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Identifying Nexus Exposure andContingent Sales Tax Liabilities

Take the guesswork out of determining contingent sales tax liability under ASC 450-20.

LumaTax empowers leading CPA firm audit practices to streamline sales tax nexus issues and produce comprehensive sales tax exposure reports.

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Firms that Power their Practice with LumaTax

Find Out How We Help

LumaTax makes it easy to determine nexus, assess risk, and calculate exposure liabilities. 

Measure Exposure Risk

Our LumaTax Compliance Score helps you identify your most at-risk clients.

Organized Data and Documents

Upload source system data from Amazon, Shopify, and any other sales channels. No need to consolidate- LumaTax will do it for you.

Automapped System Data

LumaTax will remember your previous configurations or automap for you*.

Automatic Error Detection

LumaTax will validate data and flag missing information or incomplete transactions.

State by State Nexus Analysis

Generate presentation-ready nexus analysis reports to share with your clients.

Manage Client Registrations

Submit multi-state SUT and business license registration requests in minutes.

Save Valuable Time and
Increase Audit Reliability

Keeping up to date with constantly changing sales tax nexus rules is costly and complex. LumaTax takes care of it for you and streamlines your audit.

Based on a state-by-state analysis, if an external auditor believes it is certain that a client will be subject to liability for sales and use tax in particular jurisdictions as result of Wayfair, then the liability should be recognized and measured based on the provisions of the applicable laws.

Our Sales Tax Hub™ will determine both physical and economic nexus, exact threshold surpassed dates, grace periods for timely registrations, and detailed tax jurisdiction liabilities within minutes. 

16-hours
Saved  on average per nexus analysis
>97%
Nexus analysis report accuracy
5/5
Average customer rating
Exposure

Generate a Nexus Liability Report in Minutes

It is easier than ever before to quickly and accurately assess contingent tax liabilities under FAS 5 / ASC 450

Many transaction taxes are often overlooked or not considered in their entirety because external auditors have not posed the right questions nor had the sophisticated resources to analyze the reserve properly.

Reduce your team's reliance on cumbersome Excel workbooks with out-of-date lookups and links by introducing LumaTax into your audit workflow. 

With the LumaTax Sales Tax Hub™, you can generate an exposure report in minutes that will help you decide whether to "accrue" or "disclose" any liability.

How it Works

The easiest way to offer clients a modern, secure, and streamlined experience. 

1

Take the Survey

Complete a brief online business profile, and we'll calculate a LumaTax Compliance Score to measure risk.
2

Upload Transaction Data

Automatically validate, standardize, and consolidate years of data from multiple sales channels.
3

Identify Exposure Risks

 Explore a detailed state-by-state nexus analysis - including exposure amounts, exact start dates, threshold tests, and special considerations. 
4

Take Action

Review sales tax obligations and the best next steps toward compliance, such as state registrations and VDAs. 

Powerful Features to Ensure your Success

Built by Tax Pros

Client Collaboration

Lifetime Updates

Assess Client Risk

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Monitor Thresholds

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Tax Liability Reports

Customizable

Jurisdiction Reports

Excel Exports

Register Clients

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SOC-2 Type II Secure

Data Mapping

Audit Tools

Rich Documentation

Sales Tax Experts

What accountants and advisors say about LumaTax

Keela Ross

SALT Director, Wipfli
"We needed an easy way to look back on years and years of transactions from different systems to figure out when clients crossed thresholds. LumaTax made that process simple."

Paul Johnson

Vice President, Peisner Johnson
"LumaTax has helped us efficiently provide a solid understanding to our clients where nexus has been established. The reports provided are detailed and full of insight. We believe that all businesses, whether in business for years or are just starting, need to address and understand where they have established nexus. LumaTax provides us an efficient way to help monitor and track where that has occurred."

Will Kinsey

Senior Manager SALT, Frazier & Deeter
"Knowing a client's nexus footprint opens the door to many important, meaningful conversations about their business and flags a lot of areas where we can help. LumaTax helps us get the conversations started."

Frequently Asked Questions

What is Nexus?

Nexus is a connection between a busine and a tax jurisdiction that creates a compliance obligation. Every state has different rules and considerations. Ignoring nexus can lead to high audit risk, and non-compliance can carry significant fees and penalties.

What is a LumaTax Compliance Score?

The LumaTax Compliance Score measures a company's compliance with current sales tax laws on a scale of 1-100. A low score indicates the company is not in compliance and has nexus exposure risk. 

What is South Dakota v. Wayfair?

The June 2018 United States Supreme Court case in which the court held by a 5–4 majority that states may charge tax on purchases made from out-of-state sellers, even if the seller does not have a physical presence in the taxing state.  As a result, most states have adopted economic nexus laws. 

Is LumaTax secure?

LumaTax works with an independent AICPA certified auditor to maintain a SOC 2 Type II report, which objectively certifies our controls to ensure the continuous security, availability, and confidentiality of our customers' data.

What types of businesses need a nexus assessment?

Some businesses are more are risk to sales tax exposure than others. LumaTax enables you to complete a profile to measure risk of exposure and then perform detailed state-by-state analysis, if needed. 

Industry verticals such as E-Commerce, Retailers, Manufacturing, Software-as-a-Service (SaaS), or Digital Goods and Services tend to be most at-risk. 

Can I register for sales tax permits using LumaTax?

LumaTax offers an add-on service to register for sales tax permits and business licenses. 
Didn’t find your answer? Contact us here

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