Course Detail

Multi-State Taxation After Wayfair

Description:

This is a 4-hour live video conference (4 CPE credits) led by Inez M. Mello, MBA.,who has over 35 years of state and local tax experience.

Zoom Live Video Conference: November 19th, 9am-12:30pm ET  

PART #1:
As we approach the 3 rd quarter of 2021, the trend of states continuing to pursue aggressive
apportionment policies will continue. This trend indicates that more than 40 states will now apply some form of an economic presence test for income and franchise tax purposes by the end of 2021, and with the U.S. Supreme Court’s ruling in South Dakota v. Wayfair. Inc., economic nexus can now be applied in determining whether a company has created a sales tax filing obligation. Remember, economic nexus is solely based on a corporation having sales or otherwise deriving an economic benefit from activities within their borders, regardless of a physical presence. “You are purposefully directing business towards my state, regardless of whether you have a physical presence or not”. Learn about the range of approaches that different states take to tax corporations and issues to consider if a business expands into additional states. Learn about the taxing structures and how each different structure “triggers” nexus. Learn the differences between nexus for:
Net Income Tax States (remember Public Law 86-272 is still alive and well!)
Non-net Income Tax States
Factor-based Nexus Standards
Economic–based Nexus Standards

PART #2:
On June 21, 2018, the Supreme Court of the United States ruled in favor of the State of
South Dakota v. Wayfair Inc. This decision allows states to tax remote sales. What does it mean for out-of-state sellers? An in-depth presentation with a discussion regarding the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc.
How or will this decision affect more than just sales tax nexus?
What does economic nexus mean for sales tax?
Does having a physical presence in a state still matter for sales tax?
Is the traditional nexus for sales tax still alive and well?
Do we need to begin filing in the 45 states that have a sales taxing system?
Do we need to begin filing in the states that follow Wayfair, Inc.?
Does the Wayfair Court Case relate to internet sellers only?

PART #3: The Streamlined Sales Tax Project: (SST)
What is the SST? The SST played a significant role in the U.S. Supreme Court’s decision in the Wayfair case. The SST’s compliance models greatly reduced the compliance burden and audit risks for vendors opting to utilize these “models”. A brief discussion on the benefits of utilizing one of these models in today’s Wayfair environment of increased sales tax compliance.

PART #4:
Fulfillment by Amazon (FBA): The Good, the Bad, & the Ugly!!
The easiest way to determine if you have nexus is whether you have inventory in an FBA Fulfilment
center (FC). If you utilize FBA, there are four common nexus creating activities:
The first is your location.
The second is inventory.
The third is warehouse use.
The fourth is Fulfilment services.

AND REMEMBER: Having inventory in a state creates nexus not just for sales tax but may also create nexus for an income tax filing requirement!!

Highlights:

Taxes

Objectives:

After completing this program, participants will be able to identify and analyze corporate income, franchise, and sales and use tax issues in a multi-state environment.

Prerequisites:

 

Notes:

Boston Tax Institute, Ltd. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State Boards of Accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.NASBARegistry.org We will be asking polling questions during the conference to verify participation for those needing NASBA certification.

Designed For:

CPA, EA, Attorney, CFP, or other practitioners with 2 or more years of work experience and some familiarity with the subject matter

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