The SALTcast: Recent Episodes
Ryan Johnson, Daniel M. Peisner, CMI, Jason Parr CEO, Paul Johnson, VP
When it comes to sales tax in the US, E-commerce sellers face a tremendous challenge.
Every state has its own rules and tax rates. Each state has its own idea of "nexus" or the point at which a business is required to collect tax in their state. Each state has their unique laws around the taxability of goods and services in their state.
Some states exempt food products, and/or clothing, and/or, medical products, and/or digital goods. And these rules are constantly changing and evolving. E-commerce businesses and their advisors are caught in a very difficult position trying to stay on top of everything in this rapidly changing environment.
That's where this Podcast is meant to help. We'll try to bring episodes each week that will help keep up with the changes and give you answers to specific stat tax scenarios that e-commerce businesses face.
This conversation discusses Voluntary Disclosure Agreements (VDAs) as a way for businesses to come into compliance with state sales tax requirements. The conversation covers the benefits of VDAs, why businesses should voluntarily disclose sales tax, and the availability of voluntary disclosure programs in every state. The main focus is on the steps involved in the VDA process, including contacting the state, waiting for a response, submitting information, and signing the VDA agreement. This conversation discusses the process of entering into a Voluntary Disclosure Agreement (VDA) with a state tax authority. The conversation covers the steps involved in the VDA process, including the initial request, state response, signing the agreement, providing data to the state, reviewing the tax bill, and making the payment. The conversation also highlights cautionary tales and best practices for successfully navigating the VDA process. The hosts emphasize the importance of working with a tax professional and provide contact information for further assistance.
Takeaways
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Voluntary Disclosure Agreements (VDAs) allow businesses to come into compliance with state sales tax requirements.
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VDAs offer benefits such as waiving historical tax obligations, penalties, and interest.
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Every state has some form of voluntary disclosure program.
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The VDA process involves contacting the state, waiting for a response, submitting information, and signing the VDA agreement. The VDA process involves several steps, including the initial request, state response, signing the agreement, providing data, reviewing the tax bill, and making the payment.
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It is crucial to work with a tax professional who can guide you through the VDA process and ensure compliance with state requirements.
Caution should be exercised when entering into payment agreements, as failure to comply with the terms may result in additional penalties and interest. -
Proper record-keeping and understanding the taxability of sales are essential for a successful VDA process.
Submitting a VDA letter anonymously through a tax professional can help maintain confidentiality and avoid potential issues.
Chapters
00:00 Introduction to VDAs
03:07 Benefits of VDAs
06:57 Why Voluntarily Disclose Sales Tax
10:36 Voluntary Disclosure Programs in Every State
15:25 Steps of the VDA Process
24:46 Signing the VDA Agreement
26:15 Introduction to Voluntary Disclosure Agreements (VDA)
27:02 Step 1: Initial Request
27:46 Step 2: State Response
28:11 Step 3: Respond to the State's Response
29:06 Step 4: Sign and Countersign the Agreement
29:39 Step 5: Provide Data to the State
31:24 Step 6: State Review and Tax Bill
34:05 Step 7: Pay the Tax Bill
36:23 Cautionary Tales and Best Practices
45:27 Submitting a VDA
48:03 Conclusion and Contact Information
In this conversation we discuss amnesty programs, non-compliance, and remedies for businesses that need to become compliant with sales tax regulations. We emphasize the importance of understanding nexus and taxability, as well as seeking second opinions to avoid bad advice. We explore the pros and cons of registration and voluntary disclosure agreements as methods for achieving compliance. Our conversation concludes with a discussion on the value of educational and informative calls to help businesses make informed decisions and find peace of mind in their sales tax compliance.
Takeaways
- Amnesty programs that offer limited look back periods and waive penalties and interest are not commonly seen in the current sales tax landscape.
- Businesses often find themselves in non-compliant situations due to lack of awareness or denial of their sales tax responsibilities.
- The two main remedies for non-compliance are registration and participation in voluntary disclosure agreements.
- It is important to seek second opinions and collaborate with trusted advisors to avoid bad advice and make informed decisions.
- Facing compliance and getting a second opinion can help businesses achieve peace of mind and mitigate potential liabilities.
Chapters
00:00
Amnesty Programs and Limited Look Back
06:22
Recognizing Non-Compliance and Bad Advice
08:23
Understanding Nexus and Taxability
14:43
Remedies for Non-Compliance: Registration and Voluntary Disclosure Agreements
25:17
Avoiding Bad Advice and Seeking Second Opinions
28:20
The Importance of Facing Compliance and Getting a Second Opinion
32:38
Choosing Between Voluntary Disclosure Agreements and Registration
33:06
Educational and Informative What's Next Calls
34:09
Promoting Peace of Mind and Contacting The Sales Tax People
In this conversation, Ryan Johnson, Jason Parr, and Paul Johnson discuss the complexities of sales tax and the importance of compliance. They emphasize the need for businesses to understand their sales tax responsibility and the various terms and concepts related to sales tax, such as nexus and taxability. The conversation highlights the significance of conducting a thorough risk analysis and collaborating with experts to ensure compliance. The speakers also discuss the different remedies available for businesses to address sales tax liabilities, including voluntary disclosure agreements. They stress the value of seeking second opinions and collaborating with professionals to make informed decisions. The conversation concludes with a reminder of the resources available on the Peisner Johnson website and the importance of educating businesses about sales tax.
Takeaways:
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Understanding sales tax compliance is crucial for businesses to avoid penalties and liabilities.
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Conducting a thorough risk analysis and collaborating with experts can help businesses determine their sales tax responsibility.
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Properly understanding terms like nexus and taxability is essential for accurate compliance.
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Businesses should consider different remedies, such as voluntary disclosure agreements, to address sales tax liabilities.
Chapters:
00:00
Introduction and New Year's Update
01:05
The Complexity of Sales Tax
02:23
Getting Started with Sales Tax Compliance
03:19
Identifying Sales Tax Responsibility
04:46
Understanding Nexus and Risk Analysis
08:01
The Importance of Proper Nexus Study
10:25
Taxability and Risk Analysis
13:48
Remedies for Sales Tax Compliance
17:12
Amnesty Programs and Second Opinions
19:02
Collaboration and Peace of Mind
23:40
The Importance of Nexus Analysis
25:20
Educating Businesses for Informed Decisions
26:09
Resources and Conclusion
SummaryIn this conversation, Ryan Johnson, Jason Parr, and Paul Johnson discuss the process of becoming sales tax compliant. They cover topics such as understanding what is covered in sales tax compliance, recognizing the need for compliance, conducting a risk analysis, implementing compliance measures, considering the timeline for implementation, implementing an automated solution, simultaneously registering and implementing, switching providers and outsourcing, and more.
If you would like to discuss what is next for you with sales tax compliance come have a chat with us: https://peisnerjohnson.com/whats-next/
Takeaways
- Sales tax compliance involves understanding the changing landscape of sales tax laws and regulations.
- Recognizing the need for sales tax compliance is the first step in the process.
- Conducting a risk analysis helps identify the states where you have a responsibility to collect and remit sales tax.
- Implementing sales tax compliance measures can be done through a DIY approach or by outsourcing to a professional service provider.
- The timeline for implementation depends on the complexity of your business and the resources available.
- Implementing an automated solution for sales tax compliance can streamline the process and ensure accurate tax collection.
- Simultaneously registering and implementing compliance measures is recommended to avoid potential liabilities.
- Switching providers or outsourcing sales tax compliance can provide greater peace of mind and efficiency.
- It is important to regularly review and update your sales tax compliance measures to stay compliant with changing laws and regulations.
Chapters
00:00
Introduction and Holiday Banter
03:41
Understanding Sales Tax Compliance
08:09
Recognizing the Need for Sales Tax Compliance
10:40
Conducting a Risk Analysis
12:05
Implementing Sales Tax Compliance
16:48
Considering the Timeline for Implementation
20:25
Implementing an Automated Solution
25:18
Simultaneously Registering and Implementing
28:37
Switching Providers and Outsourcing
36:38
Summary and Call to Action
In this podcast episode, the hosts discuss sales tax planning for 2024. They emphasize the importance of including sales tax in overall tax planning strategies and highlight how sales tax can significantly impact a business's financial success. The conversation covers topics such as nexus and business operations, reviewing nexus for the next year, taxability of goods and services, exemption certificates, and choosing the right sales tax return process. The hosts provide valuable insights and encourage listeners to reach out for further assistance.
Takeaways
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Sales tax planning is crucial for businesses to ensure financial success and compliance.
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Businesses should regularly review their nexus and consider the impact of their operations on sales tax obligations.
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Understanding the taxability of goods and services is essential to avoid under or overtaxing customers.
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Managing exemption certificates effectively can help businesses avoid audit issues.
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Choosing the right sales tax return process can simplify compliance and reduce frustration.
Chapters
00:00
Introduction and Podcast Structure
00:50
Importance of Sales Tax Planning
02:51
Nexus and Business Operations
06:14
Reviewing Nexus and Planning for the Next Year
08:21
Taxability of Goods and Services
12:02
Exemption Certificates
13:09
Choosing the Right Sales Tax Return Process
20:58
Conclusion and Contact Information
Young Han shares his entrepreneurial journey and the lessons he learned from failures. He discusses the importance of courage and vulnerability in starting a business and finding purpose through the concept of Ikigai. Young Han also talks about his experiences working at Starbucks, Apple, Phil's Coffee, and Limelight Health. He introduces the Owner's Manual Framework and the benefits of joining Owner's Club. The conversation highlights the significance of supportive communities and the Girl Dad Show. Young Han emphasizes the value of networking and learning from others.
Takeaways
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Starting a business requires courage and vulnerability, as it involves showcasing oneself to the world and taking a leap of faith.
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Failures can be valuable learning experiences that teach humility, resilience, and the importance of hard skills.
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Surrounding oneself with supportive communities and like-minded individuals can lead to personal and professional growth.
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The Owner's Manual Framework, developed by Young Han, provides a system for running businesses effectively and achieving success.
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Networking and building relationships with others in the industry can be instrumental in business growth and personal development.
Chapters
00:00
Introduction and Technical Difficulties
01:16
The Joy of Promoting Owners Club
03:02
The Courage and Vulnerability of Starting a Business
04:50
Discovering Ikigai and Finding Purpose
06:27
Young Han's Entrepreneurial Journey
11:36
Lessons Learned from Failures
15:28
Working at Starbucks and Apple
17:46
Working at Phil's Coffee and Limelight Health
20:06
The Owner's Manual Framework
21:20
Joining Owner's Club
25:22
The Importance of Supportive Communities
28:13
The Girl Dad Show and Networking
31:52
Where to Find Young Han
To find out more about Young Han and Owner's Club visit his website:
www.owners.club
In this podcast episode, we discuss two topics related to sales tax filing and notices. The first topic revolves around what to do if a business has had zero sales. We emphasize that regardless of sales volume, registered taxpayers are required to file returns. Failure to file can lead to penalties, even for zero sales.
The second topic we discuss focuses on handling notices from tax authorities, especially in cases where businesses receive notices despite filing returns correctly. We stress the importance of not ignoring these notices. Even if the business has filed on time, states might issue automated notices due to various reasons like processing delays. Ignoring notices can lead to complications and additional penalties.
We then share insights on how to address notices, including providing necessary documentation and communicating with tax authorities promptly. We also touch on occasional filing statuses in certain states, where businesses only file returns when tax is due. Throughout the discussion, we emphasize the significance of proactive communication with tax authorities and not disregarding any notices, even for zero sales, to maintain compliance and avoid unnecessary penalties.
If you would like to submit a notice to try and stump us sent it to info@peisnerjohnson.com
On this episode of the SALTcast, We discuss a controversial issue regarding Massachusetts attempting to retroactively collect sales tax from out-of-state retailers. They delve into the background of the problem, detailing how certain states passed legislation in 2017 in anticipation of the Wayfair decision, hoping to require out-of-state sellers to collect sales tax. Following the Supreme Court's decision in 2018, several states, including Massachusetts, sought to enforce these laws retroactively, leading to legal challenges from companies. The Jason and Paul express their concerns about the fairness and constitutionality of this approach, highlighting the complexities and potential financial implications for businesses. They also touch upon Massachusetts' creative methods to increase tax revenues, including taxing digital products and intangibles, and ponder the possibility of affected companies receiving refunds if the legal challenges succeed.
If you would like assistance in sales tax compliance please visit us here: https://peisnerjohnson.com/whats-next/
Exploring Peisner Johnson's Values and Purpose
- Jason has been with Peisner Johnson for over 25 years.
- Jason explains his journey at the company and how his "why" has evolved over time.
- The core value of "we over me" is discussed, emphasizing building relationships over transactions.
- The importance of helping people and providing peace of mind regarding sales tax issues is highlighted.
- Danny shares his experience and how Peisner Johnson assists businesses in managing sales tax complexities.
- The concept that sales tax can affect various aspects of a business and individual well-being is emphasized.
Collaboration and Confidence Building
- The principle of "collaboration builds confidence" is introduced.
- Jason talks about how collaborating with trusted individuals enhances decision-making and confidence.
- The "What's Next Calls" are explained as free consultations to educate and provide confidence to clients.
- Danny shares an example of how collaboration and informed decision-making helped a complex business situation.
- Finding the intersection between perfect compliance and practicality is emphasized.
- The value of information and sales tax consulting in providing peace of mind is discussed.
Authenticity and Abundance Mentality
- The authenticity of Peisner Johnson's approach is highlighted.
- We emphasize our commitment to helping people over a transaction-focused approach.
- An abundance mentality is discussed, focusing on the belief that helping others will ultimately benefit the company.
- The impact of Peisner Johnson's services on businesses and individuals facing sales tax challenges is emphasized.
You can learn more about us by visiting our website https://www.peisnerjohnson.com/
In this podcast episode, Paul Johnson and Ryan Johnson discuss the complexities of resale certificates and sales tax regulations across different states. They highlight the variations in rules and requirements, emphasizing the importance of understanding the specific regulations in each state. The conversation covers topics such as when and how to issue resale certificates, the significance of nexus, and the potential challenges faced by drop shippers. Paul and Ryan also mention the need for businesses to stay organized and up-to-date with resale certificates to avoid compliance issues. They caution against accepting incomplete or invalid certificates and stress the importance of collaboration and seeking professional advice when navigating these complexities.
As we discussed in the episode here is the Multi-Jursidictional Resale Certificate link: https://www.mtc.gov/wp-content/uploads/2023/01/Unif-Resale-Cert-revised-10-14-22.pdf
In this podcast episode, we discuss the complexities of rentals and leases, particularly in relation to sales tax. We cover various aspects of this topic, including different types of rentals (e.g., property, clothing, cars), the complexities of sales tax laws across different states, and the unique considerations for lessors.
Key points discussed include:
- The variety of rentals and leases, from short-term to long-term, and the different tax implications they may have.
- The complexity of sales tax laws in different states, including the options for lessors to pay tax upfront or based on lease flow or payments.
- Different types of leases, such as financing leases and capital leases, and how they can affect tax obligations.
- The importance of understanding property tax for lessors and how it relates to their inventory of leased items.
We emphasize the need for businesses to be aware of their tax obligations when engaging in rentals and leases, including considering physical nexus, the base for tax calculation, and the specific tax rates in different states. They also touch on the issue of double taxation in vehicle leasing and private party transactions.
Overall, the podcast highlights the complexity of rental and lease taxation, with a focus on providing valuable insights and considerations for businesses. We encourage listeners to schedule a "What's Next Call" for personalized guidance on their specific tax situations.
Navigating the ever-changing landscape of sales tax compliance can be a challenging endeavor for businesses. As sales patterns evolve and business circumstances change, it's crucial to stay on top of your sales tax obligations, even when you no longer meet the criteria for nexus. This is where Peisner Johnson comes in. With expert guidance and a personalized approach, Peisner Johnson can assist you in understanding and managing trailing nexus, ensuring your compliance with sales tax laws.
Here are some questions we cover in this episode:
**What is Trailing Nexus?
How Long Does Trailing Nexus Last?
When Can I Cancel My Sales Tax Registration?
What About Online Sellers?
How Do I Know If My Business Has Trailing Nexus?
If you have questions regarding your business and whether or not you should be register let's chat here: https://www.peisnerjohnson.com/whats-next/**
Sales Tax in the United States is well known for being complicated. Even if you understand where you have nexus, the taxability of your products and services, and you know how the method of doing your business effects your sales tax responsibilities, being located out side of the US brings additional complications. When it comes to being a non-U.S. business, not only are you dealing with those 3 things, you also have some very unique challenges that you may not be aware of. So, on today's episode of the SALTcast we talk about just that.
If you are a business that is located outside of the United States but are running into sales tax compliance issues you can schedule a call with us here: https://www.peisnerjohnson.com/whats-next/
Just about a year ago Colorado implemented their "Retail Delivery Fee." Now with Minnesota ready to implement their own retail delivery fee we ask the question, "where does this end?" The other question we have is, do states really have the authority to impose this fee on businesses? We explore these and other questions in Today's episode.
If you have questions about proper compliance to this fee or other sales tax related questions do not hesitate to reach out to us by booking a call with us here. https://www.peisnerjohnson.com/whats-next/
Diane L. Yetter (www.linkedin.com/in/dianeyetter) is the “Sales Tax Nerd ® ”. She is a strategist, advisor, speaker, and author in the field of sales and use tax. She is the president and founder of YETTER Tax, a sales tax consulting and tax technology firm. She is also the founder of The Sales Tax Institute.
Diane works with clients of all sizes and in a myriad of industries to deliver sales tax services ranging from tax technology to tax policy, planning, and training. She also regularly partners with other advisors to help them serve their clients.
As a speaker, Diane is frequently asked to present to industry groups concerning sales and use tax issues. As an author, Diane regularly contributes to various publications and has published three books and numerous articles concerning sales and use tax issues. She is also the author of the US Sales Tax Chapter for the IBFD VAT Worldwide Research Database. Diane was invited to testify before the Senate Committee on Finance regarding the impact of the Wayfair decision on small businesses and remote sellers. She has also appeared as an expert witness in legal matters and litigations.
Diane was named in Accounting Today’s 100 Most Influential People in Accounting eight times between 2011 and 2022. As an entrepreneur, she was honored as Woman Business Owner of the Year 2020 by the National Association of Women Business Owners (NAWBO) Chicago Chapter. Her Twitter handle @SalesTaxInst has been one of Forbes’s Top 100 Tax Twitter Handles and @YetterTax is in the Accounting social media leaders. She also sits on the Avalara Accounting Meta Influencers Roundtable.
