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Archive for Jordan Perri

Oregon’s Corporate Activity Tax

Oregon’s Corporate Activity Tax

Did you know that several states have their own taxes unique to them that businesses must file in order to remain compliant? States such as Washington, Delaware, and Oregon have state specific taxes. Oregon’s Corporate Activity Tax (CAT) is a state specific tax that was signed into law in May of 2019 and became applicable to tax years beginning January 1, 2020.

Oregon’s Corporate Activity Tax is a tax for the privilege of doing business in Oregon and is based on commercial activity in Oregon. This tax applies to commercial activity in excess of $1 million for all types of business entities including C and S corporations, sole proprietorships, partnerships, LLCs and other entities. The state defines commercial activity as “the total amount realized by a taxpayer from the transactions and activity in the regular course of their business in Oregon without deduction for expenses incurred by the business.” Businesses with commercial activity of $750,000+ must be registered for the CAT within 30 days of exceeding the threshold, but do not have a payment obligation until the commercial activity is more than $1 million.
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Government’s Latest Move On Cryptocurrency Taxation

Government’s Latest Move On Cryptocurrency Taxation

$1.1 Trillion Infrastructure Bill Is Government’s Latest Move On Cryptocurrency Taxation

The proposed infrastructure bill valued at just over $1 Trillion over a 5-year period has recently made its way through the senate1. The Bipartisan Infrastructure Deal is monumental and would make some of the largest federal investments in public transit, clean drinking water, bridges, and electrical vehicle infrastructure in the history of the United States. Unfortunately, these things are never as simple as they seem. Although the bill had bipartisan support with a voting of 67-32, it is still not fully out of the woods yet. The bill itself is over 2,000 pages in length and includes funding for some of the projects mentioned as well as; highways, airports, cyber defense, and climate change just to name a few. This deal comes as the democrats and the Biden administration ready a much larger $3.5 trillion package that is currently being considered under budget rules which would only need 51 senators with Vice President Kamala Harris able to break a potential tie.

Key to Infrastructure Deal and New Stimulus is the Taxation of Cryptocurrency

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Saving Duties On Goods Returned

Saving Duties On Goods Returned

Background

Items are being shipped all over the world every second of every day. That large amount of trade can get costly with tariffs, duty rates, and other shipping costs. With all that spending, there must be some ways to save money on those shipments. Well, if your items are made domestically in the U.S. or were exported from the U.S. in the last 3 years, we advise you take advantage of the duty-free entry claim known as 9801.

U.S. Customs and Border Protection recently announced an update to the regulations regarding the Goods Returned program under heading 9801 of the U.S. Harmonized Tariff Schedule.

Claiming 9801 is a process used by many American manufacturers to save money on any products that need to be returned to the United States for any reason such as return, return for repair, or other cause. This is done by claiming Harmonized Tariff Schedule (HTS) 9801 as a secondary HTS classifying the shipment as U.S. Goods Return.

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Unclaimed Property: Why Every Business Should Know Who They Owe And Who Owes Them

Unclaimed Property: Why Every Business Should Know Who They Owe And Who Owes Them

Unclaimed Property (also known as abandoned or escheat property) is exactly that – money or tangible assets that belong to you, but are viewed as “abandoned” because there’s been no activity or contact with you (by the holder) for one year or more.  There are a myriad of types, but the most common for individuals are uncashed payroll checks, forgotten bank accounts, and non-refunded utility security deposits.  For businesses, uncollected vendor payments and tax refunds top the list.

Every U.S. state, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, several Canadian provinces and a few other foreign countries have active unclaimed property programs in place.  In the U.S. alone, there is an estimated $50 billion dollars waiting to be claimed!  The process is free and simple for those searching for their funds.

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Unclaimed Property: Why Every Business Should Know Who They Owe And Who Owes Them

Allyn International

Unclaimed Property (also known as abandoned or escheat property) is exactly that – money or tangible assets that belong to you, but are viewed as “abandoned” because there’s been no activity or contact with you (by the holder) for one year or more.  There are a myriad of types, but the most common for individuals are uncashed payroll checks, forgotten bank accounts, and non-refunded utility security deposits.  For businesses, uncollected vendor payments and tax refunds top the list.

Every U.S. state, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, several Canadian provinces and a few other foreign countries have active unclaimed property programs in place.  In the U.S. alone, there is an estimated $50 billion dollars waiting to be claimed!  The process is free and simple for those searching for their funds.

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Bundled Transactions: 5 Steps To Determining Taxability

Bundled Transactions: 5 Steps To Determining Taxability

What Is a Bundled Transaction?

A bundled transaction is the retail sale of two or more products in which (1) the products are distinct and identifiable and (2) the products are sold for one non-itemized price. The reason this matters to businesses is that, if a bundled transaction includes a taxable product, then the entire transaction could become taxable. The 5-step process below will help you determine whether that is the situation for a particular bundled transaction although there are variances in each state’s individual application of these concepts.

“Products” recognized for the purpose of a bundled transaction include tangible personal property, services, intangibles, digital goods, and other products on which sales tax may be charged in a retail sale which may vary from state to state. However, “products” excluded from consideration are real property and services to real property. Examples of services to real property include building framing, roofing, plumbing, electrical, painting, janitorial, pest control, and window cleaning.

