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