My client reached their nexus threshold… Now what?
When your client reaches the nexus threshold in a state, they need to register to collect taxes with the state agency that is responsible for sales tax, then begin collecting taxes from customers in that state.
There is a brief grace period between when you reach economic nexus and when you need to register; however, there is generally no grace period for physical nexus. States pay close attention to registrations and strictly enforce nexus. A business should not delay registering for economic nexus when a threshold is met.
Davis, Davis & Harmon LLC are sales tax audit specialists who can help you navigate your organization’s most complex sales and use tax issues. Our award-winning team will ensure your business is properly protected from over-taxation. Our goal is to maximize your sales tax savings and return money to your company’s bottom line. Contact DDH Tax today.
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This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.