Diane earned a BS in accounting and business administration from the University of Kansas in 1985 and a MS in taxation from DePaul University in 1994. Prior to founding the company, Diane was a state and local tax manager in the Chicago office of Arthur Andersen LLP, the sales and use tax director for the Quaker Oats Company, and a sales and use tax auditor for the Kansas Department of Revenue.
As announced during the podcast, The Sales Tax Institute would love to offer a 10% discount to the SALTcast community to join the Sales Tax Nerd Community. To find out more about the Community please visit https://www.salestaxinstitute.com/sales-tax-education/sales-tax-nerd-community-membership and if you want to join, enter discount code SALTcast10 on the order form to receive 10% off.
When it comes to helping your clients with sales tax, you may find yourself looking for direction and answers. What better people to turn to than the “Sales Tax People”? Here are the top 6 benefits you will find partnering with Peisner Johnson.
Since July 2018, the landscape of sales tax has changed drastically. The United States Supreme Court ruled in favor of South Dakota v. Wayfair. With that, companies across the country saw their nexus footprint change. Every state started looking less at where businesses operate from a physical standpoint and more on where customers are located and where products and services are being sold to.
Picture this. You're strolling through the labyrinth of sales tax laws in the United States, and suddenly you come across five states that hit like a cool breeze on a hot summer day: the NOMAD states.
These states, devotedly referred to as NOMAD (New Hampshire, Oregon, Montana, Alaska, and Delaware), have something unique to offer—they don't impose any state sales tax. You read that right, no state sales tax. It's like a dream come true, giving you a reason to rest easy at night.
However, before you become too complacent, keep in mind that there are always nuances to consider when it comes to sales tax. While these NOMAD states may not impose state-wide sales tax, it's crucial to remember that the government still requires revenue to maintain smooth operations.
So, where does this revenue come from? The NOMAD states have their own compensatory methods for the lack of state sales tax revenue. They frequently depend on higher business, income, or excise taxes compared to states with a state sales tax. And then there are local jurisdictional sales tax nuances to be aware of.
To ensure clarity, let's delve a little deeper into these states and their unique tax structures.
Studies show that most companies aren’t happy with their current sales tax process. It doesn’t have to be like that. You can have an exceptional experience with outsourcing your sales tax process and we can prove it. Here are the top benefits of choosing Peisner Johnson.
Our Core Beliefs
“We over me.”
We believe when you help others, you help yourself. This has driven us to keep a ‘We over Me’ mentality across everything we do. This makes the work we do more than just figuring out sales taxes. We are here to help you, however that may be. We understand the inevitable nature of sales taxes and ultimately, we want you to have the peace of mind that comes from knowing what your options are.
Managing sales and use tax obligations is no easy task. It requires careful attention to detail, a deep understanding of complex rules and regulations, and a significant investment of time and resources. Yet, despite the challenges, many businesses continue to handle these obligations in-house. In fact, most companies still manage various aspects of sales tax internally.
So, why do businesses choose to shoulder this burden themselves? There are several reasons, ranging from a lack of trust in external partners to a desire to maintain control over critical financial processes. However, it's essential to recognize that the right sales tax compliance experts can alleviate these concerns and become trusted partners, reducing risk and liability.
But first things first. Let’s talk about what sales tax compliance is.
Have you ever noticed how sometimes we hear a phrase so often that we don't really think about what it means? "Sales and use tax" is one of those phrases that we've probably all heard before, but have you ever stopped to think about what "use tax" actually means? While most of us are familiar with "sales" tax, "use" tax is a concept that often gets overlooked or misunderstood.
Let's take a moment to give "use tax" the attention it deserves and learn more about it.
What is Use Tax?Use tax is officially defined as the tax on the use, consumption, or storage of a taxable item or service on which no sales tax has been paid. It is required to be paid by the consumer in cases where the seller does not collect sales tax.
How Use Tax WorksThe use tax is a form of taxation that applies to specific goods and is charged by a consumer's home municipality or state. Unlike sales tax, which is typically applied to all goods and services, the use tax is only charged under certain circumstances.
Here are some common instances where use tax is charged.
- When a buyer purchases goods from an out-of-state seller who does not charge a sales tax.
- If you're a professional and you buy goods for your trade in an area where sales tax doesn't apply but you plan to use those goods in an area where sales tax is charged, you might be responsible for paying a use tax.
- If a buyer purchases items from a seller outside of their home jurisdiction and the seller doesn't charge sales tax, the use tax may be charged if the customer intends to use or store the goods in an area where sales tax is applicable.
Use tax is a complementary tax; it’s not charged if sales tax is charged. The use tax rate is typically the same as the local sales tax rate, but this also varies per state. It is left up to consumers to calculate and pay use taxes, which makes it challenging to enforce. However, a resident who does not pay use tax may be subject to fines, interest, and penalties.
You know how stressful it can feel if you’ve received a formal letter with the news of an upcoming audit. So let’s talk about the next steps.
What is an audit?
An auditor goes into an audit with two things in mind.
They want to determine if your business has collected and remitted the proper sales tax amounts from your customers.
They want to verify that you’ve paid or self-assessed the correct amount of sales and use tax on the purchases you’ve made during the set audit period. (The set look-back period is typically 3-4 years, but the statute of limitations varies.) The purchases will include both operating expenses and fixed assets.
If you find yourself under audit now is a great time to get on a What's Next Call!: https://peisnerjohnson.com/whats-next/
Are you looking for a way to build your sales tax process to help your business grow successfully? Let’s discuss the pillars of success that outline the principles you need to know.
From Pillars to Profit
What do pillars have to do with sales tax?
Hear me out.
Pillars serve structural purposes. They provide support, stability, and alignment. They serve as protection and prevent damage from external forces. They are an essential component and play a critical role in ensuring stability.
The same thing goes for having a good sales tax process. The right pillars will keep your business safe, stable, and aligned.
So let’s make sure you have your sales tax pillars in place!
Sign up for a Free What's Next Call to discuss how we can help at any part of your process: https://peisnerjohnson.com/whats-next/
If you are a business owner who charges customers for shipping and handling, it's important to understand the rules and regulations for charging sales tax on these items. Failure to comply with the laws could result in penalties and fines, so it's crucial to get it right. In this blog post, we'll explain some things you need to know about charging sales tax on shipping and handling, including the rules, exceptions, and best practices.
If you are unsure about what you have been doing sign up for a What's Next call today.
Understanding how to calculate sales tax is as simple as multiplying the sales tax rate times the sales price of the item you’re selling. However, as simple as it may sound, there are nuances depending on your location and situation. Learning how to correctly charge sales tax in each state can create complexity. Let’s talk through it.
If you have any questions let's chat HERE.
A new year brings new sales tax changes for some states. As of January 1, economic nexus has taken effect and become active in Missouri. More changes may follow suit.
It’s a new year, which means there are changes to be aware of! State tax changes take effect either at the beginning of the calendar year (January 1) or the beginning of the fiscal year (July 1). According to the Tax Foundation, “thirty eight states have noteworthy tax changes taking effect.” Check your state here to stay informed on any changes that may affect you or your business.
For today’s focus, we are going to take a look at the change in states with economic nexus. This summer will mark 5 years since the momentous 2018 Supreme Court case South Dakota v. Wayfair, Inc. **decision that established the sales tax landscape retailers and eCommerce sellers know today. Many businesses are still trying to navigate their way through the new obligations; but as of January 1, every state with sales tax has economic nexus.
If you feel that it is time to re-evaluate your nexus footprint schedule a call with us today: https://peisnerjohnson.com/whats-next/**
What does due diligence look like in the sales tax world? As a business owner, due diligence consists of analyzing the accuracy and taxability estimates and your businesses sales tax compliance. It is a process of solving tax problems before they negatively affect your business. This will drastically reduce the amount of unpaid taxes you may owe a state.
Questions Answered:
What should I be looking at?
What ate some blind spots?
We offer a free consultation to help you through your due diligence process. Conducting proper due diligence on unpaid taxes or a state audit assessment can greatly reduce your business’s total exposure and can save you hundreds of thousands of dollars. Find peace in mind, we would love to help you through your due diligence process. There is confidence in collaboration.
Reach out to me here: ryanj@peisnerjohnson.com
Jamie assists businesses in all aspects of state and local tax, from compliance, to audits and administrative proceedings, through litigation. Outside of work, Jamie serves a variety of
organizations including MothersEsquire, Trinity College Board of Trustees, a local dental
non-profit, and several bar associations. Jamie enjoys raising her fiercely independent, impish daughter; singing; and hiking around Maine with her husband, daughter, and dogs.
Conversation Topics Include:
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What does Brann & Isaacson do for Clients?
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What does Peisner Johnson and Brann & Isaacson have in common?
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What recent legislation changes are your clients experiencing?
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What kind of tax traps are you seeing that your clients are dealing with?
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What advice can you give to businesses?
You can follow Jamie on linkedIn here: https://www.linkedin.com/in/jamieszal/
While serving the people in Guatemala Jeremy Porter was able to see first hand the poverty of the people living near rivers, streams and the coast. He also saw the amount of plastic and trash that was being thrown into these rivers and streams that was reaching the ocean. When he got home and was studying in college he came up with the Idea of Repurpose Recycling. Repurpose Recycling not only helps keep trash out of our oceans but helps those in poverty gain access to more food, freshwater, and money. Listen in as I interview Jeremy about his journey and what he and his company has been able to accomplish.
Check out Jeremy on Linkedin: https://www.linkedin.com/in/jeremy-porter10/
A common question amongst Amazon sellers is, “If I am part of the Fulfillment by Amazon (FBA) program, am I obligated to collect and remit sales tax?” This can be a tricky question to answer as it is continuously changing and evolving per state. States and local municipalities continually shift and change their tax rules and stances. To complicate things further, Amazon continues to build new warehouses in every state. So finding an accurate answer to this question can prove to be grueling. We’re here to help.
Recent Changes
In general, most states agree that any inventory stored in their state creates nexus which in turn imposes a tax obligation upon sellers. However, the state's stance on this can be ambiguous. Sellers that utilize a marketplace facilitator find that selling through a third party warehouse can throw a wrench in the works. Why? Because you don’t always have control over where your inventory is. Typically, inventory creates physical nexus. Though, Arizona has recently changed its stance on this matter.
If you want to chat about how these new changes may affect you schedule your What's Next call today!
Valerie has spent 10 years in Cloud Accounting technology. At LumaTax, she's empowering SALT and Client Accounting Services teams to streamline, elevate, & grow their sales tax advisory services (such as nexus studies, threshold monitoring, registrations, and voluntary disclosures). She partners with accounting professionals through technology transformation as they work to deliver an improved client experience and has a passion for learning and teaching new tools.
LumaTax is a sales tax software that has the ability to power your sales tax advisory arm of your accounting firm. With LumaTax you can help advise your business clients on where they may have some sales tax responsibilities or some serious sales tax exposure. LumaTax gives you the ability to not only add some tremendous value to your firm but provide some much needed peace of mind to your clients. Come listen in as Valerie discusses LumaTax and how it can help you.
You can find Valerie on Linkedin here:
https://www.linkedin.com/in/valerieheckman/
You can find LumaTax here:
http://www.lumatax.com/
We have spoken to 100s if not 1000s of small to medium sized businesses that are concerned about their sales tax responsibilities. After a discussion with them and we often find that there is nothing that there needs to be done at the moment. We will never recommend buying things that you don't need. So, I was curious what our recommendations are when it comes to this situation. I invited Paul on to discuss this with me today.
Additional Questions Answered:
Do I need to collect sales tax?
As a small to medium sized business do I need to collect sales tax?
As a startup do I need to collect sales tax?
Should I sign up for TaxJar, Avalara, Sovos?
What should I do right now about sales tax?
If you are unsure of what to do about sales tax a great place to start is with our resources page https://peisnerjohnson.com/resources/. If your situation seems more complicated and you can't find the answers that fit your business situation, join us on a what's next call: https://peisnerjohnson.com/whats-next/
On our podcast episodes we talk a lot about getting on a What's Next Call with us. What we haven't done is go through what a What's Next Call consists of. While this may not be an actual recorded call it is as close as it gets. I asked Paul and Danny to give us a reenactment of a recent call with a new contact that had some questions. In this particular scenario a business got some bad advice from a professional but now they are suffering the consequences. They ended up collecting sales where they weren't registered to remit the sales tax. This results in tax being collected and not being remitted. This can be considered as fraud in the states eyes. Surprisingly, this is a very common situation that we run into. So, get your popcorn and enjoy.
A What's Next Call has the potential of changing the tide of your sales tax woes. If this sounds like a similar situation you find yourself in, reach out to us today! https://peisnerjohnson.com/whats-next/
When someone new engages with us we almost always start with a sales tax risk analysis. Once you find out that you have some sort of sales tax responsibility this analysis should be your next step. With this analysis you will receive a report that will help you decide what to do next. This could mean that you need to get registered for sales tax, engage in a VDA, or do nothing. Since Paul and Jason have engaged in literally thousands of these. So, I asked them to give me some idea of what they cover in one of these sales tax risk analysis.
Additional Questions Answered:
What is economic nexus?
What is physical Nexus?
Why is is important to determine the taxability of my product and services?
Why is knowing how I sell my product important when it comes to sales tax?
What can I expect from a sales tax risk analysis?
Can I do a risk analysis on my own?
If you would like to know what your sales tax responsibilities are or you had one done and would like a 2nd opinion? Sign up for a free What's Next call and we can get it rolling. https://peisnerjohnson.com/whats-next/
We talk to people with businesses on a daily basis that are unhappy with their sales tax compliance process. Those we talk with are either aware or unaware with the flaws in their sales tax compliance process. What they really don't recognize is that there are different solutions to their sales tax woes that they did not know existed.
Additional Questions Answered:
What does sales tax automated software cost?
What re the pros and cons of sales tax automated software?
is switching sales tax providers a lot of work?
does automated sales tax software provide sales tax consulting?
What should I expect to get from a third party sales tax compliance provider?
If you are unsatisfied with your current sales tax compliance process you are only a What's Next call away from discovering what is truly possible. Schedule your call today here: https://peisnerjohnson.com/whats-next/
There are so many ways that you can sell your product. One of the most popular ways is through a marketplace facilitator like Amazon, Ebay, and Walmart. In many cases a seller can de-register their sales tax accounts if they only sell on a marketplace facilitator. So, I asked Paul and Jason, under what circumstances would a seller need to remain registered or get registered for sales tax.
Additional questions answered:
What is a marketplace facilitator?
If I only sell on Amazon do I have nexus and have to collect sales tax?
How does materiality play into determining wether or not I should register for sales tax?
If I have inventory in a state do I have to register to collect sales tax?
If I only sell on a Marketplace can I just deregister all of my sales tax accounts?
What are some of the pitfalls I will run into with sales tax?
Do you do significant sales on a marketplace facilitator and are wondering what your sales tax responsibilities are? Don't worry, you are not alone. Jump on what's next call with us here: https://peisnerjohnson.com/whats-next/ and get some solid peace of mind.
When you are getting your business started there are a lot of things to worry about. One of those things may or may not be sales tax compliance. A lot of people reach out to us about their situation. I invited Paul and Jason on to give their advice on what you should be doing.
Questions Answered:
How do I know when I should be collecting sales tax?
What is sales tax nexus?
Where should I register for sales tax?
Does sales tax keep you up at night?
When I first start my business do I ned to collect sales tax everywhere?
Do I have to do anything about sales tax when I fist start my business?
Do I have to collect sales tax after I hit economic nexus thresholds?
When you are looking to get compliant with sales tax you will find a few different "automated" solutions. Peisner Johnson has been in the sales tax trenches for the last 30 years and we have used every sales tax software solution out there. But, to truly say that your sales tax is fully automated isn't really accurate. What is automated is truly amazing and well worth it. Let's talk about that.
Questions Answered:
Is sales tax automation "set it and forget it?"
What about sales tax prevents it from being totally automated?
What is truly automated with sales tax automation software solutions?
What does sales tax software do right?
Do I need to talk to a sales tax professional?
How do I know the correct sales tax rates?
If you are looking for a sales tax compliance solution or you are not super happy with your current solution, lets chat. You can schedule a call with us here: https://peisnerjohnson.com/whats-next/
I was able to meet with Matthew Holman of Qpilot. Qpilot is an amazing company that will help your company develop and deliver a seamless and unified subscription experience for your customers. As more and more businesses go online you want to make sure your customers are having the best experience possible to keep them coming back. This is where Qpilot excels and can take your business to the next level.
Additional Questions Answered:
What is Qpilot?
What can Qpilot do for me?
How do I set up a subscriptions for my website?
Why is it important to have a subscription product or service?
How does Qpilot work?
If you have wanted or even just considered adding a subscription option to your website and provide a better user experience Qpilot makes it easy. You can connect with Matthew here: https://www.linkedin.com/in/holman-matthew/ To learn more about Qpilot check out the website here: https://qpilot.cloud/ You can also join Share House which is a community of like minded people and businesses: https://sharehouse.com/join/
If you are currently selling your product or service online you are probably aware of economic nexus. You are probably even tracking your sales and transactions to make sure you aren't hitting economic nexus thresholds. But, did you know that anyone that you contract to fulfill a service give you nexus in that state? And, that you need to register for a sales tax permit and start collecting sale tax? Today we talk through a few different scenarios where you may have physical nexus.
Additional Questions Answered:
Do do third party contractors give me sales tax nexus?
What are the economic nexus thresholds?
Do common carriers give me physical nexus?
Do deliveries using my own vehicles give me physical nexus?
Does dropshipping my product give me physical nexus?
If you are unaware of your own sales tax responsibilities the best place to start is with nexus. Use our free Nexus Calculator to see where your responsibilities lie.
If you file sales tax returns in Colorado you know just how quickly it can get very complicated. There is not only a state sales tax but there are home rule cities and counties. These are all independent tax collecting jurisdictions. Now on top of the sales tax you are collecting you now are required to collect the RDF or retail delivery fee of .27 cents on every delivered product.
Listen in as we go over what you should be considering for your own business.
Additional Questions Answered:
What makes Colorado so complicated with sales tax?
Is the Retail delivery fee a tax?
What form do I use to remit the retail delivery fee?
How much is the retail delivery fee?
What happens if I don't pay the retail delivery fee?
Can I collect the retail delivery fee from my customers?
If you need help getting the retail delivery fee in CO jump on a call with us and we will make sure you have it set up correctly. Schedule a call here: https://peisnerjohnson.com/whats-next/
When getting sales tax compliant, like most things in tax, it can get complicated quickly. As a start up, small business, or you just sell on one marketplace facilitator like Amazon sales tax is simply not that complicated. But, if you are selling on multiple channels, you have multiple products or services, and you sell at a high level getting a sales tax pro is well worth it. We can help you strategize and come up with the best route forward.
