Tax Publications

Marketplace Facilitators: Economic Nexus Extends Reach into eCommerce

Posted on February 04, 2020. Category: Tax Publications

As ecommerce has exploded over the last two decades to become a pillar of our global economy, state and local taxing authorities have fought to expand the tentacles of sales tax as an effective and lucrative means of growing tax revenue with an expansive reach from coast to coast. With the advent of economic nexus after the Wayfair Supreme Court ruling, state taxing jurisdictions have expanded their taxing authority through marketplace facilitator legislation. These laws take aim at ecommerce and, specifically, at online marketplaces. With state purses filling up with the extra revenue realized from the success of taxing the...

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Top Five Mistakes to Avoid in Property Tax

Posted on January 27, 2020. Category: Tax Publications

Tangible Personal Property Tax OverviewCompanies who operate in or have tangible business personal property or inventory located in the US are required to file annual returns of such assets or inventory to local taxing authorities. These property tax returns include listing the year acquired and first cost of the assets (and inventory value for states that tax inventory).Many people don’t realize that a tax is paid on business assets every year as long as the assets are in use regardless of the company’s book depreciation. Local taxing authorities include counties, cities, and states who...

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What’s in a Name? That Which We Call Sales Tax

Posted on December 18, 2019. Category: Tax Publications

Sales Tax is defined as a tax on the sale, transfer, or exchange of a taxable item or service. It is generally added to the sales price and charged to the purchaser or ultimate consumer. This form of taxation can be traced back to the 1930’s as a way for states to increase their revenues, the first state being Mississippi. Currently, 45 states as well as the District of Columbia, impose sales and use taxes in one form or another. There are two implications of sales tax to be most aware of when considering who is ultimately liable for the...

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Posted on December 09, 2019. Category: Tax Publications

 Unclaimed Property (also known as abandoned or escheat property) is exactly that – money or tangible assets that belong to you, but are viewed as “abandoned” because there has been no activity or contact with you by the holder for one year or longer.  There are a myriad of types, but the most common for individuals are uncashed payroll checks, forgotten bank accounts, and non-refunded utility security deposits.  For businesses, uncollected vendor payments and tax refunds top the list. Every U.S. state, the District of Columbia, Puerto Rico, the U.S. Virgin Islands,...

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Wayfair Impact on Exemption Certificate Management

Posted on September 10, 2019. Category: Tax Publications

If preparing, issuing, collecting, verifying, and storing exemption or resale certificates for exempt sales made in the US was not a daunting task previously, it most certainly is now. Just over a year after the Wayfair decision that rocked the sales tax world, businesses are now faced with a myriad of resulting dynamics that will affect their time, profitability, and compliance. How a company manages those changes can have a positive effect on their state and local sales tax compliance as well as their profit margin if done well.Administrative BurdenNow that not only physical nexus but also economic...

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Manufacturing Exemptions & Incentives

Posted on August 12, 2019. Category: Tax Publications

Across the United States, sales tax regulations and exemptions are determined by each individual state. Exemptions can range from a single item being considered non-taxable to an entire transaction exemption because of how the purchase is used by a business.States look to manufacturers as a means of boosting their economy by bringing business and jobs to the area. Manufacturing is the process of converting raw materials into finished products to sell. As this is a highly sought-after industry, states create incentives for these types of businesses. Therefore, the manufacturing industry benefits from state sales tax exemptions.These exemptions look...

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Take Back What's Yours

Posted on June 20, 2019. Category: Tax Publications

Performing a reverse tax audit can be a rewarding way for companies to identify and recover overpaid sales and use taxes. The word “audit” may be received with negative feelings within some companies and perhaps reflected upon with frustration and avoidance. Nobody likes the idea of having to pay more taxes or having to endure the details of an audit. However, performing a reverse tax audit may be an opportunity for you to get paid for being compliant.What is a reverse tax audit?A reverse (tax) audit, sometimes called an “overpayment review,” is an optional...

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Snack Time or Tax Time?

Posted on June 19, 2019. Category: Tax Publications

Most states do not impose sales tax on the purchase of grocery items. However, items that are considered sold for on-premises or for immediate consumption are generally taxable items. The following chart depicts a list of states that charge tax on grocery purchases: Alabama, Arkansas, Hawaii, Idaho, Illinois, Kansas, Maryland, Maine, Missouri, Mississippi, Oklahoma, Pennsylvania, South Dakota, Tennessee, Utah, and Virginia.One might assume that all vending machine purchases are taxable since they are meant for immediate consumption, however, vending machine transactions are tax exempt in some states. Interestingly, Maine does not charge tax on vending machine purchases even though...

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Tax the Taxpayers

Posted on June 12, 2019. Category: Tax Publications

Creating and submitting tax returns could be provided as an externally sourced service to your company by local firms, accountants and CPA’s, or other US tax service providers or professionals.Early this year, Utah’s Legislature proposed a levy on sales tax on multiple services, including accounting services. Imagine: you are a tax professional completing a tax return, and the services you are providing are taxable services. It’s kind of ironic that as a business, you need to charge your clients sales tax. Multiple CPA firms in Utah were very upset with this policy. Lawmakers...

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Tax Collector's Error and Taxpayer's Responsibility

Posted on June 11, 2019. Category: Tax Publications

The Texas Court of Appeals recently dismissed the case of a taxpayer in Harris County Texas who sued several tax authorities. The taxpayer was seeking a refund for $17,861 of penalties and interest paid on overdue property taxes. The court stated that the individual failed to “plead facts within the scope of a clear and unambiguous waiver of governmental immunity for the claim.” The taxpayer contended that he had not received a tax bill for the year 2012 on his property due to a mistake made by the Tax Collector, who sent it to the wrong address. In this case,...

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