# Set up Tax Before Tax can audit anything it needs three things: a verified connection to Avalara, the **selling entity** (the Avalara company) whose records your marketplace revenue should be compared with, and your decision on whether Fours may write corrections to Avalara. The first time you open the app, a three-step setup collects them; afterwards you change them in **Settings**. --- ## Before you start - **Avalara connected and verified in Integrations.** Tax has no connect form of its own: connect Avalara under **Settings → Integrations** with your Avalara Account ID and License Key, then come back. See [Avalara](/integrations/avalara/). - **At least one active tax registration in Avalara.** An audit is refused while Avalara reports no registrations for the selling entity. - **The Admin or Editor role** to complete setup or change settings. Viewers can read the Settings page but not change it. ## First-time setup Open **Tax** from the Insulin Dock. Until a provider is connected and a selling entity chosen, the **Sales Tax** destination shows a three-step setup instead of the audit workspace. If Avalara isn't connected and verified yet, the setup shows **Connect a tax provider**. Its button opens **Settings → Integrations**; connect and verify Avalara there, then return to Tax. ![Tax setup at Step 2 of 3, Select your selling entity: the Selling entity list is open, showing Acme Software Inc and Acme Sandbox, which carries a Test badge](images/setup-selling-entity.png) 1. **Choose your tax software.** Pick **Avalara** and select **Continue**. 2. **Select your selling entity.** In **Selling entity**, choose the Avalara company whose tax records your marketplace sales should appear in. Entities flagged as test entities in Avalara carry a **Test** badge — audit against a test entity and your real sales will not match its records. Select **Continue**. 3. **One last thing — corrections.** Turn **Allow Fours to create missing records** on if you want Fours to be able to write corrections to Avalara, then select **Proceed with corrections enabled** or **Proceed without corrections**. Either way, nothing is ever written until someone submits a specific correction — see [Corrections](/revenue/tax/corrections/). The summary, **You're connected**, repeats your **Tax software**, **Selling entity**, and **Corrections** choice. Select **Start auditing** to open the Audit tab. Each step is saved as you go. If a step reports that the connection isn't ready, the Avalara connection is not verified yet — finish it in Integrations and try again. ## Settings Select **Settings** in the left rail of the Tax window. The page, **Tax system connection**, has five cards. ![Tax Settings, Tax system connection: the Avalara provider card with its Connected chip, company code, Selling entity select, and Connected on, Configured by, and Setting saved; the card listing what the connection reads and writes; and the Corrections to Avalara card with the switch on and the Approval required per record notice](images/settings.png) ### Tax provider Shows Avalara with a **Connected** chip, the selected entity's **Company code** (with a **Test** badge when it is a test entity), and when and by whom the connection was set up — **Connected on**, **Configured by**, and **Setting saved**. - **Selling entity** — change the entity Fours audits against. The change saves immediately and applies to the next audit. - **Manage in Integrations** — opens Integrations, where the Avalara connection itself is verified, re-authorized, or removed. The Tax app cannot disconnect it. ### What Fours can see States what Fours reads from Avalara — committed tax documents, selling entities, registrations, and the tax-code catalogue — and what it writes: the corrections you submit, one document group at a time, or nothing at all when corrections are off. A warning appears here when the selected entity is a test entity. ### Corrections The switch on the **Corrections to Avalara** card is your organization's consent for Fours to write new records to Avalara. With it off, Fours offers no correction that creates a record or overrides one's tax to zero; with it on, each correction still has to be submitted individually — the card says so: *"Approval required per record."* One correction, **Revise tax record**, is not governed by this switch, except on GCP sales (see [Corrections](/revenue/tax/corrections/#the-corrections-switch)). The switch is checked again at the moment a submitted correction runs, so turning it off also stops corrections that are still waiting to run. Which corrections the switch governs is listed in [Corrections](/revenue/tax/corrections/#the-corrections-switch). ### Tax registrations Lists the jurisdictions Avalara reports your selling entity is registered in — **Jurisdiction**, **Tax type**, **Filing frequency**, and **Registration ID**. **Filing frequency** is the one value you set here: **Monthly**, **Quarterly**, or **Annually**, per jurisdiction. It is assigned by the tax authority, so check each one — any jurisdiction you leave unset is treated as **Monthly**. Fours uses it to decide when a period counts as already filed (see [Amended returns](/revenue/tax/amended-returns/#when-a-period-counts-as-filed)). A frequency is copied onto an amended return when the return is created, so changing it later does not move returns that already exist. ### Revenue sources audited Shows each marketplace channel Tax audits — AWS, Azure, GCP, and Snowflake — as **Connected** or **Not connected**. It is informational: a channel shown as **Not connected** doesn't stop an audit, which still reads whatever revenue Fours already holds for that channel. ## The assistant's settings are separate The **Ask AI** panel on the right of the Tax window has its own settings, under **Edit assistant**: the AI model it uses, which knowledge sources it may search, and **Discard conversation**. These are saved per user, not for the organization, and anyone in the organization can change their own. See [Ask AI](/revenue/tax/audits-and-findings/#ask-ai). ## Related - [Audits and findings](/revenue/tax/audits-and-findings/) — run your first audit. - [Avalara](/integrations/avalara/) — connecting Avalara.