episode 182 – state taxation overkill

Rea’s state and local tax guru, Joe Popp, is back on unsuitable on Rea Radio to talk about sales tax and how businesses can protect themselves from new taxation regulations.

Just because we made it past April 15th doesn’t mean we’re going to stop talking about taxes. In fact, every time we think we have a handle on one thing, another tax concern leaves us scratching our heads and dipping into our pockets – and right now, state taxes are leaving our heads scratched raw and our pockets a little light. Now that Wayfair is the law of the land, states continue to seek out additional sources of revenue, but perhaps the biggest area of focus has to do with sales tax.

Joining us on this episode of unsuitable on Rea Radio is Joe Popp, a principal with the firm and director of state and local tax services. Joe’s going to tell us what businesses should be doing to protect themselves from the state’s new taxation initiative.

Welcome to Crazy Town

Wayfair is, as our host Dave Cain describes it, “crazy town.” Now that states have implemented some version of Wayfair, they’re looking at creating anti-avoidance rules that prevent businesses from taking advantage of loopholes to avoid taxation in a state (like splitting a business into two so that revenue falls below a certain threshold). But here’s where it starts getting crazy – states are farming out their state tax audits on a contingent fee! We’re in for a wild ride in 2019 as we see how this all shakes out.

If you are operating a business inside of the United States, especially a small business, you will be interested in these other topics discussed in this episode:

  • Beyond Crazy Town – Massachusetts’ daily sales tax reporting
  • What you need to know about selling in an online marketplaces
  • What should a small business do right now to make sure they aren’t at risk?

video

articles & insights

New Nexus Rules To Result From Monumental South Dakota vs Wayfair Case – The Court in Wayfair reconnected the rule to a bright line – did you make money in the state ($100,000+)? Did you have a lot of transactions in the state (200+)? Those are quite a bit easier to get a handle on than the various weird ways that he states have tried to apply the physical presence test.

Supreme Court Issues South Dakota vs. Wayfair Decision – Examine your situation in regards to this monumental case and get help understanding the impact of this ruling.

Podcast | extreme nexus: south dakota v. wayfair – Joe Popp joins unsuitable to discuss the South Dakota v. Wayfair case and what the Court’s decision means for business’ state and local taxes.

Online Sales Get Complicated – In the United States, sales taxes are governed on a state-by-state basis, which means that each state plays by its own rules when it comes to tax rates, how sales are sourced. Needless to say, managing these various laws can get tricky. Read on to learn more.

What The State of South Dakota v. Wayfair, Inc. Means To Ohio-Based Businesses – The outcome of this case will determine how states treat out-of-state sellers that have no physical presence in that state, but do a certain amount of sales and/or transactions in that same state, from a tax perspective. If upheld, the U.S. Supreme Court will rule that a business must have a “physical presence” in the taxing state in order for that state to require the business to register for sales and use taxes. If overturned, the U.S. Supreme Court will rule that “physical presence” is not necessary for a state to require a business to register and file for sales and use taxes. Read on to learn more.

official transcript

Click here to read the official transcript for episode 182, “State Taxation Overkill”