What Is Nexus Lookback?
How far back can a state look and require past-due tax liabilities? Understand nexus lookback periods by state.
A Definition of Nexus Lookback
A nexus lookback period is the prior complete tax filing period for which a merchant must file returns and pay any past-due tax liability plus interest. This applies to merchants using a voluntary disclosure in return for the state’s waiver of tax liability for periods prior to the lookback period and penalties.
The importance of a voluntary disclosure agreement
The best way to remedy non-compliance exposure is through a voluntary disclosure agreement. Many states offer voluntary disclosure programs that allow a business to come forward, register and pay outstanding tax liabilities for a limited Nexus lookback period.
Most states allow businesses to come forward anonymously when working to secure an agreement. This protects the business from being audited for prior periods and generally, states will waive penalties for these lookback periods.
Voluntary disclosure filings are subject to audit and must be done with extreme care and attention.
Your business should never expose itself to taxing authorities. If you think you may have nexus in any state, give us a call at 720.787.2280.
Nexus Lookback Periods by State
The information in the table below does not constitute specific advice and should not be relied upon without further confirmation from the state(s).StateLookback Period in MonthsAlabama36Arizona48Arkansas36Colorado36Conneticut36District of Columbia36Delewaren/aFlorida36Georgia36Hawaii36Idaho36Iowa60Kansas36Kentucky48Louisinana36Maryland48Massachusetts36Michigan36Minnesota36Missouri48MontananaNebraska36New Hampshire36New Jersey48New Mexico36North Carolina36North Dakota36Oklahoma36OregonnaRhode Island36South Carolina36South Dakota36Tennessee36Texas48Utah36Vermont36Washington48West Virgina36Wisconsin48Call Now For A Free Consultation – 720.878.2280
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