Sales and Use Tax Economic Nexus: Tips & Strategies to Ensure Compliance in the Ever-Complex Economy
To increase sales and use tax compliance on remote sales and mitigate budget deficits, several U.S. states are pursuing enactment of sales and use tax economic nexus bills, including imposing notice and reporting requirements on remote sellers or marketplace providers/facilitators. These bills are intended to enable states to collect sales or use taxes from as many remote sellers as possible and improve use tax remittance compliance by consumers.
It is of paramount importance that companies understand the currently enacted economic nexus legislation, be aware of which ones that are under legal challenge, and stay alert to future introduction of such legislation. Sales and use tax should no longer be put on the back burner as compliance challenges may start small but can become serious and costly.
Join a panel of key thought leaders and distinguished professionals assembled by The Knowledge Group as they bring the audience to a road beyond the basics of sales and use tax economic nexus and as they delve into an in-depth analysis of nexus bills recently enacted in various states. Speakers will also provide the audience with practical tips and strategies in ensuring compliance in a rapidly evolving digital economy.
Key topics include:
- Sales and Use Tax Economic Nexus – Overview
- Economic Nexus Tax Legislation
- Compliance Challenges
- Tips and Strategies to Ensure Compliance
- Sales & Use Tax Automation Implementation
- Outlook Beyond 2017
Mckenna Krueger, Senior Tax Research Analyst
- Definition of nexus and how it is changing (physical presence vs. economic presence).
- Which states have economic nexus laws and what are the thresholds?
- How automation can help your business stay compliant (automate tracking of product taxability rules and 12,000 taxing jurisdictions with different rates, filing multiple forms, etc.).
Richard Cram, Director, National Nexus Program
Multistate Tax Commission
- Recent state legislation concerning sales/use tax economic nexus: notice/reporting requirements; anti-Quill; virtual nexus; marketplace provider/facilitator as reporter/collector
- Recent key court cases/decisions or administrative rulings concerning sales/use tax economic nexus: Brohl v. DMA, Crutchfield, SD race to Supreme Court; MA proposed reg; SC Amazon determination
- Status of federal legislative proposals concerning states’ authority to require remote seller sales/use tax collection: bills introduced but little activity
- Tax compliance strategies: voluntary disclosure process; update on MTC online marketplace seller voluntary disclosure initiative
Michelle DeLappe, Owner
Garvey Schubert Barer
Washington state as a test case on recent trends expanding the definition of nexus:
- Transactional nexus: recent Washington case law involving drop shipments and national sales not connected with in-state presence
- Affiliate nexus: recent Washington rulings and planning tips based on how states try to prove this
- Economic nexus based on meeting a dollar threshold in the state—including recent changes
- New legislation imposing economic nexus on retailing for marketplace facilitators, remote sellers, and referrers:
- the dilemma between collecting and remitting tax or use tax notice and reporting;
- the basic requirements;
- consequences of nonreporting; and
- how to obtain guidance as the state puts a new system in place
Frances Ellington, Tax Senior Manager
Green Hasson Janks
- Summarize the types of businesses that should be interested in sales/use tax compliance, automation, and planning for legislative changes. For example, companies expanding into different states in the e-commerce area or expanding into online sales in general (i.e., Amazon).
- Reiterate case law implemented recently regarding sales/use tax economic nexus and discuss the state tax policy and motivations for the changes. For example, state revenue growth and non-state social changes.
- Discuss what we can expect next in terms of the outlook beyond 2017 and what it means for taxpayers. Recommendations for taxpayers to assess risk internally, review sales/use tax processes and automation, consult with advisors for significant legislative changes that may impact business and timing of any voluntary disclosure agreements.
Who Should Attend:
- Tax Professionals (especially with Sales & Use Tax Responsibilities)
- Online Retailers, Distributors, Manufacturers and Vendors
- Tax Lawyers
- Others affected by new federal and state regulations on e-commerce
Mckenna Krueger is a Senior Tax Research Analyst in the Content Department at Avalara Inc. She is responsible for researching and analyzing indirect tax law changes and their implications throughout the United States and Canada. She is experienced in sales tax compliance, and regularly consults with state and local taxing jurisdictions to resolve indirect tax matters. She earned her Juris Doctorate (JD) from Willamette University College of Law, and holds a B.A. in both Business Administration and Economics from the University of Puget Sound. She is admitted to the Washington State bar.
