You have questions?

Answers to Frequently Asked Questions

• What will happen if I don’t register my business to the state?

  If you do not obtain a business license, it is possible that the state, county, and/or city could fine you, force you to pay back taxes, or simply shut you down – internet or physical businesses. All states maintain laws requiring registration and taxing any sale of goods or services occurring within their jurisdiction. We suggest a consultation with our State and Local Tax (SALT) experts  – 1 hour of professional advice.

• Are states currently enforcing sales tax on out-of-state businesses?

  Yes. States invest significant resources in tracking down and auditing businesses that have nexus in their state and are selling taxable products or performing taxable services in their state. Once a business is contacted for an audit, there is little opportunity to implement liability-minimizing tactics. The only way to minimize exposure and limit the risk is to address these issues aggressively and proactively. States also share information with other states, so it is possible that your company may be contacted by several states over a short period of time concerning an audit

• What are the consequences if my company has nexus in other state but is not filing returns?

  If your company has nexus in another state and is selling a taxable product in that state, your company, if audited by that state Department of Revenue, would likely be assessed the tax that should have been collected from your customer at the time of the sale. Your failure to collect tax if you have nexus in a state makes your company liable for the tax until you can prove that your customer either reported the tax to the state himself or herself. This is almost impossible to do, so the state can force your company to pay the back tax, interest, and penalties related to the tax that should have been collected. States can assess tax for all periods that your company had nexus.

• What are the filing frequency for each state?

  Each state has different filing frequency: Monthly, Quarterly, and Annually

• I know how to file sales tax, but can I use your software to calculate my taxes?

  Yes – but please be advised that the support services available to you will be limited to technical assistance only. Any of our service packages provides you with so much more access to our resources and expertise.

• Does my business have sales tax nexus outside of my own state?

  Your company may have nexus in another state if your business…

  • Has employees that travel to meet with new or existing customers in another state,
  • Uses independent sales representatives to solicit sales in another state,
  • Has inventory or other property located in other states,
  • Rents an office or a warehouse in another state, or
  • Utilizes people in another state to perform services on your behalf for customers in another state.

  Once your company has nexus, the next step is to determine if your company is doing anything that is taxable in other states.

• Why choose Ampersand Accounting LLC?

  We are a service-based business specializing in removing your sales tax management and compliance burdens. Forget about automated response. We have skilled human beings readily available to answer your phone calls and respond to your emails promptly. The range of services we offer cover all your needs end-to-end. Plus, we are always on the lookout for ways to put more money right back into your pocket.

  Ampersand Accounting, LLC has the best and brightest Sales Tax Experts ready to help you understand your sales tax liabilities and to ensure you are in compliance. We have CPAs, MBAs, former auditors, tax analysts, and even the highest designation for sales tax professionals, CMIs. The firm has 100 years of collective experience in income tax, sales tax, and tax technology for your benefit. We specializes exclusively in working eCommerce businesses nationwide. Please contact us and see how we can help you.

• What is your fee prior to sales tax filings?

  We have the most competitive rates in the industry for the level of service and attention to detail provided to ensure your filings are accurately filed. Flexible tier packages are available to suit your needs no matter your business’s size, volumes, or stage in its growth.

• What is Quarterly Prepayment for California filings?

  Prepayments are not like returns, they are simply payments.  CA deems that the quarterly tax liabilities are too large to be made just once per quarter but were eliminating monthly frequencies from their calendars so the Quarterly Prepayment frequency, or basis, was developed.

  • They are literally payments made in advance.
  • If your tax due for Q1 2019 is $10,000.00 each month for a total of $30,000.00 then you would:
    • Prepay $10,000.00 for Jan by Feb 24^th
    • Prepay $10,000.00 for Feb by Mar 24^th
    • When you are filing the return you will take the prepayment credits for Jan and Feb so that it deducts $20,000.00 from your total tax liability for the quarter which will leave you with the remaining $10,000.00 due.

• What is sales tax nexus?

  When the term ‘nexus’ is used in conjunction with sales tax, it refers to the connection a taxpayer has with some taxing jurisdiction. In most cases, this connection or nexus is created when the taxpayer has employees or independent contractors working in the taxing state, when the taxpayer owns personal or real property in the taxing state, or when the taxpayer performs services in the taxing state. Having nexus in the taxing state does not automatically mean that the taxpayer has some sort of tax filing or tax collection obligation.

  It simply means that the state taxing authorities can legally obtain information from the business to help the state taxing authorities determine if there is some tax collection obligation. In order for a taxpayer to have a sales tax collection and remittance obligation, it must have both nexus and some taxable activity in the taxing state. Most state statutes do not use the term ‘nexus’ when describing this sort of connection with the state. Rather, they user terms like ‘doing businesses or ‘dealer’, or ‘conducting businesses to describe the types of activities that give the taxing state the right to request information from the business.