The Battle for Sales Tax Nexus–Part 1

You may have found Amazon affliates billing sales tax on your purchases or you may be scratching your head at the many screens a vendor must fill in to use the Amazon affiliate program. What has changed? The dynamics of the markeplace has changed. Sales tax and use tax account for more than 30% of statewide gross revenues says one interstate sales tax reporting service. There have been recent landmark test cases, and the states are auditing more aggressively to further develop test legal precident since the Federal congress folks did not act on proposed standardization of sales tax.

I was taught that Colorado has already hired over 100 sales tax auditors and Wisconsin has budgeted 111 for 2016 sales tax auditing. Most states and localities have a handful of auditors and dream of change. It is lucrative to challenge end user interstate purchasers for use tax and then double collect from the out-of-state vendor who had incurred nexus, i.e. the responsibility to collect the tax originally. Business owners will not be challenged until 3 years of past liabilities, interest, and penalties can be accrued efficiently by auditors.

As an affiliate seller on Amazon, you may be billed by one or more of the 1300 sales tax districts where your inventory was temporarily stored and nexus sales tax reporting responsibilities assign the tax liability directly to you. As an informed seller or buyer, it is your responsibility to ask questions and to research nexus.

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Did you have both Marketplace and Employer Insurance in 2015?

If you had health coverage under both employer and marketplace, you may be in the late April returns extended until October, 2015 as there will not be sufficient information available to file an error free return. Hopefully your employer will distribute the required 1095C early; however, employee notifications have also been extended and may not arrive in January or February or even March or even April or even May.

The premise for extending employer filings with the IRS as well as with employees is that employers would have more time to calculate and revise affordability reporting so there are reduced revisions and matching errors occur upon individual tax return efile. I would expect this will result in delayed refunds for folks having any gaps or marketplace coverage.

Please note that due to the December 18th legislation, efile for individuals may be delayed again this year

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ACA Penalty Exemption Process

I know that folks are struggling with the ACA penalty exemption process. Helping folks find how their exemption can be presented has been addressed on the following link:

Visit https://www.healthcare.gov/exemptions-tool/#/

If you have used this site or any of the 800 telephone resources, I would like to publish comments. Please fill in the contact form so we can discuss the comment you would like to see here.

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