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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Corporate Tax

Date & Time
  • event Date

    Thursday, July 21, 2022

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    110 minutes

Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

$247.00

This course is $0 with these passes:

CPE
ALL

This webinar will take an in-depth look at how states tax restaurant sales. Our sales tax experts will detail the critical differences in how types of sales are taxed among states and state-specific exemptions. The panel will offer advice for accumulating, calculating, and remitting sales tax paid by food establishments operating in multiple states.

Faculty

Jeffrey Monsman
Director, State & Local Tax Services
GBQ Partners, LLC

Mr. Monsman provides a variety of state and local tax services to GBQ’s clients. His practice focuses primarily on indirect taxes, including multistate sales/use taxes and real/personal property taxes. Mr. Monsman leads the firm’s unclaimed property service offering, and he also has extensive experience assisting clients with income/franchise tax matters.

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Matthew E. Stamp
Director of State & Local Tax Services
GBQ Partners, LLC

Mr. Stamp has over 22 years of experience in state and local tax servicing clients in the restaurant, manufacturing, contracting, retail, financial and service industries. He has significant experience managing state and local tax compliance issues, performing tax technical research, assisting clients with transactional analysis and tax controversy. Mr. Stamp's practice focuses primarily on multistate sales/use taxes, income and franchise taxes, tax credits and economic development opportunities.

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Description

More so than other businesses, restaurants have thorny sales tax issues. In addition to nexus, registration, compliance, and remittance concerns, restaurant sales taxation varies not only by the category of the charge (delivery, services fees, gratuities, etc.) but also based on the nature of the product sold (food, beverages, alcohol, etc.). Every state and jurisdiction has different rules for taxing food establishments, further complicating compliance.

Audits in California revealed that close to 20 percent of food service establishments used tax-zapper programs to reduce sales tax remittances. On the other end, many restaurants are not taking advantage of specific exemptions available to lower tax remittances. Food operations are cash intense, making these businesses prime targets for sales tax audits. Tax practitioners working with restaurants must comprehend multistate sales tax rules to ease these businesses' compliance burdens and ensure their records will withstand an audit.

Listen as our panel of hospitality industry tax experts explains sales tax considerations for restaurants, including common exemptions and steps to facilitate compliance.

Outline

  1. Economic nexus
  2. Registration
  3. Restaurant specific issues
    1. Third-party delivery services
    2. Tax base
      1. Delivery charges
      2. Service fees
      3. Discounts
      4. Gratuities
    3. Tax types
      1. Food
      2. Beverages and alcohol
      3. Meals
      4. Prepared foods
  4. Real estate
  5. State specific exemptions
  6. Multistate compliance
  7. State enforcement

Benefits

The panel will review these and other complex matters:

  • What common state exemptions are available for restaurants?
  • How can tax practitioners help food establishments prepare for potential sales tax audits?
  • How does sales tax charged vary with the type of product sold for food operations?
  • How are restaurants affected by states' marketplace facilitator rules?

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Identify applicable exemptions available to restaurants in specific states
  • Determine how marketplace facilitator rules affect sales tax charged to food operations in certain states
  • Decide when businesses are required to register in certain states
  • Ascertain which documents should be retained and available for a sales tax audit

  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite: Three years+ business or public firm experience at mid-level within the organization, preparing complex state income tax forms and schedules; supervisory authority over other preparers/accountants. Knowledge and understanding of state taxation of warranties, including mandatory, option and extended warranties; familiarity with sales tax nexus issues.

Strafford Publications, Inc. 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 Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.