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.
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.
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.
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.
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.