Congratulations! Your technology business is profitable and growing. There is expressed interest in an acquisition of the company. The standard financial and tax due diligence procedures are in full swing and everything appears to be going well. Then the topic of sales tax comes up days before the intended closing date and things take a turn for the worse ..read more

Remote sellers are faced with many questions about economic nexus such as, how can you determine if a company has reached economic nexus? Are wholesale sales included in the thresholds? Does my business need to register if selling on a marketplace? When is a company required to register for sales tax? In this article, Cherry Bekaert’s sales tax professionals answer these questions to help simplify the process of measuring economic nexus thresholds ..read more

What happens when a company no longer has nexus in a state but still makes taxable sales into that state? Do the company’s sales tax obligations stop? The answer depends on the state. Some states invoke the concept of “trailing” or “residual” nexus which may require the company to continue collecting sales tax and to file returns for an additional period of time before the sales tax permit can be cancelled. The treatment of trailing nexus varies among states. A finding of trailing nexus could depend on the magnitude of the nexus-creating activity.  ..read more

Who do the states consider as the responsible parties for sales tax remittance and recovery? Is it only the owner of the company? States are allowed to pierce the corporate veil and can hold a number of different individuals in a company accountable for remitting sales tax, including CEOs, CFOs, Directors and other individuals who control or have authority over the company’s tax and accounting processes ..read more

Beginning November 1, 2020, the Alabama Department of Revenue is requiring annual renewals of six state tax licenses. For calendar year 2021, taxpayers who are remitting any of the following Alabama taxes must renew their tax licenses between November 1 and December 31, 2020, or the licenses will be cancelled ..read more

 When talking to manufacturers about sales tax Reverse Audits, we hear your concerns – too costly, could trigger an audit, too time consuming. Let’s turn the tables and share with you the top three “surprises” that manufacturers admit they experience when Cherry Bekaert conducts a reverse audit at one of their facilities ..read more

BREAKING NEWS | Effective April 2, 2020 California is granting small businesses 12 months to gradually remit the sales taxes that they have collected from customers. This payment plan option is available to businesses with less than $5 million in annual taxable California sales ..read more

The best way for manufacturers to avoid overpaying sales or use tax is with training and teamwork. Why ..read more

Is now the time to start canceling state sales tax accounts? After all, Amazon and other marketplaces are collecting sales tax for their sellers in 39 states. The answer is …complicated ..read more

A new Georgia law, that goes into effect April 1, 2020, will require marketplace facilitators, such as Amazon and eBay, to collect sales tax from Georgia customers and remit that tax to the state if a specific economic threshold is met.  The new tax collection requirement kicks in when online facilitators that permit third-party sellers to conduct business on their websites reach $100,000 in annual sales in Georgia ..read more