Sales and use tax compliance has changed considerably since the Wayfair decision three years ago. This presentation will review these changes, with a particular focus on businesses selling digital goods and services (SaaS, IaaS, information services, IT services, etc.). We will provide an overview of nexus rules, including physical nexus and Wayfair thresholds, as well as a review of recent guidance impacting sellers of digital products and services. The webinar will also address how taxing authorities identify businesses to audit, as well as tips and traps in a sales tax audit.
Publication Date: October 2021
Topics Covered
- Jurisdictional issues & sales tax nexus
- How sales tax is applied to the sale of software products and services
- Treatment of "electronic" delivery, cloud computing, and out-of-state users
- Taxation of digital products
- How sales tax is applied to the sale of information services
Learning Objectives
- Identify the decision changes of Wayfair
- Recognize nexus rules
- Recognize how taxing authorities identify businesses to audit
- Identify tips and traps in a sales tax audit
- Identify a sale to a business where digital products are sold to both business and consumers
- Identify a service where a customer is provided processing, storage, networks, and other fundamental computing resources
- Differentiate state rules and how they apply
- Identify a situation where a customer uses a cloud provider's cloud infrastructure and tools to build or deploy applications and content
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructors
Mark S. Klein
Mark is Chairman of the Firm and concentrates his practice in New York State and New York City tax matters. He has more than 35 years of experience with federal, multistate, state and local taxation -- and may be best known for his public speaking on tax topics. Mark splits his time between the Firm's New York City and Buffalo offices.
Mark has represented numerous Fortune 500 companies in connection with corporate, withholding and sales tax audits as well as dozens of individuals who appear on the Forbes 400 list of wealthiest individuals in the United States. He has also been quoted in dozens of newspapers and periodicals, including The New York Times, The Wall Street Journal, Newsday, The Boston Globe and the Associated Press. Mark has appeared as a state tax expert on CNBC, CNN and other news outlets.
Mark taught courses in the Tax Certificate Program in the School of Management at the University of Buffalo on state taxation and tax practice and procedure. He is a member of The CPA Journal editorial review board and has written numerous books, articles and treatises on the subject of multistate taxation. Mark is the general editor of LexisNexis Tax Practice Insights: New York; the editor of New York Tax Highlights and the contributing editor of CCH's Annual Guidebook to New York Taxes. He is the co-author of the ABA Sales & Use Tax Desk Book, CCH's New York Residency and Allocation Audit Handbook; New York Sales and Use Tax Answer Book, the New York State Bar Association's Contesting New York State Tax Assessments, 4th Edition; and CCH's New York
Joseph N. Endres
Joe counsels clients on a wide range of state and local taxation issues and represents taxpayers in disputes with the New York State Department of Taxation and Finance as well as the New York City Department of Finance. As the Sales & Use Tax Practice Leader, Joe’s practice focuses sales and use tax issues, especially in the technology (software as a service, cloud computing, digital products, etc.) and construction industries. Joe is the primary author of our firm’s sales tax blog, All About Sales Tax. Together with other attorneys in the State and Local Tax (SALT) Practice, Joe is a contributing author to our firm's handbook, What To Expect In a New York Sales and Use Tax Audit. Written in a question and answer format, this handbook discusses the issues that arise in these types of audits. Joe also counsels clients regarding personal income tax planning and residency issues. He co-authored, with Mark S. Klein, the 2019 Guidebook to New York Taxes, a reference source of information on this topic.
He also advises clients with respect to various federal and state tax incentive-based programs such as the federal renewable energy investment and production tax credits, New York State's Start-Up NY Program, the Excelsior Program, the former Empire Zone Program, the Brownfield Tax Credit Program and the Historical Building Rehabilitation Tax Credit Program.
As the Abandoned Property Audits Practice Leader, Joe counsels clients in this area of law and has represented large corporations in complex compliance matters such as multistate abandoned property audits and voluntary disclosures.
Daniel P. Kelly
Dan is a senior associate in Hodgson Russ’s Tax Practice. Licensed in both New York and Florida, Dan focuses on state and local tax matters, and regularly advises individuals and businesses on different aspects of New York State and New York City personal income tax, sales and use tax, corporate franchise tax, and several other lesser-known taxes. While focused on tax matters, Dan often counsels clients on a wide variety of legal matters, teaming up with his colleagues in different disciplines to deliver creative, pragmatic, and efficient solutions.
Dan’s clients frequently rely on his guidance for: tax planning for significant liquidity events; changing or establishing state and local tax residency; income, franchise and sales tax substantial nexus issues; complex business income and earnings allocation issues; and related matters. He has extensive experience representing taxpayers in audits conducted by several tax jurisdictions, and also represents taxpayers at various levels of tax controversy dispute resolution and appeal.
Dan enjoys the opportunity to share his views on current state and local tax topics and legislative developments through speeches and in articles published in a variety of state and local tax publications.
Hodgson Russ LLP
Hodgson Russ has approximately 200 attorneys in offices in Albany, Buffalo, New York City, Rochester and Saratoga Springs, New York; Hackensack, New Jersey; Palm Beach, Florida, and Toronto, Canada.
We serve a wide range of clients, from multinational and privately held corporations to nonprofit organizations, governmental entities, and individuals. Our attorneys practice in every major area of law and use multidisciplinary work teams to serve the specific, often complex, needs of our clients.