Construction Contractors: Are You Ready for a State Sales Tax Audit?

Our Sales Tax Experts can Help!

Sales Tax Attorney on Staff

When it comes to sales and use taxes, contractors face some of the most confusing statutes on the books. Individual state laws governing construction are complex enough, but to make matters worse, such laws vary greatly from state to state. A contractor’s sales tax obligations can change not only according to location, but also with the types of property installed, the kinds of services provided, the nature of the purchasing entity, the structure and content of the contract, and a host of other factors.

Have you worked on a project in another state? You probably need to register with that state and remit its sales or use tax.

Many contractors aren’t aware that handling a job in a state with a sales and use tax program creates instant nexus, even if they hire local subcontractors to perform the labor. Once your company has such nexus, it’s legally obligated to register with the state involved and collect, report, and remit any applicable sales and use taxes.

Whether you’re facing a construction sales tax audit, in the middle of one, have questions about nexus, or just want to get into compliance before it’s too late, McClellan Davis can help.

The principals of our firm are Dan Davis, MBA (Tax), CPA, CFE (Certified Fraud Examiner) and Jesse McClellan, Esq., JD. Both are former sales and use tax auditors, and together they have achieved more than 50 years of experience in the tax field. We’ve represented thousands of taxpayers, from sole proprietors to multinational corporations, before multiple state tax agencies across the nation. Dan has also authored the Multistate Guide to Sales and Use Tax: Construction, a book published by CCH, Inc. that is updated by Dan annually.

McClellan Davis will work with you directly or through your outside accountant, at your option. We specialize in sales and use tax audits and issues, and that is our sole focus.

We’ve helped thousands of business people facing the dreaded state “audit machine” and we can help you too!

“We strongly recommend Associated Sales Tax Consultants to any business faced with an audit from the State Board. Not only may there be financial benefits, but also saved time and energy from the agony. In construction, sales and use tax statutes are complex and difficult to understand. It makes us somewhat relieved to know that there is someone like Associated Sales Tax Consultants that we can turn to.”

– P.M. Owner of a construction company