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Showing posts from December, 2011

The Biggest State Tax Story of 2011: Internet Sales Taxes

It's the end of 2011 and like many of you I'm reflecting on this past year - on how life has changed, how the kids have grown, and what the coming year has in store.  

But as a state tax consultant, I'm also reflecting on some incredible 2011 state tax developments.
In February of 2011, I wrote a post for AllBusiness.com in which I said (if I may quote myself), "state and local taxes are more important to business owners than federal taxes."

I added that while this comment may have surprised a few business owners, "when you consider that there are fifty states, all of which impose at least one type of tax....you're talking about some potentially significant compliance requirements."

I also noted that "while you may think your business is only subject to the tax laws of the state that you're located in, states are becoming more and more aggressive in asserting 'nexus'..." and, in an effort to deal with some of the most signif…

The State and Local Tax "Buzz" is now on iShade

The State and Local Tax "Buzz" is now on iShade.  What’s iShade you ask? iShade is the Accounting Profession Online – a free on-line community where accountants from across the country and around the globe can gather, collaborate, interact and continue to develop themselves both personally and professionally.

On iShade you’ll find tools and resources (whitepapers, survey’s, technical writings, etc.), special interest groups, access to high quality CPE courses and workshops, the ability to create your own network by inviting other iShade members to connect, and access to the iShade faculty – a team of some of the brightest, most-respected and sought-after figures in the profession.

You’ll also find an extensive blog section – more than seventy of the best known accounting/finance/tax focused blogs written by some of the best known bloggers in the profession, such as; Leverage SALT (Brian Strahle), 21st Century Taxation (Annette Nellen), The SEC Auditor (Joel Ungar), CPA Succe…

State Tax Nexus - Triggered By So Much Less Than an Obvious Physical Presence

Nexus! Now here’s a term that’s been used quite often these days, especially in the debate about whether internet retailers should be charging sales tax on sales to customers in states in which the e-tailers have no presence.
If you’ve been following the many reports on the “internet sales tax” dilemma, you’ve likely seen the term “nexus” often described as simply having an obvious physical presence in a state.  I’m sure you’ve seen phrases such as "opening a storefront creates nexus" - end of story!
But "nexus", that “connection” or “tie” that must exist before a state can impose its tax obligations on out-of-state businesses, can be triggered by many less obvious activities.  If you’re a tax professional, you likely well-versed in state tax nexus and are aware of some of the business activities that can create nexus.
But if you’re less familiar with nexus, you may be surprised to find out that even minimal activities can subject an unsuspecting business to a st…