Sales Taxes Lawyers

Sales Tax Lawyers in the United States

Sales tax law affects every business that sells goods or services. With thousands of taxing jurisdictions across the country — each with its own rates, exemptions, and filing requirements — disputes and compliance issues arise constantly. A sales tax lawyer helps businesses and individuals resolve these problems before they escalate into costly penalties.

What Sales Tax Law Covers

Sales tax law governs the collection, remittance, and reporting of taxes imposed on retail transactions. It covers questions about nexus — the connection between a business and a state that triggers a tax obligation. Since the 2018 Supreme Court decision in South Dakota v. Wayfair, even online sellers without a physical presence can be required to collect sales tax.

This area also addresses tax exemptions for specific products or buyers, use tax obligations on out-of-state purchases, and disputes arising from audits. Businesses operating across multiple states face overlapping rules that can create unexpected liabilities.

When to Hire a Sales Tax Lawyer

• You received a sales tax audit notice from a state or local tax authority
• Your business expanded into new states and you need to determine nexus obligations
• You're facing penalties or back-tax assessments for uncollected sales tax
• You need to challenge a ruling that denies your claimed exemptions
• You're starting an e-commerce business and need to set up compliant tax collection systems

How the Process Works

A sales tax lawyer typically begins with a compliance review of your current tax collection and filing practices. They identify gaps — states where you should be collecting but aren't, or exemptions you're missing. For businesses under audit, the lawyer reviews transaction records and prepares responses to the auditing authority.

If a dispute reaches the assessment stage, your lawyer can negotiate with tax authorities or file an administrative appeal. Most sales tax disputes settle before litigation. According to the Tax Foundation, there are over 13,000 sales tax jurisdictions in the U.S., which means even small errors can compound quickly across state lines.

How Financial Outcomes Are Determined

• Back-tax liability is calculated based on uncollected or underreported tax across all affected periods, sometimes spanning several years
• Penalties typically range from 5% to 25% of the unpaid amount, depending on whether the failure was deemed negligent or willful
• Interest accrues on unpaid balances from the original due date, often at rates set quarterly by state revenue departments
• Voluntary disclosure agreements can reduce or eliminate penalties entirely if a business comes forward before an audit begins
• Successful audit defense may result in reduced assessments, sometimes cutting the original proposed liability by 40% or more

Frequently Asked Questions

What is the difference between sales tax and use tax?

Sales tax is collected by the seller at the point of sale. Use tax applies when a buyer purchases a taxable item without paying sales tax — typically from an out-of-state seller. The rates are usually identical, but the responsibility for payment shifts to the buyer.

Can I be held personally liable for unpaid sales tax?

Yes. Many states treat collected but unremitted sales tax as trust fund taxes. Business owners, officers, and sometimes even bookkeepers can face personal liability for those amounts. Some states also impose criminal penalties for willful failure to remit collected sales tax.