Cherry Bekaert | Tiffany Rodi

How Trailing Nexus Impacts Sales Tax Account Cancellations

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.

How Trailing Nexus Impacts Sales Tax Account Cancellations

What happens when a company no longer has nexus in a state but still makes taxable sales into that state? Do the company’s...

By Tiffany Rodi on October 25, 2020

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Who is Personally Liable for Sales Tax at Your Company?

Who do the states consider as the responsible parties for sales tax remittance and recovery? Is it only the owner of the...

By Tiffany Rodi on October 22, 2020

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Alabama Now Requires Tax License Renewals

Beginning November 1, 2020, the Alabama Department of Revenue is requiring annual renewals of six state tax licenses. For...

By Tiffany Rodi on October 16, 2020

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Should eCommerce Sellers Cancel State Sales Tax Accounts?

Is now the time to start canceling state sales tax accounts? After all, Amazon and other marketplaces are collecting sales...

By Tiffany Rodi on March 20, 2020

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Is Wayfair Leveling the Retail Playing Field?

Is the 2018 Wayfair ruling achieving its goal of leveling the playing field among sellers?

By Tiffany Rodi on July 25, 2019

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