For companies doing business in multiple states, keeping track of all the changes and responsibilities can be a daunting task.
PHILADELPHIA, PA, UNITED STATES, January 5, 2026 /EINPresswire.com/ — In 2025, it is estimated that there were over 500 changes to sales tax rules and regulations throughout the Country, more than in any single year ever before. In 2026, it is expected that an even greater number of changes will occur, as states continue to refine their laws to account for added types of taxable products and broadened definitions of sales tax nexus. Sales taxes grow in importance as a leading revenue generator for states – currently, they average nearly one-third of all tax revenue that most states collect.
For companies doing business in multiple states, keeping track of all the changes and responsibilities can be a daunting task. But this complexity isn’t necessarily all bad news. “Because of the complexity, there can be many situations where multi-state companies overpay sales taxes needlessly or erroneously making them eligible for reimbursements,” according to William Flick, a Managing Director at EisnerAmper Advisory Services. He advises, “Even if a company has received a tax bill or audit request from a state does not mean that it is accurate. It should often be challenged. Because of the complexities and overlap, taxes can be incorrectly billed or software may not have been properly updated; making companies eligible for six and seven figure refunds.”
To be mindful of refund opportunities, Flick has identified 8 of the main areas where companies can expect to see sales tax changes in 2026. They include:
1) Broadening definitions of sales tax nexus.
Time was when one only had to have a physical sales presence in a state to establish nexus. In 2026, nexus can be established by having non-tax connections to the state including warehouse storage, back office operations, temporary employees – even attending a trade show in that state can establish tax nexus.
2) Expanding the definition of items to be taxed.
The definition of items to be taxed is expanding from tangible goods that are sold and delivered within a state, to include virtual and digital items, such as software as a service (SaaS), that may even be purchased elsewhere but is utilized in a particular state.
3) More states will be eliminating the number of transactions qualifier.
Many states will be eliminating the number of transactions qualifier in favor of minimum volume of business done in that state.
4) Sales taxes will have more influence on major corporate decision-making.
At one time, sales tax was a bookkeeping item, a set number on an invoice, based on physical sale location, that got paid with little additional consideration. In 2026, sales taxes’ ever-broadening definitions of nexus and responsibility will involve c-suite executives more because of their influence on major decisions such as warehouse locations, work-from-home employees, trade shows attended and more.
5) Some states will use sales taxes as an incentive to attract more business.
Although many states will be raising sales taxes, some state will get more competitive with their sales tax rates in order to attract new residents & businesses.
6) Real time sales tax collection will become more prevalent.
Thanks to the latest technology, more states will be able to collect revenue digitally, the instant the sale is made. Cash flow will be affected because sales taxes will be collected in real time.
7) In 2026 there will be growth in the number of sales tax audits that states conduct.
A company’s chances of being audited will become greater in 2026, as states add to audit personnel and priority. Prudent companies will prepare in advance for an audit, often discovering that instead of owing taxes, they have a significant refund due to their overpayment.
8) Artificial intelligence will become more of a factor in analyzing tax liability and audits.
However, with all of AI’s benefits, there is also the potential for audit inaccuracies as updates are occurring faster than AI may be able to learn and update its recommendations. Challenging audits will continue to be a prudent activity.
Said Flick, “2026 is the year that sales taxes go beyond bookkeeping, as c-suite executives recognize their significant influence on corporate planning, decision-making and the bottom line.”
———
ABOUT: William Flick and the EisnerAmper Advisory Group
William Flick is recognized nationally as a thought leader on the subject of business sales tax nexus and compliance. He is in the sales tax leadership at EisnerAmper, one of the largest business consulting groups in the world, comprised of EisnerAmper LLP, a licensed independent CPA firm that provides client attest services; and EisnerAmper Advisory Group LLC, an alternative practice structure that provides business advisory and non-attest services in accordance with all applicable laws, regulations, standards and codes of conduct. Prior to merging with Eisner Amper, Flick owned FM Cost Containment one of the leading forensic tax recovery firms in the United States, specializing in tax confirmation and recovery of overpayments of sales and use taxes, as well as tax audit defense, utilizing proprietary research and knowledge of little-known technicalities in the tax laws of each of the 50 states, including over 10,000 tax entities throughout the United States.
For more information, please contact:
William Flick
EisnerAmper Advisory Group LLC
40 Lloyd Ave.
Suite 308
Malvern, PA 19355
Phone: 484-580-8907
Email: william.flick@eisneramper.com
Website: https://www.eisneramper.com/about-us/professional-directory/bill-flick/
LinkedIn: https://www.linkedin.com/in/williamflick
Twitter: https://www.x.com/BillFlickJr
# # #
Leo Levinson
GroupLevinson Public Relations
+1 215-545-4600
email us here
Visit us on social media:
LinkedIn
X
Legal Disclaimer:
EIN Presswire provides this news content “as is” without warranty of any kind. We do not accept any responsibility or liability
for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this
article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
