Time and time again, we hear eCommerce businesses ask us, “Have any online sellers actually been audited because of warehouse nexus?”

Sure, this is an understandable question, but it might not be the right question.

While it seems really easy for clients to gauge sales-tax risk by looking to the past, the better question is “what’s to come for sales tax liability?” or even “how aggressive will states be in enforcing sales tax rules in the coming years?”

And the answer is, unfortunately, “very aggressive.” (Bummer, we know.)

From the government’s point of view, the growth of the eCommerce world has resulted in less sales tax to collect from brick and mortar sales. These state and local governments depend on sales tax revenue to fund everything from economic development to schools, to roads. Yet, those states miss out on millions of dollars each year from out-of-state sales that occur because of the internet. (Lookin’ at you, Amazon.)

So the question becomes, how far will these entities go to recoup that loss? We asked around and found some stories worth considering.

One Colorado-based retailer recounted a story of talking to a California auditor during his company’s voluntary disclosure discussions. “The auditor told me that they have a list of Amazon FBA sellers,” he said. “And, they’re going to go down the list in the very near future.”

Curious to learn more, we went to the source of the matter and chatted with auditors and industry insiders. Below we’ve shared five surprising auditing trends we heard. While we’re not trying to scare anyone here, it’s like GI Joe said: “knowing is half the battle.”

1) Tradeshow Trolling

Let’s say your client attends tradeshows in states other than their home state. Beware! That buttoned up booth-browser might be a state auditor, trolling the aisles to gather information about every company that’s selling in her state. If you’re not paying tax, you might be receiving some unwelcome mail. That’s exactly what happened to me when I first learned about sales tax nexus — the hard way. I was running a software company, and one day my accountant slid an envelope across my desk. It was sales tax bill for Texas.

“Why would we have to pay sales tax in Texas,” I asked her. She shrugged. I laughed. I tore up the bill. Then another bill came, and it was bigger. So, we dug in. We found that they had discovered our company while attending a tradeshow. When they found out we didn’t pay sales tax in Texas, they simply estimated the amount of sales we had done, and sent a bill.

Since then, I’ve heard many stories of state auditors targeting trade shows, which qualify in many states as “temporary presence” and sufficient nexus status. (Some states even have special tax forms specifically for this case!)

2) Lots of New Laws

Many states are fed up with waiting for the federal government to change remote sales-tax laws, leading many to impose what one state legislator called a “nuclear approach.” Basically, several states are standing up in 2016 to say “We’re collecting tax from out of state sellers. Sue us if you don’t like it.”

Alabama, for example, passed a law, which went into effect on January 1st, that says, in part, “… an out-of-state seller with a substantial economic presence in Alabama will be required to collect and remit Alabama tax on its sales into the state, regardless of whether it has an Alabama physical presence.”

If you’re sitting there thinking that sounds in total contrast to the current definition of nexus, you’re exactly right. And that’s the point. The thinking is, if the Feds won’t pass new rules, the states will force the US Supreme Court into making a decision.

3) Truck Spotting

Who’s that man with the clipboard, logging every truck that crosses the state line? It might be a sales tax auditor. We heard a story from the Midwest where state auditors were manning weigh stations and dutifully logging the company names on every truck to look up later. Since delivering goods on a company truck qualifies as nexus in every state, businesses without a sales tax license in the state received some unfriendly letters.

4) Sales Sleuthing

As one auditor told us, “Auditors are people, too. And people buy things online.” It’s not uncommon for state auditors to look up the vendors who sell them personal purchases to see if they pay tax in the state. It’s not a giant leap in logic to assume auditors know if their state hosts an Amazon fulfillment center, meaning if your products get into their hands, they might be knocking on your door.

5) Click Through Chaos

You might have read about “Amazon laws” in the news, generally referring to the concept of “click-through nexus.” It shouldn’t be confused with the garden variety nexus you know and love, but it can be more problematic.

Let’s say you sell iPhone cases out of your garage in Delaware. Tax-free shopping. Life is good for you. But, what if a website in New York that sells all things iPhone helps you sell those cases. Well, by New York law (and more than 20 other states) you may be on the hook for sales tax. And, the states that are taking this approach are also researching the affiliates in their state.

It should be noted that Amazon canceled all its affiliates in many of these states, but the fact that Amazon does or does not collect sales tax in a state has nothing to do with the obligations of its sellers.

The point is, the times are a changin’. Arm yourself with knowledge and be intentional with your business operations.

We also encourage you to chat with your accountant to see what your risk really looks like, and then decide your move from there.

If you’re an Amazon seller, make sure you check out our Amazon site for all the sales tax information you need to keep your business safe. It has it all, from understanding your risk is, to setting up your account for sales tax compliance.