The impact of the recession has been felt sharply in many states.
Some states have been forced to run at a deficit as a result. Given this environment, many states have increased their audit activity with respect to sales and use taxes.
There seems to be two issues at the front of this activity; nexus and internet sales. Nexus is becoming a very popular way of challenging the average retailer doing business in multiple states, with new regulations being introduced in many of those states in order to redefine what is taxable.
For the time being however, it is extremely important for retailers to be able to properly identify nexus in order to accurately report and file sales and use taxes. Feel free to contact the office for more information
Tags: multi state taxation
Written by: Doug Rodrigues