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Product & Service Guide

Online Service Automates Sales Tax Preparation, Filing and Payment

Cloud sales tax software maker TaxJar launched its new AutoFile system, a cloud-based service that automates filing of state sales tax returns and payments for online and storefront retailers. For the first time, sellers who previously would spend ...

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Cloud sales tax software maker TaxJar launched its new AutoFile system, a cloud-based service that automates filing of state sales tax returns and payments for online and storefront retailers. For the first time, sellers who previously would spend hours each month manually preparing sales tax returns can now have their sales tax calculated, accurately reported and filed directly to a state through TaxJar. With the addition of AutoFile, TaxJar fundamentally changes compliance for sellers and becomes the only service to automate the entire administrative sales tax process.

“AutoFile creates a complete online sales tax service that has never been available to sellers before – we’re eliminating a major burden that saves hours of admin time each month at an affordable price,” said Mark Faggiano, CEO of TaxJar. “It was easily the most requested feature from our customers and we have worked closely with them to make sure AutoFile is a no-maintenance tool that helps their business.”

How TaxJar and AutoFile Work

TaxJar is integrated with major commerce and payment engines, such as Amazon, Square, Magento, Shopify, PayPal, WooCommerce, Etsy and eBay to allow the automated daily import of a seller’s data from every channel. TaxJar organizes all of the sales data into one report by state and local jurisdictions. Finally, AutoFile enables TaxJar to file returns and make payments online directly to a state, providing start-to-end automated sales tax compliance for a business. AutoFile requires a one-time enrollment, after which the returns and payment process are scheduled for direct filing.

“AutoFile has changed sales tax filing from a dreaded part of operating my business to a task that barely makes it on my to-do list,” said Robert Bagley, owner of RB3 Solutions. “With increased scrutiny from states and the overall challenge of getting accurate data on my own, TaxJar has taken over the management of my sales tax and helped me focus time on new avenues for my business.”

Good for Sellers, Good for States

The NSBA’s 2014 Small Business Taxation Survey found that the threat of tax liability in case of inadvertent error was a concern for 76 percent of small businesses, while the burden of keeping abreast of state tax changes and navigating various rules and deadlines was a concern for 79 percent.

“States depend on businesses as collection agents for sales tax, but the surveys and our customer insights show that compliance is confusing and costly, despite the best intentions of sellers. We are creating a system that eliminates the complexity and helps businesses and states work together for their mutual interests,” added Faggiano.

AutoFile is currently available in 26 states, including: California, Florida, Michigan, Ohio and Pennsylvania with new states added each month. Enrollment is simple and can be completed directly from a current TaxJar account. The service costs $19.95 for each filing.