This summer, the U.S. Supreme Court released its highly anticipated decision in South Dakota v. Wayfair, Inc., a case that has been referred to as the “tax case of the millennium.” In a five-to-four decision, the Supreme Court overturned the physical presence standard set forth in its own decision in Quill Corp. v. North Dakota. In that case, the U.S. Supreme Court ruled that a state could require a business to collect sales tax only if that business had a physical presence in that state.
The Wayfair decision has opened the door for states to enact economic nexus, and companies may register and file for sales tax without fully understanding any prior sales tax exposure to the extent the business conducted certain activities in the state. On top of that, there are other tax risks, including income tax, franchise tax, and some types of gross receipts taxes, to which the company may be exposed.
Now is the time for you to fully analyze your unique state nexus situation.
Many organizations are tempted to register for sales tax now, but doing so may open the door for the state to address prior years, resulting in mounting tax (sales and other types), interest and penalties. Sales tax collection registration also precludes organizations from participating in any applicable voluntary disclosure programs to address prior years.
Webinar topic highlights:
- The history of sales tax economic nexus
- The Wayfair ruling and related fallout
- The risk of not addressing the situation at this time
- Addressing Wayfair nexus concerns and next steps
- Remedies to address prior year liabilities
Who should attend:
This webinar is intended for business owners, CEOs, CFOs, controllers, accounts payable and accounting staff, and others involved in state and local tax filing and reporting who need to understand the impact of the Wayfair ruling.