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

What is sales tax nexus and how do I know if I have it?

Nexus is the legal connection between your business and a state that creates an obligation to collect and remit sales tax there. Before the 2018 Supreme Court South Dakota v. Wayfair decision, nexus required physical presence — an office, warehouse, or employees in the state. Since Wayfair, economic activity alone is enough. Most states set economic nexus thresholds at $100,000 in annual sales or 200 transactions into that state. Physical nexus triggers still apply: a single employee working remotely in a state, inventory stored at a fulfillment center, or a trade show attendance in some states is enough. If your business has grown into new markets, crossed revenue thresholds, or started using a third-party fulfillment partner, a nexus review is the right first step.

What is the difference between sales tax and use tax?

Sales tax is collected by the seller at the point of sale on taxable transactions and remitted to the state. Use tax is owed by the buyer when a taxable item or service is purchased without sales tax being charged — most commonly on purchases from out-of-state vendors, items ordered online from sellers without nexus in the buyer state, or items pulled from inventory for internal use. Both taxes apply to the same underlying transaction. The difference is who bears the collection and remittance responsibility. Use tax is frequently overlooked and is a common audit trigger for businesses purchasing across state lines.

Do I need to collect sales tax on services?

It depends on the state and the type of service. Most states tax the sale of tangible personal property but have historically exempted services. However, that is changing. Several states now tax specific services — digital services, SaaS, software, professional services, and information services in various combinations. The taxability of any given service must be evaluated on a state-by-state basis. A service that is exempt in one state may be fully taxable in another and taxable at a reduced rate in a third. Businesses that sell services across multiple states and have not conducted a recent taxability review are frequently carrying unrecognized exposure.

What is a nexus study and why do I need one?

A nexus study is a structured analysis of your business activity across every state where you have any commercial presence — sales volume, transaction counts, employee locations, inventory storage locations, contractor relationships, and any other activity that could create nexus. The output is a state-by-state map of where you have current obligations, where you may have historical exposure, and where you are clear. Every business that has expanded into new states, crossed economic nexus thresholds in the past two years, added a new fulfillment partner, or hired remote employees should have a current nexus study. We conduct nexus studies as the first step in every new engagement.

What is an exemption certificate and what happens if I do not have one?

An exemption certificate is a document provided by a buyer to a seller certifying that a purchase qualifies for exemption from sales tax — typically because the buyer is reselling the item, using it in a qualifying manufacturing process, or is an exempt organization such as a government entity or nonprofit. Each state has its own certificate forms, content requirements, and renewal schedules. If a seller accepts an invalid certificate or has no certificate on file for an exempt sale, the seller — not the buyer — is generally liable for the uncollected tax on audit, plus interest and penalties. Managing exemption certificates — collecting, validating, storing, and renewing them — is an ongoing compliance function, not a one-time task.

How often do I need to file sales tax returns?

Filing frequency is assigned by each state individually and is based on your tax liability in that state. Most states assign monthly, quarterly, or annual filing. States with higher revenue thresholds often assign monthly filing; lower-volume registrations are frequently assigned quarterly or annual. Your frequency can be reassigned as your revenue in a state grows. Filing on the wrong schedule — for example, quarterly when a state has moved you to monthly — creates late filing penalties even if the underlying tax was correct. We manage the complete filing calendar for every state in your footprint and monitor for frequency changes.

What is a voluntary disclosure agreement and when is it the right move?

A voluntary disclosure agreement — or VDA — is a formal agreement between your business and a state tax authority in which you come forward proactively to disclose and resolve historical non-compliance. In exchange, states typically offer a limited lookback period — most commonly two to three years instead of the standard four — and reduced or waived penalties. A VDA is the right approach when you have discovered unfiled obligations in a state, when a nexus study reveals historical exposure that predates your current registration, or when you are preparing for a transaction and need to resolve open tax liabilities. States that participate in the Multistate Tax Commission online VDA program allow anonymous pre-approval so you can understand the terms before committing. We manage the full VDA process from initial assessment through final resolution.

What triggers a sales tax audit?

Common audit triggers include large volumes of exempt sales without supporting exemption certificates, inconsistencies between sales tax filings and income tax returns, nexus in a state without registration, economic nexus threshold crossings that were not followed by registration, and industry-wide audit initiatives targeting specific sectors. States also share data — a nexus determination in one state can prompt outreach from neighboring states. Marketplace facilitator data, 1099-K filings, and shipping records are increasingly used by state revenue departments to identify sellers with unregistered nexus. The companies most frequently selected for audit are those with high exempt-sale percentages, multi-state operations without consistent registration, and those that have not registered after Wayfair-era threshold crossings.

Can you handle sales tax compliance alongside our existing tax engine?

Yes. KealyWalker is platform-agnostic. We work alongside whatever tax engine or billing system you currently use — Avalara, Vertex, SureTax, NetSuite, Dynamics, Salesforce, QuickBooks, or a custom-built platform. We connect via data feed and take the output from your existing system to handle everything downstream: filing, remittance, escrow management, exemption certificate maintenance, notice handling, and audit defense. No system changes are required. If your current setup calculates rates correctly but you need someone to manage the compliance workstream, that is exactly the engagement model we are built for.

How long does it take to onboard with KealyWalker for sales tax?

Most clients are fully onboarded within two to four weeks. The timeline depends on how many states are in your filing footprint, whether registrations are already in place, and the condition of your historical records and exemption certificate file. We manage the onboarding process end-to-end — gathering prior returns and registration credentials, setting up data intake from your billing system, and filing your first returns under KealyWalker on schedule. We take over mid-year regularly. There is no requirement to wait until January.

Sales & Use Tax · Multi-Jurisdiction Expertise

Sales & Use Tax, handled correctly across every jurisdiction.

Comprehensive tax preparation and filing services across state and local jurisdictions. We handle the complexity so you can focus on your business.

What we typically help with

Nexus & registrations

Where you have obligations and how to get registered cleanly

Returns & remittance

On-time filing across state and local jurisdictions

Exemptions & audit support

Certificate management and audit-ready documentation

Bottom line: Accurate filings, defensible records, no missed deadlines.

Multi-Jurisdiction Expertise

Sales & Use Tax

Comprehensive tax preparation and filing services across state and local jurisdictions. We handle the complexity so you can focus on your business.

4,500+ tax jurisdictions covered

Timely return preparation

Expert filing services

Audit-ready documentation

Get Started

Key Benefits

Expert preparation across all jurisdictions
Never miss a filing deadline
Stay current with rate and rule changes
Comprehensive audit trail documentation

FAQ

Common Questions About Sales & Use Tax Compliance

Receiving notices from state tax authorities? See how Notice Manager centralizes deadlines and manages response workflows across every jurisdiction.

Ready to simplify Sales & Use Tax?

Let's review your current footprint, filings, and exposure—and outline a practical next-step plan.