The SALTcast

The 3 Most Important Areas of Due Diligence for Sales Tax When Acquiring/Selling a Business

February 19, 2019 Andrew H. Johnson, CPA and Daniel M. Peisner, CMI
The SALTcast
The 3 Most Important Areas of Due Diligence for Sales Tax When Acquiring/Selling a Business
Show Notes

On today’s podcast we caught Dan while he was on the road visiting a client. The client had just run into some issues dating back to a few years ago when they acquired another business. A common thing to overlook when doing your due diligence before selling or acquiring a business is sales tax. Having a lot of sales tax exposure could really hurt the sale of your company. Also, if you are acquiring a business and neglect going over the sales tax issues during the due diligence process, it could come back to haunt you years later. Andy and Dan discuss “The 3 Gotchas” when it comes to sales tax, those include; Nexus, Exemption Certificates, Returns, and a Bonus 4th Gotcha. Today you can learn how to protect yourself and your clients.


Additional Questions Answered:

What sales tax liabilities should I be worried about when I sell my company?

What sales tax liabilities should I be worried about when I buy a company?

What kind of sales tax due diligence should I do when I buy a company?

Why should I care as the acquiring company about the past sales tax liability of the target?

How do I know where they have Nexus?

What is nexus?

Is physical presence what causes nexus?

What causes nexus now?

How has the Wayfair Supreme court decision changed how nexus is defined today?

What kind of liability do I have if the company I am buying hasn’t been collecting exemption certificates?

What kind of places accept exemption certificates?

Do I need to collect exemption certificates from companies that are tax exempt?

What happens when the company I am acquiring hasn’t been filing sales tax returns?

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