Have you made use of a third-party food delivery service, like DoorDash, Postmates or Uber Eats? Millions of Americans do every day, and that number has only increased as a result of the COVID-19 pandemic and subsequent stay-at-home orders.

According to Second Measure, through the end of May, sales for third-party food delivery services more than doubled on a year-over-year basis.

So, why is this a big deal, tax-wise? While these services have been on tax organizations’ radar for several years, the pandemic has highlighted the issue even further, especially as the third-party food delivery industry is one of the few that has thrived during the pandemic.

The main concern tax officials have is whether these third-party food delivery services are properly collecting and remitting taxes, particularly in the current post-Wayfair tax environment.

All combined, it’s the perfect tax liability storm.

Why Are States So Interested in Food Delivery Services?
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