Additional Questions Answered:
How long has Peisner Johnson been around?
How do I know what level of sales tax consulting I need?
Should I rely on my CPA for my sales tax responsibilities?
Does Peisner Johnson work with CPA's to help their clients with sales tax?
What is the best way to work with Peisner Johnson?
If you are looking to get sales tax compliant or you are looking to change up your provider reach out to us here: https://peisnerjohnson.com/whats-next/
The subscription business model is getting more popular by the minute it seems. Heck! we use a subscription model for ou sales tax return services. The amount of things that you can subscribe to are absolutely staggering. Products range from physical items to software. As it is the more you add to your subscription the more complicated it gets to determine whether or not you should be taxing your product or service. Today we talk about just that.
Additional Questions Answered:
What makes subscriptions so complicated with sales tax?
Do subscription sale give you sales tax nexus?
What items are taxable for sales tax in a subscription?
How do I know how to tax my items or services?
What do I do next if I have sales tax nexus?
How do I know if I need to collect sales tax?
If you run a subscritpion model in your business it is worth reviewing with us to make sure you are collecting the right amount of sales tax. Chat with us live now! https://peisnerjohnson.com/whats-next/
Technology over the last few decades has immensely improved. 30 Years ago when Peisner Johnson was created, research has gone from paper leaflets in binders to the internet. Despite vast improvements sales tax technologies isn't "set it and forget it." Sales tax is complicated enough and ever changing that it will always need collaboration with sales tax practitioners.
Additional Questions Answered:
How long has PJCo been around?
How can sales tax software help?
Where is sales tax software a hinderance?
Using sales tax software can I just set up my sales tax accounts and forget it?
What does sales tax software not do?
Has PJCo handle sales tax notices?
Should my sales tax returns show that more sales tax than I actually collected?
If sales tax software and automation solutions isn't quite what you suspected you are not alone. That is why we have the free "What's Next" call so we can help you decide what you need to do next! Schedule a "What's Next" call here: https://peisnerjohnson.com/whats-next/
We often talk about what the most costly mistake is when it comes to sales tax. That is ignoring your sales tax situation. Every month you ignore it the greater your liability increases. When the sales tax could have been collected from your customers it is now coming out of your pocket. There is another side that we want to talk about today that we call. "the greatest TRAGEDY of sales tax."
Additional Questions Answered:
Could I really end up in jail for failing to remit the sales taxes I collected?
What if I have been collecting sales tax but haven't sent it to the state?
Am I set up to collect sales tax correctly?
Can a state force me to pay the tax after I have closed my business?
How does Peisner Johnson Help?
Can I collect the sales tax at the highest rate in a state and call it good?
What are the solutions if I have collected sales tax but haven't remitted?
If you are in this boat and are unsure of what to do next, book your free What's Next Call today and let's get you sorted out. https://peisnerjohnson.com/whats-next/
Compliance seems pretty straight forward, but some states are a little more complex than others. Collecting the right sales tax rate should be easy to figure out, but like most things with sales tax, it depends.... Today we discuss a few different nuances that you may be subject to.
Additional questions answered:
How do I know I am properly collecting the right sales tax rate?
Do states have different sales tax rates?
How do I make sure I am collecting the right sales tax rate?
What makes it difficult to know what rate I should collect?
Should I be collecting the sales tax rate where my customer is located?
If you are unsure if you are collecting the right sales tax rate or that you should be collecting sales tax at all get on a call with us here: https://peisnerjohnson.com/whats-next/
Due diligence when merging or acquiring a business is a no brainer. What happens way to often is sales tax is overlooked or not looked at at all! Sales tax is often a major factor in business purchases and could really decimate your bottom line. We believe having an expert in the sales tax area can be an enormous benefit.
Additional Questions Answered:
What does due diligence for sales tax look like?
How would a refund review help?
How can Peisner Johnson help the buyer?
How can Peisner Johnson help the seller?
Why do we look at purchases?
If you are looking to merge with, sell, or purchase a company it would be wise to get on a quick What's Next call with us to help determine if there are any red flags. You can schedule your call here: https://peisnerjohnson.com/whats-next/
Have you been in a sales tax audit? Have you ever wondered if you are paying too much sales tax on the purchases you make? Have you ever wondered if you aren't paying enough sales tax? You have probably wondered if your sales tax is even being handled correctly. A refund review could help you in every aspect. That is something that we talk about in this episode.
Additional Questions Answered:
Am I paying too much sales tax?
Am I paying too little sales tax?
Should I be self assessing sales tax on my purchases?
What gets looked at during a sales tax refund review?
Should I get a refund review during a sales tax audit?
How Would a refund review benefit me during a merger and acquisition?
If you have ever wanted to get a once over on your sales tax situation a refund review can be a good place to start. You can schedule your initial call here: https://peisnerjohnson.com/whats-next/
Getting registered to file sales tax seems pretty straight forward. But, in fact getting registered for sales tax is actually pretty complicated. Want to find out why? Listen in as we chat about the intricacies and pit falls and what you can do to avoid them.
Additional Questions Answered:
How do I know where to get registered for sales tax?
How many different kinds of sales tax licenses are there?
What is sellers use tax?
What is use tax?
Do I need a business license?
What is the process of getting registered for sales tax?
What do I do with notices?
If you are considering getting registered for sales tax it might be a good idea to chat with an expert. You can do just that for FREE here: https://peisnerjohnson.com/whats-next/
2022 is upon us and we predict that this year will be the year of enforcement. With all of the states having enacted economic nexus legislation they will now start enforcing those laws. Understanding your sales tax responsibilities is not an easy task. There is a lot of information and a lot of the time it is difficult to discern which laws are appropriate for your business. We aim to take the guess work of what you should do. That is why we came up with these three questions. Come listen in and find out what they are.
Additional Questions Answered:
What should I expect when it comes to sales tax in 2022?
How do I determine nexus?
How do I determine the taxability of my product or service?
Are digital goods taxable?
If I sale solely on an online marketplace like amazon, am I responsible for collecting the sales tax?
Why is it important to consider the method of how I sell my products?
If you are wondering what may be in store for you in 2022 sign up for a What's Next call today and we can get you the peace of mind you need. Schedule your time here: https://peisnerjohnson.com/whats-next/
Have you been researching and investigating on how to best handle your sales tax responsibilities in 2022? You are not alone. You have probably found that there are a few different options, including, automated software solutions and other full service providers like us, Peisner Johnson. Today we talk about what you can expect.
Additional Questions Answered.
What do I need to know to determine my sales tax responsibilities?
How do I know if I am collecting the right amount of sales tax?
What are my cheapest sales tax compliance options?
What pitfalls are there with automated software solutions?
How do automated software solutions calculate my sales tax returns?
How does Peisner Johnson calculate my sales tax returns?
How are notices handled with automated software and Peisner Johnson?
Will stated audit my sales tax returns for correctness?
Do I need to pay the estimated tax due on a state notice?
What kind of notices will I get from states?
If you are looking into your options and need help deciding what will be best for your situation. You can jump on a What's Next Call with us and we can help you through the decision process.
Connecticut has recently released an amnesty program for the next few months. Amnesty programs are not all created equal. Listen in as we chat about whether or not Connecticuts amnesty program will work for you.
Additional questions answered:
What is an amnesty program?
What is a VDA?
What are the terms of Connecticut's amnesty program?
How do I take advantage of the amnesty program?
You can find more information about the amnesty program here: www.getrightct.com
If you would like to discuss if this program is right for you sign up for a call here: www.pj.tax
As digital goods and subscription items become more popular you can bet that states will be looking to cash in on those things. Listen in to Jason, Paul , and Danny speak on the taxability of digital goods.
Additional Questions Answered:
What is a digital good?
Are services taxable?
Since when have digital goods been taxed?
How do I know if my product or service is taxable?
If you sell digital goods or services you may need to be collecting sales tax. Get on a What's Next call with us today to get your peace of mind here: www.pj.tax
We have noticed that Illinois has increased their sales tax audits significantly. I few of our clients are currently under audit or have received a letter of intent to audit. Illinois probably won't be the only state to do this. Listen in as we discuss what your options are.
If you are under audit and would like to talk to someone about strategy you can schedule your What's Next call here: www.pj.tax
Dropshipping is making easier for anybody to get into the ecommerce space. The concept of dropshipping is pretty simple. When it comes to sales tax dropshipping can be confusing and frustrating. I gathered the whole team to help understand dropshipping and what your sales tax responsibilities could be.
Additional Questions Answered:
What is dropshipping?
How does dropshipping work?
What are my sales tax responsibilities when I dropship?
Where do I collect sales tax from?
Do I need a resale certificate?
How do I get a resale certificate?
If you use a dropshipping method and are unaware of your sales tax responsibilities let's schedule a What's Next call here: https://peisnerjohnson.com/whats-next/
Florida was one of the last to sign in economic nexus and marketplace facilitator tax law legislation. Along with the legislation they also, almost quietly, released a sales tax amnesty program that remote sellers could take advantage of. I invited Dan Peisner CMI, and Paul Johnson our VP of Operations to come chat about this amnesty and who could benefit from it.
Additional Questions Answered:
What is a sales tax amnesty program?
What are the terms of the amnesty program?
How often to sales tax amnesties happen?
Who can take advantage of the sales tax amnesty program?
How do I get started with the sales tax amnesty program?
If you would like to chat about your situation and if this amnesty program makes sense for you schedule your What's Next call here: www.pj.tax
Economic Nexus has been the talk of the sales tax town ever since the 2018 South Dakota vs Supreme Court (Wayfair) Decision. What we have found is that Physical Nexus often goes overlooked. Physical nexus was established decades ago and still remains relevant. What we see happening is businesses are hitting economic nexus thresholds but had physical nexus years ago and should have registered for sales tax back then. Today we talk about just that.
Additional Questions Answered:
What is economic nexus?
What is physical nexus?
What triggers economic nexus?
What triggers physical nexus?
What do I do if I discover I had physical nexus years ago?
Can I have physical nexus and not economic nexus?
Can I have economic nexus and not physical nexus?
If you are unsure of your nexus, now is the time to find out. Schedule your Free "What's Next?" call here: pj.tax
It has been 3 years since the Wayfair Vs South Dakota decision was made in the Supreme Court. Since then states have been rushing to implement economic nexus and marketplace facilitator tax laws to capture sales tax revenue from remote sellers. Today I invited Paul Johnson our VP of Operations to talk about Missouri finalizing their economic nexus and marketplace facilitator tax laws and other changes states have made over the last few years.
Additional Questions Answered:
Which states have yet to establish economic nexus laws?
When was the last time sales tax was brought up in the Supreme Court?
When will Missouri's economic nexus laws come into play?
- Read the legislation here: https://governor.mo.gov/press-releases/archive/governor-parson-signs-wayfair-legislation-law
Will states come after ecommerce sellers?
What has changed since the Wayfair VS South Dakota Supreme Court Decision 3 years ago?
Are all online marketplace facilitators required to collect and remit sales tax for sellers selling on their platforms?
What do I need to do once I determine my nexus?
How do I determine if I have nexus?
What is a "What's Next Call?"
If you want to talk about where your business is at in regards to the Wayfair decision get on a free What's Next call with us today! Schedule yours here now : pj.tax
Quick-Show Notes:
In this episode of The Millionaire’s Lawyer, JP, Jason Parr, and Paul Johnson discuss:
Jason and Paul mention how things have greatly changed in the Tax world over the last few years.
E-Commerce has made a great impact on how the government and states are looking at taxing businesses.
Sales Tax
- Tax on a transaction
- 6% to 12% depending on the jurisdiction
- Different per state
- Huge deal, aka, Margin Killer, if the sales tax is unpaid
- Can ruin selling your business should you not be compliant
In 2018 there was a Taxation case in the Supreme Courts in regards to where corporations are required to be registered and compliant
Jason and Paul state how important it is to have confidence regarding your taxation and make sure you have all jurisdictions covered in which you may be collecting tax.
Collaboration builds confidence, outsource what you are not an expert in
“What’s Next?” Call
- Do I have Nexus?
- Is what I have taxable in that jurisdiction? / Fully-taxable or partial?
- How do I sell?
- Market place Facilitator
- If you are using a place like Amazon, they do this for you.
- Market place Facilitator
Each state taxes differently, Jason provides the example of Supplements
- In some states, the Supplements are fully taxable
- In others, they are only partially taxable.
- You are responsible to know this.
Jason and Paul mention that there is software out there to help track
There are Monthly and Quarterly remittances
Make sure you are set up now for when you need to get there, prepare for the growth ahead of time.
Manage where you are and set up the automation for that, and then when you expand add that into the automated system.
State
And
Local
Tax
Scott LeTourneau
Both Jason and Paul feel like the Government is going to become a little bit more aggressive in regards to the corporations that are not compliant, and even those who are yet to be registered in the correct jurisdiction.
Remain consistent in your Core Values
It is hard to successfully multi-task, slow down and become really good at one thing.
Key Takeaways
From this episode of The Millionaires Lawyer with Jason Parr and Paul Johnson:
- You have to be registered and compliment in every jurisdiction your clients are
- Tax laws have greatly changed over the last three years with the introduction of successful e-commerce
- Taxes are not something you are able to push off
If this is a situation that you are dealing with don't hesitate let's chat! Schedule your What's Next Call here: https://peisnerjohnson.com/whats-next/
In a recent article from CPA Trendlines it states that 98% of small businesses are failing to fully comply to their sales tax responsibilities. Also, on top of that 71% of accountants falling short on helping their clients be sales tax compliant. Despite everyone knowing that sales tax is a requirement there are still many accountants and CPAs that are unaware on how they can help their clients. We work a lot with accountants, bookkeepers, and CPAs and I asked the team to come and talk about what a partnership with us looks like.
Additional questions answered:
How does Peisner Johnson help with sales tax?
Do we compete in an accountants world?
Why is it important to have sales tax knowledge?
Where can I get educated in sales tax?
Do I need to provide sales tax services for my clients?
A What's Next Call is for everyone, this includes accountants, bookkeepers, and CPAs. Schedule your free What's Next Call with us here: pj.tax
They are called many things like; sales tax refund review, a reverse audit, or sales tax recovery project etc. No matter what you have heard it called or maybe you have never heard of it. It is important to know what it is, who would benefit from it, and why you should conduct one for your business. Today I invited Paul Johnson to talk about just that and why we include it on almost every one of our subscription contracts.
Additional questions answered:
What is a sales tax refund review?
What are the benefits of a sales tax refund review?
Why should you consider a sales tax refund review?
Why would there be sales tax need to be refunded to me?
Who would benefit from a sales tax refund review?
When would it be beneficial to get a sales tax refund review?
How does a sales tax refund review work?
If you have considered getting a sales tax refund review done or you have never heard of it now is the time to get on a FREE What's Next call to see if this is an option for you. Schedule yours here: www.pj.tax
Because of economic nexus physical nexus often gets overlooked or even forgotten. With the pandemic a lot of businesses have allowed their employees to work remotely. Also, with todays technology, remote working is here to stay and will only become more popular in the future. This will trigger companies to have physical nexus and will require them to get registered for sales tax wherever they have employees. I invited Jason, Paul, and Danny to talk about this and more.
Additional Questions Answered:
What should I be looking at to determine nexus?
Should I be concerned about physical nexus?
What does a Free What's Next Call consist of?
Does inventory cause nexus?
Does every state have physical nexus laws?
What do I do if I do have nexus?
If you haven't explored your potential sales tax nexus schedule your FREE consultative discovery call here: www.pj.tax
There were only a few states that were holding out from enacting any marketplace place facilitator tax laws one of them was Kansas. I gathered Jason Parr, Paul Johnson, and Danny Wright to chat about what this all means.
Additional Questions Answered:
What are marketplace facilitator tax laws?
What is economic nexus?
Do I still need to worry about physical nexus?
What are the economic nexus thresholds?
If you are unsure whether or not you should get registered to collect tax in Kansas just get on a FREE consultative call with us and we can help you make that determination.
Schedule your call here: https://peisnerjohnson.com/whats-next/
Having an online store is almost a necessity these days in order for your business to grow. Many use their online store to be able to sell their products globally! There are a lot of online shopping store software choices out there. All of your options have pros and cons to them but there is one feature that is almost never talked about that we find is essential. That is sales tax integration. Join us today as we talk about sales tax and what you should consider when you are trying to decide which provider to go with.
What is an online shopping software?
What are some sales tax benefits should I be looking for?
What integrations should an online shopping software solution have for sales tax?
What are ecommerce sellers looking for in a online shopping platform?
As a business what sales tax requirements do I have?
If you would like to talk about your sales tax responsibilities schedule a FREE consultation here: https://peisnerjohnson.com/whats-next/
There are really 3 different methods of sales tax compliance; in house, automated technology providers, and outsourcing of course. No matter how your sales tax compliance is handled a recent survey done suggests that 71% of people who are in charge of sales tax in their company are unhappy with their current solution. In today's episode we talk about the different methods of sales tax compliance and what would work best for you.
Additional Questions Asked:
What are my sales tax compliance options?
What are some difficulties do you run into with in house solutions?
What do I need to know about collecting and filing my sales tax returns?
What are some difficulties do you run into with automated technology solutions?
What are automated sales tax technology solutions?
What are the biggest complaints with sales tax technology solutions?
What does sales tax compliance look like if I outsource to Peisner Johnson?
If you are one of those that aren't happy with their current sales tax compliance solutions. Get on a Free What's Next consultative call with us here: https://peisnerjohnson.com/whats-next/
We love working with CPAs. Our relationships with CPAs are complimentary, since our area of expertise is in sales and use tax. In general, CPAs are looking for sales/use tax experts, since they typically like to focus on other tax matters. In today’s podcast, we are going to be talking with Jeff Bickel. Jeff has been with Tanner for over 15 years, and has spent the last 10 years acting as the managing partner in Salt Lake City, UT. As we commonly are talking about What’s Next, we thought it would be very helpful to learn from Jeff about what he and Tanner would cover in one of their own introductory calls with clients.
Additional Questions Answered:
What is your story?
What services does Tanner LLC offer?
How were you introduced to Peisner Johnson?
What are the common questions you get regarding income tax?
What are the common questions you get regarding accounting issues?
You can learn more about Jeff Bickel and Tanner LLC HERE.
E-commerce is expanding worldwide. Companies from all over the world are continually expanding their current company, and/or open e-commerce businesses in the USA. We speak daily with international companies that want to know what they need to do to start their business in the USA. Our guest for this episode is Scott Letourneau with NCP, the U.S. e-commerce expansion experts. We address a couple of the most common questions we get.
Questions Answered:
Is it recommended to set up a US entity in order to do business in the US?
