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Nexus Study
As businesses expand
into multiple states ("multi-state"),
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.
Key Benefits
- Know Exposure Before Auditor Shows Up!
- Take Action to Reduce Exposure
- Eliminate Surprises
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