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In Search of Revenue – Chicago Issues Bulletin on Economic Nexus For Streaming and Cloud Services

On January 21, 2021, the City of Chicago’s Department of Finance issued an informational bulletin clarifying its position regarding economic nexus for Chicago’s amusement tax as applied to streamed amusements and Chicago’s personal property lease transaction tax (“PPLTT”). It also announced a “safe harbor” that businesses can rely upon when analyzing nexus. Chicago states that … Continue Reading

Illinois’ New Fast Track Resolution Program: A Tax Appeal Option Worth Considering

The Illinois Audit Fast Track Resolution (“FTR”) program is now available for all Illinois sales and miscellaneous tax audits except for Motor Fuel Use Tax. The Department published Informational Bulletin FY 2021-01 this month highlighting the details of the program, including information on the application process, the program’s advantages, the conference process, and withdrawals. Additionally, … Continue Reading

Tennessee, North Carolina’s Changing Nexus Standards – Seeking Revenue, and Reducing Economic Nexus Thresholds

On June 30, 2020, the Tennessee legislature passed SB 2932 which reduces the economic nexus sales threshold for remote sellers from $500,000 to $100,000 in the past 12-month period. It also makes the same reduction in the sales or sales facilitated threshold for marketplace facilitators for sales made through the facilitator’s platform. The law becomes effective … Continue Reading

Updated: A 50-State Guide to State and Local Tax Responses Amid the COVID-19 Pandemic

As state and local governments continued to announce extensions and other relief, we revise our guide to include the most recent announcements. As state and local governments continued to announce various tax, lending and filing relief measures in response to the COVID-19 pandemic, we have revised our original post to include the most recent announcements. We will … Continue Reading

Update: IRS Provides Relief for U.S. and Non-U.S. National Non-Residents with Substantial Presence Due to the Coronavirus

With the restrictions on travel both into and out of the U.S. as a result of the rapid spread of the coronavirus (COVID-19) pandemic, non-U.S. or non-resident individuals (NRA) have been forced to spend a significantly greater amount of time in the U.S. than they originally projected during the current year possibly causing these NRAs … Continue Reading

A 50-State Guide to State and Local Tax Responses Amid the COVID-19 Pandemic

As state and local governments continued to announce extensions and other relief, we have revised our original post to include the most recent announcements. We will continue to revise as more information is made available. As we practice social distancing during the COVID-19 (coronavirus) outbreak, our state and local governments, like the federal government, are … Continue Reading

SALT Response to COVID-19

As we practice social distancing during the COVID-19 (“coronavirus”) outbreak, our state and local governments, like the federal government, are working through their response to the outbreak. The most common response by state and local governments has been the extension of filing and payment deadlines, however, some states are responding in other ways such as … Continue Reading

Kansas Surprises By Removing Nexus Thresholds and Seeks to Create Rebirth of “Slightest Presence” Nexus

The Kansas Department of Revenue recently released Notice 19-04 (the “Notice”) which provides that all remote sellers making sales into the state are required to register for and begin collecting and remitting sales and use tax effective October 1, 2019, raising significant Constitutional concerns. Notably, the Notice cites no transaction or dollar thresholds for determining … Continue Reading

Notable Changes to Florida Tax Law

The Florida legislature recently wrapped up its 2019 session. Of particular note, the following tax law changes were enacted. Documentary Stamp Tax – Deeds between Spouses Florida imposes a surtax – referred to as the “documentary stamp tax” – on real estate deeds based upon the consideration paid for the transfer. Mortgage indebtedness on the … Continue Reading

Removing Transaction Thresholds – Where does Wayfair go from here?

Last year, the U.S. Supreme Court ruled in South Dakota v. Wayfair that economic nexus is constitutional for sales tax purposes. South Dakota’s economic nexus statute at issue in the case included an economic threshold of at least $100,000 of sales or 200 separate transactions into the state in the prior calendar year. The decision … Continue Reading

Significant Changes to Illinois Nexus Rules effective October 1, 2018

Illinois recently passed Public Act 100-587 which requires remote sellers with no physical presence in Illinois to register and collect Use Tax on sales sourced to the state if certain thresholds are met, effective October 1, 2018. On September 11, 2018, the Department issued an emergency regulation, Sec. 150.803 to provide further guidance on the … Continue Reading

Overturning Quill: The Widespread Reach of the South Dakota v. Wayfair Decision

Today, the U.S. Supreme Court issued its decision in South Dakota v. Wayfair, overturning Quill Corp. v. North Dakota, 504 U. S. 298 (1992) and National Bellas Hess, Inc. v. Department of Revenue of Ill., 386 U. S. 753 (1967), that required businesses to have a physical presence in a taxing jurisdiction in order to … Continue Reading

Tax Reform: Auto Dealers Rejoice Over Preservation of 100% Floor Plan Financing Interest Deduction

The Tax Cuts and Jobs Act (Act) made significant changes to the Internal Revenue Code. One such change significantly restricts business interest deductions, which were fairly broad under the old law. However, significant carve outs remain in place for the complete deduction of floor plan financing interest. Revised Code § 163(j) states that the deduction … Continue Reading

The Complexity of Sales and Use Tax Compliance

Sales and use tax compliance is complicated.  Both sellers and purchasers are required to determine where they have nexus, where the purchased products or services should be sourced, and whether the product or service itself is subject to tax. While this sounds simple enough, in practice, it is extremely difficult.… Continue Reading

Alabama Tax Amnesty – Catching the Wave or Sliding in Before the Doors Close?

Limited tax amnesty programs gain popularity every few years and this is one of those years. The Alabama legislature has joined the growing list of states providing amnesty programs for taxpayers with unreported tax liabilities.  The Tax Delinquency Amnesty Act of 2018 was recently passed and will be in effect from July 1, 2018, to … Continue Reading

Illinois Secretary of State Significantly Decreases LLC Filing Fees

Businesses were pleasantly surprised to learn that the Illinois Secretary of State reduced Limited Liability Company (“LLC”) filing fees following the passage of Senate Bill 867. This bill was passed in both houses on November 7, 2017 and went into immediate effect upon signature by the governor on December 20, 2017. The fee reduction is … Continue Reading

Illinois Imposes Electronic Filing Requirements for Sales & Use and Withholding Taxes Effective January 1, 2018

The Illinois legislature recently mandated electronic filings for certain sales and use and withholding income tax filings as of January 1, 2018. H. B. 0821 was passed in both houses by May 2017 and signed into law on August 24, 2017 by Governor Rauner creating Public Act 100-0303. In September 2017, the Illinois Department of … Continue Reading

Is it Too Late to Jump on the Bandwagon? – Mississippi’s Economic Presence Nexus Standard

The Mississippi Department of Revenue adopted a new sales and use tax regulation articulating the Department’s position regarding out-of-state sales into the state.  The regulation provides that sellers lacking physical presence in the state “but who are purposefully or systematically exploiting the Mississippi market have a substantial economic presence for use tax purposes if their … Continue Reading
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