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Archive for Monika Miles

Tax And Business Climate In Rhode Island

Monika Miles ; Tax And Business Climate In Rhode Island

This month we travel across the country to The Ocean State of Rhode Island. The state is one of the most densely populated and heavy industrialized for its size. For a state that is only 37 miles wide and 48 miles long, it is notable that its shoreline on Narragansett Bay in the Atlantic Ocean runs for 400 miles.

Rhode Island has two distinct natural regions. Eastern Rhode Island contains the lowlands of the Narragansett Bay, while Western Rhode Island forms part of the New England Upland. The state’s forests are part of the Northeastern coastal forests ecoregion.

Narragansett Bay is a major feature of the state’s topography. There are more than 30 islands within the bay. The largest is Aquidneck Island, shared by the municipalities of Newport, Middletown, and Portsmouth. The second largest island is Conanicut; the third largest is Prudence. Block island lies about 12 miles off the southern coast of the mainland and separates Block Island Sound from the Atlantic Ocean proper.

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What You Need To Know About Voluntary Disclosure Agreements

What You Need To Know About Voluntary Disclosure Agreements

When it comes to business taxes, compliance is absolutely essential. That said, mistakes happen. When they do, it’s often better for your business to be up front about those potential tax liabilities than keeping silent and hoping for the best. In this blog, we’re weighing the pros and cons of voluntary disclosure agreements (VDAs) and why a business might want to enter into such an agreement with a state.

What Is A Voluntary Disclosure Agreement?

Simply put, entering into voluntary disclosure agreements is about companies identifying their potential state tax exposure (sales tax, income tax, or both) and coming forward voluntarily to pay any outstanding liabilities before the state identifies the company as part of an audit or other outreach effort. As states are becoming more aggressive in their pursuit of out-of-state taxpayers, it’s becoming a bit of an inevitability that businesses with tax liabilities will be found eventually.

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California- Tax Relief For Marketplace Facilitators

California- Tax Relief For Marketplace Facilitators

On the heels of the U.S. Supreme Court decision in South Dakota v. Wayfair (2018) many states enacted marketplace facilitator laws to tighten the sales and use tax collection net and reduce their tax collection costs. The marketplace facilitator laws give states one-stop collection of sales and use tax: one platform reports the tax of many sellers and the state only has to look to that one platform for uncollected tax. Why chase many debtors when one will pay for them all?

The marketplace facilitator laws are still relatively new, and anytime a law is new there will be those that are unaware of the change. So, the State of California graciously passed two laws to provide some tax relief for the unwary marketplace facilitators. Unfortunately, the tax relief laws are buried in the law books and are known to very few taxpayers. Fortunately, because of Miles Consulting Group’s careful study of California’s marketplace facilitator laws we discovered these hidden lifelines for California marketplace facilitators. We have also requested and received from the state an operations memo that was written for the California Department of Tax and Fee Administration’s tax auditors, which we will summarize in this blog.

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What You Need To Know About Alcohol Taxes And Wayfair Legislation

What You Need To Know About Alcohol Taxes And Wayfair Legislation

There’s nothing quite like winding down after a long week with a glass of wine, but what you might not be aware of is the complex tax regulations that are impacting the sale of your alcoholic beverage of choice.

For most people, alcohol taxes aren’t particularly notable beyond how they impact the final sales price. For businesses involved in the sale of alcohol (especially online retailers) however, recent changes due to the pandemic and the 2018 Wayfair decision are creating a bit of a mess.

Why Are Alcohol Taxes So Complex?

The first factor in this mess are the taxes placed on alcohol sales. Alcohol taxes are particularly complicated for a number of reasons. Some of this is due to its nature as a legal but still heavily regulated drug. Some of it may also trace back to the historic importance of alcohol taxes as a source of revenue for the U.S. government.

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Business And Tax Climate In Hawaii

Business And Tax Climate In Hawaii

Aloha! This month we travel west to the island paradise of Hawaii. In the state, you can attend a luau to experience true Hawaiian culture, relax on the beach or hike in one of the many tropical forests or mountains.

Hawaii is unique because it the only state made up of part of the volcanic Hawaiian archipelago, which consists of hundreds of islands spread over 1,500 miles. At the southeastern end of the archipelago are eight islands known as the state of Hawaii. They are: Niihau, Kauai, Oahu, Molokai, Lanai, Kahoolawe, Maui and Hawaii.

Due to its central location in the Pacific Ocean and its 19th-century labor migration, Hawaii’s culture is strongly influenced by North American and Asian cultures, in addition to its indigenous Hawaiian culture. This is exhibited by the many customs and food cuisines that the state has to offer. For example, it is customary to bring a small gift for one’s host (i.e., a dessert). Many Hawaiian plates have been influenced by Polynesian, Asian and American foods as well.

