August Newsletter
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State Tax Advisors on Cover of Accounting Technology Magazine
State Tax Advisors president Riley Epps was recently featured in the May 2009 edition ofAccounting Technology Magazine. The article, "All Their Nexus Ain't in Texas," by AlexandraDeFelice, was titled after a State Tax Advisors training course of the same name.
"Nexus" refers to a company's presence in a state which gives the state the authority to taxthe company on that business. DeFelice's article highlighted the perks of hiring consultingfirms like State Tax Advisors to handle the nebulous and complicated sales, use, and franchisetaxes that vary from state‐to‐state.
"It was a great honor to be featured on the cover of Accounting Technology," said Epps. "Weaim to provide the best and latest in tax consulting, and so the media attention really showsthe great level of expertise in the professionals at State Tax Advisors."
Tax Term of the Month: Nexus
"Nexus" is a connection between a state and a taxpayer, sufficient enough to allow the state to require the taxpayer to file tax returns and pay taxes in that state's jurisdiction. For businesses that are active in only one state, this is an easy concept. But for those that have expanded into other states and over the internet, nexus can become muchmore confusing.
Businesses often get in trouble because of the incorrect belief that some of their activities do not create nexus. Furthermore, the virtual markets and the internet have caused an expansion of nexus questions that were only used on mail‐order activity before. A complete understanding of nexus prior to business expansion into other states could eliminate the costly filing requirements and penalties for failure to comply.
State Tax Advisors can help you avoid the pitfalls of failing to recognize nexus and other state and local tax issues. We stay current with changes in nexus, and our clients neverpay more or less than what they need to payin state and local taxes.
Typical business activities that create either sales tax or franchise tax nexus include, but are not limited to:
♦ Ownership, leasing, or usage of office space, warehouse, or storage facilities;
♦ Solicitation of sales by either employees, independent contractors, agents, or representatives;
♦ Participation in trade shows;
♦ Providing installation, warranty, or repair services
♦ Leasing or rental of equipment to customers;
♦ Delivery in company owned trucks or vehicles.
Did You Know?
State Tax Advisors offers customized training and advice for your business like the course featured in Accounting Technology Magazine.