Sales Tax Reform: One Year Post Wayfair

January 8, 2019 | Article

Over the course of the past year, states have been passing new rules regarding sales tax compliance after the U.S. Supreme Court’s decision on S.D. v. Wayfair. It’s no longer necessary that a business have physical presence in a state before being required to collect and remit sales tax back to the state. The new rules have increased the compliance burden for many businesses doing business online or across state borders. Knowing the rules is important to compliance and avoiding steep penalties.

States Enforcing Compliance
States continue to take an aggressive approach to identifying businesses that are not following the new rules and identifying individuals that may not have paid sales or use tax. Business are now required to:

  1. Provide customer a sales tax notice at time of sale
  2. Provide customers an annual information report of transactions
  3. Provide the state an annual report of qualifying transactions

Getting Help
Do you operate across state borders? If so, are you comfortable with your accounting and reporting? Or, do you have questions about compliance? A Sales Tax Risk Assessment might be the answer.

State sales and use tax laws are constantly changing. Eide Bailly has developed a quick assessment at a low cost to help companies understand their reporting requirements and to avoid potential significant penalties.

Contact your Eide Bailly professional or a member of our state and local tax team with questions.

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