Mckenna Krueger is a Senior Tax Research Analyst in the Content Department at Avalara Inc. She is responsible for researching …
Richard Cram is the Director of the Multistate Tax Commission’s National Nexus Program in Washington, D.C. The National Nexus Program provides a Multistate Voluntary Disclosure Program that 38 states, including the District of Columbia, participate in. Prior to his current position, Richard served for 15 years as the Director of Policy & Research in the Kansas Department of Revenue, and for 2 years as an attorney in the Legal Services Bureau of the Department, in Topeka, Kansas. He has worked as a research attorney for the Kansas Supreme Court, and practiced law as an associate in law firms in Chicago, Illinois and Goodland, Kansas. Richard graduated from the University of Kansas School of Law. He currently resides in Alexandria, Virginia.
Richard Cram is the Director of the Multistate Tax Commission’s National Nexus Program in Washington, D.C. The National Nexus Program …
Michelle DeLappe is an owner in the Seattle office of the Garvey Schubert Barer law firm. She represents companies in a variety of state and local tax matters in the Pacific Northwest. She earned her J.D. with honors and her LL.M. in taxation at the University of Washington School of Law. She is admitted to the bars of Washington, Oregon, Idaho, Alaska, Montana, and the U.S. Supreme Court. A regular columnist for State Tax Notes, she also co-authors the state taxation chapter of the Washington Lawyers Practice Manual and the Washington and Alaska chapters of the American Bar Association Property Tax Deskbook. She is a former chair of the Washington State Bar Association State and Local Tax Committee and now serves on the American Bar Association’s State and Local Tax Committee.
Michelle DeLappe is an owner in the Seattle office of the Garvey Schubert Barer law firm. She represents companies in …
Frances Ellington is a Senior Tax Manager in the State and Local Tax Practice at Green Hasson Janks. She focuses on multistate income and franchise tax and indirect tax. Frances assists her clients on state and local tax issues related to tax audit controversy, nexus and reporting requirements, and various state tax planning initiatives. She has 8+ years of state and local tax experience with Big Four and multinational corporations in Los Angeles, CA and Charlotte, NC. She is a licensed CPA in California and North Carolina. Frances is a graduate of UNC Kenan-Flagler Business School (BSBA and MAC), and a doctoral candidate at Grenoble École de Management with a focus on state and local corporate taxation. She is currently a Lecturer of taxation at UNC Kenan-Flagler Business School.
Frances Ellington is a Senior Tax Manager in the State and Local Tax Practice at Green Hasson Janks. She focuses …
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Avalara helps make sales tax compliance simple and automatic for businesses of all sizes. The leading cloud-based software platform provider delivers a broad and growing array of compliance solutions related to sales tax and other transaction taxes, such a value-added tax. Avalara’s end-to-end suite of solutions automatically determines taxability, identifies applicable tax rates, accurately calculates taxes, prepares and files returns, remits taxes, maintains tax records, and manages tax exemption certificates.
About Multistate Tax Commission
The Multistate Tax Commission (MTC) is an intergovernmental state tax agency whose mission is to achieve fairness by promoting compliance and consistent tax policy and practice and to preserve the sovereignty of state and local governments over their tax systems. The MTC’s vision is to be recognized as the “gold standard” for tax policy development, the primary authority for the public and public officials on issues of state and local tax uniformity and fairness, and the leading resource for ensuring equitable tax compliance. The MTC is celebrating its fiftieth anniversary this year.
About Garvey Schubert Barer
Since its founding in 1966, GSB has provided results-oriented legal counsel to help clients – from established market leaders to newly launched enterprises – solve problems, create new opportunities and mitigate risk. The firm takes a holistic approach to managing clients’ needs, with attorneys that are deep in industry experience as well as broad in current and emerging issues. GSB has offices in Seattle, Portland, Washington, D.C., New York, and Beijing. More information is available on the web at www.gsblaw.com.
About Green Hasson Janks
Green Hasson Janks is focused on helping forward-thinking, entrepreneurial organizations by providing audit, accounting, tax and consulting services, as well as specialty services, such as royalty and contract audit, movie and television participation audit, litigation support and forensic accounting. The majority of our clients are closely-held, privately owned businesses and nonprofit organizations. We serve a variety of industries with a specialized focus on entertainment and media, nonprofit and food and beverage companies, including focused teams dedicated to new media, technology and health and wellness clients.