Unveiling the Hidden Perils of the Sales Tax Registration Process

This article was originally published in the Journal of State Taxation.

Registering for sales taxes is the first step a company takes to inform a state that it operates within the state’s jurisdiction and is accountable for collecting and remitting sales taxes on time. While collecting and reporting a company’s data on a registration document might seem deceptively simple, the timing of registration, the content of disclosures, consideration of prior activities and exposure, home rule jurisdictions, and compliance readiness could complicate the process.