Tax Issues for Software and SaaS Manufacturers: Avoiding Compliance Pitfalls, Reporting, Tax Planning, and More
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Tax Law
- event Date
Tuesday, December 12, 2023
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
-
BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
-
BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
This CLE/CPE webinar will provide tax counsel and advisers with an overview of the taxation of software and SaaS manufacturers and related transactions under current state and local tax (SALT) law. The panelist will discuss various state tax rules and regulations, sourcing of income rules and challenges, and other vital tax items impacting software and SaaS manufacturers.
Mr. Woody focuses his practice on tax planning at the state and local levels, while also handling tax controversies and any associated litigation. He has valuable experience in contract preparation and analysis, Tribal taxation, and matters and regulatory challenges related to federal and state agencies. This often involves assisting clients with effectively structuring business transactions and arranging personal financial affairs to minimize, defer, or eliminate tax obligations that align with a client’s specific objectives. Mr. Woody completed his undergraduate studies at New Mexico Institute of Mining and Technology and earned his Master’s in accounting and his Juris Doctor at the University of New Mexico. He has also obtained an LLM in taxation from New York University.
How various state and local jurisdictions tax software and SaaS manufacturers relating to a wide array of products and services, and source the receipts from those sales, presents one of the toughest challenges in corporate tax compliance.
Tax treatment of software and SaaS varies widely among state and local jurisdictions. There is a wide array of how these various jurisdictions treat the transactions. Some jurisdictions tax SaaS as tangible personal property and either impose or exempt it from tax, depending on their tax regimes. Other jurisdictions treat SaaS as a service but apply special rules to its taxability.
The different treatments of SaaS present significant challenges for corporate tax advisers. Tax staff must understand a myriad of often conflicting laws, policies, and trends in taxation and sourcing to ensure compliance in a given jurisdiction. Simply put, a transaction in one jurisdiction may be taxable on one or more levels and/or types of tax, while the same transaction may not be subject to taxation in another jurisdiction.
In addition, current tax regulations have significant implications on cross-border transactions, providing that generally the source of income from digital transactions is the place where the transaction occurred, potentially subjecting taxpayers to multijurisdictional tax obligations. This is a critical point of focus for tax counsel and advisers that must be considered for tax planning and reporting compliance.
Listen as Scott Woody, Attorney at Spencer Fane, discusses applicable state and local tax rules and regulations, sourcing of income rules and challenges, and other vital tax items impacting software and SaaS manufacturers and sellers.
- How various state and local jurisdictions treat SaaS transactions
- Sourcing and nexus with SaaS transactions
- An overview of state trends, notices, rulings, and pronouncements
- Best practices for tax counsel and advisers to ensure tax compliance
The panelist will review these and other key issues:
- Varying approaches on the tax treatment of software and SaaS manufacturers across jurisdictions
- Sourcing rules and pitfalls to avoid unnecessary tax liability
Learning Objectives
After completing this course, you will be able to:
- Identify current developments and varying state trends in sales and use tax treatment of sales of SaaS
- Verify the sourcing policies of various states
- Recognize jurisdictions where your company has sales or use tax obligations
- Discern states' trends in taxing SaaS to improve your company's overall compliance and tax planning efforts in those states
- Decide on monitoring and reporting improvements to avoid unnecessary penalties and fees for non-filing
- 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 professional experience at mid-level within the organization, preparing complex tax forms and schedules. Specific knowledge and understanding of corporate and partnerships taxation, international taxation, deferred foreign-source income, earnings and profits, sales and use taxation; tax implications in the purchase and sale of assets.
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.
Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