Is it recommended to have a US bank account to do business in the US?
Do you need a US bank account to file sales tax returns?
You can learn more about Scott and NCP here: www.launchwithconfidence.com/
We have a lot of What's Next Call's each week and we see a lot of similar situations. In today's episode we will be covering the biggest hurdles we see when it come to filing sales tax returns.
Additional Questions Answered:
What is sales tax compliance?
What are the steps to becoming sales tax compliant?
What happens if I decide not to get compliant when I should?
What are some changes states make to filing requirement?
Has it gotten easier in some states to file sales tax returns?
What do I do next?
If that is your question, "What do I do next?" You can schedule your FREE What's Next call here: https://peisnerjohnson.com/whats-next/
When it comes to being compliant with sales tax in a state it is important to know the steps to take to get there. After recognizing your sales tax nexus footprint the next step is getting registered for sales tax in the states where you have nexus. In today's episode we discuss they information, steps, and what to expect when you get registered for sales tax.
Additional Questions Answered:
What information do states require to get registered for sales tax?
Is the information the same for all states?
Can foreign companies get registered for sales tax in the several states?
How many states should I get registered in?
How long does the sales tax registration process take?
If you would like some help getting registered to collect sales tax, or you are unsure if you even need to you can schedule your free What's Next Call here: https://peisnerjohnson.com/whats-next/
In the wake of many businesses being bought and sold this year I invited Jason Parr our CEO here at Peisner Johnson to talk about due diligence on the sales tax side. With due diligence sales tax liabilities are often uncovered but on the other side sales tax overpayments are also discovered. Listen in as we dive into these matters.
Additional Questions Answered:
First of all, What is due diligence?
Can sales tax liabilities affect the sale of a business?
What does sales tax due diligence look like?
How can sales tax overpayments affect due diligence?
How can sales tax overpayments affect a sales tax liability?
If you are buying or selling a business and you would like to look into getting the proper sales tax due diligence performed, look no further. Sign up for your free What's Next call today. https://peisnerjohnson.com/whats-next/
This Holiday season will probably set a new record of online sales. Not only is online sales just rising in popularity but, this global pandemic is still raging and demanding that we stay home whenever possible. This may put a lot of online sellers over the economic nexus thresholds requiring them to get registered to collect and remit sales tax. I'm sure that many will have enough stress trying to match the demand that their business commands and sales tax won't even be on their radar. That's why here at Peisner Johnson we want to take the sales tax stress off your mind and give you the piece of mind you need.
Additional Questions Answered:
What economic nexus thresholds do states have?
What do I do if I meet the economic thresholds?
How do I know if my product is taxable?
Do I have to get registered immediately after I figure out I have economic nexus?
What are my next steps to register for sales tax?
If you haven't been on a What's NexT call with us yet now is the best time to schedule your FREE call to start getting your sales tax in order for 2021. Schedule yours here: https://peisnerjohnson.com/whats-next/
Our biggest goal here at Peisner Johnson is to bring peace of mind to those that have to deal with sales tax. If you sell products or services you are probably subject to some level of sales taxes. Sales tax laws are constantly changing. When you are out on the internet looking for the answers you need more often than not you come out the other end more confused and stressed out. We have created a simple process to help you with the not so simple subject of sales tax. It all starts with what we call a What's Next call. Today I have invited Jason Parr our CEO, Paul Johnson our VP of Operations, and Danny Wright our Director of Marketing and Sales to discuss what this FREE What's Next call looks like and how it can bring you peace of mind.
Additional Questions Answered:
What is a What's Next call?
What will be addressed in this call?
Will you be trying to sell me your services?
If you haven't been on a What's Next call or you would like to get on another one schedule yours here: https://peisnerjohnson.com/whats-next/
Watch Paul's recent webinar where we addressed the three questions every business should ask themselves here: https://www.youtube.com/watch?v=ZxcfBOeMDI4
Sales tax is like a suspenseful thriller. Whenever you think you can predict what will happen a new twist appears and you are back to the edge of your seat. I invited Paul Johnson back to today's podcast because he is always at the edge of his seat when it comes to sales tax. He is always up to date with the ever changing sales tax laws and is very knowledgeable. Come listen in as we discuss Tennessee's changes and what you need to do next.
Additional Questions Answered:
What was and what is Tennessee's nexus thresholds?
Why are these changes in Tennessee significant?
When will these changes come into effect?
How do you calculate whether or not you meet the economic nexus threshold?
Quick tip: Make sure and not overlook your physical nexus?
If you would like to discuss if you need to register for sales tax under economic nexus thresholds let's chat. Schedule your time now. https://peisnerjohnson.com/whats-next/
With states opening back up I wanted to talk to Dan Peisner, CMI, to see what we can expect states to do to recoup tax losses over the last few months. We have already seen a flurry of new laws and the restructuring of economic nexus laws. What more can they do?
Additional Questions Answered:
Are states going to be performing more sales tax audits?
How can I prepare for a sales tax audit?
What will states be looking for during these sales tax audits?
Who will the states be going after?
What are some mistakes businesses are making?
What should you do first before an audit starts?
How will ecommerce sellers be impacted?
If you find yourself in a sales tax audit or you fear that your turn is next. It is never too late to get on a FREE "Wha't's Next?" call with us today. Schedule yours here: https://peisnerjohnson.com/whats-next/
The state of Washington has temporarily extended their VDA program they rolled out until November 30th of 2020. For some this could be good news, but for most it won't have any effect. Dan is or Director of Projects and definitely knows a thing or two about getting VDAs done. We talk about this program extension and how you may be able to use it to your advantage.
Additional Questions Answered:
What is this VDA Program?
What makes it different from the typical VDA program?
Who qualifies for this extended program?
Who doesn't qualify for this extended VDA program?
Can you ONLY get a VDA done during these brief VDA program dates?
What do we cover in a "What's NexT?" call?
If you would like to discuss your eligibility for a VDA you can schedule your free "What's NexT?" call HERE: https://peisnerjohnson.com/whats-next/
Most states already have marketplace facilitator tax laws with only a handful of states that haven't quite rolled them out. One of those states was Louisiana. I asked Paul Johnson our VP of operations to join me to talk about Louisiana's new marketplace facilitator tax laws and economic nexus thresholds.
Additional Questions Answered:
What makes the release of these laws in Louisiana significant?
What are the parameters of the marketplace facilitator tax laws?
What are the economic nexus thresholds in Louisiana?
What makes marketplace facilitator tax laws so confusing?
If a state has marketplace facilitator tax laws do you have to register to collect sales tax in that state?
Can I deregister for sales tax in states that have marketplace facilitator tax laws?
If you are concerned about your business or your clients business. A free "What's NexT?" call could be all you need to get the peace of mind you deserve. Just fill out this form to schedule yours today!
Getting compliant with state sales tax requires informed counsel. Somebody that can help identify your nexus and what you should be paying. Somebody more specialized than your CPA. In this podcast, I invited Jason Parr, our President/ CEO, and we’ll look at why you need both.
What does Peisner Johnson do?
How does Peisner Johnson work with CPA Firms?
What are some services that Peisner Johnson offers?
What ongoing support can Peisner Johnson offer?
How can a CPA partner with Peisner Johnson?
If you are looking to know what your sales tax liability is or you are a CPA or accountant and you would like to make sure your client is compliant. Sign up for a FREE WHAT'S NexT call here: https://www.peisnerjohnson.com/whats-next/
Many companies will discover that they have a physical or economic presence in a state and decide to get registered in a state or multiple states. What we often see is that at this point when they attempt to do these registrations that there are questions that they are unsure of how to answer. Sometimes they will push through and it turns out that they applied for the wrong tax license. And a whole big mess ensues. It's no question that with new nexus and sales tax laws, getting registered for sales tax is more complex than ever. I invited Paul Johnson, VP of Operations here at Peisner Johnson, to answer some frequently asked questions about getting registered for sales tax.
Additional Questions Answered:
How do I know if I need to register for sales tax?
How do I register for sales tax?
What is the difference between sales tax and use tax?
What is sellers use tax?
What is the difference of an out of state seller and an instate seller?
Do I register for sales tax for a past date?
Do I register for sales tax using today's date?
If you discovered that you need some help getting registered for sales tax we are here for you. Just sign up for a "What's NexT Call" here: https://www.peisnerjohnson.com/whats-next/
If you are selling on a marketplace facilitator platform (Amazon, EBay, Walmart, Etsy, etc), you may be registered to collect sales tax in too many states. Sales tax laws are constantly changing and states are making concessions for businesses doing sales strictly on marketplace facilitator platforms. Along with sales tax changes, nexus is also evolving. What caused you to get registered to collect sales tax may no longer be a factor now. While hosting different webinars and podcasts I get a lot of questions about marketplace facilitator laws. More specifically, why sellers should get registered to collect sales tax in the first place if 95% of the states have marketplace facilitator laws requiring the marketplace facilitator to collect and remit sales tax on items sold on their platforms. I invited Paul Johnson, our VP of Operations here at Peisner Johnson, to explain what is going on and what your options are.
Additional Questions Answered:
How many states could I potentially de-register to collect sales tax in?
How many states have marketplace facilitator laws?
What factors are considered when deciding whether or not to de-register to collect sales tax?
Can I de-register to collect sales tax if I sell on my own website as well?
What happens if I decide not to de-register to collect sales tax?
What if I haven't registered to collect sales tax anywhere yet, can I avoid registering to collect sales tax?
What are the consequences of not getting registered to collect sales tax if I have nexus in a state?
If you would like to talk about whether or not you can de-register, you can schedule your free consultation here: https://www.peisnerjohnson.com/whats-next/
The Wayfair and Supreme Court decision that was made back in 2018 has caused 1000s of businesses to have sales tax nexus and have the obligation to get registered. Another repercussion that is often not addressed is that getting registered in some of these states could also trigger income tax nexus. You could possibly be responsible for remitting income tax as well. I recruited Dan Peisner, CMI to address this issue and to answer all of the questions that we have encountered.
Additional Questions Answered:
What states should I be looking at for income tax?
What thresholds are there for income tax?
Public Law 86-272 what is and what protections does it offer?
What does PL 86-272 not protect me against?
Are there any whispers of change?
If you have sales tax nexus you may be liable for income nexus. If you are unaware of what your nexus footprint is you can schedule a free consultation with us here: https://www.peisnerjohnson.com/whats-next/
If you would like to watch the video of this episode go here:
A NEXT review can help you to determine just how big your potential state sales tax liability is. Depending on the size of the liability, and some other conditions, will determine how you should handle it. Join us as Dan Peisner, CMI, discusses what your options are.
Additional Questions Answered:
What is a VDA aka voluntary disclosure agreement.
How do I get a VDA started?
What are the states provisions?
Can you negotiate and what is negotiable?
Will states waive taxes, penalties, or interest?
What is the benefit of getting a VDA over going with an amnesty program?
How do I file back taxes?
What does a VDA Process look like?
How fast can I expect the state to turn the VDA around?
If you are worried about your sales tax liability and you don't know what to do about it. Or, maybe you don't even know what your sales tax liability is. We can help you. Schedule your FREE What's NEXT call with us today. https://www.peisnerjohnson.com/whats-next/
One of the most frequently asked questions we get is, "I have a business where I have sales in multiple states but I am not sure where I should be collecting sales tax." I completely understand, especially when so much of the information online can be confusing or contradicting. I invited Dan Peisner back with me to answer this question and talk about what is you need to do NEXT.
Additional Questions Answered:
What is a NEXT Review?
What is it exactly do you look at in a NEXT Review?
How do we determine nexus and why is it important?
Why is taxability an important factor?
How long does a NEXT Review take to complete?
What do I get out of a Next Review?
We always start our NEXT Review with a Free consultation. To schedule yours go here: https://www.peisnerjohnson.com/whats-next/
For this episode I invited Paul Johnson our VP of Operations here at Peisner Johnson. He has been running our sales tax returns services for the last 5 years. I invited him to come talk to us about what happens if you end up having to file your sales tax returns late because of the Covid-19 pandemic.
Additional Questions Answered:
How do states handle natural disasters
Do states grant waivers of penalty and interest?
How do I get a waiver of penalty and Interest?
How many times can I file for a waiver of penalty and interest?
Are states giving relief for businesses?
How complicated is it to file a waiver?
Get up to date information on how states are granting relief check out our blog here: https://www.peisnerjohnson.com/blog/covid-19-state-sales-tax-rules/
If you need help filing your returns or your waivers and are concerned what to do next go here: https://www.peisnerjohnson.com/whats-next/
If you are registered for sales tax in Texas you may have been getting notices that you should be filing the Texas Franchise Tax return. You may be asking yourself what it is and what you need to to do with it, if anything. Today we are discussing with Dan Peisner what you need to do with this notice.
Additional Questions Answered:
What is the Texas Franchise Tax?
When is it due?
How do I know that I have to file it?
What do I do with the notice?
What happens if I don't pay it?
What are the penalties?
What nexus thresholds requires me to pay the franchise tax?
If you need help filing your franchise tax return just fill this outand let us help you out.
Each week I will be highlighting a new state and will be going over their nexus laws, thresholds, how to register for sales tax, how to collect the sales tax, and how we can help you.
Topics Covered In Order:
Sales and Use tax overview.
- Sales Tax
- Sellers Use Tax
- Consumers Use Tax
When you should collect the tax in Alabama.
What happens when you don't collect the sales tax.
What gives you nexus in Alabama.
How to register your business for sales tax in Alabama.
How to collect the sales tax in Alabama.
Sales tax exemption certificates.
Filing your sales tax returns.
Using Peisner Johnson to help you.
Get a Free consultation here: https://www.peisnerjohnson.com/whats-next/
Sales tax audits are happening more and more frequently. As more business are susceptible to economic nexus laws states are looking to obtain as much revenue as possible.
I want to share as many tips as I can. I get all my tips from our Ultimate Guide To Fighting A Sales Tax Audit. If you would like to look ahead you can download here for free.
If you are under going an audit or fear its only a matter of time get a free consultation here.
Today's tip is all about economic nexus and physical nexus and deciding which applies to you. I frequently get questions around the lines of, "now that economic nexus is a thing do I need to even consider checking whether or not I have physical nexus?" Short answer "HECK YES IT DOES!"
Make sure and check out our article on the new economic nexus ruling HERE.
If you would like us to help you determine your Nexus Footprint fill out this FORM and we can start with a Free Consultation.
We recently attended the Silicon Slopes Tech Summit in Salt Lake City. As I walked around and checked out all the different booths, and the cool Arcade setup where they had a Super Smash Brothers tournament, I wondered about sales tax. I spoke with as many people as I could to discover what their company does. I would then ask them about sales tax, and of course they weren’t sure what they did for sales tax. I don’t blame them, they aren’t the ones in charge of the sales tax in their business. I wondered though, what the sales tax nexus implications were for being an exhibitor at a trade show. This is what I learned.
Additional Questions Answered:
What is physical nexus?
What is economic nexus?
How can attending trade shows trigger physical nexus?
If I don’t have economic nexus am I exempt from physical nexus?
Do all the states have the same sales tax laws?
What activities can trigger physical nexus in a state?
Do I have to get registered in the state where I am exhibiting in a trade show?
What are my options when I need to get registered for sales tax?
If you attend trade shows and you feel you may have exceeded some of the thresholds you can schedule a free consultation HERE.
Marketplace Facilitator Laws have been around for a few years and I can’t say that it's any less confusing now. I get a lot of questions, and have many conversations, about marketplace facilitator laws, and sometimes I get confused myself. We live in the age of information, thanks to the internet, and all this information can get complicated. I hope that in today’s episode I can make things less confusing.
Additional Questions Answered:
What is a marketplace facilitator?
How does a marketplace facilitator give me sales tax nexus?
What are marketplace facilitator laws?
Can we expect all states will enact marketplace facilitator laws?
Won’t it be easier once all marketplace facilitators collect all the sales tax in all the states for all third party sellers?
If you would like to schedule a FREE consultation and see if a NEXT review is for you please fill out this quick FORM.
2018 was a big year for sales tax. No one could have predicted that sales tax would have gone all the way to the supreme court. 2019 Saw some unprecedented amount of sales tax changes. We now have two separate forms of nexus, physical and economic, to worry about. I can’t and won’t try to predict what will happen in 2020 but I want to give you a few things to look at going into the new year to help you to determine your sales tax footprint and get you going in the right direction for 2020.
Additional Questions Answered:
Does it matter if my products are taxable or not to help determine whether or not to get registered for sales tax in a state?
How do I know if my products are taxable?
How do I know if I have physical nexus?
How do I know if I have economic nexus?
How do I know if I should register for sales tax in a state?
How many states should I register for sales tax in?
Should I do a voluntary disclosure agreement (VDA)?
What can Peisner Johnson do?
Top Ten Nexus Creating Activities
If you would like to discuss your particular situation you can schedule your Free Call here: https://www.peisnerjohnson.com/whats-next/
I have received a few questions regarding this topic and apparently the information on the Internet makes it seem like Drop-shippers and Marketplace Facilitators are one in the same. With today’s episode I hope to make it a little easier to discern between the two.
Additional Questions Answered:
What is drop-shipping?
What is a Marketplace Facilitator?
Do I need to register my business wherever my drop-shipper or marketplace facilitator has a location?
Are print on demand services the same as a drop-shipper?
What are the main differences between a drop-shipper and marketplace facilitator?
If you would like to schedule a FREE consultation and see if a NEXT review is for you please fill out this quick FORM.
There are a lot of unknowns about a sales tax audit and it can be impossible to predict when a sales tax audit will happen. However, there are ways to become prepared when they do happen. We have been in the business long enough to know what kind of businesses auditors look for and what factors go into their choices. We have created a comprehensive guide we call, “The Ultimate Guide to Fighting a Sales Tax Audit,” that has all the tips and tricks you need to successfully navigate a sales tax audit.
Additional Questions Answered:
What kind of companies get chosen for sales tax audits?
Will I get chosen for a sales tax audit even if I have been audited before?
What factor’s go into being chosen for a sales tax audit?
Go here to download your copy of “The Ultimate Guide to Fighting a Sales Tax Audit.”
If you are under audit and don’t know what to do next. Go here to schedule your free What’s Next call.
While all of the amazing advances in technology area make it easier to sell your items to customers in the US from all over the world, it can be frustrating trying to understand the tax laws you have to deal with. You would think that if you are doing business over the internet you should be able to find the answers you need on the internet. Unfortunately, you can find A LOT of contradicting information that will leave you frustrated and farther away from the right answer. We deal with sales tax 24/7… no joke. I hope to answer some of the most asked questions on today’s episode.
Additional Questions Answered:
When should I register for sales tax in a state?
