minimize that exposure.
* Know Exposure Before Auditor Shows Up!
* Take Action to Reduce Exposure
* Eliminate Surprises