Let’s be honest—sales tax is rarely at the top of a business owner’s to-do list. It’s confusing, time-consuming, and often feels like something you can deal with later.
And besides, what are the odds you’ll get audited?
Most business owners ignore sales tax, thinking they’ll never get audited—until they do.
Here’s the reality: state tax departments are getting smarter, more aggressive, and increasingly reliant on automation to spot noncompliant businesses. If your sales are growing, your business is spreading across state lines, or you sell through multiple platforms—your risk goes up.
Many audits start innocently:
- A mismatch between what you collected and what you filed
- Forgetting to file a “zero return” in a state where you’re registered
- A customer gets audited and the state starts looking at their vendors (yes, that means you)
And once an audit begins, states often go back three to four years. If they find uncollected or unremitted tax? You pay it—plus interest and penalties. Even if you didn’t know you were supposed to collect.
This is especially risky for:
- E-commerce sellers crossing economic nexus thresholds
- Businesses selling digital goods in multiple states
- Entrepreneurs using platforms like Shopify or Amazon and assuming tax is “handled”
The good news? You can get ahead of it.
By identifying where you have nexus, collecting properly, and filing consistently, you dramatically reduce your audit risk—and avoid costly surprises down the road.
Here’s how to protect yourself before your state comes looking for money.
Interested in a no-obligation free consultation? Schedule a time with us here :
https://yellowbrickfinancials.hbportal.co/schedule/663165633aaf34001f4c93c2