What is nexus?
What is physical nexus?
What is economic nexus?
Do I need to worry about physical nexus anymore?
What are the state’s economic nexus thresholds thresholds?
How can I know whether or not my product is even taxable?
If I am selling using Amazon FBA do I need to register wherever they have a warehouse?
If there are any questions that you have that weren’t covered here please email at ryanj@peisnerjohnson.com
If you would like to schedule a FREE consultation and see if a NEXT review is for you please fill out this quick FORM.
If you prefer to watch this episode go HERE.
Sales tax audits happen all the time. If you haven’t been under a sales tax audit yet it is only a matter of time. Dan has seen countless numbers of audits and his fair share of sales tax horror stories. We make it our business to make sure that you and your company can avoid a horror story. In this episode, Dan covers what horrors he has seen with sales tax when it comes to dealing with sales tax auditors.
Additional Questions Answered:
What are sales tax auditors like?
What are the overall experiences like with sales tax auditors?
Are there truly terrible sales tax auditors out there?
Can you rely on a sales tax auditor to be a consultant for you during an audit?
How important is it to establish a good relationship with your sales tax auditor?
If you are under a sales tax audit please reach out to us for a FREE Consultation. Just fill out this FORM and we will get you scheduled ASAP!
Sales tax audits happen all the time. If you haven’t been under a sales tax audit yet it is only a matter of time. Dan has seen countless numbers of audits and his fair share of sales tax horror stories. We make it our business to make sure that you and your company can avoid a horror story. In this episode, Dan covers what horrors he has seen with sales tax if you use Quickbooks software.
Additional Questions Answered:
How are companies contacted once a state decides to audit them?
Do they make it clear that they are under audit or is it pretty vague?
How far in advance do they tell you about the sales tax audit?
Can I postpone a sales tax audit?
What kind of information do they want in a sales tax audit?
How long do audits last?
How much are sales tax audit assessments typically?
After the audit is complete, will that state ever audit me again?
If you are under a sales tax audit please reach out to us for a FREE Consultation. Just fill out this FORM and we will get you scheduled ASAP!
Dan has worked on tons of sales tax audits over the last 10 years and he has seen his fair share of sales tax audit horror stories. This has given him the knowledge and experience to be able to help anyone who is going through a sales tax audit. This week Dan recounts a story about what makes a construction sales tax audit a true nightmare.
Additional Questions Answered:
What makes construction sales tax audits so difficult?
Does a lump sum contract make a difference in a sales tax audit?
What makes all sales tax audit scary?
How do I collect sales tax in a lump sum contract?
If I don’t collect the sales tax at the right time can I go back and get it from my customers?
If I don’t collect sales tax can I collect it from my customers during the audit?
How do I avoid my own sales tax audit horror story?
How can you get help through your sales tax audit?
If you are under a sales tax audit please reach out to us for a FREE Consultation. Just fill out this FORM and we will get you scheduled ASAP!
New economic nexus laws are coming into effect on October 1, 2019. Is your business or your clients ready to meet these changes head-on? Are you even sure of the challenges you might be facing? There are a half dozen states enacting new laws, and on today’s episode, I want to make sure that you know which states those are. Even if you are unsure what nexus is or what the decision between South Dakota and Wayfair was about, this podcast will help you decide what to do next or how to contact someone that will be able to help.
Additional Questions Answered:
Which states are enacting economic nexus laws starting October 1, 2019?
What is economic nexus?
What is nexus?
What causes physical nexus?
How does the South Dakota vs Wayfair decision affect my business?
What should I do NEXT?
If you are unsure if you are prepared for this new season of economic nexus laws you can schedule your FREE consultation by filling out this FORM.
For additional reading, you can read this article by Avalara.
Have you ever purchased a subscription for clothes or maybe you subscribed for monthly snack packages? If not these few there are a wide range of items from cosmetics, toys, and shaving products. Have you ever wondered how sales taxes are collected on items like that? Or wonder if those items are even taxable? Let's be honest you probably aren’t like me and check whether or not sales tax was charged on all of my online purchases so it's probably safe to say it has never crossed your mind. Though if you are selling items like this it should be on your mind. Sales tax collection can get complicated when it comes to the taxability of your products.
Additional Questions Answered:
What is a subscription product service?
How are the items in the boxes taxed?
What if you pay the annual fee for a discount?
What if you are paying monthly for a group membership?
What if with the group membership they send me quarterly free items?
Do I need exemption certificates?
How do I know whether or not my products are taxable?
Visit our WEBSITE to find out more about the WAYFAIR and what you should do NEXT.
If you would like to learn even more you can attend our Webinar, "Nexus and What To Do About It."
Set an appointment to discuss your Nexus Situation you can schedule a call with us HERE.
No matter if you are a company that is just starting out, have been in business for many years, big business, or small business… it's not if you are audited, it is when. Often times businesses will reach out to us after a state has already contacted them letting them know that they are under audit or the audit is at the assessment stage. At any point in the audit we can help fight it, it is never too late. But, I propose that the best time to fight an audit is before you are even notified that you are going to be audited. Today I will go through how you can best prepare for and fight a sales tax audit at any stage.
Additional Questions Answered:
What can I expect from a sales tax audit?
Do states audit out of state companies more often in the wake of Wayfair?
How far back can a state audit me?
What are some things that an auditor will look at?
What are some common mistakes that are found during a sales tax audit?
How do I fight a sales tax audit?
What can I do now to prepare for a sales tax audit?
How can Peisner Johnson help fight my sales tax audit?
How do I know what my sales tax liability is?
Visit our WEBSITE for free resources including our Ultimate Guide For Sales Tax Audit Help
If you are currently under audit and would like some help you can schedule a FREE consultation with us by filling out this FORM.
I have had many questions in regards to using print-on-demand services. Here is the scenario: You are selling custom t-shirts, mugs, cups, etc. Once an item is ordered, the supplier creates the item and drop ships it on your behalf. So, today I want to talk about how this can affect you and your business and what steps you need to take if any.
Additional Questions Answered:
Does using print on demand services give me nexus where the printer is located?
Do I need to register where my supplier is located?
Do I need to give my supplier an exemption certificate?
Do I really owe sales tax to my supplier if I don’t have nexus in any state?
How do I get an exemption certificate?
If you would like to get more information about how to set up a FREE consultation for a NEXT review please fill out this FORM.
If you have any questions about this podcast please contact me at ryanj@peisnerjohnson.com
It has been over a year now that the South Dakota v Wayfair Supreme Court decision has been issued and almost all of the states now have economic nexus laws on their books. Most of these laws have become effective over the last year. You may be thinking to yourself that everything is probably calming down and you have less to keep track of. Think again! Many states have already changed their laws, some changes may benefit you, but most benefit the state! Find out today some of the significant changes and how they affect you.
Additional Questions Answered:
- Can I avoid registering for sales tax in a state?
- Will there ever be sales tax stability amongst all the states?
- What do I do next now that I have sales tax nexus?
- Am I double-paying sales tax?
- Do the sales tax economic nexus thresholds change?
- What states have made changes to their economic nexus thresholds?
- Will marketplace facilitator laws replace economic nexus laws?
- Will these new economic nexus law changes be good for me or affect me poorly?
- Will any new laws remove the transactional economic nexus thresholds?
- Will states drop economic nexus laws altogether?
If you have any additional questions you can reach me at ryanj@peisnerjohnson.com
If you would like to schedule a FREE consultation, fill out this FORM.
After the US Supreme Court’s decision on Wayfair a lot of states were quick to enact economic nexus laws to capitalize on the potential sales tax revenue from remote sellers. Along with these new economic nexus laws some states have also introduced some amnesty programs to provide some incentive for remote businesses to voluntarily register in their states. Not all amnesty programs provide true amnesty. Listen in as Jason and Dan discuss the different available programs and whether or not they are worth taking advantage of.
Additional Questions Answered:
- What are amnesty programs?
- Can I handle applying for the amnesty programs on my own?
- Is an amnesty program the same as a VDA?
- How can I know if an amnesty program will work for me?
- What states are currently offering amnesty programs?
- Do these amnesty programs really provide true amnesty?
If you or your client would like to see if they qualify for an Amnesty program you can schedule a FREE call with us HERE.
If you just have a question you can email me at ryanj@peisnerjohnson.com
California just released some new information that could greatly benefit e-commerce businesses. If you have been doing business in the state of California in the last few years you have a chance to apply for a limited look-back period even if you have received a letter from the state of California. Jason and Dan are talking about a program recently established the State of California and what the benefits are for remote sellers.
Additional questions:
- What are the requirements to apply? Do I qualify for California’s newest program?
- What are the steps to becoming compliant?
- What is the time period for applying for this program?
- Will I have to pay the back taxes?
- Will there be any penalty and interest attached to the back taxes owed?
- How far back will California look at my records?
- Will California come out with an amnesty program?
- Will it really be beneficial for companies, especially FBA sellers, who do business in California?
We recommend that you contact us as soon as possible as you only have 90 days to apply, file, and pay any back taxes if required. Fill out this FORM and tell us about your specific situation and we can get on the phone with you to discuss as soon as possible.
As a business owner, you want your business to grow and to expand into new states. Often what happens is in the haste to expand you forget that your product or service may have different taxability rules in the new state you are expanding into. We got a question recently from a SaaS provider and they are being proactive in making sure that they are compliant while they are now doing business in new states. They want to know what their sales tax obligations are going forward in these new states. Listen in as Jason and Dan discuss the sales tax complexities of SaaS providers.
Additional Questions Answered:
- Is SaaS taxable?
- Are installation, training, and implementations taxable?
- Are services typically taxable?
- Is SaaS taxed differently than normal software?
- Does it matter which method the software is delivered?
- How does SaaS give me nexus?
- How does Texas tax SaaS?
- How does California tax SaaS?
- How do I protect myself if I have some sales tax exposure?
- How can I mitigate my potential sales tax exposure?
Do you feel that you have a similar question or situation? please contact me ryanj@peisnerjohnson.com
If you would like to learn more about our services you can visit www.peisnerjohnson.com
A lot of firms are having issues about knowing what to do about Wayfair, sales tax, nexus, and what to do next. Sales tax problems are emerging and a lot of tax managers, bookkeepers, and accountants do not want to think about it, and they do not know how to react.
Andy, Dan, and Jason discuss solving those problems using the experience they have attained over the years.
The main problem is the level of knowledge in the CPA community has about sales tax, which remains low. Could that be intentional on the CPA's part? Many CPAs avoid sales tax by any means possible when the biggest risk businesses face are not taking action on their sales tax issues.
Additional Questions Answered:
Why would CPAs and accountants want to avoid consulting within sales tax?
Why isn't my CPA advising me of my sales tax liabilities?
Should my CPA be advising me of my sales tax liabilities?
What is the benefit of using a sales tax specialist?
How do I deal with sales taxes on my own?
What are my biggest sales tax risks?
What programs do states have to help mitigate my risk?
What should I do about my nexus?
Concerned about some advice you may have received? Don't sweat it! Just get a FREE second opinion from a sales tax specialist. You can apply for a FREE Consultation HERE.
Once you have determined that you have nexus and where you have nexus we need to talk about what happens NEXT. Before you start registering anywhere and everywhere, you need to determine the taxability of your products or services. It can be as simple as saying all your products are taxable or as complicated as you could possibly imagine.
Additional questions answered:
- How to tax or what to tax? What is the right tax rate? What's taxable?
- Do a lot of e-commerce sellers who sell items that are tangible property want to know how to tax the items?
- How do e-commerce platforms work? Do they set the tax automatically or the sellers should put it themselves? How to manage different tax rates in different states?
- Who should collect the tax: platforms or seller? Which items are taxable or nontaxable in different states? Do they need to report the tax?
- What happens when you over collect the tax or you are under collecting it? How is the penalty provided?
- Does applying codes for the type of item that is selling make things easier or not?
- If some items are not taxable in some states, do you need to register your business in the state where the item is not taxable?
Got some worries? Feel free to reach out to me at ryanj@peisnerjohnson.com
Learn more at our newest webinar, "Nexus and What to do NEXT." Register Here.
There have been recent changes in the marketplace facilitator laws. There are some parties who sells exclusively on Amazon and are registered in 20+ states and are wondering if they can deregister in the states where they have marketplace facilitator laws.
The answer is, as with all things in taxation, – It depends! It varies in each state.
Two scenarios regarding this have been discussed today as to whether parties should deregister in states with marketplace facilitator laws, or whether they should register at all if they have not done that. Some states give guidance on this while others not. In case you want to deregister you should consider the cost to it.
One word of caution is not all marketplace facilitators are collecting on your behalf.
Additional questions answered:
* What is the situation on the state of Washington with deregistering? What is the BNO tax which is reported on the same combined excise tax return along with the sales tax?
* What is the so-called ‘general excise tax’ on the state of Hawaii?
* In 2020 Amazon will begin collecting and remitting on behalf of its sellers. But if you are buying for resale, will you get a full exemption?
* Do I need or should I deregister in these states, if I am already registered? Do I need to remain registered and still file or not file? Have states given clear guidance on this? Is there a cost to deregister?
* Should I deregister in states which are going to have additional tax beyond the transactional tax that Amazon may be collecting?
* In case I have not registered yet, should I do that?
* What is the scenario for individuals who also sell on other marketplace facilitators platforms? Should they deregister if they sell on Amazon?
* If I am selling on multiple platforms, then can I deregister at least on the states in which Amazon has inventory?
* Once I have nexus, do I have nexus for every state and have to collect and remit the sales tax?
* Most of these state laws require them to notify me when they began to collect and remit taxes, so if I have not been notified or they do not state that they are doing it, do I have to assume that they are collecting on my behalf?
Is this something that plagues your mind and would like further clarification? Contact me HERE and get on the phone with me.
You can learn more and attend our Free Webinar, "Nexus and What to do NEXT." REGISTER HERE!
Getting into selling your products online into the US using Amazon FBA sounds like a lucrative idea and it can be! As you start looking into what you need to get setup you start reading about sales taxes and you start to get overwhelmed and you don’t know where to begin! This episode is dedicated to all of you international sellers that have decided to start selling in the United States.
Additional Questions Answered:
* What do I need to know about sales taxes?
* Why is sales tax so complicated?
* Where do I need to get registered?
* Do I need to get registered?
* What is and FEIN?
* How do I obtain a FEIN?
* How do I know where I have Nexus?
* Do I have any sales tax exposure?
* Are my products taxable?
If you need help please contact me HERE!
If you would like to learn more come to our Free Webinar, "Nexus and What to do Next" REGISTER HERE.
How do you know if you have any risk of getting audited for sales tax? Are you making sure that you are prepared for sales tax audits? We have developed a FREE tool that you can fill out yourself to help you to determine whether or not you have something to worry about. Listen in as we discuss this tool and go through each question in the questionnaire.
Additional Questions Answered:
- How do states find me for sales tax audits?
- What puts me at risk for a sales tax audit?
- Can I avoid a sales tax audit?
- What kinds of activities cause us to have nexus?
- How do I know whether or not my products are taxable?
- Do I have sales tax exposure and liabilities in other states?
Get access to the FREE STARDT TOOL.
Set up a FREE consultation with me HERE.
Watch the video walkthrough of the STARDT Tool HERE.
If you would like to get more up to date information we have FREE Webinar you can Attend REGISTER HERE.
The definition of nexus has changed dramatically over the last year. Physical presence used to be the ONLY nexus determinator but now you ALSO have economic nexus issues to worry about. We believe that every business needs a nexus review. Listen in as we discuss the different steps to a nexus review and how it will benefit you and your company.
Additional Questions Answered:
Can I get away with ignoring sales taxes altogether?
What can I expect from a nexus review?
Why do I need a nexus review?
Why can I expect to pay to get a nexus review done?
What can give me nexus?
What are the next steps after a nexus review?
What happens if I established nexus years ago without knowing it?
Get the 10 Most Common Nexus Creating Activities HERE.
Get your Nexus Review Started HERE.
If you would like to get more up to date information we have FREE Webinar you can Attend REGISTER HERE.
On April 1, 2019, California's economic Nexus Laws went into effect. Well, they might as well have said "APRIL FOOLS!" There is already an amendment to the Economic Nexus laws already sitting on the governor of California's desk! Find out what you can expect here! Also, with the fallout of the WAYFAIR decision, all eCommerce businesses need to act! You may have a large nexus exposure or you may not need to do anything, whatever the case may be you need a NEXUS REVIEW to message me and we can get you set up for yours today!
Additional Questions Answered:
What are California’s economic nexus thresholds?
If California’s nexus laws change what will be the new thresholds?
Will other states follow suit with these changes?
What do I do until the laws change?
Will California come after me if I meet their old thresholds but not the new?
What is a nexus review?
Why do I need a nexus review?
What can I expect to learn from a nexus review?
How do I get a nexus review done?
If you are on the fence of whether or not you should get a Nexus Review done you can contact me at ryanj@peisnerjohnson.com to set up a Free Consultation.
Listen, we all want donuts but do we actually need them? Can they really bring joy to our lives and give us the energy and nutrients that we need? Maybe… Same with the marketplace facilitator laws. We would all like to have Amazon, eBay, or Shopify collect and remit the sales tax for us in every state, that would be amazing right? Or, would it? For some eCommerce sellers, these marketplace facilitator laws are a breath of fresh air after the stress of the new Wayfair laws but for most, it can cause even more stress and headache. Listen in as we discuss these laws and how they can affect you!
Additional Questions Answered:
- What are marketplace facilitator laws?
- Who is affected by marketplace facilitator laws?
- Do companies still need to register in states that have marketplace facilitator laws in place?
- Can companies de-register if they are already registered in marketplace facilitator states?
Do you have a client that has questions that need immediate answers just reach out to us by filling out this FORM to get a FREE strategy call.
Our most popular podcast is simply about drop shipping and we continue getting a lot of questions about drop shipping. This weeks podcast is simple, answer a couple of commonly asked questions. Join us and really soak up Andy and Dan’s knowledge.
Questions Answered:
- What do I need to do to close my business when it comes to my sales tax requirements?
- How often should I collect exemption certificates?
- How do I obtain an exemption certificate?
- Will my exemption certificate from my home state work for other states?
- What should I do when my drop shipper wants an exemption certificate from California?
If you have additional questions or you have some immediate concerns get on a FREE consultation with us by filling out this FORM.
We recently had a client reach out to us asking us what they should do about a recent letter they received from the state of Washington. The letter seems innocent enough. The state seems to be giving companies an opportunity to remit any unpaid consumers use tax. This seems like an odd tactic. Who else but the Government could use this tactic to get more money? Come learn with us today on what it is Washington is trying to do and how you should handle it.
