Nexus is the most overlooked area of sales and use tax compliance. Nexus can be defined as "having presence in" or "doing business in" a particular jurisdiction. Generally, a company having "nexus" within a taxing jurisdiction will be required to file sales and use tax returns within that jurisdiction. The majority of corporate entities fall short when analyzing their current nexus situation and often fail to register and report in a specific jurisdiction where nexus is established, exposing themselves to severe penalties for non-compliance. Conversely, as an alternative, many companies voluntarily register in jurisdictions where "nexus" has not been established, thereby increasing the burden of their reporting requirements and draining their corporate resources.
Understanding the meaning of nexus for sales and use tax purposes is an enormous task. Taxcient provides consulting service that determines the best course of action a company should take for accurate and effective sales and use tax compliance. Leveraging the domain expertise of our former state tax auditors, Taxcient performs a thorough analysis of your companies operations that affect "nexus" in a particular jurisdiction. Our analysis leads to a recommended strategy and a course of action for cost-effective design, implementation, and testing of sales and use tax compliance controls to minimize your tax liability and risk.
