In Case You Missed It: Last Week in Allyn Tax News (Nov 8)

Allyn Tax Fun Facts

Happy Monday! Are you ready for more Allyn Tax Fun Facts?

In some states, candy is taxable, while in others, it’s exempt as a grocery item. The real twist? States like Illinois tax candy at a higher rate than other food items, unless it contains flour (like Kit Kats or Twix), which exempts it from the higher tax!

To learn more, ask an expert here: https://lnkd.in/eMTnUw3y

Is There an Exemption in the House?

Effective December 15, 2024, the Alabama Department of Revenue has amended Rule 810-6-5-.29, "Oxygen and Durable Medical Equipment." Pursuant to Act 2024-391, the amended rule provides that, effective September 1, 2024, any healthcare provider claiming an exemption from sales and use taxes must obtain and maintain a certificate of exemption from the Department prior to the purchase and must provide the certificate to the seller at the time of purchase. Any purchase made on or after September 1, 2024, will be subject to tax, unless the healthcare provider provides the certificate to the seller at the time of purchase.

Weathering the Storm: Tax Authorities Step In to Provide Relief After Helene and Milton

The federal government along with certain state taxing authorities are responding to this disaster by providing tax relief for those affected. These reliefs vary from jurisdiction to jurisdiction but mainly pertain to income tax responsibilities to alleviate pressure on those located in the affected areas. If you are an “affected taxpayer”, you will need to be aware of which states are offering relief and for what accounts, to ensure you maintain compliance in your federal and state tax responsibilities.

The IRS definition of “affected taxpayer” is: Any individual whose principal residence or any business entity or sole proprietor whose principal place of business is located in a covered disaster area, or whose records necessary to meet a deadline are maintained in a covered disaster area; any individual visiting the covered disaster area who was killed or injured as a result of the disaster; any individual who is a relief worker affiliated with a recognized government or philanthropic organization and who is assisting in a covered disaster area; or any other person determined by the IRS to be affected by a federally declared disaster.

Allyn International offers tax services for companies throughout the US and Canada and has business continuity plans in place to circumvent impediments from natural disasters. Allyn’s team of seasoned tax professionals completed every tax return and payment due within the scope of potential delays due to Hurricane Helene and Milton prior to the storm’s impact. Despite our US headquarters being in the storm’s affected path, Allyn was open and fully operational within hours of the storm’s passing. We can help your business maintain compliance with federal and state tax responsibilities and put procedures in place to ensure future disasters do not affect your tax operations. Click the link to read more about the taxing authorities offering relief: https://lnkd.in/ess4r_D8

Drop Shipping Explained: A Beginner’s Guide to E-Commerce Success

As a company grows, managing every aspect of its operations can become increasingly challenging, especially when it comes to shipping. One way to ease this burden is by utilizing drop shipments. In a drop shipment transaction, a retailer or seller receives an order from a customer and forwards it to a third-party supplier, usually a manufacturer or wholesale distributor, who ships the goods directly to the end customer. The supplier bills the retailer at the wholesale price, and the retailer subsequently charges the customer the retail price. While drop shipments can be beneficial, it’s important to consider the tax implications before implementation.

Allyn’s tax professionals routinely research taxability issues and the tax implications therein for businesses paying sales tax in the U.S. We are experienced with scenarios in which tax implications can vary by jurisdiction, a common finding with drop shipments. We reduce the administrative burden our clients have with exemption certificate management by utilizing our own system to manage exemption certificates. Allyn can help your company reign in more complex situations by harnessing the knowledge and experience of our seasoned tax professionals. We can save you time, ensure timely, accurate filings and payments, and identify cost savings with our value-added services. Click the link to read more about the benefits of drop shipments: https://lnkd.in/epQJd9Wb

On the Road Again

Effective December 15, 2024, the Alabama Department of Revenue has amended Rule 810-6-5-.03, "Contractors Gross Receipts Tax." The amended rule clarifies that the contractors gross receipts tax applies to all payments made to a contractor or contract assignee whether the payments are made pursuant to a contract, purchase order, supplemental agreement, change request, or other agreement to construct, reconstruct, or build any public highway, road, bridge, street, or tunnel.

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About Allyn International 

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance.  Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North America, Europe, and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China and Prague, Czech Republic. For more information, visit www.allynintl.com.