Online Retailers Beware: States Broaden the Tax Net

What should online retailers do to avoid being surprised by a large assessment for failure to collect sales tax? First and foremost, review your business practices to determine which, if any, activities could result in sales tax nexus in states outside of your home state. Sales and marketing programs change quickly and frequently with online retailers. It's important that whenever a change takes place that sales departments communicate the change to those responsible for administering companies’ tax functions. This allows tax professionals to make informed decisions about collection responsibilities.