New Obligations for Remote Sellers After the Wayfair Sales Tax Case
Complying with the various state and local tax laws can be challenging for businesses that operate or sell in multiple states. Significantly more businesses are being exposed to other states laws which may impose registration and income, franchise and sales and use tax reporting. In addition, employees and company representatives entering other states may be subject to income tax and payroll tax reporting in those states.
Historically, companies were focused on the location of their physical property and employees to determine their state tax filing requirements. Physical presence was the standard that allowed states to tax out-of-state companies. That changed in 2018 when the U.S. Supreme Court concluded that states can impose their laws on out-of-state businesses based on economic nexus. As a result, most states have enacted economic nexus laws to generate additional state tax revenue from out-of-state companies. Any company with multi-state sales should consider a state nexus review to determine their state income, franchise and sales tax reporting requirements in each state where customers are located.
Our State and Local Tax services (SALT) practice consists of experienced national and local professionals who work exclusively in the area of multi-state tax. State and local tax codes can be obscure, complex and anything but uniform, and now under the Supreme Court’s Wayfair decision, tax-hungry states and cities will be more aggressive than ever before looking to collect tax dollars from sellers regardless of their location.
We can help you meet and minimize your SALT obligations and comply with new post Wayfair sales tax compliance obligations. Today, with a combination of practical planning, tax prep and state of the art technology for identifying and managing the complex demands of compliance across state borders, counties and localities, we serve thousands of businesses of all size and scope across the country.
Our State and Local Tax services include:
- State nexus reviews
- Income, franchise, and sales tax compliance reviews
- State employment tax reviews
- Multi-state tax return reviews
- Compliance with unclaimed property laws
- State voluntary disclosure programs
- State and local tax research and consulting
- State and local tax credits and incentives
- State and local tax controversy services