CPE Packages (Incl. Ethics) for Multiple States and Qualifications Available. Price $4/credit - CLICK HERE to view.

Comprehensive Sales & Use Tax Overview with Latest Update

Mark Stone

Sales Tax Defense LLC

Thursday, July 22, 2021 | 11:00 AM EDT

  • AFSP
  • CFEs
  • CPA (US)
  • CVA
  • EA
  • Tax Preparer
  • CTEC

8 Credits

$80

Subject Area

Taxes

Webinar Qualifies For

8 CPE credit of Taxes for all CPAs

8 CE credit of Federal Tax for Enrolled Agents ( IRS Approved : GEHNZ ) (Approval No. GEHNZ-U-00603-21-O)

8 CE credit of Federal Tax Subjects for California Tax Professionals (CTEC Approved - 6273) (Approval No. 6273-CE-0577)

8 CPE credit for Certified Fraud Examiners (CFEs)

8 CPD credit (Verifiable) for Certified Valuation Analyst (CVA)

8 CE credit of Federal Tax for Maryland Tax Preparers (Approval No. GEHNZ-U-00603-21-O)

8 CE credit of Federal Tax for Oregon Tax Preparers (Approval No. GEHNZ-U-00603-21-O)

8 General Educational credit for Tax Professionals / Bookkeepers / Accountants

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new form 941, form 7200, erc, tax credits under ffcra, & other payroll updates in covid-19

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crucial tax insights on real estate: like kind exchange, dispositions of real property

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This Course is Also Available in Self Study (On-Demand)

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Additional Dates

Aug 05, 2021 | 12:00 PM EDT Register

Course Description

1 January, 2021 saw a range of updates to the US sales tax regimes, affecting foreign retailers and marketplaces selling to consumers. In this 8-hour session, you will gain basic understanding about Sales tax and Use tax, how to determine nexus to the state, different categories of product and services which are subject to sales tax. It will lead you to the Sales tax audit process, Responsibility of contractures towards sales tax  including sales tax liabilities of manufactures and other service providers and procedure of getting refund from the federal government. The session is divided into 4 sessions:

Session 1 - Introduction to sales tax and determining its nexus

Part 1 - Introduction To Sales Tax

Sales & Use tax is a type of gross receipts tax imposed by most states on the sale of “tangible personal property” (such as computers, chairs, car parts, furniture, etc.) and certain services (such as information services, software services, etc.). Every state has a different set of rules that controls what types of items and services are taxed. Also, every state has different types of exemptions and exclusions from sales tax that favor some businesses and can be costly to others. 

Most business owners are unaware that even if you believe you are not required to collect sales tax, proper exemption paperwork from their customers should still be obtained. Also, most business owners are completely unaware of USE TAX being due on their nontaxable sales. 

To prevent out-of-state sellers from having a competitive advantage over in-state sellers, all states (that have a sales tax) impose a “use tax” on in-state purchasers. This use tax requires all purchasers (individuals and businesses) to pay use tax on any item normally subject to sales tax unless the applicable sales tax has already been paid. 

This online CPE webinar for CPAs covered key topics: 

  • What is use tax? 
  • What happens when an in-state vendor does not charge me sales tax? 
  • What happens when an out-of-state vendor does not charge me sales tax? 
  • What is my responsibility with use tax? 
  • How do I pay use tax? 
  • Are there penalties for not paying use tax? 
  • Am I personally liable for use tax? 
  • Is there a statute of limitations for the payment of use tax? 
  • What tax rate do I apply to use tax? 
  • What if I have never paid use tax before? 

Who Should Attend:

  • Professional or Staff Member Involved in preparation or review of Sales Tax & Use Tax
  • Business Owner 

Click for more webinars on Tax updates | IRS Audit, Representation, and Resolutions | Tax planning 

Part 2 - Sales Tax and Determining Nexus

Nexus is the minimum connection or physical presence in a taxing jurisdiction that gives rise to tax payment or tax collection duty. Businesses are not required to collect sales or use taxes on behalf of a state unless they have nexus in that state. Doing business in a state can create a connection (nexus) to that state. A business can unknowingly create nexus by having physical property (such as inventory or samples) in a state, an employee (such as a traveling salesperson) in the state, or having agents in the state operating on the company’s behalf (such as repairmen of sales agents.) Any of these activities can create nexus while the business’s main operations take place in another state. 

This Online CPE Webinar covers following Key Topics: 

  • What is nexus? 
  • What is the physical presence test? 
  • What is economic nexus? 
  • How does the 2018 Supreme Court decision for Wayfair affect economic nexus? 
  • What is affiliate nexus? 
  • What is a marketplace facilitator? 
  • How does point of delivery affect nexus? 
  • How do drop shipments affect nexus? 
  • What are the next steps after you have determined if you have nexus?
  • What is the taxability of my product? 