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Costly Sales Tax Mistakes Businesses Are Making

Costly Sales Tax Mistakes Businesses Make

The COVID-19 pandemic has been and will be remembered as one of the most impactful global events of our era. An unprecedented challenge was thrust upon the medical, government, and business community that will clearly change many of the behaviors of our society in the long run.

When state enforced lockdowns and the advice of medical professionals globally forced the ceasing of business as usual for industries across the country, businesses both large and small were left with one choice: adapt or die.

In an inspiring display of free market forces, most businesses chose to adapt and did so quickly. By the end of March 2020, a stunning number of businesses had employees working from home, restaurants were full curbside and delivery, retailers and customers were shifting to e-commerce in ways they were not previously, and everyone had ZOOM on their electronic devices.

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How Long Should A Business Retain Sales Tax Records?

When Can Your Business Start Summer Cleaning?

Overview

Most professionals get to engage in “Spring Cleaning”, however, those going through tax season are not afforded that luxury, they must wait for Summer!

Keeping adequate records is of the utmost importance for a business, but how long should a business retain different types of records related to sales tax? As is often the answer in sales tax, it depends. Some types of records should be kept indefinitely, while other types of records should be retained according to the potential liability exposure should the records be deemed inadequate. The type of sales a business is making, as well as whether a business has a physical location or an online presence, will impact the level of difficulty associated with maintaining adequate sales tax records.

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California Sales And Use Tax Audit Tips

California Sales And Use Tax Audit Tips

The state of California has the highest state sales tax rate at 7.25%, and the eighth-highest average combined state and local tax rate at 8.68%, according to the Tax Foundation. This means sales tax mistakes in The Golden State are typically going to be much more costly than those made in others. Therefore, if you are audited, you want to ensure that you are prepared.

Why You Might be Under Audit

Generally, a state has a system for how they select taxpayers for a Sales and Use tax audit. This can be triggered by many different reasons such as having a large presence in the state, amending returns, making late filings and payments, or even red flags auditors identified when they came across your business while auditing one of your suppliers or customers.

It is important to understand why your company may be under a Sales and Use tax audit. If you can understand why, it can help you have a clearer understanding of what the auditor is expecting from you during the time of your audit.

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Missouri Poised To End Their Sales Tax’s Status As A Relic

Missouri Poised To End Their Sales Tax’s Status As A Relic

Despite the hardships businesses have endured due to COVID-19, online retailers have performed evidently stronger than brick and mortar stores in recent years due to easier client accessibility and lower overhead costs. Missouri officials have taken note of this discrepancy and settled on a bipartisan vote to join the rest of the states in taxing online sales.

After Florida passed their new economic nexus legislature, Missouri was the last of the states to have no regulation on out-of-state online sales. On May 14, 2021, the Missouri legislature voted to pass an online sales tax bill over to Gov. Mike Parson for signing. These efforts are to restructure the state’s tax code with aims to increase both state and local revenue, taking effect Jan 1, 2023. The bill imposes a sales tax on taxable transactions purchased by Missouri residents through remote sellers and marketplace facilitators that bring in at least $100,000 in annual revenue.

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Kansas Passes Economic And Marketplace Nexus Provisions Despite Veto Efforts

Kansas Passes Economic And Marketplace Nexus Provisions Despite Veto Efforts

Governor Laura Kelly of Kansas vetoed a tax bill that contained regulations for remote sellers and marketplace facilitators, including setting a threshold for out-of-state sellers in order to establish economic nexus. The Kansas House and Senate overrode this veto in early May and passed the bill, becoming effective on July 1, 2021.

Kansas was unique in their provisions for remote sellers, as they were one of the few states to require all sellers to register for a sales tax permit, regardless of the number or value of sales in the state. Senate Bill 50 provides that remote sellers and marketplace facilitators will only be required to collect and remit sales tax if they meet the threshold of at least $100,000 gross receipts from sales to Kansas customers. In addition to state and local taxes, the bill also includes provisions to require marketplace facilitators to collect and remit prepaid wireless 911 fees, beginning April 1, 2022.

Tips for the Taxpayer

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Louisiana Aims To End The Madness Surrounding Their Sales Tax System With House Bill 199

Jordan Perri - Taxable Values: Don’t Be Afraid to Appeal

Louisiana is one of the few states with what is known in the sales tax industry as home rule jurisdictions.  In addition to a state sales tax that is levied and administered by the state, cities, counties and other local jurisdictions can levy and administer their own sales tax rates and rules.  This can create complications and confusion for businesses. Current legislation aims to simplify Louisiana’s sales tax system.

House Bill 199 is a constitutional amendment that would consolidate collections and administration of sales and use taxes at the state level under one entity called the State and Local Streamlined Sales and Use Tax Commission.  The bill passed in the House with a two-thirds majority and is pending Senate final passage as of May 7th.  The next step will be the ballot box.  If it receives a simple majority during the statewide election on November 8, 2022, it will be adopted into law.

Tips for the Taxpayer

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