Analyses & Studies
Analyses & Studies
- Nexus & Registration
- Taxability of Products, Customers
- Voluntary Discosures & Tax Amnesty Opportunities
- Mergers and Acquisitions
Nexus Study - Companies who have never conducted a nexus review or who have had recent changes in their business operations should consider such a review to identify or revise their sales and use tax compliance footprint. It is an especially critical tool for companies which have experienced mergers, acquisitions, divestitures, an expansion of manufacturing or distribution facilities or recent increases in their sales force.
A nexus review focuses on questionnaire responses designed to identify a company's activities or presence on a state-by-state basis through such activities as independent sales representatives, inventory, owing or leasing real or tangible personal property and other similar actions. Responses are evaluated to determine where the business has likely established nexus and when such nexus was established. The next step is a taxability study to determine whether the company needs to be registered in the nexus states identified.
Taxability Matrix - A taxability study is simply a review of a company's revenue stream for the proper application of sales and use tax where a company has nexus. Important areas of examination include how and where products and services are provided to customers and whether such products or services are statutorily exempt from sales or use tax liabilities. Revenues from optional warranties, installation, repair, and transportation charges are also high interest areas. Taxability studies help quantify potential past liabilities as well provide guidance to the compliance function on a prospective basis. A taxability study should be updated periodically to reflect legislative, administrative and judicial changes to applicable statutes and regulations.