Webinar Alert: Sales Tax on Services - What, Why, and Where?

Posted by Ashley Lemus on Thu, May 18, 2017 @ 11:56 AM

With the dramatic increase of sales of services over tangible goods, cash-strapped states are looking for more creates ways to get their share of revenue.

Thus, resulting in an increase of states legislating for businesses to be charged sales tax on services.

Sales Tax on Services Webinar.jpg

Knowing what gets taxed and what goes tax free is half the battle.

That's why understanding which states have taken the approach of taxing more services is important to understand and a major topic of this webinar.

Our partners at Avalara are hosting sales tax guru, Scott Peterson, to break down new rules and demystify issues that many companies struggle with:
  • The multiple methods states use to tax services
  • The different ways that states tax services
  • Which states that have increased their tax bases


We hope you’ll join us at the presentation “Sales Tax on Services” to discover the what, where, and why of sales tax on services!


Sales Tax on Services

Date: Tuesday, May 23rd  

Time: 2:00PM ET / 11:00AM PT

Reserve Your Seat Now!


Tags: Avalara, Webinar, Sales Tax

Growth Activities That Can Be Life (and Tax) Changing

Posted by Ashley Lemus on Mon, May 15, 2017 @ 11:43 AM

Growth isn’t a one-size-fits-all approach.

In fact, companies expend a great deal of energy and resources deciding which pursuits will move the needle the furthest toward achieving specific goals, and where to prioritize their time and investment.

3 business growth activities that can be life and tax changing.jpg

Oftentimes sales and use tax gets left out of this equation, especially when it doesn’t appear to directly correlate to the task at hand. Certain growth activities, like adding new locations, products, or sales channels, instinctively signal a need to alter sales and use tax compliance practices. With others like financing rounds, acquisitions, or technology platform changes, tax implications aren’t as obvious and therefore are more likely to be overlooked. Yet these are often the situations where compliance strategies can have the greatest and most lasting impact.  


Below is a brief glimpse of how sales and use tax compliance can come into play for 3 business growth activities that can be life (and tax) changing: financing events, M&A, and technology platform integration projects.  


Download 3 Business Growth Activities  That Can Be Life (and tax) Changing


Here’s what you should be aware of when going through these processes:  


Financing events

For any financing event, public or private, investors look closely not only at how you plan to grow the business, but also how you are managing it now. Poor sales tax management practices or unfavorable audit outcomes can impact valuation, jeopardize funding, or even nullify deals. High visibility events like funding rounds and IPOs can also bring your business to the attention of state auditors looking to draw in more tax dollars.


Mergers and acquisitions

The meshing together of people, assets, systems, and processes is no simple feat. So, it’s not surprising that business integration issues following M&A transactions are one of the biggest things keeping company execs up at night.  Between due diligence, integration, accounting/financial reporting, and post-acquisition compliance, who has time for the minutia of sales tax? It can be easy to overlook tax obligations or liabilities, which can raise red flags with investors early in the process, or with auditors later.


Technology platform changes, consolidations or upgrades

During change events, it’s good practice to evaluate your financial systems and fill any gaps with new solutions or functionality that can advance your growth objectives. For example, tax automation software that unites critical transaction data from disparate systems and processes can alleviate compliance issues during post-merger integrations, reducing audit risk and avoiding delays in closing the books.


Download the complete whitepaper for further insights from industry leaders.


Download 3 Business Growth Activities  That Can Be Life (and tax) Changing


Avalara is an industry leader in Sales and Use Tax Compliance.

We would love to speak with you about how Avalara and Klear Systems can benefit your organization.

Give us a call at (949) 681-8135,
email us at info@klearsystems.com
or complete the form below and we’ll reach out to you.

I Want to Learn More!


Tags: Avalara, Sales Tax, Business Growth

3 Ways Growing Companies Prepare for Sales Tax Compliance

Posted by Ashley Lemus on Fri, Apr 21, 2017 @ 11:38 AM

Growth can lead to unexpected complications, especially when it comes to sales tax compliance.


3 ways growing companies can prepare for Sales Tax.png

That's why we're providing this complimentary prerecorded webinar to help your small business prepare!


Teach Me How to Prepare For Sales Tax Compliance!


Learn which business changes often trigger a change in sales tax compliance processes, what you can do to be sure your business isn’t at risk of non-compliance, and if automation makes sense for your company.

