KealyWalker provides automated tax compliance and regulatory support, simplifying complex sales tax, telecom tax, and other industry-specific requirements with accuracy and expertise.

What does KealyWalker actually do?

We function as an outsourced indirect tax compliance department — covering sales and use tax, communications tax, and regulatory compliance. That includes nexus and taxability analysis, multi-state registrations, monthly and quarterly filings, exemption certificate management, notice handling, and audit defense.

How do you price your services?

Engagements are scoped to your filing footprint, transaction volume, and the regulatory complexity of your business. We share a fixed monthly fee after a short discovery call so there are no surprises on invoices.

How quickly can you onboard us?

Most clients are fully onboarded within two to four weeks. The exact timeline depends on how many states are in scope, the condition of historical records, and whether registrations are already in place.

Do you replace our accountant or CPA firm?

No — we work alongside them. Your CPA handles income tax, financial statements, and broader accounting. We own the indirect tax workstream end-to-end and coordinate with your finance and accounting teams as needed.

What industries do you specialize in?

Telecommunications and VoIP, retail and e-commerce, software and SaaS, manufacturing and distribution, wholesale and resellers, and professional services and staffing. See our Industries pages for the detail behind each.

What is a voluntary disclosure agreement (VDA) and when should I use one?

A VDA is a formal agreement between your business and a state tax authority in which you proactively disclose past non-compliance. In exchange, states typically offer a limited lookback period — often two to three years instead of four — and reduced or waived penalties. A VDA is the right move when you have discovered unfiled obligations in a state and want to resolve the exposure before the state finds you. We manage the VDA process, including anonymous pre-approval in states that allow it, so you understand the terms before committing.

What happens during a sales tax audit?

A state audit begins with a notice identifying the audit period, the states involved, and the records being requested. From that point you have a limited window to respond — typically 30 to 60 days. We handle the full process: document preservation, communication with the auditor, response preparation, and resolution. Most audits end in one of three outcomes: no change, a refund, or an assessment. If you disagree with an assessment, you have the right to appeal.

What is economic nexus?

Economic nexus is the principle that crossing a defined level of sales activity into a state — without any physical presence — creates a sales tax collection obligation. Each state sets its own thresholds, typically based on revenue, transaction count, or both.

Do I need to register for sales tax in every state I sell into?

No. You only need to register in states where you have physical or economic nexus and where your product is taxable. The right answer comes from a nexus study combined with a state-by-state taxability review.

What is the difference between sales tax and use tax?

Sales tax is collected by the seller at the point of sale. Use tax is owed by the buyer when a taxable item is purchased without sales tax being charged — most commonly on cross-state purchases and items pulled from inventory for internal use.

Are exemption certificates required for every exempt sale?

Yes. Every exempt sale needs a valid certificate from the buyer that meets the destination state requirements. Without a valid certificate on file, the seller is generally liable for the uncollected tax on audit.

How often do we need to file returns?

Filing frequency is set by each state and depends on your tax liability — usually monthly, quarterly, or annually. We manage the full filing calendar so nothing slips.

Can you help clean up historical exposure?

Yes. We routinely run voluntary disclosure agreements (VDAs) to limit lookback periods and waive penalties when historical filings are behind.

What is a nexus study and do I need one?

A nexus study is a structured review of your business activity — sales volume, transaction counts, employee locations, inventory storage, and other factors — across every state where you have any presence. It identifies where you have a current obligation, where you may have historical exposure, and where you are safe. Any company that has expanded into new states, crossed meaningful revenue thresholds in the past two years, or started using a fulfillment partner should have one. We run nexus studies as a standard first step for new clients.

Does using a third-party fulfillment warehouse (3PL) create sales tax nexus?

Yes, in most states. Storing inventory in a state — whether in your own warehouse or through a third-party logistics provider — creates physical nexus in that state, independent of economic nexus thresholds. California, Pennsylvania, and Washington are among the most active states in pursuing sellers with in-state 3PL inventory who are not registered. If you use Amazon FBA or any other fulfillment network, you almost certainly have nexus in states you have not registered in.

Which states are the most aggressive about sales tax enforcement?

California, New York, Texas, and Washington consistently rank as the most active audit states. They have large enforcement staffs, sophisticated data-matching programs, and aggressive lookback periods. Colorado, Pennsylvania, and Illinois have increased enforcement activity significantly since Wayfair. That said, any state where you have nexus and unfiled obligations is a state that can audit you. Proactive compliance is always less expensive than reactive resolution.

What is communications tax?

Communications tax is the umbrella term for federal, state, and local taxes, fees, and surcharges that apply specifically to telecommunications services — including state telecom sales and gross receipts taxes, federal USF contributions, E911 fees, and local right-of-way charges. It is administered separately from general sales and use tax in most states.

Who has to file Form 499-A and 499-Q?

Telecommunications carriers and interconnected VoIP providers that contribute to federal universal service mechanisms must file Form 499-A annually and 499-Q quarterly with USAC. That includes CLECs, IXCs, wireless carriers, MVNOs, and most interconnected VoIP providers, with limited de minimis exceptions.

What is USF and who pays it?

The Universal Service Fund is a federal program that subsidizes telecom access for low-income consumers, rural areas, schools, libraries, and healthcare providers. Telecom carriers and interconnected VoIP providers contribute based on their interstate and international end-user revenues — and most pass the surcharge through to customers.

