Economic Nexus Law in Your SUT Advisory Practice

Your exposed clients
need expert advice.

As your clients' businesses evolve to serve our modern business world, your approach to sales tax should too. More than ever, small to medium-sized business clients need expert help navigating and planning for their sales and use tax obligations.

There are more
sales tax considerations
than ever before.

In addition to highly complex laws, your clients' businesses have rapidly become more advanced. With a few taps on a screen, clients can hire remote workers, pivot to add new product and service lines, sell direct-to-consumer, or extend their reach with omnichannel e-commerce platforms. Many exciting changes your clients implement may have surprising tax implications.

Maximize your time
and resources.

Spend less time waiting for information, crunching numbers in spreadsheets, and searching for sales tax answers to keep your clients on track. LumaTax can help you streamline workflows and collaborate with clients in a way that is effective and scalable.

How SUT Advisory Gets Done

The old way

Reactive - wait for clients to get contacted by state governments
Missing or scattered information, spreadsheets, and workbooks
Manual Consolidation
Sensitive data often shared over email
12+ Hours of work, per client
Resource restraints
Little capacity for advisory services

The way

Proactive - Help clients avoid audits in the first place.
Collaborate in one place
Automated Calculations and Analysis
Securely share sensitive data
Minutes to complete
Scale resources to serve more clients
Expand advisory services for clients to deliver more value & drive your revenue

LumaTax Enables a Proactive Approach to SUT Advisory Services

The South Dakota v. Wayfair ruling set the stage for states to tax remote sales based on economic nexus.

Now, having a physical presence in a state is no longer the only qualifier for collecting sales tax. Clients who previously had few or no requirements to register and collect sales tax must comply with complex multi-jurisdictional laws.

There are two approaches accounting firms have taken to Wayfair’s monumental impact:


A reactive approach is when accountants wait for a client to come to them for guidance, often after receiving notice from a state agency. Usually, these are one-time projects that involve scrambling to collect data and perform a study. There are missed opportunities for cost-saving measures, such as Voluntary Disclosure Agreements, and are typically not positioned for recurring services to provide ongoing guidance and support.


In contrast, there's a proactive approach, where you establish an automated workflow to capture relevant, timely, and complete data to measure the potential exposure of all your at-risk clients. You monitor client nexus and provide additional advisory services as needed. By doing so, you can get ahead of tax liabilities, help clients avoid or reduce penalties and interest, and minimize their audit risk. Your firm can also can help clients plan for changes that will have nexus implications, such as hiring remote workers or adding sales channels. This approach is profitable for firms and provides continuous value to clients.

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