Sales tax used to be simple — sell a product, collect the local tax, and send it off.

Not anymore.

Today’s small business owners face a minefield of state rules, changing thresholds, and unseen liabilities. And while tools like Avalara and TaxJar promise quick fixes with automation, most businesses don’t realize what they’re not getting — and what could go terribly wrong.

This post isn’t a product comparison. It’s a reality check.

Because automating your sales tax compliance doesn’t mean you’re protected.

The Real Risk Behind Sales Tax Automation Tools

Tools like Avalara and TaxJar can handle basic sales tax functions. But they don’t eliminate your risk — they only mask it.

When a state decides to audit you, they won’t care if your software was “set up incorrectly.” They care that you under-collected tax — and they’ll hold you responsible.

And yes, that includes:

• Back taxes

• Interest

• Penalties

• Personal liability

If you’re using software without expert oversight, you’re gambling with your business.

Automation Without Strategy Is a Liability

Both Avalara and TaxJar are tools, not tax professionals.

They don’t:

• Advise you on where you have nexus

• Ensure your product taxability is correct

• Defend you in an audit

• Monitor changes in state sales tax rules

• Help you avoid audit triggers like economic nexus thresholds

In fact, misconfiguring automation software is one of the top reasons businesses get audited.

And most don’t even realize they’ve made a mistake… until it’s too late.

E-commerce and Multi-State Sales? You’re Likely Already Exposed

If you’re an online seller, it’s not a question of “if” you have tax risk — it’s a question of how much.

The rise of remote work sales tax, cross-border fulfillment, and multiple online sales channels has created economic nexus exposure in dozens of states — often without warning.

Sales tax software doesn’t alert you when:

• You pass a state’s threshold

• You fail to collect tax in a new jurisdiction

• You forget to file (or file late)

• You incorrectly classify a tax-exempt product

States don’t need your permission to audit you. If they think you owe, they’ll come knocking.

A False Sense of Security Can Be Fatal

Many business owners think that because Avalara or TaxJar is connected to their store, they’re covered.

Wrong.

Just ask the hundreds of small businesses who thought the same — and are now dealing with:

• Sales tax audits

• Six-figure assessments

• Frozen accounts

• Threats of legal action

These tools don’t monitor compliance holistically. And they won’t stand with you when the state decides to investigate.

There’s No “One-Click” Fix for Sales Tax Liability

Let’s be clear: automation has a place.

But it does not replace real sales tax strategy — especially when your business is growing, crossing state lines, or diversifying sales channels.

The sales tax risk for small business is greater than ever. And relying on a generic platform to handle it all is like trusting WebMD to perform surgery.

Why My Sales Tax Firm Is Different

Unlike automation platforms, My Sales Tax Firm provides:

✅ A full risk assessment across all 50 states
✅ Expert analysis of your business activities and nexus
✅ Customized sales tax registration and filing support
✅ Audit defense from real professionals
✅ Continuous monitoring for rule changes and exposure

We don’t sell software. We protect businesses from financial disaster.

If you’re not 100% sure where you have nexus, or if you’re using automation software without expert oversight, it’s time to stop guessing.

Conclusion: Tools Don’t Prevent Audits — People Do

There’s nothing wrong with using tools. But trusting them to handle your entire compliance strategy? That’s the real danger.

The sales tax automation risk for small business is real. And it’s growing — especially in 2025, as states crack down harder than ever before.

If you’re relying on Avalara or TaxJar, ask yourself:

• Do I know for certain that I’m collecting tax correctly in every state?

• Am I ready for a surprise audit?

• Do I understand how my business growth affects my tax exposure?

If not — we need to talk.

My Sales Tax Firm is here to help you avoid the pitfalls, stay compliant, and protect everything you’ve worked so hard to build.