Additional Questions Answered:
- If I ignore this letter from the state of Washington, will the letters remain friendly?
- What is the consumer’s use tax in Washington?
- How do I know if I owe consumers use tax?
- How far back do I need to look for use tax?
- Will there be any penalties and interest due with the tax?
- When is the tax due?
- According to the chart on the letter I may owe one amount but what if I really owe more?
If you have received one of the letters or a letter from another state and you need some answers. Please fill out this FORM and we can get on the phone ASAP.
While all of the amazing advances in technology area make it easier to sell your items to customers in the US from all over the world, it can be frustrating trying to understand the tax laws you have to deal with.
This could get you into a lot of trouble with the US government. We frequently have conversations with eCommerce sellers that are based outside of the United States and they usually have pretty much the same questions.
Andy and Dan join us today to answer these questions and help you get your business on the right track.
Additional Questions Answered:
Q: Do I need a US entity to sell in the US or collect sales tax?
A: A US entity is not required to sell in the US or collect sales tax. We have many clients that keep their foreign entity and some that operate as sole traders/proprietors. In some instances opening a US entity can complicate income tax requirements. You could have US-sourced income to report in that case and you could end up owing federal income tax and in some cases state income tax.
Q: Are there any benefits of opening a US entity?
A: It could help you if you need to set up a US bank account (see below). Also, if you are working with US suppliers, some of them may require you to operate as a US entity.
Q: Is an EIN/FEIN required to sell or collect sales tax?
A: Most states require an EIN (aka FEIN) to register to collect sales tax. An EIN is generally not a legal requirement to sell in the US. However, some suppliers may require it if you are making purchases in the US. You can obtain an EIN directly from the IRS, or we can assist you in getting an EIN if so desired.
Q: Is a social security number or ITIN (Individual Taxpayer Identification Number) required to register for sales tax?
A: If you are a US resident you must have either an SS# or an ITIN.. If you are not a US resident, you are not required to have either one.
Q: Am I required to have a US bank account in the US to file sales tax returns?
A: When filing the returns online, most states require you to have a US bank account because of the ACH limitations. We do not require our clients to use a US bank account to file sales tax returns, remit taxes to the states or for any of our other services. However, the states often require a US bank account to pull the taxes. We have helped companies outside the US and can probably help you also.
Q: Can you assist with or complete forms such as the W-8BEN-E or W-8BEN forms?
A: Yes, we can assist or complete your W-8BEN-E or W-8BEN forms.
Q: Can I have my mail from the various states sent to your firm?
A: Sure, this is part of our sales tax return services. If you are a client, we will give you our address to use as your mailing address.
If you feel you need help with any of these things we offer a FREE Consultation SIGN UP HERE
Watch the video of the podcast HERE.
We recently got an email from a concerned business owner because they got a letter from California stating they have nexus in California and they must register to collect sales tax. They quickly complied trying to do the right thing. Not too long after they received another letter from California stating that they may owe back taxes and requested information going back a few years. They reached out to us wondering what they can do about the impending back tax exposure. This is something Dan deals with almost daily. Come learn what you can do if something like this happens with California and any other state. Also, we have available a report that can make your business decisions when it comes to sales tax.
Additional Questions Answered:
- What do I do when I get a letter from a state?
- Should I just register in every state?
- How can I mitigate my back tax exposure?
- How do I negotiate with the state to get my exposure down?
- Can I do a VDA even if a state has found me and sent out a letter?
Did you get a letter?...
To get with us for a FREE Strategy Call go HERE. Get your FREE REPORT HERE.
Are you aware of your sales tax liabilities? Are you aware of what the Wayfair **Supreme Court decision can mean for your company? Who is responsible for making you aware of these things? When you have potential tax risks, who do you trust to make sure that you are being advised of it? Your Tax Accountant right? However, the person you trust to handle your taxes may not be up to speed about sales tax. You may think that you have no tax liability because your Accountant hasn’t said anything to you about it, but, in reality, you may have a huge sales tax liability looming over your head. Does this mean that your tax accountant is at fault? Should you sue them for the sales tax liabilities/damages? Listen is as Dan and Andy discuss this very subject.
Additional Questions Answered:**
- Should CPAs be concerned about Wayfair?
- Can I really sue my accountant for not advising me on sales tax?
- How can I make sure my sales tax exposure is being handled?
- How have I been affected by Wayfair?
- How can I make sure that I don’t have a lot of sales tax exposure?
- Should I be upset my accountant hasn’t advised me of my sales tax?
To get with us for a FREE Strategy Call go HERE.
On today’s podcast we caught Dan while he was on the road visiting a client. The client had just run into some issues dating back to a few years ago when they acquired another business. A common thing to overlook when doing your due diligence before selling or acquiring a business is sales tax. Having a lot of sales tax exposure could really hurt the sale of your company. Also, if you are acquiring a business and neglect going over the sales tax issues during the due diligence process, it could come back to haunt you years later. Andy and Dan discuss “The 3 Gotchas” when it comes to sales tax, those include; Nexus, Exemption Certificates, Returns, and a Bonus 4th Gotcha. Today you can learn how to protect yourself and your clients.
Additional Questions Answered:
What sales tax liabilities should I be worried about when I sell my company?
What sales tax liabilities should I be worried about when I buy a company?
What kind of sales tax due diligence should I do when I buy a company?
Why should I care as the acquiring company about the past sales tax liability of the target?
How do I know where they have Nexus?
What is nexus?
Is physical presence what causes nexus?
What causes nexus now?
How has the Wayfair **Supreme court decision changed how nexus is defined today?
What kind of liability do I have if the company I am buying hasn’t been collecting exemption certificates?**
What kind of places accept exemption certificates?
Do I need to collect exemption certificates from companies that are tax exempt?
What happens when the company I am acquiring hasn’t been filing sales tax returns?
To get with us for a FREE Strategy Call go HERE.
**Have you ever wondered how your client or company was selected for a sales tax audit? Do you worry that you or client will soon come under sales tax audit? Is there a way that you can prepare for a sales tax audit? Andy has seen 100’s maybe even 1000’s of sales tax audits and has written many articles on these very questions. Listen in as Andy shares his knowledge and experience with sales tax audits.
Additional Questions Answered:**
- How can I know if my client will be audited for sales tax?
- How can I prevent my clients from being audited for sales tax?
- What chances does my client have of being audited for sales tax?
- What factors should I look at when it comes to sales tax audits?
- Does the industry play a role in who is selected for a sales tax audit?
- What kinds of sampling do sales tax auditors use?
- What are the biggest errors found in sales tax audits?
- What industries are selected for sales tax audits most often in California?
- What industries are selected for sales tax audits most often in Texas?
Sign up for a free strategy call HERE!
Imagine that you’ve been in business for several years. Things are going along pretty well. By just surviving, you’ve been more successful than most businesses. And then you find out some terrible news about sales tax; you learn that because of “nexus” in prior years, you may actually owe back taxes and it might be a significant amount. This is money you don’t have. You didn’t collect it from your customers and you have no way of collecting it from them now, years after the fact. You simply do NOT have the means to pay the back taxes. What do you do? What are your options? Listen in as Andy and Dan discuss your different options and help you decide what to do.
Additional Questions Answered:
- If I just register going forward what are the risks?
- What is the statute of limitations when it comes to sales tax audits?
- What if I put a date from the past on my state sales tax registration form?
- What incentives do states have to offer amnesty plans for online sellers?
- Will there be another sales tax amnesty program like many states offered in 2017?
- What will California do with the information they received from Amazon?
- How can selling my company give me potential sales tax exposure I wasn’t aware of?
- When should I consider a Voluntary Disclosure Agreement (VDA)?
- Can I negotiate a payout program with states for back taxes owed?
To get with us for a FREE Strategy Call go HERE.
**We recently had a call with a CPA that had connections with approximately 2,000 Amazon FBA sellers. He was doing some due diligence after seeing one of our webinars to see what his FBA seller friends were doing about their own sales tax obligations. It turns out that everyone that he talked to in his initial sample was sure that Amazon not only collected the sales tax but also remitted the sales tax, giving them no sales tax obligations. Listen in as Andy and Dan debunk this myth that still continues to create confusion.
Additional Questions Answered:**
Does Amazon collect sales tax in all states on its own sales?
Does Amazon remit the sales tax to all states?
Does Amazon automatically collect sales tax for FBA sellers?
If Amazon collects the sales tax will they send it to the different states?
What is the FBA seller’s responsibility for sales tax?
What is a marketplace facilitator?
Which states have marketplace facilitator laws?
Why doesn’t Amazon remit the sales tax in all states?
Do I need to register in the the states that have marketplace facilitator laws?
Do the marketplace facilitator laws make it easier for FBA sellers?
To get with us for a FREE Strategy Call go HERE.
With the new sales tax laws coming into play all the time, more and more businesses are realizing that they may have exposure in a sales tax audit for taxes that were not collected for months or maybe years in the past. Businesses may want to get registered now and start collecting tax, but face a real dilemma when it comes to the question that comes up on every registration form: “When did you first begin doing business in this state”. If a business answers this with a date months or years in the past, then the state will bill them for the tax (plus penalties and interest). This can create a terrible hardship on businesses if they have to come up with sales tax from prior sales out of their own pockets. So what is a business supposed to do? Andy and Dan have been helping clients for years determining their nexus and calculating their exposure they might have in the separate states. If your exposure is great enough you may want to request a Voluntary Disclosure Agreement (VDA) with a state. Listen in and learn what your options may be if you need to request a VDA.
Additional Questions Discussed:
What are VDAs?
What is the likelihood I could file a VDA?
What if a state find me first can I file a VDA then?
If my exposure is pretty low in a state should I still file a VDA?
Is it possible to get out of paying penalty and interest with a VDA?
Is it possible to get the tax waived with a VDA?
Is a VDA even possible if I get contacted by a state?
If I file a VDA are the statute of limitations different if a state finds me first?
Do all states offer a VDA program?
To get with us for a FREE Strategy Call go HERE.
Get a complimentary chart on VDAs - Availability and Scope of Relief HERE
Get a complimentary chart on Voluntary Disclosure Look-back Periods go HERE.
New York just posted a notice on their website that they’ve had an economic nexus law all along. And it's been effective ever since the Wayfair decision was announced. Listen in as Andy and Dan decipher what New York has decided to do with their economic nexus laws. Also, they discuss New York’s whistleblower laws and what that could mean to you - particularly in the context of this new notice. Find out for yourself if New York’s laws on fraud are fair or not.
What are New York’s new economic nexus laws?
What caveat has New York added to their statute?
When will New York’s economic nexus laws come into effect?
Does New York have unusual fiscal calendar quarters? If so, why?
What are New York’s economic nexus thresholds?
How does New York enforce tax fraud laws?
What is New York’s definition of sales tax fraud?
Can I collect a bounty if I am a whistleblower?
How can I report tax fraud to New York?
Is New York’s tax fraud law really fair?
Why was Sprint sued by New York for $300 Million?
Did Sprint commit tax fraud in New York?
How much did the whistleblower get from Sprint’s settlement with New york?
How many states have economic nexus laws now?
Can a VDA save a business from a whistleblower and being sued by New York?
Get the link to New York’s site to report fraud HERE
Learn how much a whistleblower can earn HERE..
Find the link for the story on My Pillow HERE.
Find Andy’s article on My Pillow HERE.
Find the story on Sprint HERE.
Find Andy’s story on Sprint HERE. To get with us for a FREE Strategy Call go HERE.
**Along with the new year comes new economic nexus laws. A few states have gone live with their economic nexus laws. Andy and Dan will discuss in today’s podcast about the new states that have set their economic nexus laws for this year.
What are Washington D.C.’s new economic nexus thresholds?**
What is California’s economic nexus thresholds?
Is 200 transactions really the threshold for economic nexus?
What is Texas’ economic nexus thresholds?
What is a marketplace facilitator?
**What states are marketplace facilitators?
To get with us for a FREE Strategy Call go HERE.**
Is your New Year's Resolution for 2019 to start collecting and filing sales taxes? It can seem like an overwhelming and confusing task to take on yourself. We have been doing this for the last 25 years and have seen first hand just how complicated it has become. Now with the recent decision by the Supreme Court (Wayfair) it, it appears that many companies are deciding to just register and file. And it seems like they all want to make it effective January 1, 2019. In today’s podcast, you will learn what that would entail and how to get your business ready to start collecting and remitting sales tax. Listen in as Andy and Dan discuss the the 5 steps you need to take in order to make this happen by the first of the year and see the questions they answer. Step #1: Start With Nexus And Taxability. Figure out where you have nexus first and consider if what you sell is even taxable.
- How do I determine my nexus footprint?
- Do I need to get registered everywhere?
- At what point can states force you to register?
- Can I register for sales tax myself?
- What can give me nexus?
- What if I have been doing business in a state for a long time without having a sales tax license?
- How do I know if my product is taxable?
- What should I do if I have a lot of sales tax exposure in a state?
Step #2: Evaluate Your Taxing System (POS, Website Shopping Cart, Amazon, Walmart, etc.)
- What do I do to make sure my shopping cart software is set up for sales tax?
- How to make sure my Amazon seller’s account is set up correctly for sales tax?
- Do I need to get some developers involved at this stage?
Step #3: Get Registered. States require you to register and/or obtain a license from them before you can collect tax on their behalf.
- Who can help me get registered for sales tax?
- Can I really register my company for sales tax on my own?
- Where is a good resource for doing the registrations myself? TaxJar has a great blog post with links to every state here.
- Are the states the same when it come to registering for sales tax?
Step #4: Turn On The Tax. You need to go into your settings in all of your sales channels and turn on the tax collection function to automatically start assessing tax on your sales invoices.
- How do I start collecting the sales tax?
- How do I avoid getting in trouble with sales tax in all the states?
- Can I start collecting the sales tax even if I haven’t gotten my sales tax registration yet?
Step #5: File the Returns. Once you've figured out where to collect the tax and you've collected the money, then the time will come when you actually fill out the returns and remit the funds. It may be annually, quarterly, or monthly.
- How often do I need to file sales tax returns?
- Can I file my own sales tax returns?
If you have questions or any concerns sign up for a FREE Strategy Call here:
https://www.SaltMoment.com/rac
Another state has demanded that Amazon to turn over seller information. Learn what it is you need to do now that your information has been turned over. Andy and Dan have the information that you need to know in order not to panic.
Here are some of the questions that we answer:
- If I sell on Amazon what should I do?
- What information is Amazon handing over?
- What will Wisconsin do with this information?
- What do I need to do with Wisconsin?
- What should I do if Wisconsin reaches out to me?
- Will Wisconsin be able to find me even if I am a small seller?
- What should I do if I’m not registered in Wisconsin?
- What is Wisconsin’s economic nexus law currently?
Amazon announced that they will collect and remit the sales tax to Connecticut. What does that mean for eCommerce sellers if they sale on Amazon or some other eCommerce platform? Andy and Dan discuss the new changes and other new sales tax laws in other states.
Here are some of the questions that we answer::
- What do I need to know about Connecticut’s new sales tax laws?
- Will Amazon remit the sales tax directly to Connecticut?
- Will I need to still register in Connecticut if I only sell through amazon?
- What does this mean if I sell though multiple eCommerce platforms?
- How do I get registered in Connecticut if I only sell on Amazon?
- What if I am already registered in Connecticut to collect sales tax?
- Can I just deregister in Connecticut?
- When will the laws in Connecticut come into play?
- Amazon collects and remits tax in Washington state can I just deregister there?
- Amazon collects and remits tax in Pennsylvania state can I just deregister there?
- Amazon collects and remits tax in Oklahoma state can I just deregister there?
- Amazon collects and remits tax in New Jersey state can I just deregister there?
Even months after the Supreme Court made its decision in the Wayfair case there are still rulings coming out of the woodworks. The latest being Colorado making their move to capture more tax revenue. Listen or watch in today’s podcast to find out what exactly you are in for as an eCommerce seller.
Here are some of the questions that we answer:
- What new rules does Colorado have according to sales tax?
- If I sell in Colorado what filing rules are there?
- What is a home rule city?
- Do I have to register in Colorado to collect sales tax even if I don’t have physical presence?
- When will these new sales tax rules come into effect in Colorado?
- Where should I register in Colorado?
- How do I register in Colorado?
- What does it mean to have a “non-physical presence” in Colorado?
- How will I collect the sales tax in Colorado?
- What if my software can’t collect the right sales taxes in Colorado?
- How do I file the home-rule cities sales taxes in Colorado?
- How many places will I need to register in and file sales taxes in Colorado?
- Will there be a grace period in order to get my systems in place to register and collect the sales tax in Colorado?
Even months after the Supreme Court made its decision in the Wayfair case there are still rulings coming out of the woodworks. The latest being Colorado making their move to capture more tax revenue. Listen or watch in today’s podcast to find out what exactly you are in for as an eCommerce seller.
Here are some of the questions that we answer:
- What new rules does Colorado have according to sales tax?
- If I sell in Colorado what filing rules are there?
- What is a home rule city?
- Do I have to register in Colorado to collect sales tax even if I don’t have physical presence?
- When will these new sales tax rules come into effect in Colorado?
- Where should I register in Colorado?
- How do I register in Colorado?
- What does it mean to have a “non-physical presence” in Colorado?
- How will I collect the sales tax in Colorado?
- What if my software can’t collect the right sales taxes in Colorado?
- How do I file the home-rule cities sales taxes in Colorado?
- How many places will I need to register in and file sales taxes in Colorado?
- Will there be a grace period in order to get my systems in place to register and collect the sales tax in Colorado?
Today we invited a special guest speaker, Regan from our team to join us in our discussion on how to collect sales tax on Shopify. Regan runs our registration and company set up department at our firm and she is an expert at setting up any online selling platform out there. She knows the ins and outs off all these platforms and she will shed some light on shopify today.
Here are some of the questions that we answer::
- How do international sellers deal with sales taxes?
- What kind of things do I need worry about as an international online seller?
- What is origin vs destination state basis?
- Do I need to know what states are origin based and which are destination based?
- Does Shopify tell me what tax rate I should collect?
- How do I know where I have nexus?
- What do I do with the sales tax that I have collected using Shopify?
- How do I set up Shopify to collect sales tax?
- Is shipping and handling taxable?
- How do I know when I have economic nexus?
Click here to check out the YouTube version of the podcast!
Andy and Dan discuss how to prepare for a sales tax audit when you get a letter from the state informing you that you are now under audit. Today the discussion will help you understand what the major pitfalls are and how to minimize your assessment. Also, we’ll teach you how to prepare for your next audit.
Here are some of the questions that we answer in this podcast:
- What are auditors looking for during a sales tax audit?