Click for more webinar on Taxes |Tax Planning | Accounting & Auditing 

Session 2 - Products and services subject to sales tax and introduction to use tax

Part 1- Products and Services Subject to Sales Tax

Sales and Use Tax is a type of gross receipts tax imposed by most states on the sale of “tangible personal property” (such as computers, chairs, car parts, furniture, etc.) and certain services (such as information services, software services, etc.). Every state has a different set of rules that controls what types of items and services are taxed. Also, every state has different types of exemptions and exclusions from sales tax that favor some businesses and can be costly to others. 

Sale Tax depends on three main factors: your nexus (or which states you have a connection with - you are only liable to pay tax in states that you have a connection with), the products or services in your product catalog (different tax rates apply to different products) and when you are exempt from taxes (this can differ from state to state as well).

Determining the correct tax that you should apply on your invoices. The tax that applies to the products in your product catalog: certain kinds of products are taxed differently in the US (for example, food products are exempt from tax in California). You should check with your individual state government as to which goods and services sold in your state are subject to sales tax.

This Online CPE Webinar covers following Key Topics:

  • How is tangible personal property taxed? 
  • What is the taxability of food? 
  • What is the taxability of intangible property? 
  • What is the taxability of real property? 
  • What is the taxability of the service I offer? 
  • When can I accept exemption documentation? 
  • What exemption documentation do I need? 
  • What happens if I ship out of state? 
  • Is it the job location or billing address that matters? 
  • Do I have to worry about the taxability of my purchases?

Click to access more webinars on Latest Tax Update | IRS Representation 

Part 2 - Introduction To Use Tax

Sales & Use tax is a type of gross receipts tax imposed by most states on the sale of “tangible personal property” (such as computers, chairs, car parts, furniture, etc.) and certain services (such as information services, software services, etc.). Every state has a different set of rules that controls what types of items and services are taxed. Also, every state has different types of exemptions and exclusions from sales tax that favor some businesses and can be costly to others. 

Most business owners are unaware that even if you believe you are not required to collect sales tax, proper exemption paperwork from their customers should still be obtained Also, most business owners are completely unaware of USE TAX being due on their nontaxable sales. 

To prevent out-of-state sellers from having a competitive advantage over in-state sellers, all states (that have a sales tax) impose a “use tax” on in-state purchasers. This use tax requires all purchasers (individuals and businesses) to pay use tax on any item normally subject to sales tax unless the applicable sales tax has already been paid. 

This online CPE webinar covers the following key topics:

  • What is use tax? 
  • What happens when an in-state vendor does not charge me sales tax? 
  • What happens when an out-of-state vendor does not charge me sales tax? 
  • What is my responsibility with use tax? 
  • How do I pay use tax? 
  • Are there penalties for not paying use tax? 
  • Am I personally liable for use tax? 
  • Is there a statute of limitations for the payment of use tax? 
  • What tax rate do I apply to use tax? 
  • What if I have never paid use tax before? 

Click for more webinars on Tax updates | IRS Audit, Representation, and Resolutions | Tax planning 

Session 3 - Understanding sales tax audit process and contractors' sales tax responsibility

Part 1 - Understanding the sales tax audit process

The purpose of a Sales Tax Audit is to determine if the taxpayer is paying the correct amount of sales tax to the State. The audit is used to promote compliance with tax laws, and as a means of increasing state revenue. As part of the ordinary course of business, most companies eventually will undergo a sales and use tax audit. Sales tax auditors frequently think that businesses cheat or at least intentionally try to skirt the sales tax law. They begin most audits with the attitude of trying to determine how much the business owes, not whether or not the business owes anything. Should the auditor find a transaction that the Company erroneously paid tax on, it is doubtful they will let you know about the overpayment. 

Key topics: 

  • What is the audit process? 
  • Why did I get picked for audit? 
  • What happens if I am not registered for sales tax? 
  • Does the government get third party data? 
  • Will the government extract the data from my computer system? 
  • What is my responsibility for keeping books and records? 
  • What happens if the company owes money? 
  • Am I personally responsible? 
  • Does the government abate penalties? 
  • Will I go to jail for owing sales tax? 

Click to access more webinars on IRS Audit | Latest Tax Updates | Financial Planning

Part 2 - Contractors And Their Sales Tax Responsibilities

Generally speaking, contractors owe sales tax when buying materials to be incorporated into real property. Sales tax is generally imposed on the “ultimate consumer.” The ultimate consumer is usually the last person to purchase and use the item. In the construction or improvement of real property, the contractor usually is considered the ultimate consumer of the tangible personal property incorporated into the reality. Contractors are generally not resellers of materials incorporated into the real property; they are considered users and consumers of materials purchased for a job. However, the type of contract can change the tax implications. 

