The complexities and fluidity of nexus coupled with the taxability challenges of what is sold can be overwhelming and require the constant attention of a tax expert to navigate, but most small- to mid-sized businesses cannot afford that kind of resource internally. Meanwhile, the penalties of undercollecting, underreporting and underpaying can be huge—and there’s rarely a statute of limitations, meaning states can go back for years to collect what’s due if they discover you haven’t properly met your sales and use tax obligations.

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