Facing scrutiny from the Texas Comptroller’s Office presents substantial risks. Facing scrutiny from the Internal Revenue Service (IRS) also presents substantial risks. Facing a tax audit can be dangerous, and when facing tax-related scrutiny at the state or federal level, businesses (and their owners and executives) must ensure they are […]
If your business is facing a Texas sales tax audit, there are several important decisions you need to make promptly. One of these decisions is whether (or when) to engage legal counsel. Due to the costs involved, many business owners will delay engaging legal counsel for as long as possible. […]
Nexus is a key issue for determining Texas sales tax liability. In fact, it is the key issue in many respects—particularly for businesses located in other states. While businesses with nexus are required to collect and remit sales tax, those without have no sales tax-related obligations. “We don’t have nexus […]
Under Texas law, businesses are only required to collect and remit sales tax if they have “nexus” with the state. Businesses that do not have nexus have no Texas state sales tax obligations. However, Texas’ nexus rules are broader than many people realize, and, unfortunately, a lot of misinformation about these rules […]
Businesses of all types can (and should) rely on a certified public accountant (CPA) to help them maintain their books and records and file their quarterly and annual returns. Many CPAs are extremely good at what they do, and they are meticulous about ensuring that their clients keep accurate financial […]
When protesting the outcome of a Texas sales tax audit, thorough preparation is key. To convince the Texas Comptroller’s Office or an administrative law judge (ALJ) to overturn an auditor’s findings, companies need to be prepared to affirmatively demonstrate how and where mistakes were made. 7 Key Types of Evidence […]
Businesses that manage vehicle fleets may have to pay both motor vehicle and motor fuel taxes under Texas law. This can amount to a substantial tax burden. Recognizing that this is the case, the Texas Comptroller’s Office strictly enforces compliance in this area, and companies that have overlapping vehicle-related state […]
As a general rule, boats and boat motors are subject to sales and use tax under Texas law. This means that sellers must generally collect sales tax at the time of sale, and if a seller does not, the purchaser must pay an equivalent use tax to the Texas Comptroller’s […]
Texas aircraft sales and use tax audits can expose owners and other parties to substantial liability. If an audit leads to allegations of intentional tax evasion or tax fraud, facing criminal prosecution could be a very real concern as well. As a result, when facing one of these audits, an […]
Energy companies operating in Texas and other states may be subject to the taxing authority of each state in which they operate. This is true whether they have a physical presence in the state or they have economic nexus with the state based on their in-state sales. For energy companies […]