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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, November 3, 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.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$247.00
CPE
ALL

This webinar will define the Internet of Things (IoT), when these products are subject to sales and use taxes, and how the Internet Freedom Act affects their taxation. Our panel of SALT professionals will offer recommendations for structuring transactions to circumvent these taxes.

Faculty

Kim Buresh
Director
Andersen, LLC

Ms. Buresh has over 12 years of experience in state and local tax. She provides corporate and high net worth clients with consulting services on a full range of state and local tax issues involving income/franchise taxes, sales/use taxes, gross receipts taxes, and unclaimed property. Ms. Buresh’s practice includes advising clients on state and local tax issues associated with tax refund and planning opportunities, tax controversies, corporate restructurings, mergers and acquisitions, voluntary disclosures, state residency, and credits and incentives. Prior to joining Andersen Tax, she was with Arthur Andersen and PwC.

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Adam DoVale
Director
Andersen Tax, LLC

Mr. DoVale has over 10 years of experience in state and local tax (SALT). He works with clients from a broad range of industries including software/software as a service, computer hardware, manufacturing/retail, telecommunications, asset management, banking and financial services, biotech, pharmaceuticals, healthcare and life sciences.

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Description

What is the IoT? Wikipedia describes IoT as "physical objects (or groups of such objects) with sensors, processing ability, software, and other technologies that connect and exchange data with other devices and systems over the internet or other communications networks." It further states the caveat that IoT is a misnomer since no public internet connection is required. The explosive growth of internet-connected, intelligent devices makes this an essential determination for state and local tax advisers.

Personal items like Apple watches, Fitbits, and Smart thermostats are most familiar. However, because all industries are moving to intelligent devices, the reach and application of sales and use taxes to IoTs have been explosive, spanning all industries. Tangible products combined with internet applications can create a combination of property and services subject to sales and use taxes, communications taxes, and regulatory fees.

The Internet Freedom Act was established in 1998 to prevent imposing state and local taxes on internet access. The Act has been continually extended and challenged since its inception. Determining whether an item meets the requirements of the Internet Freedom Act is complex.

SALT professionals working with all businesses need to understand the IoT, including what it covers, when IoTs are subject to sales and other taxes, the exceptions to taxation, and how sales tax treatment is influenced by the invoice and usage of the product.

Listen as our panel of sales tax experts explains the IoT, including specific examples of how different products are taxed and tips for avoiding taxation.

Outline

  1. Sales tax nexus
    1. Physical nexus and Wayfair
    2. Marketplace facilitator laws
    3. The influence of SaaS, NFTs, and cryptocurrency
  2. Internet of Things (IoT)
    1. Definitions
    2. Examples
    3. Significance
  3. Sales tax treatment
    1. Comparison with other models and treatments
    2. Internet Freedom Act
    3. How the items are sold, billed, and used affect sales tax treatment
    4. Examples
    5. Recommendations

Benefits

The panel will cover these and other critical issues:

  • Tips for structuring transactions to eliminate or reduce sales and use taxes
  • How billing affects sales tax treatment
  • How the Internet Freedom Act influences taxation of smart items
  • The influence of Wayfair and cryptocurrency on the taxation of internet products
  • Examples of how and why specific IoTs are or are not subject to sales and use tax

NASBA Details

 

Learning Objectives

After completing this course, you will be able to:

  • Recognize tips for structuring transactions to eliminate or reduce sales and use tax.

  • Understand nexus after Wayfair.

  • Discern the impact or Marketplace Facilitator Laws.

  • Determine how billing affects sales tax treatment.

  • Understand examples of how and why specific IoTs are or are not subject to sales and use tax.

  • 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 tax forms and schedules, supervising other preparers/accountants. Specific knowledge and understanding of states sales and use taxes, nexus, souring, marketplace facilitator laws, and state tax collection requirements; familiarity with Internet of Things (IoT) and Bring Your Own Internet (BYOI).

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.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).