Why should companies automate sales tax?
The impending decision by the Supreme Court on economic nexus could impact many remote sellers. Tax expert and Partner at Peterson Sullivan LLP, Rachel Le Mieux, CPA, CMI, shares her insight on why companies should automate sales tax to overcome the challenges that may arise from the potential change to economic nexus.
"If you’re a small business, you’re probably filing one or two sales tax returns. Regardless of what happens in Wayfair and the Supreme Court, many states out there that are changing their nexus standards, and you may already have collection responsibilities, it’s really time for you to start thinking about an automated solution. As the states cascade into, or the domino effect starts to happen, states imposing their collection responsibility on you, you could find yourself suddenly spending a couple hours a month in filling out your returns, to having to spend hundreds of hours a month filling out multiple returns for 45 states and that’s going to be really difficult for you. And on top of that, you may end up with a retroactive, the most painful thing possible, a retroactive sales tax liability that could either put you out of business or make it very difficult for you to succeed. So I can’t emphasize enough to start looking at automated solutions now, and not wait any longer to figure out what’s going to happen at the Supreme Court."