Making Sales Tax Easy: Sales Tax Nexus & Sales Tax Audits for Small and Mid-Sized Businesses

June 21st?marked not only the first day of summer, but also the 5th?anniversary of the US Supreme Court’s decision in?South Dakota v. Wayfair?(2018), the landmark case which introduced the concept of “economic nexus” into our daily conversation.

Today, even 5 years after the ruling, we still assist clients with all the nuances of identifying nexus creation dates, confirming taxability of products and services across the states, and the registration and filing that comes with creating economic nexus for sales tax purposes.?

Bottom line, this ruling had a profound impact on the way companies now comply with sales tax collection and reporting.?And, as we were in 2018, we are still working to assist clients with the many questions that arise and the compliance challenges they face.?

This month Making Sales Tax Easy shares our article on the 5th Anniversary of The Wayfair Decision and the Impact of Economic Nexus on Small And Mid-Sized Businesses.

We also share our second blog article from our 5 part Sales Tax Audit Series on handling a sales tax audit from beginning to end, as well as our next compare and contrast article - this month we dive into the sales tax nuances of North Carolina and South Carolina.

On the 5th Anniversary of The Wayfair Decision?– The Impact of Economic Nexus on Small and Mid-Sized Businesses

As we recognize the 5th?anniversary of the US Supreme Court’s groundbreaking ruling in South Dakota v. Wayfair (June 2018), we wanted to revisit and summarize the ramifications of that decision as we sit here 5 years later. Small and mid-sized businesses are finding themselves in a tax landscape that continues to evolve due to the introduction of economic nexus laws over the last 5 years. It’s essential for these businesses to grasp and navigate these laws to stay compliant and steer clear of potential penalties.

In this article, we dive into the concept of economic nexus, discuss its impact on small and mid-sized businesses, and offer practical advice for successfully managing this intricate tax environment.

The Sales Tax Audit Series - The Mini Sales and Use Tax Audit

In this second blog from our Sales Tax Audit Series, we discuss the self-audit.?In our?first blog?we called the self-audit a “Mini Sales and Use Tax Audit” or an MSUTA.

The purpose of the MSUTA is to be proactive and protect a company from a future bad audit outcome – an unexpected material tax assessment. The MSUTA is very much like your annual medical physical; like an annual health physical, the MSUTA is done to catch problems early and correct them. Like a physical, the MSUTA consists of tests, analysis of the results of the tests, and a prescription for correcting problems.

To read more about The Mini Sales and Use Tax audit,?click here.

North Carolina & South Carolina and Sales Tax

This month, we continue our blog series with a contrast of a couple of southeastern states – North Carolina and South Carolina, specifically their treatment of technology items for sales tax purposes.

To read more about taxes in North Carolina and South Carolina,?click here.

About?Monika?and?Miles Consulting

Monika is President and Founder of Miles Consulting with over 21 years of experience in multistate tax consulting (sales tax, income/franchise and credits & incentives), plus a few more in federal tax! Before starting the firm in 2002, Monika was a Senior Tax Manager at a Big 4 firm.

Miles Consulting Group is a professional services firm specializing in multi-state tax solutions, which addresses state and local tax issues, including general state tax consulting, nexus & taxability reviews, audit support, voluntary disclosure agreements, and other special projects.

We also specialize in SaaS and other technology industries. For more information, visit?www.milesconsultinggroup.com?and to contact us please call us at 408-266-2259 or email?[email protected]