10 Reasons Why a Startup Corporation May receive a Sales Tax Notice

Sales tax notices can be a headache for startups. You’re so busy building your technology or trying to find customers that you don’t want to get distracted having to deal with these notices.

That’s why Kruze’s Team of Sales Tax Experts is happy to read your notice, research it, and get it fixed for you. We’ll also explain what happened so you can avoid them in the future! 

Here is a quick list of what could have caused the notice so it’s not as scary. :):

  1. Failure to collect sales tax: If a corporation made a purchase and failed to collect sales tax, use tax will be assessed. This happens quite often with California clients.
  2. Payroll tax registration: Some businesses register for payroll tax in Michigan, which sets up a sales tax account as well. If a notice is received from the payroll provider to complete the sales tax return portion, the corporation should make sure to comply.
  3. Excise tax returns: Many clients register for payroll tax in Washington and receive notices for excise tax returns, not realizing that payroll tax automatically requires an excise tax return.
  4. Failing to file a return monthly: If a business has registered for sales tax but fails to file a return monthly, they may receive a sales tax notice.
  5. Change in filing frequency: If a corporation has a change in filing frequency and fails to realize it, they may receive a sales tax notice.
  6. Failure to remit sales tax collected: One of the common reasons for sales tax notices is the failure to remit sales tax collected from customers on taxable transactions.
  7. Incorrect reporting: Incorrectly reporting the amount of sales tax collected or paid on a return can lead to a sales tax notice.
  8. Failure to register for a sales tax permit: A business must register for a sales tax permit in states where they have a nexus. Failure to do so can result in sales tax notices.
  9. Underreporting taxable sales or transactions: Failing to report taxable sales or transactions can lead to sales tax notices.
  10. Late filing or payment of sales tax returns: If a business fails to file or pay their sales tax returns on time, they may receive a sales tax notice.

Get a sales tax notice? The Kruze’s Sales Tax Team is here to support you.

READY TO CONNECT FOR A FREE CONSULTATION?

We are the experts at helping seed/VC-backed Delaware C-Corps with their accounting and finances!

Talk to an experienced accountant, not a generic sales person

 Kruze Consulting
Alex Janeck
 Kruze Consulting
Edith Silva
 Kruze Consulting
Ian Williams
Viz AI

$250M+ VC Funding Raised


"I had a great experience working with Kruze Consulting when we raised Series A. They know what VCs need to see, and how to present a startup’s books and finances. If you are going to raise venture capital, you need experts like Kruze."
Chris Mansi

Chris Mansi

CEO

Startup Venture Capital Assistance

With former venture capitalists on staff, our team is here to help you navigate the fundraising process and manage your board of directors

 Kruze Consulting
Scott Orn
COO | Former VC
 Kruze Consulting
Healy Jones
VP FP&A | Former VC
Pequity

Scale Remote Operations & Team


"Kruze has supported us above and beyond basic accounting needs by ensuring we have everything we need to expand and support our team wherever they may be located"
Zack Fisch

Zack Fisch

Head of Operations & Legal

Clients who have worked with Kruze have collectively raised over $15 billion in VC funding.

We set startups up for fundrising success, and know how to work with the top VCs.

 Kruze Consulting
Vanessa Kruze, CPA
Founder & CEO
Kruze Logo

Experienced team helping you

Our account management team is staffed by CPAs and accountants who have, on average, 11 years of experience.

 Kruze Consulting
Bill Hollowsky, CPA
VP of Accounting Services
 Kruze Consulting
Claudine Vantomme, CPA
Controller
 Kruze Consulting
Morgan Avery
SUT/R&D Sr. Tax Accountant
 Kruze Consulting
Beth Bassler
Controller, CPA
Protara Therapeutics

Grew from a 2-person startup to a NASDAQ listed public company.


"The Kruze team helped us grow from a 2-person startup to a NASDAQ listed public company in 2 years. We wouldn’t have gotten public without Kruze’s support. Anyone thinking of launching a startup should make Vanessa their first call!"
Jesse Shefferman

Jesse Shefferman

CEO

Kruze Logo

Get in Touch

Please help us connect with you

How can we reach you?

Our first response is typically via email, so please check your inbox.

Help us have a productive first consultation by providing some additional information.

What year was your startup incorporated?

What is your stage of funding?

(pick up from the list)

Approximately how much funding have you raised?

(please enter a dollar value such as 5000000)

Help us understand what you are looking for:

(Optional, click the ones you need)

Anything additional that you’d like to share?

Optional - if you’d like to share anything else to help us prepare for our consultation, please let us know. We are also happy to sign an NDA, just let us know.

Important Tax Dates for Startups

  Talk to a leading startup CPA