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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, June 27, 2024

  • 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
CPE
ALL

This webinar will discuss the various methods states use to assess sales tax on services. The panelist will explain how to distinguish items subject to sales tax, how specific states impose sales tax, the current state of sales tax examinations, and changes on the horizon relative to the taxation of service income.

Faculty

Michael T. Dillon
President
Dillon Tax Consulting

Mr. Dillon is an attorney and founder specializing in multistate sales and use tax matters for multistate and multinational businesses. For more than 25 years, as leader of his firm, practice leader for global accounting firms and in-house for two publicly-traded E-commcerce and Technology companies, Mr. Dillon has successfully helped companies identify multistate nexus, negotiate settlements of historical exposure, register and automate sales tax compliance processes, and address risk during M&A activity.  He has successfully represented taxpayers in over 200 sales tax audits, and 500 Voluntry Disclosure Agreements (VDA), often coming in when “all hope is lost” to beneficially resolve the matter.  Mr. Dillon is a member of the State and Local Tax Advisory Board for Strafford Publications. He is highly sought to lecture and author articles on sales tax matters for organizations such as AICPA, Strafford, BNA, CCH and the Center for Professional Education.

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Description

Every state assesses tax on service income. Some states tax services rendered to tangible or real property, some tax recreational services, and some tax business services. Recently, Maryland has proposed to tax additional services, including accounting, auto repair, funeral, and other professional services.

Deciding how to classify services properly is difficult. Distinguishing between tangible and real property services and tangible and intangible property services, as well as calculating taxability of bundled and mixed transactions, is problematic. Every state's guidelines for taxing digital goods and services vary. Still, states are stepping up sales tax audits, and penalties charged for misclassifications and failure to remit these taxes can be severe. SALT practitioners and businesses need to understand how states impose tax on services.

Listen as Michael T. (Mike) Dillon, President at Dillon Tax Consulting, examines how states tax services and how to determine the taxability of services in specific states.

Outline

  1. Sales tax on services: introduction
  2. Categories of service income
    1. Intangible property
    2. Tangible property
    3. Real property
  3. Examples
  4. States seeking to increase taxes on services
    1. Maryland
    2. Nebraska
  5. Sales tax on digital goods and services
  6. State audits of sales tax
  7. Changes on the horizon

Benefits

The panelist will cover these and other critical issues:

  • Distinguishing tangible and intangible service income
  • Maryland's proposed tax on business service income
  • Sales tax on digital goods and services
  • How specific states assess sales tax on services

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Determine how specific states tax service income
  • Identify impending changes to the sales tax regime
  • Ascertain differences in states' imposition of sales tax on services
  • Decide how Maryland's proposed sales tax on business services will impact certain professionals

  • 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.