Applicability of sales and use taxes on digital products may in some cases hinge on the elusive definition of a computer “platform.”
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Topics
Sales Tax
California Supreme Court lets stand sales tax on the full price of cellphones bundled with a service plan
The Supreme Court of California recently denied an appeal in Bekkerman v. California Dep’t of Tax and Fee Administration.
Is Illinois’s sales tax playing field really level?
A lawsuit alleges that Illinois’s effort after Wayfair to make its sales tax regime fairer for in-state retailers unconstitutionally discriminates against remote retailers.
Taxing marketplace facilitators: Sourcing issues
This items discusses how various types of revenue earned by marketplace facilitators may be sourced under state laws and regulations.
Proven digital strategies for sales and use tax audits
Businesses must increasingly depend on big data, sampling, and artificial intelligence tools to anticipate and prepare for audits from cash-strapped state and local governments.
Sales tax considerations for exempt organizations
Exempt organizations often dedicate resources to complying with federal tax laws but may not recognize the complexity of state and local sales and use taxes.
Sales and use taxes: Loss contingencies
This item discusses FASB Contingencies standards in the context of potential loss contingencies related to sales and use taxes.
New Illinois and Chicago tax rules pose challenges
With new nexus rules, many retailers and other businesses are now facing an array of Illinois tax collection scenarios that may challenge their existing tax compliance systems.
State proposals to tax digital ads are popping up everywhere
Certain jurisdictions introduced bills that would impose new taxes on revenues from digital advertising or expand the state sales tax base to include sales of digital advertising.
New Mexico’s gross receipts tax: Round 2 of changes
This item discusses major changes in New Mexico’s corporate income tax and gross receipts tax regime.
Corporate purchasing cards: Sales and use tax issues
The use of P-cards, which likely increased during the coronavirus pandemic, can create unexpected challenges, including potential exposure to sales and use tax.
Transfer pricing and sales/use tax
This discussion outlines the basics of sales and use tax and transfer pricing, considers how intercompany transfer pricing may unintentionally lead to sales tax exposure, and offers steps to avoid audit assessments and penalties.
California issues emergency regulation to clarify Marketplace Facilitator Act
The regulations provide examples to help taxpayers determine when a seller or facilitator becomes either a “marketplace facilitator” or “retailer” for California sales and use tax purposes and when a taxpayer establishes a tax registration and filing responsibility in California based on its sales activity.
Why are indirect taxes hot for e-commerce businesses?
This article discusses the status of indirect taxes for e-commerce businesses, the expected changes to the EU VAT and U.S. state and local sales tax, and the difficulties for businesses selling goods to consumers online.
Sales tax conflicts where two states tax the same transaction
New York’s and New Jersey’s different interpretations of situs could result in double taxation.
Assessing Wayfair’s impact on business and professional service providers
States have been showing a trend toward taxing
an increasing number of services.
Recent nonstatutory state reactions to Wayfair
Several states have begun extending the economic nexus standard approved in Wayfair beyond sales tax, adopting economic nexus provisions for
corporate income taxes.
Practical implications of the Wayfair decision
Businesses can follow this six-step analysis to make
sure they cover their bases in complying with new remote-seller sales-and-use-tax responsibilities.
Wayfair’s impact on not-for-profit purchases and revenues
Not-for-profits that sell goods or services may find themselves needing to register for sales tax accounts in other states to remain in compliance.
M&A considerations in light of Wayfair
Buyers and sellers must now consider how Wayfair affects M&A tax due-diligence efforts, purchase agreement indemnities, and navigating remediation
plans between the parties around prior-period exposures.
employee benefits & pensions
Profits interests: The most tax-efficient equity grant to employees
By granting them a profits interest, entities taxed as partnerships can reward employees with equity. Mistakes, however, could cause challenges from taxing authorities.
