States have long tried to force out-of-state businesses to collect sales tax but were stymied by Supreme Court rulings that required businesses to have some type of physical presence in a state before being required to collect tax. States actively stretched the definition of physical presence to create work-arounds. This has led to a confusing web of nexus rules that continues to become more complex.
In June of 2018, the Supreme Court of the US ruled in favor of the state in South Dakota v. Wayfair. In this ruling, the SCOTUS removed the long-standing physical presence requirement and allowed South Dakota to impose nexus if a business’s sales exceeded a dollar amount or a certain number of transactions. Since this ruling, all but a few sales tax states have put similar requirements in place. These, so-called, economic nexus thresholds do not replace traditional nexus, but add another layer of complexity.
Because of economic nexus, many businesses have to determine if they have nexus in states they never thought much about. If they have nexus, they need to determine if their product is taxable and set up systems to collect and remit the tax. Businesses that have traditionally only filed sales tax returns in 1 or 2 states may suddenly need to collect in dozens of states.
This webinar will help public accountants and those in industry identify when nexus is created, the steps in determining the taxability of products and services, and the steps in complying with any new collection requirements.
Jack provides only on state and local tax services. He uses his deep knowledge and broad experience to help taxpayers and other CPA firms.
I have worked exclusively in state and local taxation for 27 years, 18 in public accounting and nine with the Washington State Department of Revenue. I have very deep state tax knowledge and have assisted clients with issues in all 50 states and the District of Columbia.
I have been able to consistently provide my clients with high quality, high value services by developing a deep understanding of their businesses. Educating my clients is a key focus. My goal is to give clients the tools to identify state and local tax issues and opportunities as their business evolves. Educating fellow accountants is also a passion. I am regularly asked to be a speaker at various tax seminars.
I am an avid runner and I am actively involved with the North Carolina Association of CPAs.