Join us to learn the following:

  1. How you can ensure sales tax compliance as you prepare for growth
  2. Key areas of concern for growing companies
  3. How automation can get you growth-ready


 Avalara is an industry leader in Sales Tax compliance!


Teach Me How to Prepare For Sales Tax Compliance!


To learn more about how
Avalara, partnered with Klear Systems, Inc., can help benefityour organization,
please contact us today!


Give us a call at (949) 681-8135 or
email us at info@klearsystems.com


Tags: Avalara, Webinar, Sales Tax

Free Sales Tax Assessment Tool! Compliments of Avalara

Posted by Ashley Lemus on Tue, Apr 18, 2017 @ 03:55 PM

One such area that is complex for a lot of businesses is sales tax.


Avalara Sales Tax Assessment Tool Overview.png


That's because, as your business grows, the higher the chances are that your business will be subject to more state compliance requirements!

This 5-minute survey from Avalara, a Sales and Use Tax Compliance industry leader, is an excellent starting point for the conversation on sales tax risk, registration, sales tax research, and sales tax compliance automation.

This survey does have every answer about sales tax but will put into perspective which questions need to be asked next and with which states to focus.


After answering four questions, you'll receive a summary which includes:

-   States in which your organization may have risk by not collecting sales tax

-   Follow up questions to consider before registering with a state

-   Questions to ask to determine if a technology solution such as Avalara’s may add efficiency to your compliance process


Upon completion of this quick survey,
your SMB will be well on its way to sales tax compliance!

 Let's Figure Out My Sales Tax!


Tags: Accounting & Finance, Sales Tax

Don't Be Fooled by Nexus Rules

Posted by Ashley Lemus on Fri, Apr 14, 2017 @ 10:22 AM

April 1st is commonly known as April Fool’s Day.

It’s also the date when Amazon started collecting sales tax in four more states — Maine, New Mexico, Hawaii and Idaho —bringing the total to 45 states and the District of Columbia.

 Free Guide Don't be fooled by nexus rules.jpg


Amazon is no fool and sales tax nexus is no joke. States are tired of losing revenue from tax-free remote sales and are starting to crack down on businesses who fail to register or collect sales tax when their sales activities are deemed substantial enough to warrant it.

Amazon’s decision to volunteer to register to collect sales tax in more states may simply be pre-emptive to ensure that, should their sales into that state meet nexus thresholds in the future, their bases are covered.


While merely speculative as to motive, it is a smart move – and one that other companies may want to consider. The Quill v. North Dakota decision is decades old now, and the physical presence standard for nexus doesn’t adequately cover eCommerce. Congress still has yet to rule on new federal online sales tax legislation, despite multiple opportunities to do so. As a result, states are starting to reinterpret nexus to their own benefit in an attempt to collect tax revenues they feel are owed them. Under these broader terms, businesses can establish nexus through such activities as attending trade shows, engaging drop shippers, hiring remote employees, and (yes) online sales.


If you can’t beat ‘em, join ‘em

Amazon was one of the first eCommerce sellers to challenge remote seller nexus rules – an action which dubbed those policies “Amazon tax” or “Amazon laws.”  In the nine years since the eCommerce giant took New York to court over its 2008 Amazon tax law, the floodgates have opened to even more nexus changes at the state level, first with affiliate nexus and click-through nexus, and more recently with economic nexus laws.


The penchant for states to change or introduce new nexus laws has made it increasingly difficult and risky for businesses who sell online or into multiple states to keep track of their sales tax obligations. While it may not make sense for smaller to mid-size eCommerce sellers to volunteer to collect sales tax as universally as Amazon is now doing, it would be wise to have a solution in place to help you manage sales tax nexus — one that will scale with your business as it grows or changes.


Know your nexus

Nexus is an issue that Avalara gets asked about a lot. So much so, that they created a page on their website dedicated solely to helping companies understand nexus and even find out what nexus laws apply to each state where they do business.


Companies frequently engage Avalara’s professional services tax experts to help them determine their nexus obligations. And complying with multistate nexus is one of the biggest motivators to companies deciding to onboard Avalara’s tax automation solutions. Avalara’s software makes critical sales tax decisions automatically, pulling from the largest and most comprehensive tax database in the world and applying accurate, verified, up-to the minute rates and rules to all your transactions. In most cases, Avalara is a simple integration to existing financial systems so setup is fast and easy. Avalara can also assist with exemption certificate management, as well as filing and remitting of sales tax returns.


