Sales & Use Tax Compliance
Why Sales & Use Tax Compliance Matters
Sales and use tax compliance is complex, highly state-specific, and constantly changing. Errors in nexus determination, exemptions, or filing can trigger penalties, audits, or unnecessary overpayments.
Our CPAs help businesses determine where tax is owed, apply exemptions correctly, and file accurate returns across jurisdictions. The result is compliance that reduces risk, protects cash flow, and supports growth — without over-registering or overpaying.
What's Included
- Sales and use tax return preparation and filing
- Nexus analysis and state registration support
- Multi-state sales and use tax compliance and reporting
- Exemption certificate review and ongoing management
- Use tax analysis for business purchases and expenses
- CPA-backed audit support and representation
We Help With
- Determining nexus obligations and where tax must be collected
- Filing errors and missed deadlines across multiple states
- Misapplied exemptions that increase audit exposure
- Overpayment of use tax on business purchases
- Uncertainty around digital, remote, or interstate sales rules
Explore More Sales & Specialized Tax Services
Sales and use tax compliance is just one area of our specialized tax support. Explore other services in our Sales & Specialized Tax category:
- Nexus Discovery & Compliance — identify and manage multi-state obligations
- Audit Sampling & Compliance Review — defend your business during audits
- Excise & Property Tax — specialized compliance for industry-specific taxes
- Sales Tax Exemptions — ensure exemptions are valid and defensible
- Indirect Tax Recovery — recover overpaid taxes and boost cash flow
FAQs: Sales & Use Tax Compliance
Sales and use tax compliance is complex and highly state-specific. These FAQs explain the difference between sales and use tax, how nexus is established, how exemptions are applied, the impact of digital and interstate sales, and how proper compliance can reduce risk while protecting cash flow.
What’s the difference between sales tax and use tax?
Sales tax is collected at the point of sale when a taxable product or service is purchased. Use tax applies when sales tax was not charged at purchase — often for out-of-state or online transactions — but the item is used in a taxable jurisdiction. Both obligations are legally required and actively enforced by states.
How do I know if my business has nexus in another state?
Nexus is the connection that creates a tax obligation in a state. It can be established through physical presence, employees or contractors, inventory, or economic activity such as exceeding sales thresholds. We perform nexus reviews to determine where your business has filing and collection responsibilities.
What happens if I misapply exemptions?
Misapplied or undocumented exemptions are a leading cause of sales tax audits. If exemption certificates are invalid, missing, or outdated, states may assess back taxes, penalties, and interest. We review exemption usage and organize documentation to support compliance and reduce audit exposure.
Can sales and use tax compliance actually save me money?
Yes. Many businesses overpay use tax or fail to apply valid exemptions due to conservative or inconsistent reporting. Through transaction-level review, we often identify overpayments, credits, or refund opportunities — improving cash flow while strengthening compliance.
Do online and digital sales have different rules?
Often, yes. States vary widely in how they tax digital products, SaaS, and online services, and those rules continue to evolve. With e-commerce expanding rapidly, staying current is critical. Our CPAs monitor state-level changes and apply the correct tax treatment to keep your business compliant.