This online CPE webinar the speaker Mark Stone, CPA covers the following major topics:

  • Who is a contractor? 
  • When does a contractor need to charge sales tax? 
  • What is a capital improvement? 
  • What are repair and maintenance? 
  • Does a contractor have to pay tax on its materials? 
  • What is a material man? 
  • Are installation, disassembly, or delivery charges taxable? 
  • Do I need to charge sales tax if I sell just materials? 
  • What exemption certificates do I need? 
  • Is carting or waste removal taxable? 

Click to access more webinars on Latest Tax Update | IRS Representation 

Session 4 - Sales tax liabilities of manufacturers and other service provider and means of getting sales tax refund

Part 1 - Sales Tax Liabilities Of Manufacturers And Other Service Providers

The manufacturing industry is an enormous sector in the United States as it provides jobs and boosts the economy, but are you aware of the varying Sales Tax Laws that come along with being a manufacturer? 

Most states provide some kind of sales tax exemptions to manufacturers. Raw materials, machinery and equipment, and wrapping and packaging are common sales tax exemptions for manufacturers. In many states, raw materials are exempt to manufacturers when they are used and consumed in the manufacturing process and the product is later sold to a customer. Additionally, the machinery and equipment that are used to manufacture the raw materials from start to finish tend to be either taxed at a reduced rate or not taxed at all. 

This Online CPE Webinar covers following Key Topics:

  • What is a manufacturer? 
  • What special exemptions apply to a manufacturer? 
  • What is a research and development company? 
  • What special exemptions apply to research and development? 
  • What sales tax rules apply to printing companies? 
  • Do guard services have to charge sales tax? 
  • Can guard services accept exemption certificates? 
  • How is software taxed? 
  • Do caterers need to charge sales tax? 
  • Do medical practices need to worry about sales tax? 

Click to access more webinars on Latest Tax Updates | Free CPE Webinars | Free Ethics

Part 2 - Understanding sales tax refund

Sales tax is a type of gross receipts tax imposed by most states on the sale of “tangible personal property” (such as computers, chairs, car parts, furniture, etc.) and certain services (such as information services, software services, etc.). Every state has a different set of rules that controls what types of items and services are taxed. Also, every state has different types of exemptions and exclusions from Sales Tax that favor some businesses and can be costly to others.

Often, you may be eligible for a refund of sales or use tax. If you overpaid sales tax on a purchase, paid sales, and use tax in error, or collected, reported, and remitted sales tax but then repaid it to your customers, then you may be eligible for a refund of sales or use tax. To apply for a sales or use tax refund it is important that you use the right form, have all the correct documents to support your refund claim, and know where and when to send your claim. 

Key topics included in this online CPE webinar: 

  • Can I get a sales tax refund? 
  • How do I file for a sales tax refund? 
  • What looks back period is eligible for a refund? 
  • Can I get a refund for the receivables I write off? 
  • If I am a manufacturer, when does sales tax not apply to my purchases? 
  • When can I get a refund for the use of electricity? 
  • Can I get a refund on printed advertising? 
  • Am I eligible for a refund on the sales tax I paid for repairs to my equipment? 
  • What research and development activities are eligible for a sales tax refund? 
  • Does the state pay me interest on my refund?

Click to access more webinars on IRS Audit | Latest Tax Updates | Financial Planning

Learning Objectives

  • To provide basic understanding about Use Tax
  • To discuss who is responsible for paying Use Tax
  • To explain how to compute and pay Use Tax
  • To discuss the Sales Tax Return filing jurisdictions
  • To discuss nexus and the related filing requirements
  • To analyze how specific business activities can create a connection to the state
  • To discuss what types of products and services are subject to sales tax.
  • To examine the taxability of various products and services
  • To discuss how shipping or exemption documentation effects a seller’s responsibility to collect tax.
  • To provide basic understanding about Use Tax
  • To discuss who is responsible for paying Use Tax
  • To explain how to compute and pay Use Tax
  • To provide basic understanding of the Sales Tax Audit Process
  • To discuss a taxpayer’s responsibilities during a sales tax audit
  • To discuss what to expect during the audit process.
  • To explain who the government defines as a contractor
  • To discuss the sales tax responsibilities of contractors
  • To discuss the need to pay sales tax on materials
  • To examine the exemptions that apply to contractors
  • To explain who the government defines as a contractor 
  • To identify the sales tax responsibilities of a manufacturer 
  • To discuss various types of service businesses and how various exemptions apply to each of them 
  • To discuss the conditions for eligibility for sales tax refund
  • To examine the process of applying for a sales tax refund
  • To discuss specific service industries and the areas where they can potentially receive a sales tax refund

Who Should Attend?

  • California Registered Tax Professional
  • Enrolled Agent
  • Maryland Tax Preparers
  • Oregon Tax Preparers
  • Tax Managers
  • Tax Preparer
  • Tax Professionals