Businesses that are unable to achieve favorable resolutions of sales tax disputes with the Texas Comptroller’s Office have the right to challenge their liability in court. Businesses can seek judicial review of their Texas sales tax assessments on various grounds, and, when warranted, seeking judicial review can be an effective […]
Refund suits and protests are the two primary means for businesses to dispute their Texas sales tax liability outside of the administrative appeals process. Substantively, these actions are largely similar, with the main difference being timing. Businesses can file refund suits when they discover that they have previously overpaid their […]
Businesses that disagree with the Texas Comptroller’s determination of their state sales tax liability have the right to go to court if they are unable to secure a satisfactory resolution through the administrative appeals process. Businesses also have the option to waive their right to an administrative hearing and proceed […]
For businesses that are facing substantial sales tax liability following scrutiny from the Texas Comptroller’s Office, the first step toward challenging this liability may be to file a formal protest. While many Texas sales tax protests are successful, many also fail. Oftentimes, Texas sales tax protests fail when they shouldn’t. […]
When a Texas sales tax audit results in an unfavorable liability determination, filing a redetermination request is often the next step. It is not uncommon for Texas sales tax audits to result in unjustified outcomes, and companies can file redetermination requests on various grounds. Filing a request for redetermination starts […]
If your business has just been through an unfavorable Texas sales tax audit, you have the right to file an appeal. Businesses can appeal the Texas Comptroller’s determination of their sales tax liability on various grounds, and filing a successful appeal can be essential for avoiding unwarranted taxes, interest, and […]
For out-of-state businesses that sell to Texas customers, nexus is a key issue. If an out-of-state business has nexus with Texas, it must collect and remit sales tax. However, if an out-of-state business does not have nexus with Texas, then state sales tax compliance isn’t required. In most cases, out-of-state […]
Drop shipping has become increasingly popular in recent years, with several online platforms enabling retailers to make sales without maintaining their own inventory. But while drop shipping may offer a simplified business model for retailers, strict tax rules apply, and retailers must ensure compliance with all applicable state and federal […]
The U.S. Supreme Court’s 2018 decision in South Dakota v. Wayfair had a major impact on remote sellers’ sales tax obligations nationwide. While it has now been nearly a decade since the Supreme Court’s decision, many remote sellers still do not have a clear understanding of their sales tax-related obligations—and […]
In Texas, the obligation to pay sales tax is based on a business’s “nexus” with the state. Subject to certain exceptions, businesses with nexus are required to collect and remit sales tax, while businesses without nexus are not subject to Texas state sales tax compliance requirements. The Texas Comptroller is […]