Welcome Ryan Barnes to the Thompson Tax Team!

We are so excited to welcome our newest team member Ryan Barnes. Ryan joins us as our Director of Technology Services. Ryan comes to us with over 10 years of tax technology automation experience and has worked with start-up companies as well as large enterprises. He has expertise and a passion for end to end sales and use tax automation and he loves to take on new challenges. He has extensive experience with e-commerce, point of sale, retail, software and clothing industries. Specialties include Netsuite, Dynamics GP, and APIs. If you have any sales tax automation challenges, he is the guy to talk to and would love to assist in solving them!
For fun, Ryan enjoys kayaking, camping, hiking, tasting new beers and trying out the latest & greatest board games with friends. He is based out of Portland, Oregon, so if you’re close and would like to meet in person please let us know!
Please join us in giving Ryan a warm welcome!

Reminder – Remote Sellers May be Subject to California’s State, Local, and District Use Taxes as of April 1, 2019

The California Department of Tax and Fee Administration (CDTFA) has published a new on‑line guide to assist businesses in learning more about how the Wayfair decision expands use tax collection requirements for retailers:  http://www.cdtfa.ca.gov/industry/wayfair.htm

Meanwhile, the Legislature sent a bill to the Governor that would modify post-Wayfair use tax collection requirements.  Assembly Bill 147, enrolled on April 9th, would specify that on and after April 1, 2019, a retailer engaged in business in California includes any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property for delivery in this state by the retailer and all persons related to the retailer that exceed $500,000.

The bill would allow the department to grant relief to certain retailers engaged in business in this state for specified interest or penalties imposed on use tax liabilities due and payable for tax reporting periods beginning April 1, 2019 and ending December 31, 2022.  It would also eliminate separate tests for state, local, and districts’ tax collection responsibilities.  You can follow this bill at:
https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB147

Questions?  Contact us at: info@thompsontax.com

It’s not too late for the 4/1/2019 CA Registration Date!

News Flash!  If your company has a new California sales tax obligation as of April 1, 2019, we can help!  Not sure if you have an obligation to register in California?  We can help with that, too.  It’s not too late!  Our team specializes in Compliance and can help your company get registered and file your new California sales tax return.  We can also help with determining the taxability of your company’s products and services, training your Tax and A/P teams on the proper treatment of sales and use tax, Voluntary Disclosure Agreements, and more!  Reach out to us at info@thompsontax.com to learn more.

South Dakota vs. Wayfair, Inc – The Supreme Court has decided.

In the most anticipated sales tax cases in many years, the Supreme Court of the United States has ruled that an out-of-state retailer with no physical presence in the state could be subjected to that state’s sales/use tax laws under an “economic” nexus standard. In South Dakota v. Wayfair, Inc. et al. Docket 17-494, the Supreme Court decided that the physical presence standard established in the 1992 Supreme Court decision Quill Corp. v. North Dakota should no longer be the nexus standard in today’s economy dominated by the Internet. Instead the Supreme Court ruled in a 5-4 decision, the South Dakota’s economic nexus statute did not violate the provisions of the United States Constitution.

While this decision allows for South Dakota law to stand, there remains many unknowns as to whether South Dakota and other states will apply their economic nexus standards retroactively or whether they will provide a time frame for prospective registration, or even refine existing rules to become more stringent on the application of the law. The high court’s decision simply validates that the precedence set forth by Quill no longer applies, opening the door for taxable nexus statutes creating an economic footprint instead of a physical presence standard for businesses to follow.

Thompson Tax & Associates, LLC as your trusted tax advisor can assist your company through this material change in this sales and use tax standard that prevailed for so many years.