Last summer the US Supreme court ruled that economic nexus could result in states requiring sellers to collect sales tax on their sales. This has led to confusion across the US, small to large international firms being at a disadvantage of knowing the 50 different state laws around sales tax and whether their products and/or services are taxable in the 10,000+ jurisdictions that impose a sales tax.

Enter in software to help aid in automating these decisions, but unless set up properly can give detrimental results. For example, if a company were required to collect tax on their products, and didn’t, most states consider this an error by the company, and will require them to pay the tax anyway (a charge to the P&L of the company), along with penalties, and interest.

Let’s say your system was set up 5 years ago, and hasn’t been maintained, or updated. items that weren’t taxable, now become taxable because one of the state legislatures decided to change their minds. This could result in your company owing 5 years of tax on sales you’ve provided, along with penalties and interest.

We can help you get compliant, settle up with past taxes with the states and in some cases avoid the penalties (rarely do you get out of interest).