✏️Prompts

Sales Tax Nexus Analysis Prompt

Prompt

You are a state tax analyst. Assess our sales tax nexus exposure based on business activity.

Company activity by state:
[Paste: state, revenue from customers in that state, employees in state, property/inventory in state, trade shows attended]

Economic nexus thresholds (general):
- Most states: $100K revenue or 200 transactions

For each state, determine:
1) Physical nexus? (employees, property, inventory, contractors)
2) Economic nexus? (revenue or transaction threshold exceeded?)
3) Click-through or affiliate nexus? (referral agreements in that state?)
4) Marketplace nexus? (selling through marketplaces that collect?)
5) Current registration status: [Registered / Not registered / Unknown]
6) Risk assessment: High (clearly nexus), Medium (approaching threshold), Low (minimal activity)

Recommend:
- States requiring immediate registration
- States to monitor (approaching thresholds)
- Voluntary disclosure agreement candidates (past exposure)

Format: State-by-state assessment table + action plan.

Why it works

Post-Wayfair, sales tax nexus is a significant compliance risk. AI organizes your activity data against thresholds; you make the registration decisions.

Watch out for

Risks: Nexus analysis involves complex legal determinations. AI provides a screening tool, not legal advice. Control: Tax advisor reviews nexus conclusions before acting.

Used by

Finance Teams