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Understanding Sales Tax Nexus In The Wake Of Wayfair

4.6 (114)

DANIEL KELLY

Hodgson Russ LLP

Monday, May 11, 2020 | 01:30 PM EDT

  • CPA
  • EA

1 Credit

FREE

Subject Area

Taxes

Upcoming Webinars

Course Description

In the wake of the US Supreme Court's decision in South Dakota v. Wayfair, states may now require remote sellers with no physical presence in a state to collect sales tax on sales of taxable products and services delivered to customers in that state.  Perhaps the most troubling development in state taxation post Wayfair is keeping up with each state's response to the Supreme Court decision.  In addition to its landmark sales tax implications, the Wayfair decision also changed income tax nexus considerations. Over 40 states have adopted economic nexus, and at least 45 now have a sales tax with most of these taxing out-of-state sales. Taxpayer nexus in a state now requires no more than a sufficient “economic or virtual presence” in a state.

Economic thresholds and factor presence tests are increasingly common for sales tax, gross receipts taxes, and income taxes. The standards limit planning options and increase the complexity and likelihood of tax payment and filing requirements across multiple states. A significant number of states use the economic or factor presence tests, with other states imposing a market-based standard as a means of increasing tax revenues.

When taxing the income of companies that operate in multiple states, a state can either impose tax on the company directly OR on the income passed through to the owners of the company. This webinar is intended to inform tax professionals of this changing landscape and provide them with the means to address these emerging potential obligations to remote sellers.

Learning Objectives

  • Understand Nexus issues in various jurisdictions
  • Apply Notice N-19-1 mandates to New York sales tax administration including its dollar amounts and use of an AND, not OR test
  • Enumerate arguments for when economic nexus becomes effective
  • Convey types of goods economic nexus applies to and rules for service providers
  • Delve into remaining unanswered questions sales tax questions in the wake of Wayfair

Who Should Attend?

  • CPA - Large Firm
  • CPA - Mid Size Firm
  • CPA - Small Firm
  • CPA in Business
  • Enrolled Agent
  • Entrepreneurial CPA
  • Tax Firm
  • Tax Practitioners
  • Tax Pros
  • Young CPA

Testimonial

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4.6

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67%
28%
4%
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