During my career with PIA I have seen businesses destroyed (or nearly so) because of the firm’s lack of understanding about tax laws. It could have been untimely deposits of payroll taxes; not classifying themselves properly regarding franchise tax laws (Texas); or mis-applying sales tax.
Why this comes to mind is that I recently attended a sales tax seminar regarding nexus which featured Chanel Davis, who is an expert in this unique part of sales tax regulations. The seminar was attended by CPAs, and I found it interesting that for several of these professionals the nuances of nexus were either a.) mis-understood or b.) they had no knowledge of the topic. If you are a print provider in the 21st century — you NEED to know about nexus. More importantly if you rely on a CPA for tax information — make sure they understand sales tax laws that apply to our industry.
For example, if you are a Texas, Kansas, or Missouri printing company doing business in Oklahoma and use your delivery vehicle to deliver product to Oklahoma, you are have nexus in that state. That now requires that you collect sales tax on those items being delivered to Oklahoma and submit taxes to the Oklahoma Tax Commission. Oh, by the way. If you have sales reps calling into Oklahoma — you have nexus.
What’s really getting interesting is “click-thru” nexus. Some states (Kansas, Missouri) are beginning to take the position that a remote seller has nexus in regards to online sales. For example, you have a web portal with a print broker in New York. New Yorkers order from the site. You fulfill the print orders and the broker gets a commission. Because you used a third-party in New York, nexus has been created and now your company is required to collect New York sales tax. There about 24 states who are adopting similar rules, although there are a lot of legal challenges being discussed and no clear answers. To quote Elmer Fudd — “Be afwaid. Be wewwy afwaid.”