Everyone is crossing their fingers that 2021 is smoother than 2020. But one way you can ensure your next year is better is getting sales tax compliant.
Sales tax compliance is complex, but it’s easier and more cost-effective to address sooner rather than later.
State audits are a serious drain on time, resources and profitability if your business is unprepared. The average sales tax audit costs business $114,147. Businesses that are out of compliance, have gone through an acquisition or experience rapid sales growth are especially at risk.
If that weren’t enough, states are likely to expand sales taxability and audit more aggressively in 2021. For businesses that aren’t sales tax compliant, this could be the toughest year yet.
The good news is that every business can get sales tax compliant. While the rest of the business landscape is unpredictable, sales tax compliance is one aspect you can control.
While regulations shift constantly, these are steps you can take to get compliant:
- Conduct a nexus review.
- Identify your taxability.
- Get registered and address unpaid liability.
- Collect & remit sales tax wherever you have nexus.
- Create your audit defense plan.
As we're about to enter the final quarter of the year, your planning for 2021 is likely well underway. Now is the perfect time to set yourself up for success by making sure sales tax doesn't become an issue for you in the new year.
Need assistance getting sales tax compliant for 2021? We’re here to help. Take our short What’s Next questionnaire to get started.