- Can I handle a sales tax audit even if I have never done it by myself before?
- What happens if I am missing documents that the auditor has asked for?
- What does a sales tax auditor usually ask for?
- What are exemption certificates?
- Where do I get exemption certificates?
- What are some reasons exemption certificates are rejected?
- What kind of audit period do auditors look at typically?
- Can I try and fight sales tax audits?
- Can I gather exempt certificates during an audit?
- What is an XYZ letter?
Would you like our FREE Guide to Managing Your Sales Tax Audit? You can find it here
Check out our Youtube video of this podcast
HOT OFF THE PRESS! We have had a number of clients and other eCommerce businesses reaching out to us because Amazon just sent an email out to them stating that they are releasing their information to California. This can be a big issue for you if you have been doing business in California but have yet to register. Andy and Dan discuss what you should really be worried about and what your next steps are. Also, they discuss what cookie nexus is and if and how it affects you.
Here are some of the questions that we answer in this podcast:
- What data did Amazon agree to hand over to California?
- What do I do if I got an email from Amazon talking about California?
- What should I do if I got a notice from California?
- As an eCommerce seller should I start worrying about California?
- Will California audit me now?
- If I am already registered to do business in California and collecting and remitting the sales tax do I have anything to worry about?
- What is Cookie nexus?
- How do I know if I have cookie nexus?
- What do I need to do if I have cookie nexus?
- What are my main concerns with cookie nexus?
Check Out The Email Here
Dan has spent the last 10 years consulting companies big and small on how to navigate the SALT*y seas! He has gained a lot of knowledge and experience over the years and he has the knowledge to help you.
Here are some of the questions that we answer in this podcast:
- What do I need to do about Wayfair?
- Will congress get involved with the Supreme Court decision?
- What states have updated their nexus thresholds?
- What sales tax certification can I get?
- How can I gain just basic sales tax knowledge?
- Do I need to be a sales tax expert to make sales tax decisions?
With the addition of new sales tax nexus laws recently enacted, state income tax has seemingly taken a back seat. As a result of the new sales tax economic nexus laws, what does that mean for inter-state income tax? Should you be aware of any changes to Public Law 86-272?
In this episode we answer the following questions:
- What is income tax nexus?
- What laws protect me against income taxes?
- Does P.L. 86-272 protect me against sales tax?
- Does P.L. 86-272 protect me against income tax?
- Is the Franchise tax really an income tax?
- Does P.L. 86-272 protect me against franchise tax?
- As an eCommerce seller will I owe the Texas Franchise Tax?
- Will I need to register for the Secretary of State when I register to do business in a state?
- How do states get around P.L. 86-272?
Have Questions? - Schedule a Free Initial Consultation Here
In this episode, we highlighted that a bunch of states targeted October 1, 2018 for the beginning of economic nexus.
Here are just a few of the questions we answered in this episode:
- What states went live with sales tax collection requirements on October 1?
- As an advisor to eCommerce sellers, what do I need to do starting October 1?
- Should I advise my clients to collect sales tax before they are registered in a state?
- Will states audit my clients all the way back to October 1, and will they penalize them for not collecting the sales tax?
- Is physical nexus still a thing?
- How should I know if my clients need to collect sales tax in a state?
These are strange times in the world of sales tax. Andy is calling it, "The SALT Moment." Sales tax laws are a mess, and right now is the time for you to buckle down and help your clients.
Download The Sales Tax Moment" ebook FREE here!
We highlighted a brand new contributor in our e-Commerce podcast this week. Russell Gordon speaks with and educates a lot of eCommerce sellers everyday and he has figured out that a lot of eCommerce sellers have many of the same important questions! Andy and Dan also join in the mix to answer a few of these questions to give eCommerce sellers peace of mind.
Questions:
- How does Wayfair affect me?
- Does physical presence still give me nexus?
- How do I get my business registered?
- How do I know where to get registered?
- When I hit a state's threshold, do I start collecting tax at that point?
- Can I do my own sales tax services quickly and cheaply?
- If I don't collect the sales tax can I go to jail?
- What are my sales tax responsibilities as a dropshipper?
- When I register for sales tax in a state will I also have income tax responsibilities?
Still Have Questions? - Explore our Website for eCommerce Sellers
Are you unsure if you should be collecting local sales tax? Are you even aware that there is a local sales tax? Andy and Dan are discussing the why and how when it comes to local sales taxes.
Questions:
- Can I lose customers if I charge too much tax?
- When do I collect use tax?
- What is the retailer's occupation tax in Illinois?
- What are the rules connected to the retailer's occupation tax?
- Does the retailer's occupation tax have a different tax rate?
- What states have a retailer's occupation tax?
- How do I know what tax rate to collect?
- What is an origin state?
- What is a destination state?
Read More On How Local Taxes Can Impact Small Businesses
Have General Sales Tax Questions? - Sign Up For A Free Consultation
We are always busy working on sales tax audits. Dan is an absolute expert when it comes to sales tax audits and he has a few tips and tricks for you!
Questions:
- What do I do when I get a notification of sales tax audit from a state?
- What kind of assessment can I expect with a sales tax audit?
- What circumstances should cause me to panic in a sales tax audit?
- Should I worry about other states auditing me once I get audited by one?
- Can I do a VDA if a state has found me already?
- How far will states go back within my records?
- What information should I give or not give to an auditor?
- How should I treat the auditor?
Click Here for More Information on How to Manage your Sales Tax Audit!
With the Supreme Court decision to overthrow Quill, there have been a lot of changes in many states. In this week's podcast, Andy and Dan discuss what makes Washington and Pennsylvania so difficult to file sales tax. They will also discuss Oklahoma who has recently made a decision on how they will handle their sales taxes with Amazon and other ecommerce platforms.
Here are some of the questions we answer in this short podcast:
- If I sell through Amazon, is Amazon responsible to collect sales tax?
- Does Amazon collect sales tax?
- Does Amazon collect and remit sales tax in any state?
- Does Shopify collect and remit taxes for me?
- Does Walmart collect and remit taxes for me?
- What is the Washington B&O?
- How can the state of Washington find me and audit me?
- Will Amazon collect and remit tax in Pennsylvania?
- Will Amazon collect and remit tax in Oklahoma?
- If Amazon collects and remits tax to Washington do I have to file a sales tax return?
- If Amazon collects and remits tax to Pennsylvania do I have to file a sales tax return?
- If Amazon collects and remits tax to Oklahoma do I have to file a sales tax return?
Check Out Our eComm Sales Tax Guide eBook With State-by-State Chart.
Have Questions? - Schedule a Free Initial Consultation Here
Do all states offer exemptions to schools? Andy and Dan dive into exemptions for schools when they purchase items. They also make it less confusing for you that have schools as customers so you know whether you should charge them sales tax.
Questions:
- What states don't have exemptions for schools?
- Do I have to collect exemption certificates from schools and universities?
- Are there different exemption rules for public and private schools?
- How is the taxability of donations to schools handled?
- Why do some states treat private and public schools with taxability?
- Are purchases from public and private school exempt in the state of Minnesota?
If you have been wondering what changes that the Supreme Court Wayfair decision has made on income taxes today is the today! On today's episode Andy and Dan discuss the changes that have come about since the Supreme Court decision back in July.
Questions:
- How has Wayfair changed income tax?
- Can states really tax interstate commerce?
- What is Nexus?
- When did Nexus even start?
- What is sufficient Nexus?
- Does Public Law 86-272 affect sales tax?
- What is Public Law 86-272?
- What protections does Public Law 86-272?
- What states have economic nexus limitations for income tax?
- What states have economic nexus limitations for Sales tax?
- Is the Texas franchise tax an income tax?
- What states automatically sign you up for sales tax when you get registered to do business in state?
Read our Sales Tax Report Here!
Hear Andy and Dan talk about new changes with income tax for eComm sellers. Also, learn about how some states determine taxability for some products.
- What income tax obligations do I have as an eComm Seller?
- Is there sales tax on candy?
- Is the candy Whoppers exempt from sales tax?
- Are Lemon Drops exempt from sales tax?
- Are groceries exempt from sales tax?
- Why does my sliced prepared bagel in New York have sales tax?
- What is the difference in taxability between food and food ready to eat?
- How do I know what sales tax rate to charge?
- What is the difference between sales tax and use tax?
- What is a home rule state?
- Does Texas classify a warehouse as a place of business?
Here Is The Link To Avalara's Tax Calculator
Here Is The Link To Taxjar's Tax Calculator
Top tax advisors, Andrew Johnson & Dan Peisner update ECom Companies on recent changes with the Wayfair case and how it impacts ECommerce businesses. To simplify the on-going preparing and filing of returns, they reveal how one tax technology is helping eCommerce businesses ease the pain.
- How do I file sales tax returns?
- What software will integrate with my Amazon account?
- What software will integrate with my Ebay account?
- What software will integrate with my Quickbooks account?
- How does this technology file the returns?
- How does this technology handle my money?
Click Here For An Extended Free Trial Period
Listen along as Andy and Dan discuss some developments regarding the Wayfair decision. They also discuss the many complications that have arisen for software sellers because of Wayfair.
- What do I need to know about Wayfair now?
- Will states collect tax retroactively?
- What is custom software?
- Is custom software taxable?
- How do the big states treat cloud computing?
- How does my state handle software issues?
Read Here How The WayFair Case Now Makes Software Taxable In More States + Get A Taxability Chart By State.
Have Questions? - Schedule a Free Initial Consultation Here
Learn More About eCommerce Sales
The Supreme Court's Wayfair decision to overturn Quill changes the sales tax landscape for all businesses. Today Andy discusses the changes for software companies and how to avoid getting into trouble.
- How do I know where my clients have nexus?
- How would a state find my clients?
- How likely is it that a state would find our clients?
- What can the states audit?
- How do I know if their product is even taxable?
- What makes maintenance agreements taxable?
- Is cloud computing taxable?
- What should I do if I think I am at risk?
- Where can I find an expert in sales tax?
- How can I become an expert in sales tax?
Download our Top 10 Nexus Creating Activities page
Have Questions? - Schedule a Free Initial Consultation Here
Learn more about eCommerce sales
With the Supreme Court's new decision to overturn Quill this changes the sales tax landscape for all businesses. Today Andy and Dan discuss the changes for software companies and how to avoid getting into trouble.
- What sales tax issues do software sellers have?
- How has the sales tax world changed?
- Do all fortune 500 companies ever go out of business?
- What can I do to reduce my risk?
- How do software companies have nexus now?
- How can my tax advisor or CPA help me?
Download our Top 10 Nexus Creating Activities page
Have Questions? - Schedule a Free Initial Consultation Here
Learn more about eCommerce sales
Today Andy and Dan discusses how the world of state taxes has completely changed, challenges of unexpected but preventable STATE TAX errors that could wreck your bottom line, and the solution to those challenges.
- What has Texas ruled in the wake of the overturning of Quill?
- What income laws could be affected?
- What sales tax errors am I making?
- When was Quill decided?
- What laws are being passed because of the Wayfair case?
- Who can help me know what to do?
- Does Wayfair apply only to eCommerce businesses?
- What should I be doing because of Wayfair?
Download our Top 10 Nexus Creating Activities page
Have Questions? - Schedule a Free Initial Consultation Here
Learn more about eCommerce sales
Description: On today's episode Andy and Dan discuss whether or not there is a chance that the Supreme Court's decision to overrule Quill will get overturned and if Congress will step in. They also discuss decisions that were made in New Hampshire and Oklahoma when it comes to the new rules with sales tax.
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What are the chances the decision to overrule Quill will get overturned?
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Will Congress make any sales tax decision?
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What are the nexus rules now?
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What is the state's definition of a transaction?
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What is New Hampshire's status with Sales Tax now?
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What rules does Oklahoma have?
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Will Oklahoma collect sales tax for Amazon sellers?
Download our Top 10 Nexus Creating Activities page
Have Questions? - Schedule a Free Initial Consultation Here
Learn more about eCommerce sales
Quill is Dead. How Will it Affect Your Business?
We've been doing SALT work for over 25 years. Sales tax return filing has been a vital component of our business. In this webinar, best-selling author and CPA, Andy Johnson will teach you what he has learned as the managing partner in actual client practice over the years.
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What do I need to know about Quill and the Wayfair case in the supreme court?
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Do I need to get registered in every state now?
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What are states doing to enforce this new decision?
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If I am an eCommerce seller do I have to collect tax in every state I have a sale in?
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What do I do now?
Start with Nexus Book:
https://peisner.clickfunnels.com/order-page8r1lxme9
Top 10 Nexus creating activities:
https://drive.google.com/file/d/0B7wfhHMgfaWyR2MyN1loVEhCNVk/view?usp=sharing
Sales Tax Report:
https://salestaxforonlinesellers.com/ebook-orderform
30 minute free initial consultation:
https://app.acuityscheduling.com/schedule.php?owner=11454533&appointmentType=506128
Today Andy and Dan talk about bundled and subscription packages and what you should on be on the lookout for when it comes to taxability.
- What are the rules for collecting the tax on bundled packages?
- How do I figure out if my items are taxable or not?
- Are food products taxable?
- What are the states that have a predominant rule with bundled packages?
https://www.redbookmag.com/life/friends-family/g641/subscription-boxes/
Andy and Dan discuss a specific situation with a client that has dropshipping issues in several states where they have nexus.
- If I have nexus in a state do I need to get registered?
- When should I collect resale or exemption certificate?
- How do I collect a resale certificate?
- Who should I collect certificates from?
- What is dropshipping?
- Who is the ultimate consumer and what are they responsible for?
https://drive.google.com/file/d/0B8bRxsnBPCqLR2R0T0NBNDZQeVJaZkVIMnhrdEYteVBsWjYw/view?usp=sharing
Today Andy and Dan discuss what you should look out for when it comes to the taxability of packaging supplies.
- Is my packaging a sale for resale?
- Are my packaging supplies exempt from tax?
- What are some special exemptions in some states when it comes to packaging supplies?
- Are the machinery used in packaging exempt from tax?
- Is handling considered taxable?
- Is handling considered a service?
- Is shipping taxable?
- What if my shipping and handling is separately stated?
VDA's (voluntary disclosure agreements) could be a good option for you if you have some sales tax exposure. Andy and Dan discuss what a VDA is and how it could benefit you. There are 4 different myths when it comes to filing VDA's and Andy and Dan will debunk all of them.
- Should I do a VDA?
- Can I do a VDA myself?
- What is the cost of a VDA?
- If I first started my business a month ago should I do a VDA?
- Will states typically waive penalty and interest?
- Myth #1, If I wait the problem will go away.
- How far will states look back?
- Which states are most generous?
- Myth #2, I can just sign a VDA as soon as I hear from a state.
- Myth #3, VDAs won't reduce my liability that much, compared to an audit.
- Myth #4, Will a VDA be worth it?
https://www.avalara.com/us/en/blog/2018/05/debunking-4-mythsaboutvoluntarydisclosureagreements.html?sessionId=1527630820806&referrer=https%3A%2F%2Fwww.google.com%2F&lastReferrer=www.avalara.com
https://peisner.clickfunnels.com/order-form18702870
Historically the State of Washington has been very aggressive when it comes to being audited for sales tax. Andy and Dan discuss new developments with what Washington is willing to do if you are under audit. Also, Andy and Dan discuss other changes in the states of New York and Indiana. Tune in to hear about these topics and more.
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What is Washington's new sales tax penalty policy? 01:40
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How long will this be in affect? 03:15
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What is Washington's penalty rate? 04:40
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Will Washington reduce my penalties? 05:00
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What is the average tax penalty within the states? 06:00
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What does the recent letter from Amazon to their sellers say? 07:00
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What is New York going after online sellers from 2014? 08:15
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What VDA (Voluntary Disclosure Agreement) programs does Indiana have for online sellers? 16:25
eCommerce $77 eBook:
https://peisner.clickfunnels.com/order-form18702870
Trustfile link for Accountants:
https://app.trustfile.avalara.com/#/signup/accountant?partnersource=00130000002pRNR&CampaignID=7010b000001Drdx&lsmr=Direct
Link for Free Start with Nexus Book:
https://peisner.clickfunnels.com/order-page8r1lxme9
A woman noticed that she was charged sales tax when she purchased Netflix subscription gift cards at Walmart. She argued that it wasn't correct to charge sales tax on gift card sales. Walmart refused to refund the tax. Was she right? Do you notice when you get charged sales tax and know if it is correct? Tune in as Andy and Dan discuss the taxability of digital products.
- Are gift cards subject to sales tax? 01:25
- How are coupons taxed? 10:50
- How are digital products taxed in California? 14:20
- How are digital products taxed in Florida? 14:20
- How are digital products taxed in Georgia? 14:20
- How are digital products taxed in Illinois? 14:20
- How are digital products taxed in Michigan? 14:20
- How are digital products taxed in New York? 14:20
- How are digital products taxed in North Carolina? 14:20
- How are digital products taxed in Ohio? 14:20
- How are digital products taxed in Pennsylvania? 14:20
- How are digital products taxed in Texas? 14:20
- How are gift cards and game cards taxed? 18:40
The article is included below:
https://www.dallasnews.com/news/watchdog/2018/01/25/walmart-tried-improperly-tax-womans-gift-card-texas-nothing
Here is the chart:
https://bit.ly/2wJU4EQ
Check out the YouTube video!
https://youtu.be/SdiGxRUqZag
Amazon has a platform that gives businesses the ability to sell to businesses and manage their exemption certificates. Andy and Dan discuss this platform and what kind of organizations are typically exempt. Have you ever wondered which states have sales tax holidays? Join us to find out all of these questions.
- How to claim tax exempt on Amazon? 07:00
- How to manage exemption certificates with Amazon? 07:35
- What organizations qualify for exempt status? 09:50
- Are nonprofits exempt from sales tax? 10:15
- Are schools exempt from sales tax? 13:08
- What states have sales tax holidays? 13:45
Here is the link to the article from today. https://www.pymnts.com/amazon/2018/amazon-b2b-ecommerce-retail/
Here is the chart available for download.
file:///Users/macygordon/Downloads/Chart%20-%20Sales%20to%20Non%20Profits.pdf
Here is the link to the youtube video.
https://youtu.be/hvoL0PUlj5M
Here's a link to the full video broadcast, if you'd rather watch the video.
Amazon has its sights on being able to deliver groceries and getting into the clothing market. Dan Peisner discusses taxability of clothing in different states and discusses in which states of sales tax holidays.
