Earn your Salt : Comprehensive State and Local Tax

Learning Objectives

• To identify Federal protection from net-income based taxes under P.L. 86-272
• To identify various Conformity with Federal Income Tax provisions
• The scope of common exemptions for various businesses, including manufacturers, telecommunication providers, and public utilities
• Sales tax applied to “business inputs” such as software-as-a-service, research / consulting services, and employment services
• Using voluntary disclosure agreements and amnesty programs to absolve past tax delinquencies and facilitate future compliance
• To identify various Nexus considerations for state business activity taxes
• To identify Federal protection from net-income based taxes under P.L. 86-272
• To recognize limitations on state taxation under the U.S. Supreme Court’s recent decisions in South Dakota v. Wayfair, North Carolina v. Kaestner, and Comptroller of Maryland v. Wynne
• To minimize state & local tax obligations for multistate businesses
• How to take advantage of voluntary disclosure and amnesty programs for businesses with state tax liabilities

Course Description

Taxes are widening their scope continuously. Especially with nexus barriers continued to get knocked down, businesses are continued to be subject to more taxes in number of states. For instance, the sales tax system in the U.S. is complex. With numerous state, numerous sales tax rates, and a whole lot of variability, it is tough for retailers to make an efficient application of the U.S. Sales Tax. Especially the pass-through entities and their owners face difficulties - to identify where businesses and owners are required to pay and file state and local taxes - in the ever-changing morass of state tax laws and administrative policies governing nexus.

This webinar attempts to demystify the sales tax system. It also avails much needed practical advice for tax practitioners serving small & mid-size business clients. Further, it attempts to cover noteworthy SALT developments in the following sessions:

• Session 1 - MULTISTATE TAX COMPLIANCE: WHERE AND WHEN BUSINESSES ARE SUBJECT TO STATE TAXES
• Session 2 - SALES TAX OVERVIEW: DETERMINING THE TAX BASE AND COMMON EXEMPTIONS
• Session 3 - BUSINESS ACTIVITY TAXES – WHERE ARE BUSINESSES AND THEIR OWNERS REQUIRED TO FILE AND PAY STATE INCOME TAXES?
• Session 4 - NOTEWORTHY SALT DEVELOPMENTS: FROM WAYFAIR AND BEYOND, REVOLUTIONARY CHANGES TO STATE TAX LANDSCAPE

Details key points covered in each session are as follows:

Session 1 - MULTISTATE TAX COMPLIANCE: WHERE AND WHEN BUSINESSES ARE SUBJECT TO STATE TAXES

As nexus barriers continue to get knocked down, businesses are being subjected to taxes in more and more states. The exposure faced by those who are unable to comply can be severe. Following the seminal U.S. Supreme Court decision in South Dakota v. Wayfair, states are now able to force remote vendors and marketplace facilitators to collect sales tax. Tax professionals must recognize how states expand, demand, and open new and broader tax pipelines to avoid any unintended tax implications for noncompliance.

Furthermore, these businesses are likely also subject to business activity taxes in these states. Pass-through entities and their owners in particular face difficult state tax complexities. This course will examine where businesses are subject to state taxes and how to minimize compliance burdens. Federal P.L. 86-272 provides protection for certain businesses selling tangible personal property, but is not available for service providers. Finally, attendees will learn which states conform to federal income tax provision and where decoupling exists.

Major Topics Covered:  

• Planning opportunities to help & advise clients
• Determining when sales tax must be collected by remote vendors, marketplace facilitators, and Software-as-a-Service providers
• Nexus considerations for state business activity taxes
• Federal protection from net-income based taxes under P.L. 86-272
• Taxation of pass-through entities and their owners
• How voluntary disclosure agreements and amnesty programs can absolve past tax delinquencies and facilitate future compliance

Session 2 - SALES TAX OVERVIEW: DETERMINING THE TAX BASE AND COMMON EXEMPTIONS

The sales tax system in the U.S. is anything but simple. With 45 states (and Washington, D.C.), over 10,000 sales tax rates, and a whole lot of variability, it can be tough for retailers to make sense of U.S. sales tax.  

Sales & use tax is a quagmire for many multistate businesses, as the rules governing the tax base and exemptions vary significantly amongst states. The task of identifying states in which sales and use tax compliance is required and how to apply each state’s tax may seem daunting, but it’s not impossible. The exposure faced by those who are unable to comply can be severe.

This webinar will help businesses navigate those sales & use tax complexities, focusing on what business purchases are subject to tax and how to maximize potential exemptions. This webinars will also explain why U.S. sales tax is so complex and helps you demystify it. Attendees will learn about common sales tax exemptions for manufacturing businesses and the resale of tangible personal property. Further, as states struggle to meet tax revenue demands, more and more services are becoming subject to tax, especially services sold to businesses.

Session 3 - BUSINESS ACTIVITY TAXES – WHERE ARE BUSINESSES AND THEIR OWNERS REQUIRED TO FILE AND PAY STATE INCOME TAXES?

Do you know whether your corporation’s activities cross state boundaries and establish a taxable presence (nexus)? Do you have the protocol in place to review and determine your multistate tax obligations? Do you have the systems in place to manage these obligations and minimize risk? Don’t wait until your company is audited to deal with the ever-changing morass of state tax laws and administrative policies governing nexus

As nexus barriers continue to get knocked down, businesses are being subjected to taxes in more and more states. The exposure faced by those who are unable to comply can be severe. Pass-through entities and their owners in particular face difficult state tax complexities. This course will examine where businesses are subject to business activity tax and how to minimize compliance burdens. Federal P.L. 86-272 provides protection for certain businesses selling tangible personal property, but is not available for service providers. Finally, attendees will learn which states conform with federal income tax provision and where decoupling exists. 

With so much uncertainty in the area of business entity taxation when advising business clients, this business entity tax update webinar is a must-attend event! This Business Entity Tax webinar will focus on providing practical advice for tax practitioners serving small & mid-size business clients.

Session 4 - NOTEWORTHY SALT DEVELOPMENTS: FROM WAYFAIR AND BEYOND, REVOLUTIONARY CHANGES TO STATE TAX LANDSCAPE

The U.S. Supreme Court has decided several state & local tax cases recently which will shape the SALT landscape for decades to come. Apart from the Court’s holding regarding state sales & use tax collection for retailers, this decision has also changed the nexus landscape for other types of direct state taxes - at least in conjunction with state threshold legislation - including net income taxes, for service providers, manufacturers, wholesalers and retailers.

These rulings include:

• Expanding sales tax collection for e-commerce businesses 
• Restricting state income taxes imposed without a sufficient connection with the state, and 
• Protecting taxpayers against discriminatory taxes.

Richard Fry and Steven Dimengo, partners at Buckingham, delves into the subject in this webinar.

Major Topics Covered:

• Identify the limitations on state taxation
• To ensure you by helping that your business is not unduly burdened by state taxes
• Recognition of awareness areas to save your business from the negative impact of aggressive revenue approach from states
• To know awareness of the definition of paying fair share of taxes

Attend this webinar to grab the opportunity for staying updated with the subject and help your firm to achieve more with recognizing fair tax payments…!