Sales Tax Nexus Compliance

Most online sellers:

• Use flat shipping rates

• Bundle shipping and handling

• Don’t track actual delivery cost per order

• Sell into multiple states simultaneously

This leads to:

• Over-collecting tax (hurts conversion)

• Under-collecting tax (creates audit exposure)

• Applying the wrong rule in the wrong state

Sales tax is not just about rates — it’s about rules, structure, and documentation.

1) How does MT Bachani CPA approach sales tax nexus differently?

We don’t start with software — we start with how your business actually operates.

Our approach combines:

• CPA judgment from working with multi-state businesses

• Practical experience reconciling real e-commerce data (Amazon, Shopify, FBA)

• Automation through Avalara only after nexus and taxability are clearly understood

This prevents over-registration, missed obligations, and audit-triggering errors.

2) Do you only work with e-commerce sellers?

While we work across industries, a significant portion of our clients are e-commerce and online sellers, including Amazon FBA and multi-channel businesses.

That experience matters because:

• Inventory movement creates hidden nexus

• Marketplace rules vary by state

• Shipping, handling, and bundled pricing are frequently mis-taxed

We bring that experience into every engagement — even for non-ecommerce clients.

3) How do you determine where I need to register for sales tax?

We perform a nexus assessment that looks beyond sales totals.

This includes:

• Sales by state and channel

• Inventory and fulfillment locations

• Employees, contractors, and operational activity

• Marketplace vs direct sales

• State-specific nexus thresholds and rules

The result is a clear registration roadmap — where to register now, where to monitor, and where no action is required yet.

4) When do I need to register once I cross a nexus threshold?

Registration timing matters.

In most states:

• You are expected to register promptly after crossing a threshold

• Tax collection typically starts after registration, not retroactively

• Delays can increase exposure to penalties and interest

We help determine:

• When the threshold was crossed

• Whether prior exposure exists

• The safest registration date and approach (including VDAs when appropriate)

5) What are the typical sales tax filing due dates?

Sales tax return due dates vary by state and filing frequency.

Most commonly:

• Monthly filers: returns due between the 15th–20th of the following month

• Quarterly filers: often due by the last day of the month following the quarter

• Annual filers: typically due in January

States may also change filing frequency based on volume.

We track these changes and ensure filings stay current.

6) How do you handle late filings or back taxes?

This is where CPA experience matters most.

If there is historical exposure, we:

• Quantify the potential liability

• Evaluate Voluntary Disclosure Agreements (VDAs) to reduce penalties

• Register and file strategically — not blindly

• Create a compliance plan going forward

The goal is to resolve issues before they escalate into audits.

7) What role does Avalara play in your process?

Avalara is a powerful automation tool, not a replacement for judgment.

We use Avalara to:

• Calculate tax using current state and local rules

• Apply correct product and shipping taxability

• Manage exemption certificates

• Prepare and file returns efficiently

As an Avalara Partner, we ensure it is configured and monitored correctly — which is where many DIY setups fail.

8) How do you prevent sales tax mistakes once automation is live?

We provide human oversight on top of automation.

This includes:

• Reviewing zero-tax or unusual transactions

• Monitoring shipping and handling tax treatment

• Checking marketplace vs direct-sale behavior

• Reviewing notices and filing confirmations

Automation handles volume.

We handle risk.

9) How often do you review nexus and compliance?

For growing businesses, we recommend at least quarterly reviews.

Nexus can change due to:

• Sales growth into new states

• Inventory movement (FBA, 3PLs)

• New products or pricing structures

• Hiring remote staff

We monitor changes so you’re alerted before new obligations arise.

10) What do you need from me to get started?

Typically:

• Sales reports by state and platform

• List of selling channels (Amazon, Shopify, etc.)

• Fulfillment and inventory details

• Product catalog

• Current sales tax registrations and filing history (if any)

From there, we guide the process end-to-end.