Tax News

Telematics services, or the "Internet of Things", require Internet access and Internet related services in order to be provided. The Internet Tax Freedom Act dictates that in most instances, "Internet access" shall be exempt from sales tax. It remains to be seen how states will define telematics and seek to apply existing or new sales ...

On July 1, 2014, the United States Supreme Court granted the petition for writ of certiorari filed by Petitioner Direct Marketing Association (DMA) in a case involving Colorado’s controversial notification law. [Direct Marketing Association v. Brohl, U.S. Supreme Court, Dkt. 13-1032, petition for certiorari granted July 1, 2014] This case stems from Colorado ...

Sometimes my job can be quite difficult. I don’t enjoy telling the client that they have nexus, and/or that they have sales tax exposure in a state that they should address as soon as possible. Trust me, I would much rather share the news with a client that everything they are doing is ...

On March 24, 2014, Maryland’s highest court, the Court of Appeals, upheld a finding of nexus against two Delaware affiliates of W.L. Gore & Associates, Ltd. (Gore), on the premise that the affiliates lacked any economic substance [ Gore Enterprise Holdings, Inc. v. Comptroller of the Treasury, Md. Ct. App., No 36 (March 24, 2014 ...

IS YOUR STATE NEXT?

I was recently approached regarding a nexus question by a company that was physically located in one state. The company was considering entering into a contractual arrangement with a third-party marketing company located in numerous states. The marketing company proposed to market and promote the company through links on the marketing ...

YOU DON’T KNOW THAT YOU DON’T KNOW

When I am referred in to a new client, the client and I go through a set of diagnostic questions designed to help us evaluate the company’s taxable presence, current sales tax compliance, and historical sales tax exposure. Often times, as I begin asking the ...

CLEANING UP THE PAST

The City of Los Angeles, Connecticut, Louisiana and Vermont currently have amnesty programs open to past taxpayer sales and/or use tax liabilities. These programs are typically only open for 8 to 10 weeks (LA, Louisiana and Connecticut’s essentially end in November 2013, and Vermont’s ends by May 1 ...