Sales Tax Blog
Surviving a Sales Tax Audit
There are few five letter words feared by small business owners as much as “audit”. Especially for business owners who have been careful in their processes, recording all sales, logging everything, and maybe occasionally forgetting to document something, it’s frustrating and terrifying to get that notice. But with the right preparation, and a keen understanding of why sales tax and use tax audits occur, and how to prepare for and address them, you can tackle the issue with hopefully a bit less stress. While avoiding a sales tax audit completely is ideal, having a good plan in place can help… Read More
Important Sales Tax Dates for October 2018
It’s October, the month of Halloween! But before you go trick-or-treating, make sure you file your sales tax returns, or it’s going to be a very scary holiday indeed! Filing a timely sales tax return is a great way to avoid a sales tax audit, something that can be both costly and time-consuming for your business. So take a few moments at the start of the month to make sure your commitments are scheduled by the due dates listed below. * Normal date falls on a weekend or holiday Alabama Quarterly Taxes Due 10/22 * Monthly Taxes Due 10/22 *… Read More
How the Wayfair Decision Creates Extra Burden in NOMAD States
For the 45 out of 50 states that have some form of sales tax, the June Supreme Court decision in South Dakota v. Wayfair, Inc. was a watershed moment – overturning more than 25 years of precedent that kept them from collecting sales tax on online sales from out of state. The original Quill ruling made it so that only companies with a physical presence, or nexus, in the state could be tasked with collecting sales tax on in-state sales. By overturning this ruling and opening the floodgates to states like South Dakota (and more than a dozen others) who… Read More
Important Sales Tax Dates for September 2018
Ecommerce retailers are starting to get busier and busier as the fourth quarter approaches. It’s not quite fall yet, but many of us are already thinking about the holiday selling season. September is not a huge month for sales tax due dates, other than those who must file monthly (or more frequently). New York does have quarterly taxes due as well. Make sure to check the dates below and make sure to file your business’s sales tax return in a timely manner. * Normal date falls on a weekend or holiday Alabama Monthly Taxes Due 9/20 Arizona Monthly Taxes Due… Read More
Why Wayfair Isn’t Really a New Tax
The biggest news in online commerce this year was the June 5-4 decision by the US Supreme Court that overturned the 1992 ruling in Quill v. North Dakota. That previous ruling effectively made it impossible for states to collect sales tax from businesses that did not have a physical presence within their borders. The case, South Dakota v. Wayfair, was a bellwether against which many other states will now measure and adjust their sales tax policies, some of which have already been passed into law and were merely waiting for this decision. But there’s been a consistent habit in media… Read More
Selecting the Right Business Structure for Your Small Online Business
Few decisions will have as big of an impact on the taxes you pay and regulations you must follow as the business structure of your online company. When starting an online business, you should strongly consider consulting with a lawyer for advice as to the best structure. However, you can do some in-depth research beforehand on the topic to get a better feel for the options. Remember, the following information is not to replace legal advice, merely to help you better understand your options in advance of the decision making process. Sole Proprietorship Many small online businesses opt for a… Read More
How to Avoid Misclassification of Your Ecommerce Products for Sales Tax Purposes
One of the most complicated aspects of a small business to navigate is taxes, including sales tax. Increasing this challenge is the fact that different types of products each have unique sales tax rates depending on their classification. This is why many ecommerce companies have misclassified products that lead to incorrect sales tax calculations. Here are some reasons why and what you can do about it. Potential Complications of Misclassification Companies that misclassify their products and charge the incorrect sales tax may face customer complaints and serious problems if an audit occurs. It can also result in time-consuming efforts to… Read More
Important Sales Tax Dates for August 2018
For much of the country, August means that the kids are heading back to school. You may be busy packing lunches and arranging carpools, or just remembering to leave a few minutes early for work to avoid the extra traffic. Whatever changes life brings this month, though, don’t forget to file your taxes! To make it easier we’ve made a complete list of due dates on a state-by-state basis, so there’s no excuse for forgetting to file. Not even that the dog ate your homework. Alabama Monthly Taxes Due 8/20 Arizona Monthly Taxes Due 8/20 Arkansas Monthly Taxes Due 8/20… Read More