For a refresher on nexus obligations, read Avalara’s guide,
Everything you wanted to know about nexus (but were afraid to ask)

Download My Free Guide! 


Tags: Avalara, Sales Tax

Webinar Alert: "How to Determine Sales Tax Nexus"

Posted by Ashley Lemus on Mon, Apr 10, 2017 @ 10:35 AM

You’ve probably heard all about nexus. If not, it’s a pretty simple concept: having enough presence in a state that you need to collect sales tax in that state.

What’s not so simple to understand is what determines “significant physical presence” in other states. Why? Because most states make their own rules and define presence differently.

Sales Tax Nexus Webinar.png

While we can’t change the rules, we can help you know which ones apply to you.

Let SALT expert and former CA State Auditor Steven Cabrera explain:

  • Which activities create nexus in most states
  • The difference between Origin-based and Destination-based states
  • When you should review your nexus activities
  • How to create a nexus checklist


We hope you’ll register for the presentation and workshop How to Determine Sales Tax Nexus to discover why other states want you to collect sales tax. Space is limited!


Date: Tuesday, April 18

Time: 2:00PM ET / 11:00AM PT

 Reserve Your Seat Now


Avalara is an industry leader in Sales and Use Tax Automation. Can't attend the webinar at the scheduled time? Be sure to register to receive a complimentary recording, or sign up for our blog post subscriptions to stay up to date on all SMB info!


Tags: Avalara, Webinar, Sales Tax

Webinar Alert: Sales and Use Tax Audits Uncovered

Posted by Ashley Lemus on Mon, Apr 03, 2017 @ 03:54 PM

Ever wonder why certain businesses are targeted or the most common types of errors auditors look for?

Sales and Use Tax Audits Uncovered Webinar.jpg

Or more importantly, the impact on your business should the audit outcome not weigh in your favor? The upcoming Sales and Use Tax Audits Uncovered webinar can answer those questions.


Using extensive data acquired from the Texas Department of Revenue and the California Board of Equalization, Pesner Johnson & Co. and Avalara uncovered the following:

  • Which four industries are audited the most
  • How many audits conducted out of state
  • Average cost of an audit including penalties, fees, and professional counsel


That’s just the tip of the iceberg! Plenty more insight will be shared in this complimentary one-hour presentation. Please attend and get insight found nowhere else. 


Register today for the webinar Sales and Use Tax Audits Uncovered. Space is limited!


Date: Wednesday, April 5

Time:  11:00AM PT

Duration: One hour

Reserve Your Seat Now!


Tags: Avalara, Webinar, Sales Tax

Risky Business: 5 Industries that Raise Audit Red Flags

Posted by Ashley Lemus on Wed, Mar 15, 2017 @ 11:22 AM

States target certain businesses for sales tax audits according to data


For most companies, the mere idea of a sales tax audit is a daunting prospect, and probably the most common of strategies is a “fingers crossed we don’t get picked” approach. But for certain types of businesses, just doing what you do can be enough to attract the attention of the state auditor.

According to state departments of revenue data, certain industries are at a higher risk of being audited simply based on how sales and use tax regulations impact their business. The more complex the rules, the higher the odds that errors or oversights will happen. These mistakes can be costly – both for states that are missing out on tax revenues and the companies that fall short on compliance.


The audit process uncovered

Unless you’ve been through an audit before, you likely have no idea what to expect, never mind why the state is looking at you or why your business has been selected for an audit. Sometimes, companies are chosen at random. But more often, something you are doing (or not doing) in your business has raised the red flag for state auditors.


Sales and Use Tax Audits Uncovered, a new report by Avalara and Peisner and Johnson, aims to set the record straight on why some businesses get audited more than others and the behaviors driving these trends. Analysis compiled from real audit data from two of the four Big Four states, Texas and California, and findings from more than 64,000 audits conducted over a 27-year period went into the writing of the report. Some interesting patterns emerged from this data on the types of companies that tend to get audited, the reasons why they get audited, and what activities make them more vulnerable to an audit.


For example:

  • 60% of audits target only four industries
  • One-third of audits are now conducted out of state
  • The two most frequently identified audit errors are improperly managing exempt sales and out-of-state purchases


 Avalara avatax saves your business thousands in manual tax compliance costs


Lax tax practices are red flags

The study found that certain factors, such as audit history and having a high ratio of exempt sales to total sales, led to a higher risk of being audited. While these seem straightforward, other characteristics like industry type are less understood. What exactly is it that puts these businesses in the state auditors’ crosshairs when it comes to tax compliance?


