# Scenario: Proactive nexus recommendation

Source: https://developer.avalara.com/ai-onboarding/ypm5666075790248/

# Scenario: Proactive nexus recommendation

This scenario explains how proactive nexus recommendations address compliance gaps through guided review and execution.

This scenario illustrates how proactive nexus recommendations help address potential compliance gaps through guided review, confirmation, and audit-ready execution.

**AI (Proactive):**

```
I've analyzed your ERP data and found something important:
🎯 Nexus Alert:
You have physical presence in 3 states where nexus is not currently declared.
```

Table 1. Locations detected

State

Location type

Address

Current Status

Texas

Warehouse

4521 Industrial Blvd, Dallas, TX 75201

❌ No nexus declared

Georgia

Sales Office

890 Peachtree St, Atlanta, GA 30308

❌ No nexus declared

Nevada

Distribution Center

2100 Commerce Way, Reno, NV 89501

❌ No nexus declared

```
Physical presence (warehouse, office, employees) creates tax collection obligations in these states. Transactions to these states may be undertaxed.
Do you want me to declare nexus for these locations?
[Declare All 3] [Review Each Individually] [Dismiss - I'll Handle Later]
```

**User**:

```
"Declare nexus for Texas and Georgia, but not Nevada yet—we're still finalizing that lease."
```

**AI Response:**

```
✅ Nexus declared for Texas and Georgia!
•  Texas: Sales & Use Tax nexus effective 2025-12-05
•  Georgia: Sales & Use Tax nexus effective 2025-12-05
•  Nevada: Marked for follow-up (reminder set for 30 days)
📝 Audit Trail Entry:
"Nexus declared: TX (physical - warehouse), GA (physical - sales office). User deferred NV pending lease finalization. Created by AI, approved by sarah.jones."
```