Do MVNOs and resellers need to file 499s?

Yes, in most cases. MVNOs and resellers of telecommunications services generally have their own 499 obligations and cannot rely on an upstream carrier filings to satisfy them.

When do we need PUC registration?

Most states require PUC or commission registration for facilities-based and interconnected providers before operating in the state — separate from any tax registration. Requirements vary widely and may include tariff filings, annual reports, and bonding.

What is the difference between CLEC, IXC, and MVNO compliance obligations?

CLECs provide local telephone service and face state PUC registration requirements in every operating state, local number portability obligations, and interconnection requirements, in addition to federal USF and 499 filing obligations. IXCs carry long-distance and interstate traffic and have a heavier federal compliance footprint — USF, FCC regulatory fees, 499-A and 499-Q filings — along with state-level tax collection in every customer state. MVNOs operate under a host carrier spectrum license but carry their own obligations for state telecom taxes, E-911 surcharges, USF, and 499 filings as end-user service providers. The carrier classification determines which filings apply — getting it wrong creates compounding exposure across all programs.

What states require telecom tax registration beyond federal obligations?

Every state that imposes a state-level communications tax or telecom-specific gross receipts tax requires separate registration and filing, distinct from sales tax registration. Most states also require registration with the state public utility commission before operating as a carrier. The full list depends on your carrier type, service footprint, and whether you have facilities-based or resale-based operations. We map the complete registration requirement set for each new telecom client.

How are E-911 fees calculated and remitted?

E-911 surcharges are set at the state and sometimes local level and calculated per line, per subscriber, or as a percentage of service revenue depending on the state. Most states require carriers to collect the fee from subscribers and remit it monthly or quarterly. Registration with the state E-911 authority is typically required separately from telecom tax registration. Rates change frequently and the remittance calendar is independent of your sales tax or USF filing schedule.

What should I do when I receive a tax notice?

Send it to us right away — most notices have short response windows, often 30 days or less. We read the notice, identify the underlying issue, and respond on your behalf before the deadline.

Do you respond to notices on our behalf?

Yes. As your compliance partner, we handle the full notice lifecycle: review, research, response, follow-up, and resolution tracking.

What are the most common notice types?

Late filing notices, math error or rate-mismatch notices, missing return notices, registration follow-ups, and audit selection letters. Each has a different response pattern.

Can a notice turn into an audit?

Yes. Repeated notices, large variances, or unresponsive accounts can escalate into a formal audit. Responding promptly and accurately is the best way to keep a notice from becoming an audit.

How do we avoid notices going forward?

Timely filings, accurate registrations, correct rate and taxability mapping, and a clean exemption certificate program. We monitor all of these as part of the standard engagement.

What is the response deadline for a state tax notice?

Most state tax notices carry a 30 to 60 day response window. Some informal inquiries are shorter. The critical rule: never ignore a notice and never assume you have more time than the notice states. If you are not sure of the deadline, forward it to us immediately and we will tell you exactly where you stand.

What is NoticeManager and how does it work?

NoticeManager is the KealyWalker web-based platform for centralizing and tracking tax compliance notices across all jurisdictions and entities. Every notice is logged on receipt, assigned a response deadline, and tracked through resolution. For multi-entity businesses and CPA firms managing multiple clients, NoticeManager provides a single dashboard view of every open notice and its current status — eliminating the shared inbox, the spreadsheet, and the risk of a missed deadline.

How long does it take to switch compliance vendors?

Most clients are fully transitioned within 45 to 60 days. The timeline depends on the number of states in scope, the completeness of records from your current vendor, and how quickly we can obtain state account credentials. We manage the transition process and coordinate directly with your current provider where needed.

Do we need to change our billing system or ERP to work with KealyWalker?

No. We connect to your existing platform via data feed and work with whatever billing system, ERP, or tax engine you currently use — NetSuite, Microsoft Dynamics, Salesforce, QuickBooks, SureTax, custom-built platforms, or anything else. No system changes are required on your end.

Can you take over mid-year?

Yes, and we do it regularly. There is no requirement to wait until January or the start of a fiscal year. We pick up at the next filing cycle after onboarding is complete and reconcile any prior-period items as part of the transition.

What information do we need to provide to get started?

We typically need your current state registrations and account numbers, the last two to three years of filed returns, your exemption certificate file, state account login credentials, and a data feed or export from your billing or ERP system. We walk you through exactly what to gather and help you get it from your current vendor if needed.

What happens to our data if we ever leave KealyWalker?

Everything belongs to you. On offboarding we provide a complete package of all filed returns, registration documents, exemption certificates, and notice correspondence from your engagement. We do not hold client data as leverage. The transition out is as organized as the transition in.

Resources · FAQ

Frequently asked questions

Practical answers on how we work, plus the questions clients ask most about sales and use tax, telecom compliance, and notice management.

General Compliance Questions

How we work, who we serve, and what to expect from an engagement.

Sales & Use Tax

Multi-state registration, filing, and exemption management.

Telecom Compliance

Communications tax, USF, 499 filings, and PUC registrations.

Notice Management

What to do when a state agency sends a letter.

Switching & Onboarding

What to expect when moving to KealyWalker from your current vendor or in-house process.