20 Jan 2021
1 min read

3 Urgent Sales Tax Compliance Trends for 2021

Discover the 3 major sales tax trends for 2021 and take proactive steps to ensure compliance and minimize liabilities. Learn how remote employees, increased audit activities, and evolving state legislation will impact your business.
Table of contents

We’ve made it to 2021! Now it’s time to start thinking about how the events of the last year will impact your sales tax liability and compliance. Here are the 3 biggest trends to get ahead of right now.

Trend #1: Your Remote Employees Will Bring Tax Liabilities

A remote employee working in a state technically establishes physical nexus for your business in that state. Most states overlooked this during the early days of the work-from-home era. They won’t in 2021.

Trend #2: States Will Get More Aggressive with Audits

State governments across the country are experiencing financial strain from the pandemic. Conducting more frequent and aggressive audits will allow states to replace lost revenue with unpaid taxes, interest and penalties. Start preparing for this now.

Trend #3: Florida and Mississippi are Coming for You

By the end of 2020, the vast majority of states had passed economic nexus legislation. As state revenues shrink and ecommerce sales grow at record-shattering rates, the few remaining holdouts will look to establish economic nexus. If you make online sales in Florida or Missouri, look out for new legislation that could increase your taxability in 2021.

Start Preparing for What’s Next

Get everything you need to know about getting compliant in our 2021 Sales Tax Compliance Guide.

Have specific questions about state and local taxes? Get all the expert advice you need and more in a Free Consultation today.


As businesses enter 2021, three significant sales tax trends are emerging, demanding attention and proactive measures. The proliferation of remote employees creates complex tax implications, as states recognize physical nexus establishment. To mitigate liabilities, addressing remote workforce issues is imperative. Additionally, states, grappling with financial strains caused by the pandemic, will intensify their audit efforts to recoup lost revenue. Businesses must prepare by fortifying their compliance strategies. Moreover, Florida and Mississippi are poised to implement economic nexus legislation, expanding tax liabilities for online sellers. It is vital to stay informed and compliant, staying ahead of evolving state regulations. To navigate these trends successfully, consult a comprehensive Sales Tax Compliance Guide or seek expert advice through a Free Consultation.
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