Understanding and Resolving 'Collected Tax' Nexus Anomalies

If you’re seeing a Collected Tax Nexus listed in your Monitoring tab (formerly known as the "Nexus" tab), it means your business has triggered a sales tax obligation in a jurisdiction based solely on collecting sales tax—regardless of whether you've registered there yet.
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To help you easily identify and act on these anomalies, we’ve introduced a dedicated Collected Tax Nexus tab in the Monitoring section of the app.

What is 'Collected Tax' Nexus?

Collected Tax Nexus appears when your business has collected sales tax in a state where you aren't yet registered. This can happen accidentally—like if your store platform charged tax by default in a state where you have no registration.
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⚠️ This is different from Economic or Physical Nexus. A state may show up in multiple tabs if more than one type of nexus is triggered.

Where to Find It

1. Go to the Monitoring tab.

2. You’ll see a separate tab labeled Collected Tax Nexus, click it. This tab only lists jurisdictions where you’ve met the Collected Tax Nexus criteria.

Note: If a state meets multiple nexus thresholds (e.g., both Economic and Collected Tax), it will appear in both the Exposed and Collected Tax Nexus tabs.

What You Can Do

1. For each jurisdiction listed under Collected Tax Nexus, click the “Review” button.

By clicking the “Review” button, you’ll see related transactions.

2. Take the appropriate action. You have two options — to Register or Resolve Collected Tax.

1. Register

1.1 Click the Register button at the bottom if you want to move forward with registration in that jurisdiction.

1.2 Continue with the registration by clicking the "Save" button in the Request Registration form.

Note: When registering, we’ll use the earliest nexus met date between Collected Tax, Economic Nexus, or Physical Nexus.

2. Resolve Collected Tax

​Select this if the tax was collected in error and you’ve since refunded the sales tax on the associated transactions.

2.1 Click the Resolve Collected Tax button if the tax was collected in error and you've since refunded the sales tax on the associated transactions.

2.2 A confirmation modal will open, click the checkbox and the Confirm button.

2.3 Check the message at the bottom of the screen, confirming your action.

Note: Once you confirm that refunds were issued, those transactions will be cleared from the Collected Tax Nexus list.

Best Practices

• Only use Resolve if the tax has already been refunded to the customer.

• Always double-check your store settings to prevent collecting tax in states where you're not yet registered.

• If you’re unsure whether to register or refund, consult your tax advisor or the Kintsugi Tax Operations team.

Need Help?

For further concerns, we're always here to help. If you can't find the answer you're looking for, please reach out to us using the chat bubble in the bottom right corner.