- Will Amazon sell Groceries? 01:30
- Will Amazon sell more clothes? 02:30
- Is clothing taxable in California? 03:25
- Is clothing taxable in Florida? 03:25
- Is clothing taxable in Georgia? 03:25
- Is clothing taxable in Illinois? 03:25
- Is clothing taxable in Michigan? 03:25
- Is clothing taxable in New York? 03:25
- Is clothing taxable in North Carolina? 03:25
- Is clothing taxable in Ohio? 03:25
- Is clothing taxable in Pennsylvania? 03:25
- Is clothing taxable in Texas? 03:25
- Where are there sales tax holidays? 13:09
Here's a link to the full video broadcast, if you'd rather watch the video.
This week Dan Peisner and I discuss our reactions to the oral arguments that just took place at the US Supreme Court in the Wayfair case. It's been 25 years since the Supremes took up a sales tax nexus case, so it's a big deal. A large majority of observers have been predicting the overturn of Quill ever since the Supreme Court granted cert in the Wayfair matter, but many of them might be rethinking their predictions after the oral arguments. We'll give you our take on the case.
Here are some of the questions we addressed in this episode.
- What is the background on Quill? 02:30
- How did the Court rule in Quill? 04:30
- Does Quill mandate that seller must have a physical presence? 04:55
- Can you have nexus in a state without any physical presence? 07:15
- Why would any state be against overturning Quill? 08:15
- How many people thought that the Court would overturn Quill? 09:25
- Will overturning Quill mean that sellers will have to know all the sales tax rules in 45 states? 10:16
- If you just make one sale in a state do you have nexus? 11:50
- Will taxpayers be subject to audits in other states? 12:45
- How much do sales tax audits cost on average? 14:57
- Can taxpayers extinguish a sales tax liability in bankruptcy? 17:20
- Can you go to jail if you fail to remit sales taxes? 17:35
- Did the Supreme Court seemed to be concerned overall with the cost of compliance to small businesses? 20:31
- Was Malcolm Stewart arguing on behalf of South Dakota or did he end up damaging their case? 22:47
- If the Court overturns Quill, can it be done prospectively? 24:15
- Did Justice Alito say that every state will go after every possible penny? 27:32
- Was there any big moment where you could say that South Dakota scored a hit? 28:50
- Did Notice and Reporting come up in the arguments? 29:25
- Will the states compromise and create comprehensive reform? 30:55
- Will more states enact Notice and Reporting rules? 32:21
- What did Justice Kagan say about how Quill helped Amazon to succeed initially and how that overturning Quill will now benefit Amazon? 33:30
- How does Amazon win big if Quill is overturned? 35:15
- What is Dan's prediction on how the ruling will come down? 38:18
- Did Chief Justice Roberts indicate that the problem seems to be correcting itself? 39:28
Links to items mentioned in the podcast:
James Sutton article in National Review
Transcript of Oral Arguments
Here's a link to the full video broadcast, if you'd rather watch the video.
Here's a link to the chart that was presented in the podcast.
Here's a link to the notice from Oklahoma.
BREAKING! Oklahoma has had notice and reporting laws in the books since November 1, 2016 but as of yet they have not set the penalty for non-compliance. We have received notice that the penalties have been set! Find out here on today's podcast.
- What are the taxing rules to import into California? 02:00
- What is notice and reporting? 04:12
- What is nexus? 04:25
- What causes nexus? 04:25
- What states have notice and reporting requirements? 06:30
- Should I just get registered? 06:55
- When will this law take effect in Oklahoma? 07:16
- What is the penalty? 07:50
- What is click through or affiliate nexus? 09:30
- What are the some states nexus thresholds? 14:00
- What is nexus creating in Pennsylvania? 16:54
Here's a link to the full video broadcast, if you'd rather watch the video.
Here is the link to the slides for you to view.
- Do I have nexus if Amazon collects the tax in Pennsylvania? 01:30
- Do I still need to register in Pennsylvania if I am an Amazon seller? 02:53
- Do I have to file a sales tax return in Pennsylvania if I am an Amazon seller? 03:15
- Should I de-register in Pennsylvania if I'm an Amazon seller? 04:15
- Is Pennsylvania good news for Amazon sellers? 07:28
- Do I have to file a sales tax return in Washington as an Amazon seller? 08:30
- Do I need to be registered in the state of Washington as an FBA seller? 09:00
- How do I file a Washington sales tax return? 10:00
- What do I need to file with the state of Washington? 10:45
- What is the B&O tax in Washington? 12:00
- Is Washington good or bad news for FBA Sellers? 12:40
- How to pull reports on Amazon? 14:00
Here's a link to the full video broadcast, if you'd rather watch the video.
Download or print the slide handout here.
This week we are discussing Dropshipping for eCommerce businesses. What is dropshippping? Why is dropshipping so confusing? What are some tax issues that are associated with dropshipping? We have also found out that Amazon has sent out new letters regarding Massachusetts. These questions and topics we frequently get
- What is the due date for information with new round of letters? 01:10
- What are the tax issues when it come to dropshipping? 04:40
- Why is dropshipping so confusing? 05:30
- What is dropshipping? 07:30
- What is TPP tangible personal property? 09:40
- What state should I collect sales tax in? 10:40
- Why does my vendor care about dropshipping? 11:25
- Does California except my Texas or any other states exemption certificate? 12:00
- What are the most difficult dropshipping states? 18:18
- What is the average sales tax rate in California? 22:30
- What if I'm not registered to collect sales tax? 28:50
Here's a link to the full video broadcast, if you'd rather watch the video.
This week we are discussing freight and shipping charges for eCommerce businesses. Are they taxable? If so, where? How should FBA sellers set up Amazon with regards to taxing shipping charges? We frequently get these questions and we decided this topic would be great to cover in our podcast today.
Here are a few other questions we addressed in this episode.
- Is shipping taxable? 00:40
- Is shipping taxable in CA? 03:40
- Should I tax my shipping and handling on Amazon? 04:15
- Which states say shipping is taxable? 06:10
- Why must I collect the shipping charge tax when Amazon is the one shipping my product? 10:00
- What makes shipping taxable? 11:25
- Why do states care so much about shipping and handling charges? 19:37
- How does Ebay treat shipping and handling? 20:37
Here's a link to the full video broadcast, if you'd rather watch the video.
The Editorial Board of the Wall Street Journal castigated Republican members of Congress for trying to slip a major sales tax law into a spending bill. Many parties are hoping to overturn Quill and it looks like Congress is also hoping to change it. We'll give you our take on this new development.
Also, we'll answer a question Mike got from Seth Fineberg: What's the number one sales tax issue e-commerce sellers face? It's really 3 questions they have: (1) Do I really have to collect sales tax on my online sales in the US? (2) If so, in what states? (3) If so, when should I start doing it?
Here are a few other questions we addressed in this episode.
- Congress to pass a new sales tax bill? 00:56
- Is this bill a "new tax" 03:25
- Why don't states just collect tax from their own citizens? Why to they make remote sellers collect it? 04:15
- What is the simplest solution for states to deal with multistate sales taxes? 06:31
- Are the states actually in bad shape as far as tax collection? 08:15
- Are states targeting smaller FBA sellers? 09:01
- Is the Congress considering any sales tax bills that will help FBA sellers? 09:25
- The client journey on sales tax 18:21
- What's the number one sales tax issue that e-commerce sellers face? 19:10
- Is clothing taxable in PA? 19:55
- At what level of sales should I start collecting sales tax? 20:33
- What are the most important states that an FBA seller should collect sales tax? 21:11
- Why doesn't Amazon collect tax for fba sellers? 22:35
- Are FBA sellers better off now for sales tax in Washington state? 23:41
- If I sell on multiple platforms should I still register in WA? 24:18
- Do FBA sellers still owe the B&O tax in WA? 25:22
- Do all states want Amazon to collect tax on behalf of the FBA sellers? 27:10
- Does Ebay collect sales taxes on behalf of its sellers? 31:01
- How many states have passed laws requiring Amazon to collect tax on behalf of FBA sellers? 31:15
- Should FBA sellers just wait until states pass laws requiring Amazon to collect tax for FBA sellers? 32:12
Mentioned in the show:
- Link to WSJ article on the GOP's Internet Tax
- Avask Accounting
- Payoneer
- Accounting Web article: "How State and Local Tax is Affecting Your Clients"
Here's a link to the full video broadcast, if you'd rather watch the video.
- Can an employee be held personally responsible for unpaid sales tax? 00:35
- Does an LLC insulate you from sales tax liability? 00:48
- What if you delegate the tax responsibility to another member of the LLC? 03:21
- Are sales taxes considered trust taxes? 04:10
- Does personal liability apply even in a case where taxes haven't been collected, or does it just apply with taxes collected and not remitted? 05:40
- Another example of a bookkeeper not paying sales tax on online sales and the business owner was held personally liable. 07:10
- What are the personal liability laws in other states? 09:15
- Is there a chart showing what state laws are on personal responsibility that we can download? 09:25
- Should we place our absolute reliance on these survey charts? 09:45
- What is the personal liability law in New York? 10:52
- What if I'm not an active member in the LLC, am I still personally liable? 11:20
- What is the personal responsibility law regarding state taxes in Florida? 14:10
It's the Wild Wild West in States Taxes Right Now. Tune in to hear the latest developments in PA and get your answers to the questions listed below.
Note: There is some nice silence at the beginning of this podcast for 28 seconds. Enjoy the peace :)
Here's a link to the full video broadcast, if you'd rather watch the video.
- Audio begins (sorry about that silent part) 00:28
- What's the latest development for e-commerce sellers? 03:21
- How can states pass these new laws, it seems almost unconstitutional? 04:10
- What is the specifics of the new situation in Pennsylvania? 05:40
- Do FBA sellers still need to file sales tax returns in Pennsylvania 06:23
- Is Pennsylvania a high priority state for FBA sellers from a nexus/registration standpoint? 07:25
- What if we sell on other platforms, like eBay, or Walmart, do we still have to collect tax on those sales? 07:59
- Doesn't Amazon already collect tax in all states? 09:15
- Why doesn't Amazon collect tax for third party sellers everywhere? 09:25
- If a seller has no inventory in Rhode Island, how can they force online sellers to register and collect tax there? 11:25
- Does Massachusetts require Amazon to collect tax for FBA sellers? 12:45
- Why is South Carolina suing Amazon? And what does that mean for FBA sellers? 13:15
- What's the difference in SC versus Washington and Massachusetts? 13:45
- Do I need to turn off sales tax collection in Amazon for sales to Washington and PA because Amazon is automatically collecting and remitting it so that there's no double taxation of my customers? 18:45
- Do FBA sellers still owe the B&O tax in Washington? 19:30
- Should FBA sellers deregister in Washington? 19:55
- Should FBA sellers deregister in Pennsylvania? 21:15
- Are there penalties for sales tax filings if no tax is due? 22:05
- What is the downside of deregistering in a state? 22:15
- What is the risk of owing income tax now in PA? 22:59
- What start date do I choose in South Carolina? 24:30
- Can I do a VDA in South Carolina 24:45
- Will SC refund the taxes to the FBA seller if SC loses its case against Amazon? 25:01
- If I'm not registered right now in WA, should I still register? 27:50
- Do states ask for an FBA seller's Inventory Event Detail Report? 29:01
- How does the VDA program work in WA? 30:15
- How do some FBA sellers justify to themselves registering for sales tax on a going-forward basis without paying the back tax? 31:00
- How does the state of Washington find FBA sellers who aren't collecting sales tax? 31:45
- How do other states find FBA sellers who aren't collecting sales tax? 32:02
- How does the state of Texas find businesses that aren't collecting sales tax? 34:45
- Will Amazon share seller information with other states? 36:05
- Will the state of Washington drop audits of FBA sellers? 36:40
- Do FBM (fulfilled by merchant) sellers have to register in any state other than their own state? 38:50
- Do FBM (fulfilled by merchant) sellers have to register in Colorado or Rhode Island? 39:10
- What if we don't register in Rhode Island? 42:01
- Since when can Colorado 42:30
- What if the Supreme Court upholds Quill in the Wayfair case? 43:30
- What if the Supreme Court rules to overturn Quill in the Wayfair case? 44:01
- Which states have notice and reporting statutes? 47:00
- Will Congress outlaw notice and reporting rules? 48:00
- If Quill is upheld, will FBA sellers be off the hook for sales tax? 49:25
- Why doesn't Amazon collect tax for third party sellers in all states? 50:55
- Do these new laws also apply to electronic downloads and digital goods
Amazon has agreed to turn its FBA sellers' information to the State of Rhode Island. This has created a near-panic. We answer all of the most common fears, and we give you the 3 best options FBA sellers have for dealing with it.
Here are the questions we address:* Specifically, what FBA Seller information has Amazon agreed to turn over to Rhode Island? 03:21 * If we have no inventory in Rhode Island, are we still subject to these new rules in RI? 04:40 * How can we have nexus in Rhode Island if Amazon doesn't even have a warehouse there? 05:00 * Do the new rules in Rhode Island apply just to FBA sellers or to all e-Commerce and other remote sellers? 07:11 * What are the specific new rules in Rhode Island? 09:18 * What is a "retail sale facilitator"? 09:41 * What is a "non-collecting retailer"? 11:11 * What options does Rhode Island give to the "non-collecting retailer"? 13:58 * What if our sales levels are less than $20,000 a year in Rhode Island? 14:49 * What are the 5 specific notifications that an e-Commerce seller is required to make? 17:11 * Is Rhode Island the biggest sales tax problem state for FBA sellers? 22:58 * How did we get to the point where Rhode Island can even have a law like this? 23:40 * How does the Wayfair US Supreme Court case tie in to this? 25:57 * Isn't Colorado doing this same thing now? 28:54 * What are the specific thresholds in other states? 30:05 * Can I avoid this Rhode Island situation if I just get out of FBA altogether? 32:50 * Can states even tax interstate commerce? I thought that was prohibited in the US Constitution. 33:48 * Does Amazon collect tax for FBA sellers in Rhode Island? 36:45 * Does Amazon collect tax for FBA sellers in Washington? 37:28 * Wouldn't it be much easier if Amazon just collected tax for FBA sellers everywhere? 38:00 * Isn't the US Congress going to pass a law soon and make this all go away? 40:29 * Which state seems to be auditing FBA sellers most aggressively? 42:38 * How much would it cost per transaction to produce these customer notices? 43:49 * Does a foreign software provider with no physical presence or any of the other typical nexus triggers still need to get registered in Rhode Island? 45:52 * Is it too expensive for states to audit individuals? 46:42 * What are the 3 Secrets for dealing with the US sales tax without losing your business? 47:42 * What options does Peisner recommend in Rhode Island? 53:31 * If we do get registered in Rhode Island, do we still have to do all these notifications? 55:16
Amazon has agreed to turn in sensitive seller data to the state of Massachusetts, and it has created a near panic. As in any panic, people tend to overreact. We have already seen a number of responses that will lead sellers down the wrong path.
- Specifically, what FBA Seller information has Amazon agreed to turn over to Massachussetts? 00.38
- Doesn't Amazon already collect tax everywhere? 01:08
- Does Amazon collect tax on behalf of FBA Sellers in every state? If not, which state does it collect tax even for third party sellers? 01:23
- Can a third-party seller direct Amazon to collect tax on their behalf? If so, how much does Amazon charge for that tax collection service? 02:25
- Is Massachusetts the first state to successfully require Amazon to turn over FBA Seller information? 03:22
- Is Massachusetts' main idea to get people to pay property tax on their inventory? 04:35
- Is Amazon announcing that they're going to start collecting tax now in Massachusetts on behalf of FBA Sellers? 05:33
- Is Peisner Johnson listed in the Amazon directory of global solutions providers? 06:59
- Will Massachusetts share this information with other states? 07:40
- Will other states follow Massachusetts' lead on this? 08:51
- Will Massachusetts go back in time against FBA Sellers or just required them to start collecting tax going forward? 11:28
- Can Massachusetts go all the way back to 2007 if the only activity you have in the state is as an FBA Seller? 13:58
- When did Amazon open its first warehouse in Massachusetts? 14:14
- How can Massachusetts do this under the law and get away with it? 17:31
- Should FBA Sellers panic in Massachusetts? 18:32
- If we're already registered in Massachusetts, what should we do? 18:53
- Who is Massachusetts going to go after first? 20:49
- Is Massachusetts an FBA Seller's biggest sales tax nightmare right now? 22:50
- What state is auditing FBA Sellers the most aggressively right now? 23:13
The State of Washington has required Amazon to collect tax on behalf of all of its third-party sellers on sales to customers in the state. Amazon has started that process. It makes things significantly more complicated for FBA sellers and other third parties who sell using the Amazon marketplace.
There have been many questions about this, here are a few that we answer in this podcast.
- Is Amazon collecting tax in the state of Washington on behalf of third-party (FBA) sellers? 00.50
- Doesn't Amazon already collect tax everywhere? 01:16
- Can a third-party seller direct Amazon to collect tax on their behalf? If so, how much does Amazon charge for that tax collection service? 01:38
- I thought Amazon took the position that tax was not due on sales over the Internet 02:34
- How much does Amazon charge a third-party seller to collect tax on their behalf? 03:22
- How much will my sales decrease if I start charging sales tax? 03:38
- When did Amazon start collecting tax for third-party sellers in Washington? 06:25
- Can we de-register in Washington now? 06:39
- What is the process for de-registering for sales tax in a state? 06:51
- What about the Business and Occupation (B&O) tax in Washington, how does this new process affect it? 7:08
- What's the process for filling out the sales tax return in Washington? 07:35
- Do we report all of our sales to Washington even though Amazon collected it? 07:37
- Do we have to collect sales tax made through other platforms (like WalMart or Ebay) or our own website in Washington? 07:56
- Does the state of Washington say we can de-register now? 09:45
- Is sales tax reporting easier and better now in Washington? 10:05
- Will Washington cancel open sales tax audits of FBA sellers now? 11:17
- What is the penalty rate in Washington? 11:31
- How come Congress doesn't get involved and clean up this mess? 12:24
- Can state auditors still come after FBA sellers in future audits even though Amazon is the tax collector? 14:01
- How will state auditors find FBA sellers now that Amazon is collecting the tax on their behalf? 16:10
- If our only activity ever in Washington was through the FBA, and we aren't currently registered, are we still required to register for the sales tax? 19:06
- What evidence will Washington request to show your activity in their state? 20:50
- How do the new "notice and reporting" rules fit into this? 21:40
- What if I just drop FBA altogether, would that solve my tax problems? 21:55
- Why are states requiring notices to our customers about sales tax? 22:31
- What are the notice and reporting requirements in WA? 22:46
- What's the penalty for not complying with the new notice and reporting rules in WA? 24:09
- Will Washington enforce this harsh penalty? 24:34
- Why not just ignore the new notice and reporting rules in WA? 24:49
- What's the most aggressive state as far as sales tax audits of FBA sellers? 25:41