• What is the nature of your business?
• Exactly what activities are being performed by employees or agents of the company, in which states?
• What is the frequency of those activities?

So what is NEXUS?

nex-us n. pl nexus or nex-us-es - a means of connection; a link or tie.

Your business has nexus if you have established a connection with the state in question. Clearly, physical presence in a state, in the form of a store or office, establishes nexus. If you have a physical presence in a state, congratulations. You now have the automatic responsibility to collect taxes for the sales you have in that state if what you sell is taxable. The laws do allow states to force you to collect tax for them and to penalize you for not doing so if you have nexus. The courts have long agreed that the government is well within its authority to impose this duty on sellers with a physical presence in their state. Likewise, a state can also force you to pay tax on the taxable purchases you make in their state.

The law is clear. Physical presence means nexus and nexus means you have a tax collector/payer responsibility in that state. What if you merely deliver goods into a state using company vehicles, or have independent sales people that live in a state, or rent equipment to customers in a state yet you have no office or store located in that state? Which, if any, of these circumstances create nexus? That's where it becomes more difficult. In these cases it makes sense to get someone like PJCo involved to help determine if you must collect tax in a particular state. We call this service a Nexus Review.

Expert Interpretation

Ultimately, NEXUS requires some interpretation. Get an expert involved before your first transaction takes place in a particular state. If you are already set up in another state, consult with an expert who has experience with your state policies and practices regarding NEXUS, and we can quickly determine what you need to do to comply with the state's laws.

At PJCo we've helped companies of all sizes in all industries and in all states understand their specific NEXUS issues. We determine specifically how you are conducting business in states and local jurisdictions to identify the steps you need to take. Then we work with you to develop strategic and innovative methods to reduce your tax liability. If the need arises, we can work with the taxing authority to get your problem fixed.

State Registrations
If you operate in states with which you have not registered, you risk exposure to tax, penalties and interest. In this case, it is strongly advised that you get us involved to get you registered and file any back tax returns that may be required. Additionally, we can negotiate with the taxing authorities for a reduction in penalties and interest by using Voluntary Disclosure Agreements (VDA) and taking advantage of amnesty programs.

A VDA is an agreement filed anonymously with the state specifying the number of years for filing back returns and a statement limiting penalty and interest. The state enters these agreements because it allows them to add additional taxpayers to their revenue. You benefit from this arrangement because it limits your cost to register with the state. Once your VDA is approved, we then file the appropriate documents and begin remitting tax.

Our extensive experience means we are the experts at identifying and solving any NEXUS issues you may have. The bottom line is we can help you get your state tax problems under control and put them in a "low maintenance mode".

Contact us now to discuss your options and determine where we can help you most.

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The Situation: A Retail Company was just beginning business and growing fast. Sales reps, outlets, contracts, trade shows, and construction projects are just a few things the company was doing. They were not sure what constituted a presence in another state.

The PJCo Result: After reviewing the facts of the business, state registrations were completed and voluntary disclosures were prepared. The company is now in compliance with the many states' registration requirements and is well positioned for future expansion and growth.

Quote: "We were heading down a precarious path. We knew we had to get a handle on these issues, but it seemed like an insurmountable obstacle. Peisner Johnson with their knowledge and understanding of state and local tax laws really saved us. Peisner Johnson filed appropriate documentation with the states and with the Voluntary Disclosures negotiated and saved us a lot of money and time and potentially serious situations with the states. We will continue to use them on all our state and local sales tax questions and issues."

"The alarming thing is when you just don't know and you have no knowledge of what to ask or where to turn. Peisner Johnson is the firm with all the answers. Thanks for your help in our registration and answering our questions. We are now confident of our growth in the future knowing how to proceed".