27 Aug 2020
3 min read

Switching Sales Tax Compliance Providers

Unhappy with your current sales tax compliance provider? Switching to a new one is more straightforward than you think. Follow these steps to ensure a smooth transition and gain peace of mind with your new provider.
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Many businesses are not happy with their sales tax compliance provider. Fortunately, making the switch is not as painful as it may seem. There are some simple steps you can follow to give you peace of mind with a new provider.

Working with a sales tax consultant can cut costs, save time and reduce your legal liability. But occasionally, things don’t go as expected.

State sales tax is a complex, fast-evolving space that changes quite literally every day. Between Supreme Court Cases, new marketplace facilitator laws and forty-six different nexus policies, there’s a lot to keep up with. Some compliance providers can’t do it.

If your current provider isn’t able to provide you with answers to all of your questions, your compliance efforts will suffer. To get control of the situation, you’ll need to switch providers quickly and straighten out your sales tax compliance as soon as possible.

The good news is switching is easier than most people think. Here’s what you need to do:

Gather Documentation

Before making the switch, it’s important to get your tax and legal documentation in order. This is crucial because it streamlines onboarding with the new provider and ensures you don’t lose any important documents in the transition.

Important documents include current tax calendar, return filing frequency, sales tax ID numbers, exemption certificates and any other relevant items. You’ll also want to secure copies of returns and reports from your current provider.

Send a Cancellation Notice

Once you’ve selected a new sales tax compliance provider, you’ll need to cancel your engagement with the current provider. The notice will need to specify the final date of the engagement, and how you’d like them to handle any returns during that period.

Ideally, you’ll want to do this after you’ve selected your new provider so you can avoid a situation where you temporarily have no sales tax support.

Before sending a cancellation, it’s worth reviewing the terms of your current engagement. Does the contract have a cancellation policy? How far ahead do you need to provide notice of the cancellation? This simple review will help you avoid unexpected fees or issues while making the switch.

Determine How to Respond to Prior Notices

When you leave your current provider, there will likely be open notices or processes that are still in progress. Sometimes your previous provider will receive these notices, even after you’ve left. It’s in your best interest to resolve these issues before your current engagement ends, as the provider might be hard to get a hold of after your departure.


Once you’ve selected a sales tax consultant, it’s surprisingly easy to get started. If you’ve done your homework gathering all of your documentation, you can share this with your new partner and start a formal onboarding process. At this stage, the provider will conduct a thorough review of your business and liability, then work with you to identify and execute next steps.

What’s Next?

Your business is unique, so you likely have specific questions and issues that need to be addressed. We offer a free consultation to discuss all of your questions. We’re here to help.  Click here to request your What's Next Call.


Transitioning to a new sales tax compliance provider can be a necessary step to address issues and ensure that your business stays in compliance with the ever-evolving sales tax landscape. While it can seem like a daunting process, following specific steps can make the switch smoother. Gathering essential documentation, sending a cancellation notice to your current provider, addressing prior notices, and going through the onboarding process with your new provider are key to achieving better compliance, cost savings, and reduced legal liability. For personalized assistance with your specific concerns and questions, a free consultation can be a valuable resource to guide you on the right path.
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