How Blossom Lux Avoided $60,000 in Sales Tax Penalties After Switching From TaxJar

Blossom Lux is a luxury florist renowned for its curated high-end gifts and flower delivery services, making a name with its commitment to quality and personalized service. With annual revenue reaching $8 million, they saw rapid growth as their online presence expanded, bringing them to customers nationwide.

However, this expansion also brought an unexpected hurdle: managing sales tax compliance across multiple states. The company was suddenly left in turmoil, especially when it started receiving sales tax notices from multiple states where it operated.

Challenge: Multi-state sales tax compliance

As Blossom Lux grew, so did the complexity of managing sales tax compliance. Initially manageable, their process unraveled as they expanded to new jurisdictions.

Initially relying on TaxJar, Blossom Lux soon faced a $30,000 unpaid tax notice from Texas, followed by additional liabilities in Florida and New York. These compliance gaps snowballed into $60,000 in penalties, jeopardizing their operations.

Realizing their existing solution couldn’t scale with their needs; Blossom Lux sought out Kintsugi, a reliable sales tax automation platform that turned their compliance nightmare into a manageable process.

TaxJar failed to flag critical obligations in Texas, Florida, and New York, resulting in:

• A $30,000 unpaid tax bill from Texas.
• Additional fines, penalties, and uncollected taxes totaling $60,000 across multiple states.
• Operational disruptions, including legal fees and the redirection of resources from growth initiatives.

With mounting liabilities and operational strain, the company needed a solution to track multi-state requirements, automate filings, and eliminate errors.

Solution: Kintsugi’s sales tax automation

Blossom Lux implemented Kintsugi’s platform, transforming their sales tax management process. Kintsugi offered features that addressed their pain points.

Here are some of the things that Blossom Lux loves about Kintsugi.

1. Automated compliance tracking. Kintsugi tracked jurisdiction-specific requirements in real time, ensuring that Blossom Lux met all filing deadlines and thresholds.
2. Seamless filing and accuracy. The platform automated filings across all jurisdictions, reducing manual errors and minimizing future risks.
3. Proactive monitoring. Kintsugi’s proactive compliance monitoring provided peace of mind, helping Blossom Lux confidently manage their obligations as they scaled operations.

Impact: Streamlined operations and reduced risk

With Kintsugi, Blossom Lux achieved:

• Seamless expansion: They confidently entered new markets, aligning operations with state sales tax regulations to avoid penalties.
• Enhanced efficiency: Kintsugi’s automation features saved hours of manual effort weekly, enabling the team to focus on core business activities.
• Penalty reduction: Proactive compliance monitoring eliminated the risk of costly penalties, safeguarding their reputation and resources. With Kintsugi, Blossom Lux is safe from the horrifying $60,000 penalties.
• Future-Ready Compliance: The scalable platform ensured readiness for new jurisdictions as Blossom Lux grew.

Kintsugi has become an integral part of Blossom Lux’s growth strategy, enabling them to focus on innovation and expansion. They are now exploring new markets and refining their luxury offerings with the confidence that their sales tax compliance is under control.

With Kintsugi, Blossom Lux is poised to scale their luxury brand nationwide, knowing they have a solid foundation to avoid future tax penalties.

About Kintsugi

Based in San Francisco and founded in 2022, Kintsugi is dedicated to taking the stress out of sales tax compliance. Our platform automates the entire process, delivering high performance, reliability, and flexibility as your business scales. Top companies like Alchemy Marketing and Cabi use our app.  Sasha Novakovich of Alchemy Cloud just spent three minutes on the platform and understood their sales tax exposure.

We can do the same for you. Sign up or book a demo now.