Expanded State Tax Duties for Businesses: Sales and Income Tax, Navigating New State Compliance Challenges

Evolving state tax laws and regulations have expanded the tax duties for businesses forcing them to shoulder growing tax bills to pay for business disruptions to the economy. Tax professionals must recognize how states expand, demand, and open new and broader tax pipelines to avoid any unintended tax implications for noncompliance.

The landscape of state taxation post-Wayfair and amid the pandemic continues to expand with states implementing new tax rules and regulations to get more money and replenish budgets depleted by COVID-19. Tax professionals and advisers must now identify key state tax issues involving small-seller economic nexus exemptions, marketplace facilitator updates, the continuance of the Home Rule taxes in states like AL, CO and LA, and the impact of Wayfair on income and other taxes.

Also, some states (California and South Carolina) impose retroactive tax collection on out-of-state sellers. Others are working on streamlining sales tax efforts (SST, MTC, Alaska, and Colorado). But, the flip side to the tax grab offers businesses the prospect of some longer-term relief, as state and local jurisdictions continue their work to find ways to simplify sales tax collections.

Listen as our panel discusses the post-Wayfair landscape and provide updates on how states are opening new and broader tax pipelines.

1. State tax compliance challenges and recent updates
2. Streamlining sales tax efforts: SST, MTC, Alaska, Colorado
3. Retroactive tax collection on out-of-state sellers
4. Marketplace facilitator liability
5. Home Rule
6. Wayfair impact on income and other taxes

The panel will discuss these and other key issues:

• What are the latest state tax laws and regulations that expand the tax duties of businesses?
• What are the latest updates for marketplace facilitator liability?
• What is Home Rule and how has it impacted state tax compliance?
• What states impose retroactive tax collection on out-of-state sellers and what are the compliance obstacles?
• What are some of the streamlined sales tax efforts and compliance best practices for taxpayers and tax professionals?
• What impact does Wayfair have on income and other taxes?

Learning Objectives

After completing this course, you will be able to:

• Ascertain recent state tax compliance updates and challenges for businesses
• Idenitfy states that are streaminling sales tax efforts and key compliance issues
• Understand marketplace facilitator tax liability and obligations
• Recognize the applciation of the Home Rule and its impact on state tax compliance for businesses
• Identify key issues and tax planning options involving Wayfair and its impact on income and other taxes

• 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 preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of pass-through taxation, including taxation of partnerships, S corporations and sole proprietorships, qualified business income, net operating losses and loss limitations; familiarity with net operating loss carry-backs, carry-forwards and carried interests.

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.