For starters, certain tax practices can put any business at greater risk of audit. According to the California Board of Equalization, the top three most frequently seen problems are: 

  • Not charging tax on out-of-state sales
  • Recorded versus reported difference in taxes collected and remitted
  • Not properly documenting tax-exempt sales


Which industries are a target

According to audit data, the industries targeted most by auditors are Retail, Food Service, Manufacturing, Wholesale (/Distribution), and Construction. These were ranked in the top five in both California and Texas. It’s likely that these industries attract attention based on the types of compliance errors auditors uncover when auditing these businesses. For example, sales tax nexus was a common hurdle shared among all five of these industries. Not surprising, given that states have vastly changed the definition and thresholds for nexus beyond the physical presence standards.


Beyond nexus, audit triggers were more specific to the tax complexities experienced by each industry. For example, product taxability can be especially burdensome for retailers, wholesalers, and food services, especially given how differently states tax different products and services. Use tax and exempt sales tends to trip up manufacturers and construction companies. And drop shipping can complicate compliance for distribution companies. These and other audit triggers are covered in more depth in the report, along with audit profiles and outcomes for each of the high-risk industries.


The report also reveals that states are getting more serious about sales tax audits — especially in recouping lost revenues from ecommerce sales — hiring more auditors and focusing greater efforts on audits conducted out of state. What exactly does being caught in non-compliance cost nowadays? According to Wakefield Research, small to mid-size businesses are out approximately $114,000 in taxes, fees and penalties if auditors find problems. It can be nearly four times that amount for larger firms. 



Reduce risk with sales tax automation

While you may not be able to head off a sales tax audit forever, you can make the process far less painful by managing tax compliance more efficiently. This starts with having a clear understanding of your tax obligations and a reliable way to ensure you can comply with them — now and should they change. Tax automation software like Avalara can provide this assurance.


Get your free copy of the Sales and Use Tax Audits Uncovered report to learn more about audit triggers, how to avoid them, and how to protect your business against unnecessary tax compliance risk. 


We would love to speak with you about how Avalara and Klear Systems can benefit your organization.

Give us a call at (949) 681-8135,
email us at info@klearsystems.com
or complete the form below and we’ll reach out to you.


I Want to Learn More!


Tags: Manufacturing, Distribution, Avalara, Sales Tax

6 Most Common Sales Tax Return & Filing Errors Webinar

Posted by Ashley Lemus on Thu, Mar 09, 2017 @ 10:07 AM

Sales tax filing and reporting rules vary between jurisdictions in major ways.

 6 Most Common Sales Tax Errors.png


Each state has unique filing schedules, forms, payment thresholds and other administrative requirements that make staying on top of returns challenging. Following a few best practices can help you avoid costly penalties and fines.

Join sales tax compliance and tax technology expert John Sallese as he explains:

  • Which part of the rseturns process is the biggest area of tax risk
  • How to identify whether your business has “nexus’ and should file in multiple states
  • The most common remittance errors
  • What typically happens when you fail to register


Register today for this highly informative webinar, hosted by Avalara, on the 6 Most Common Sales Tax Return and Filing Errors. Space is limited!


Register Now!

Date: Wednesday, March 22

Time: 11:00AM PT / 2:00PM ET

Duration: One hour


We would love to speak with you about how Avalara and Klear Systems can benefit your organization.

Give us a call at (949) 681-8135,
email us at info@klearsystems.com
or complete the form below and we’ll reach out to you.

I Want to Learn More!


Tags: Avalara, Webinar, Sales Tax

2017 Sales Tax Changes Webinar

Posted by Ashley Lemus on Fri, Feb 10, 2017 @ 03:12 PM

Do you know which sales tax changes will affect your small business in 2017?



Join Sage on Thursday, February 16th as they bring in their sales tax experts to explain what the State and Federal government have in store for all things sales and use tax.


This highly informational webinar will cover:

  • Federal and state-by-state changes that may impact your business
  • How new legislation is changing the sales tax landscape
  • New rules on taxability of products and services across many industries


Date: Thursday, February 16, 2017
Time: 11:00 AM Pacific Standard Time


 It's important to understand the rules, protect your business and stay ahead of the changes.  You don't want to miss out!

I Don't Want to Miss Out!


Tags: Sage Software, Webinar, Sales Tax