Nonprofit Spotlight: December – Toys for Tots

The past year has really taught us that we have so much to be grateful for. Each month we will be highlighting a nonprofit or charity that we encourage you to look into for potential donor opportunities. Every little bit counts, and we are trying to do our part to make the world a better place. This month we chose Toys for Tots.

Big News on the Horizon!  The end to the “N.O.M.A.D.” states is near!

Alaska, one of only five states without a state-level sales and use tax, has introduced H.B. 4005.  If passed, the new law will create a state-level sales and use tax collection requirement that will become effective July 1, 2022. 

Upon passage, the following will apply:

  • Alaska will join the Streamlined Sales and Use Tax Agreement.
  • The sale or lease of tangible personal property or services within Alaska will be assessed a 2% state sales tax based on the sales price of the transaction. 
  • Persons using tangible personal property or services acquired outside of the state, in a transaction that would have been subject to tax if it was purchased within Alaska, will be assessed a 2% state use tax based on the sales price of the transaction. 
  • Tangible personal property that was acquired by a purchaser for a use that was exempt under AS 43.44.060, but later converted to a use that is subject to sales tax, will be assessed a 2% state use tax.  

Stay tuned for further updates!

Nonprofit Spotlight: September – The Spark Program

The past year has really taught us that we have so much to be grateful for. Each month we will be highlighting a nonprofit or charity that we encourage you to look into for potential donor opportunities. Every little bit counts, and we are trying to do our part to make the world a better place. This month we chose the Spark Program.

Nonprofit Spotlight: July – Northern Illinois Food Bank

The past year has really taught us that we have so much to be grateful for. Each month we will be highlighting a nonprofit or charity that we encourage you to look into for potential donor opportunities. Every little bit counts, and we are trying to do our part to make the world a better place. This month we chose the Solve Hunger Today.

Missouri Passed New Economic Nexus Legislation

SB 153 and 97 were signed into law today by Governor Mike Parson making Missouri the final sales tax collecting state to implement an economic nexus law after the South Dakota v. Wayfair  Supreme Court decision in 2018.  The new economic nexus legislation will become effective on January 1, 2023 and will require vendors selling over $100,000 annually to Missouri customers to register and collect use tax.

Let Us Help You with Your Tax Technology Solutions!

Let Us Help You with Your Tax Technology Solutions!

Many companies are seeking ways to reduce compliance costs by automating sales and use tax processes. Whether you decide to implement a more robust tax decision module and rate engine, or prefer a simpler solution, we are here to help with over 10 years of experience in Avalara Implementations.

Indiana Executive Orders 20-03 through 21-13 will be rescinded as of June 30, 2021.

Executive Orders 20-03 through 21-13 (regarding personal income and sales and use taxes) that were enacted in Indiana during the COVID-19 pandemic will be rescinded as of June 30, 2021.

An employee working from home in Indiana due to the result of a federal, state, or local governmental work from home declaration will again create Nexus in the state beginning on July 1, 2021.  The only accommodation that will allow an employee to work in Indiana without creating nexus is a physician’s order stating that the employee is unable to work in an office environment.  The order must be put in place prior to June 30, 2021 and must not yet have expired.

Additionally, manufacturers making donations of medicine, medical supplies, or other eligible items to fight the COVID-19 pandemic in Indiana will no longer be granted waivers for use tax obligations.

Happy 19th Anniversary Thompson Tax!

We are so honored to have been serving our clients for nineteen years! To celebrate this milestone, we all took the day off to relax, refresh and reflect on the almost 2 decades of being in business. We are honored to continue to serve our amazing clients and thank you for your continued support. Also, a big thanks to our wonderful team! We couldn’t do this without you.

New Florida Law Requires Sales and Use Tax Collection on Remote Sales

Florida was one of last states which did not have a collection requirement for out-of-state sellers.  This has now changed. Effective July 1, 2021, businesses making at least $100,000 of remote sales into Florida during the previous calendar year must register and collect sales and use tax, including any applicable discretionary sales surtax.  Businesses are given a 90 day grace period and must register by September 30, 2021 to avoid penalties on previous remote sales and use taxes due.

Join us at IPT Sales Tax School in Atlanta June 6-11

Join Dan Thompson, CPA, CMI in Atlanta from June 6th to June 11th where he is presenting at Georgia Tech during the 2021 Institute of Professionals in Taxation (IPT) Sales Tax School II.  Many sales and use tax topics will be discussed and breakout sessions will be available.

  • Constitutional Law • Computer Software & Services • Telecommunications • Leasing • Audit Management • Taxpayer Remedies • Statistical and Block Sampling • Mergers & Acquisitions • Retail • Taxation of E-Commerce • Manufacturing • Construction Contracting • Tax Planning • Managing the Sales & Use Tax Function • Oil and Gas • Ethics in Taxation

Dan has been a proud member of the IPT since 1990.  For IPT Sales Tax II enrollment information, please click here.

Pennsylvania Voluntary Disclosure Program

The Pennsylvania Department of Revenue is currently administering a voluntary compliance program that is open until May 8, 2021.  Unlike the Department’s standard Voluntary Disclosure Program which has a lookback period of the current year plus the previous 3 years for sales and use taxes, the lookback period for this program will not extend earlier than January 1, 2019.  Any business that has inventory or stores property in Pennsylvania, and who is not already registered to collect and pay Pennsylvania taxes, may complete the online business activities questionnaire to determine eligibility.  Once submitted, the Pennsylvania Department of Revenue will complete a review of the business and will respond with details on how to proceed.

Key Notes:

  • Non-compliance penalties, past-due returns, and unpaid sales and use taxes owed prior to January 1, 2019 for eligible (or qualifying) businesses with be waived once in compliance
  • Any abatements received are conditional upon maintaining compliance

California Tax Returns

California Tax Returns due between December 15, 2020, and April 30, 2021, for taxpayers reporting less than $1 million in tax on a return, will be extended three months from the original due date.  If you have a return that was originally due during this time frame, relief will be provided automatically and you are not required to seek an extension from the CDTFA.

Chicago Nexus

The City of Chicago’s economic nexus threshold, includes a Safe Harbor provision for small businesses. The Safe Harbor Provision, as it relates to the economic threshold, protects entities from creating nexus provided that they have no significant contacts within the City such as:

  • Employees within the City of Chicago or any activities being performed by employees or agents within Chicago on the entity’s behalf
  • Agreements with other businesses in Chicago
  • A physical presence in Chicago
  • Advertising directed at Chicago customers

If an out-of-state entity has no contact with Chicago other than sales, which when combined over the last four quarters have not exceeded the City’s economic nexus threshold of at least $100,000 in sales or more than 200 sales transactions, it is protected by the Safe Harbor provision and will not be expected to collect Chicago’s Home Rule personal property lease transaction tax (as applied to nonpossessory computer leases) or the Chicago amusement tax (as applied to amusements that are delivered electronically) e.g. online gaming and streaming.

Effective July 1, 2021, Safe Harbor rules will be applied on a prospective basis. No refunds or credits will be granted for taxes paid or remitted before that date. Please note: The Safe Harbor Provision does not affect the issue of whether a customer must pay taxes, only whether an entity has the duty to collect.

If an out-of-state entity qualified in the past, but no longer qualifies under Safe Harbor provision, it must:

  • Register with the City’s Department of Finance within 60 days
  • Begin collecting taxes within 90 days
  • Continue collecting taxes for at least twelve months