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 […]
Author: Lawrence Brown
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 […]
Texas sales tax audits can expose in-state and out-of-state businesses to substantial liability. If the Texas Comptroller determines that a business has underpaid state sales tax, it can impose liability not only for the unpaid tax owed, but also for interest and penalties. Allegations of willful sales tax evasion can […]
Several states have adopted “click-through” nexus rules that apply specifically to out-of-state businesses working with in-state affiliates and influencers. These rules require out-of-state businesses to collect and remit sales tax based on their commercial relationships with in-state promoters, even though these in-state promoters are not the business’s employees. In these […]
E-commerce sellers can face Texas sales tax audits whether they are based in Texas or elsewhere in the United States or around the world—and these audits can pose substantial risks. For e-commerce sellers that are not in compliance, these audits cannot only lead to substantial sales tax liability but also […]
Companies that provide software as a service (SaaS) and other digital services to customers in Texas must ensure that they comply with the state’s sales tax laws. While many services are exempt from sales tax under Texas law, SaaS and certain other digital services are not. Since noncompliance with Texas’ […]