Sometimes the only way to know there is a problem is by receiving a letter in the mail from a state agency. This makes mail essential to staying compliant—you can’t fix the issue if you don’t know about the issue.
Unfortunately, mail is difficult to manage for multi-state businesses. They need to consistently use a mailing address everywhere they register. They need to make sure they actually check the mail. They need to make sure the right mail gets to the right person to take action.
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You Don’t Know There Is a Compliance Problem Until After it’s a Problem
One of the many challenges of staying compliant is that the feedback loop can be incredibly slow. By the time you find out there is a problem, it might be months after it became a problem. For example, if there is a payroll report that was not filed in Q3, you might not receive a letter about the failure to file (and penalty) until Q1 of next year.