2022 flew by and we wanted to make sure you had the information you need to make this year a success. Here are some important policy changes that happened last year that you may need to be put into effect this year if you have not already!
Read MoreWith the expansion of economic nexus in 2018, more sellers than ever before have been required to register for sales tax in multiple states. As if determining where to register for sales tax isn’t confusing enough, each state also has its own rules related to filing frequencies once registered. Keeping up with all of the sales tax return filing dates in each state can be quite a headache; but, if you don’t stay on top of it, you could be hit with penalties and interest.
Read MoreWe are all well aware that due to temporary closings of offices and businesses and stay-at-home orders issued across the United States during the Coronavirus pandemic, many businesses implemented temporary work-at-home options for employees. Many states announced temporary relief regarding a business's establishment of nexus solely because an employee is temporarily working in a different work location due to COVID-19. So, now that in some ways, the pandemic is over and there has been an adjustment period for businesses, remote employees are starting to create tax issues!
Read MoreOne of the most common things we are asked about at Sales Tax and More is taxability. Taxability almost always comes down to super-specific factors, and each state has their own ideas on what is and is not taxable. On top of this, there are constant changes in taxability and states are continuously clarifying these specific factors.
Read MoreMany of us have been working from home and some of us may continue to do so for the foreseeable future or even permanently. Unexpectedly our employers are all facing questions about their new nexus footprint. Working from home can create nexus for multiple taxes including sales and income.
Read MoreThe last few months have, at best, been a whirlwind for all businesses, clients, and consumers. It feels like everyone is scrambling to keep up with legislative changes, and the new economic climate we are now all a part of.
Read MoreSeemingly every day we hear of states announcing devastating revenue shortfalls, and in turn budget cuts, changes in taxability, lowering economic thresholds, and anything that will help them make up for their losses and take care of its residents and businesses.
Read MoreA serious case for Sirius XM Radio Inc. Jennifer Mcloughlin in TaxNotes wrote, “They have asked the Texas Supreme Court to review and reverse an appellate court’s conclusion that the company’s subscription receipts should be sourced based on customer location for franchise tax purposes.” Nexus is not always easily determined and usually depends on many factors from many different angles. There is a lot to know.
Read MoreAt an ever-increasing rate, we are seeing states respond to what is quickly becoming an expanding economic crisis. The pandemic has created a huge revenue shortfall in many states due to the lower amounts of sales and income already collected and/or projected to be collected. Many experts have speculated that because of the loss of revenue, states are likely to take action designed to expand tax revenues and decrease costs. We believe it likely states will tax more services and more digital products. We believe we will see the states who have not yet introduced economic nexus or marketplace collection statutes to do so. Perhaps we may even see revisions to some of the existing statutes. We also believe states will begin to reduce or eliminate exemptions and many states will increase their discovery, auditing, and collection efforts.
Read MoreCoupons can create sales tax confusion. In general, sales tax is based upon the total amount of value received by a seller. A manufacturer’s coupon generally provides for reimbursement and is therefore generally included in the amount taxed. Store coupons and discounts generally do not provide reimbursement for a store. They just reduce the amount of money a store receives so they are generally not included in the amount taxed.
Read MoreYou read that correctly. Amazon warehouses CAN still create nexus, even after Amazon begins collecting taxes. It may not matter if you are only selling through marketplaces.
Read MoreIllinois is rolling out an amnesty program with their Illinois Tax Delinquency Amnesty Act. If you have existing tax liability after June 30, 2011, and prior to July 1, 2018, this program could be a great option for you! You can only make payments between October 1, 2019, and November 15, 2019, and time is moving quickly. How do you know if this amnesty program is a good option for you?
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