Business Climate

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States Have Benefited From The Wayfair Decision

States Have Benefited From The Wayfair Decision

Over the last several years, the U.S. Supreme Court’s decision in South Dakota v. Wayfair has led to rule changes regarding online sales tax in almost every state in the country.

The ruling, that South Dakota’s economic nexus law was constitutional and that the state could require companies who met certain sales thresholds to collect and remit sales tax on sales to South Dakota customers, even if the company had no physical presence, has impacted states, retailers, online marketplaces and even brick-and-mortar businesses.

In this article, we’ll discuss the positive effects of the Wayfair ruling on states that have implemented Wayfair-related legislation.

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An Update of Taxation Of Remote Workers

An Update of Taxation Of Remote Workers

When the U.S. began to feel the full brunt of the COVID-19 pandemic, businesses from every industry transitioned their employees to remote working. Nearly a year later, many of those employees are still working remotely.

In July, we shared a post discussing the tax implications of remote workers and whether they created nexus. The situation has continued to evolve since then, so we’d like to share an update on the tax implications of remote workers.

An Overview Of The Situation

When the pandemic first hit, many states were forced to consider whether remote workers would create “nexus,” which is the amount of contact from a company needed in order to be obligated to collect tax in a state. For many employers, this could create additional tax obligations in states where they previously did not have nexus. Additionally, questions arose regarding the taxation of employee’s income and which state would collect the tax.

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What You Need To Know About Brexit As A Retailer In The US

What You Need To Know About Brexit As A Retailer In The US

We’re now several weeks out from the end of the “transition period” for the withdrawal of the U.K. from the European Union (EU), a process collectively known as “Brexit.” The economic impacts of Brexit will be largely determined by the EU-UK Trade and Cooperation Agreement and will likely be felt for years to come.

While this is all happening an ocean away, it will still have a significant impact on retailers in the U.S. that make sales to customers in the U.K. Keep reading to find out how!

A Quick History Of Brexit

The U.K. originally joined the predecessor of the EU, the European Economic Community, in 1973. Skepticism regarding the membership has been around almost right from the start, however. The first national referendum on whether the U.K. should remain a member actually took place in 1975.

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Are You Ready For Sales Tax Crackdowns?

Are You Ready For Sales Tax Crackdowns?

There isn’t a tax professional around that would say 2020 was a normal year for online sales tax developments. Between the pandemic and continuing change spurred on by South Dakota v. Wayfair (2018), 2020 was a tumultuous year to say the least.

However, as we settle into 2021 and state legislative sessions loom on the horizon, it’s safe to say 2021 may not be the calm after the storm many were hoping for.

What Do We Mean By ‘Sales Tax Crackdowns’?

Beyond the general chaos created by the pandemic, it also resulted in budget deficits for states across the nation. As a result, lawmakers are looking for revenue wherever it can be found, and as we’ve previously discussed, online sales tax could be the route many zero in on.

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Business And Tax Climate In Oklahoma

Business And Tax Climate In Oklahoma

This month brings us to the Sooner State of Oklahoma. The state’s nickname, “The Sooner State,” is in reference to the non-native settlers who stated their claims on land before the official opening date of lands in the western Oklahoma Territory.

The state is in the Gulf of Mexico watershed, generally sloping from the high plains of its western boundary to the low wetlands of its southeastern boundary. With small mountain ranges, prairies, mesas and eastern forests, most of the state lies in the Great Plains, Cross Timbers, and the U.S. Interior Highlands, a region prone to severe weather.

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What You Need To Know About Virtual Currency

What You Need To Know About Virtual Currency

You’re probably familiar with the common question, “Cash or card?” However, over the last decade, a newcomer has entered the race. Virtual currencies, and its subset “cryptocurrencies,” which use cryptography to validate and secure transactions, have exploded onto the scene, offering a brand-new avenue for commerce.

However, similar to the lack of consistency among economic nexus and marketplace facilitator laws, legislation concerning virtual currencies also varies wildly state to state.

A Brief History of Virtual Currency

While most people have at least heard of them at this point, there is still a great deal of confusion regarding virtual currencies, how they work and what exactly they are.

Bitcoin is the most popular form of virtual currency, first introduced in 2009 and valued for the first time in 2010.

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What You Need To Know About Important Illinois Tax Updates

What You Need To Know About Important Illinois Tax Updates

As we begin 2021 and approach the legislative season, it’s clear there will be numerous changes that will impact tax compliance. This is spurred on by both the pandemic’s economic fallout and changes necessitated by our increasingly digital economy.

In this article, we examine several updates regarding tax compliance in Illinois and what they mean for any retailer doing business in the state.

Marketplace Facilitation in Illinois

After the 2018 Wayfair decision, Illinois enacted marketplace facilitation legislation, following in the footsteps of many other states. However, unlike other states, this legislation is creating friction with other pieces of tax law specific to Illinois.

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