Tax Issues for Businesses: Sales Tax, Nexus, and Compliance Risks
Nexus—the legal link that obligates a seller to collect sales tax—no longer depends on warehouses or employees. After South Dakota v. Wayfair (2018), a boutique can cross state thresholds through marketplace sales. Most states impose an economic test of only $100,000 in remote sales or 200 transactions. Miss one filing and every untaxed invoice becomes personal liability for officers under “responsible-person” statutes.
If your company needs clarity, schedule a comprehensive case review with a top rated Atlanta tax attorney now.
Georgia’s Economic Nexus Rule
Georgia’s economic nexus statute, O.C.G.A. § 48-8-2(8)(M), asserts jurisdiction the moment a remote seller tops either $100,000 in Georgia-bound revenue or 200 separate transactions in the current or preceding calendar year. Because the obligation attaches prospectively, a vendor reaching the threshold on December 31 must collect tax on the very next invoice, leaving minimal time to update the checkout code.
Non-compliant sellers are subject to a % late-payment penalty for every month (or fraction thereof) the tax remains unpaid, capped at 25 % of the balance. Interest accrues at 1% per month on liabilities for periods before July 1, 2016; for months beginning on or after that date, the annual rate equals the Federal Reserve prime rate plus three percentage points, recalculated each January and applied monthly. If a return is fraudulent or never filed, the Georgia Department of Revenue may assess the tax at any time—there is no statute of limitations—so exposure can stretch far beyond a decade. Corporate officers and other “responsible persons” can be assessed personally under Georgia’s fiduciary-tax rules, and the Department may levy bank accounts without prior court approval.
Multi-State Compliance Risks
Marketplace 1099-Ks, shipping logs, and payment-processor data feed state audit algorithms. The Multistate Tax Commission’s 2024 nexus program levied six-figure liabilities against SaaS vendors that ignored click-through rules. Robust exemption certificates and electronic record retention can turn a desk audit into a quick “no change.” A Georgia tax attorney drafts company-wide procedures, replies to notices within statutory windows, and appeals adverse findings to the Georgia Tax Tribunal.
Secure Compliance, Protect Profits
Late registration snowballs into liens, account levies, and trust-fund penalties, yet proactive counsel keeps the ledger clean. The Law Office of Max Benkel blends deep federal insight with Georgia-specific sales-tax advocacy—contact us today to safeguard growth before the Department of Revenue comes calling.
