Sales Tax: Why You Need an Expert on Your Side
For many businesses, sales tax compliance is an afterthought—until it becomes a problem. With evolving state and local tax (SALT) regulations and growing enforcement efforts, understanding nexus—your legal obligation to collect and remit sales tax in different states—is critical. Unfortunately, most companies either don’t have the specialized expertise in-house or the individuals who do are simply too overwhelmed to give it the attention it deserves.
The Two Common Sales Tax Pitfalls
In many organizations, one of two things happens:
The CFO or Controller is Overloaded
These professionals are responsible for high-level financial strategy and managing countless operational demands. Nexus compliance often becomes just another line item on their already overflowing to-do list. It’s a growing priority, but with so many fires to put out, it never becomes an actionable priority—until it’s too late.
The Wrong Person is Handling It
In other cases, sales tax compliance gets assigned to someone who lacks the necessary expertise—sometimes even an office manager or another staff member who has little to no tax background. Sales tax laws are complex and vary significantly by state. Without proper knowledge, it’s easy to make costly mistakes, such as failing to register in a state where nexus exists or improperly calculating tax rates.
Why Sales Tax Nexus is More Complex Than You Think
State tax departments assumed the highly publicized Wayfair decision in 2018 and ensuing economic nexus laws would lead to widespread compliance, but the reality has been the opposite. As a result, states have increased efforts to identify noncompliant businesses, some even using AI as an investigative tool. Despite widespread awareness, businesses still struggle with their obligations—often because they lack the time, expertise, or internal resources to properly address the issue.
The complexity of nexus rules means even a small miscalculation can result in:
Significant back taxes and penalties if a business fails to collect and remit sales tax where required.
Unexpected audits that can drain internal resources.
Operational disruptions when a company must scramble to fix tax issues retroactively.
The Value of a Dedicated Specialist
Working with a sales tax expert isn’t just about avoiding penalties—it’s about ensuring long-term compliance, efficiency, and financial protection. Unlike a general financial professional or an overburdened team member, a dedicated tax specialist:
Monitors evolving tax laws to ensure ongoing compliance.
Identifies risk areas before they become costly problems.
Manages registrations, filings, and reporting so your team can focus on running the business.
Provides peace of mind, ensuring that sales tax is handled correctly and proactively.
You’ll Never Regret Partnering with an Expert
No business ever regrets working with an experienced professional who is focused on their best interests. Whether your team is too busy or simply lacks the specialized knowledge, a dedicated expert can save time, money, and stress. Sales tax compliance is too important to leave to chance—partnering with a strong organization like CSH ensures you’re in good hands.
Let’s connect and discuss how the State and Local Tax experts at CSH can add value to your organization.
State & Local Tax
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