NEXUS Analysis and Help with Unexpected California Sales and Use Tax Issues
for Non-California Based Companies

Based on various statutes establishing whether an out-of-state company qualifies as a retailer engaged in business in California, your company may have a legal obligation to collect and pay California sales or use tax even though you may not believe you are doing business inside California. This obligation may exist even though you have not collected any taxes from your customers. Coupled with the California State Board of Equalization's aggressive approach to seeking out these companies and forcing them to pay taxes on all past sales made into California going back as far a eight years, your company may be in need of our help in insuring your rights are protected in this area.

If you are located outside California and are making sales into California you are already at risk for a potential tax liability in this area. In addition to using various other sources of information, California auditors routinely obtain information on companies outside California while conducting audits of California businesses. If you have made sales to California companies, auditors may already have information on your operations. Since no company is completely immune from detection every company should be concerned with protecting themselves from California's aggressive actions. This is where our experience, knowledge, and dedication for our clients will benefit your company.

At STSI we specialize in evaluating the operations of companies outside California doing business in California There are very specific legal requirements that California must adhere to prior to holding an out-of-state company responsible for the collection of tax. We have found that these laws are not always followed by California and that many companies have thereby been subjected to this tax requirement when no actual legal basis existed.

For those companies already in negotiations with California, or who have already been contacted by California, we also offer expert representation with the goal of protecting and defending your rights and insuring that you do not pay more tax than legally due. We can offer help determining the amount of any actual liability of the company, diligently working to legally minimize the tax obligation. In those cases where our clients wish to seek reimbursement from their customers we can also offer effective help in navigating this area as well.

STSI is also able to assist companies with voluntary registration for California if they have a legal registration requirement. This activity involves seeking registration and settlement of past liabilities (often with much shorter periods of past assessment) in a manner best protecting your company’s interests. In most cases this can be accomplished on an anonymous basis until we have reached agreements with the state, offering your company even more protection from the state's often aggressive investigative and registration programs. Click here to use our automated form to request more information on our NEXUS defense and analysis program.