#AccountexUSA: Your accounting firm might be subject to sales tax
The sales tax implications of the South Dakota v. Wayfair, Inc. United States Supreme Court decision are far reaching — perhaps even more than accountants and bookkeepers realize! Blake and David sat down with sales tax experts Dena Oberst and Diane Yetter at Accountex USA in Boston to get an overview of the Wayfair decision, what it means for our clients, and what it means for our own professional services firms. You may not realize it, but the way you sell software and services via engagement letters could create "nexus" for your firm in many states, which might result in a burdensome compliance requirement. Tune in to learn more!
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Show Notes
- 00:53 – Meet Dena Oberst, CEO of Gable Tax Group
- 01:45 – Meet Diane Yetter, president of Yetter Tax, and founder of the Sales Tax Institute
- 04:11 – Diane gives a brief overview of the South Dakota v. Wayfair decision | AICPA
- 05:26 – According to South Dakota, a business’s physical presence is less important than its economic presence
- 06:50 – You gotta get up pretty early in the morning to go hang with the Supreme Court crowd!
- 08:37 – Most states, except Kansas, have adopted the $200k/200 transaction threshold | TaxJar
- 09:55 – If a company sells through Amazon, or other major marketplace platforms, there's nowhere to hide.
- 10:45 – To be registered, or not to be registered – that is a huge question right now
- 14:50 – States are attempting to ease the burden on smaller sellers through Marketplace Facilitation laws | Bill Track 50
- 17:10 – With the constant changes to the sales tax laws, which can vary state by state, it’s imperative to constantly monitor thresholds, and transaction counts
- 21:47 -- Who has to file? Who doesn't? Who knows? All states have yet to reach a consensus regarding the particulars of the new sales tax laws
- 25:38 – While it’s a mess right now, Diane believes things will start falling into place in the next five years.
- 26:21 – Business is definitely booming for sales-tax specialists, and firms, such as Gable Tax Group as CPAs scramble to help their clients meet these new and ever-changing sales tax requirements
- 28:39 – Diane doesn’t foresee any interference from the federal government, because it would only cost them more money to jump into the fray
- 32:06 – While the states are mostly self-policing the workings of the sales tax laws, there are some states that still want to forge their own seemingly senseless paths
- 33:46 – Economic nexus applies to all companies, not just sellers of physical goods
- 34:35 – Accountants and bookkeepers might want to exercise some caution with add-on products and bundling, as it can create additional confusion, and taxation
- 38:22 – With the shift from a manufacturing to a service economy, states are on a mission to replace lost revenues
- 39:57 – As accounting and bookkeeping practices continue to expand services, education, and understanding of the sales tax laws is critical
Connect with Our Guests
Dena Oberst:
- https://www.linkedin.com/in/dena-oberst/
- https://twitter.com/PasadenaDena
- https://twitter.com/gabletaxgroup
Diane Yetter:
- https://www.linkedin.com/in/dianeyetter/
- https://twitter.com/YetterTax
- https://twitter.com/SalesTaxInst
- SalesTaxInstitute.com/accountex2019
Get in Touch
Thanks for listening and for the great reviews! We appreciate you! Follow and tweet @BlakeTOliver and @DavidLeary. Find us on Facebook and, if you like what you hear, please do us a favor and write a review on iTunes, or Podchaser. Interested in sponsoring the Cloud Accounting Podcast? For details, read the prospectus.
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