Sales Tax Rx -
Your prescription for sales tax

Navigating your sales tax needs with ease

Sales tax is all that we do.

We are experts in sales tax and were handling sales tax returns for 10+ years at accounting firms before starting SalesTaxRX. Our customers range from small businesses with single state sales tax filings to large companies filing across the US.
We see the need for a specialized sales tax focused firm offering sales tax filing, compliance, and advisory services. Sales tax is a specialized field, and CPAs and accounting firms often lack the resources to stay on top of constantly changing sales tax rules.
We are experts in state sales tax rules. We diligently review state sales tax legislation and stay on top of changes.

Our clients:

Sales Tax Compliance

- We offer white glove sales tax filing services; we handle the return from start to finish, we review every return, and ensure it is filed correctly. - From our years of experience, we have seen that large companies that offer automated solutions for a low monthly fee, only work when returns are typically plain vanilla with minimal variations from month to month. Variations or changes in returns often cause mistakes that go unnoticed for months, frequently resulting in significant penalty and interest payments.

Account Reconciliation

Our filing fees include a monthly reconciliation of sales tax collection vs. sales tax liability, so we analyze the reasons for variances, and identify and fix issues immediately.

Economic Nexus Determination

- Economic nexus thresholds are set by states to determine when an out-of-state business must collect and remit sales tax. These thresholds are often based on the dollar amount of sales or the number of transactions made in a state. When an e-commerce business exceeds these thresholds, it is required to register, collect, and remit sales tax in that state. - We are experts in state specific economic nexus rules. Economic nexus rules vary by state and need to be constantly monitored, and interpreted accurately to ensure compliance.

Voluntary Disclosure / Amnesty Filings

Businesses sometimes experience significant growth in sales but fail to monitor state-specific economic nexus thresholds, leading to lapses in sales tax compliance. This is a common situation for fast growing e-commerce businesses. Consequently, they often find themselves in a situation where they were obligated to register, collect, and remit sales tax but did not do so for several months. We have assisted several businesses with the voluntary disclosure of past due sales tax returns, bringing them up to date with all sales tax filings. In such situations, we have often successfully negotiated with the state’s Department of Revenue to abate the penalties and interest on the sales tax due.

Sales Tax Audit Representation

We are experts in representing businesses in sales tax audits, understanding precisely what needs to be provided to the state Department of Revenue. We ensure that their specific questions are answered, and nothing more or less is submitted. Our expertise extends to compiling the requested data and presenting it cohesively and accurately. By managing requests and expectations appropriately, we are often able to negotiate the abatement of penalties and interest.

Sales Tax Registration & Exemption Certificate Management

We manage the entire process of sales tax registration and obtaining the sales tax certificate from the Department of Revenue. Where required, we handle state business registration with the secretary of state, along with annual information filing and compliance for out-of-state entities. We also manage the issuance of resale and exemption certificates for purchases eligible for sales tax exemption.

Solutions For Large Businesses

For larger e-commerce clients, we manage sales tax filing using the Avalara platform. We have access to Avalara’s partner program and are experts in the Avalara platform as well as major e-commerce platforms like Shopify. Our services include: - Setting up the tax returns on the Avalara platform. - Setting up the API connection between the e-commerce platform (Shopify) and Avalara. - Monthly/Quarterly reconciliation of sales tax liability. - Monthly/Quarterly tracking of the sales tax returns filing. - Monthly monitoring of state economic nexus thresholds.

Accuracy

Our expertly accurate calculations prevent costly errors.

Timeliness

Never miss a deadline.

Compliance

Stay compliant with ever-changing sales tax laws and regulations.

Support

Expert support available to assist you with any issues.

Rocket

$249

Up to five states
per state return per period

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Star

Flagship

$149

11+ states
per state return per period, or
Fixed monthly fee (determined based on the filing volume) + Monthly platform fee.

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All fees are payable in advance by the 10^thof the month following the month or quarter to be filed.
- For instance, for a monthly March return due by April 20^th, our fees are payable by the April 10^th.
We collect a retainer based on the number of states to be filed and two periods of filings.
- For instance, if we are filing in 4 states, we collect a retainer of $1,992 ($249 x 4 states x 2 periods).
- The retainer is fully refundable, net of any outstanding fees, at the time of termination of services.

Sales Tax: Economic Nexus

The Physical Presence Standard: Quill Corp. vs. North Dakota

The physical presence rule had previously determined nexus for sales tax. Per the rule, a business is responsible for collecting and remitting sales tax for the respective state only if it has physical presence in that state e.g. an office, a store front, or a warehouse within state boundaries. This rule was established per the Quill Corp. vs. North Dakota ruling back in 1992. While the ruling relieved out of state E-Commerce businesses from the responsibility of collecting and remitting sales tax, it resulted in loss of sales tax revenues for the states and further put in-state brick and mortar retailers at a disadvantage. The rapid growth in E-Commerce further aggravated the loss of sales tax revenues.

The Economic Nexus Paradigm: South Dakota vs. Wayfair

Concerned about the erosion of its sales tax base and loss of state funding, the South Dakota Legislature enacted a law requiring out-of-state sellers to collect and remit sales tax “as if the seller had a physical presence in the State.” This economic nexus rule requires that sellers collect and remit sales tax if on an annual basis they:1. Deliver more than $100,000 of goods or services into the state OR2. Engage in 200 or more separate transactions for the delivery of goods or services into the state. Wayfair, Overstock.com and Newegg combined to petition against South Dakota. The Supreme Court on June 21st, 2018 ruled in favor of South Dakota thereby setting a landmark ruling that opened the flood gates for an economic nexus based sales tax regime. Almost all US states now have economic nexus rules.

What does this mean for E-Commerce businesses?

The economic nexus thresholds need to be closely monitored by e-commerce businesses (and businesses selling across state lines). If you exceed the respective state’s threshold for sales, transaction volume or both, you will need to collect and remit sales tax for that state even if you don’t have a physical presence there. Most states have set an economic nexus threshold of $100K or 200 transactions per calendar year; however every state’s economic nexus rules vary and the state specific rules need to be monitored and interpreted accurately to ensure compliance.

How can SalesTaxRX help?

– Assessment of Economic Nexus: We review your historical sales data and perform an economic nexus study, to assess the states in which you are impacted by the economic nexus rules.
– Sales tax registration: For the states wherein you exceed economic nexus thresholds, we process the registrations and obtain the sales tax certificates.
– Ongoing sales tax compliance: We prepare and file your sales tax returns on an ongoing basis. If economic nexus thresholds are exceeded in several states, we can optimize sales tax filing by setting you up on an automated sales tax reporting and filing platform, and manage the filing of sales tax returns on an ongoing basis.