Tax Alert: Responding to South Dakota v. Wayfair

The U.S. Supreme Court has issued its highly anticipated decision in South Dakota v. Wayfair, overruling Quill’s physical presence sales tax nexus standard. This decision will have significant implications for almost all industries, but especially consumer products (retailers) and industrial products.

With a new sales tax nexus standard established, more states will require all retailers that sell within their borders to collect that state’s sales tax. About a dozen states have already addressed economic nexus laws or regulations.

The Wayfair case moved through the court system at a blistering pace. Even with a decision from the nation’s highest court, very little is settled. Under the U.S. Constitution, Congress may have the authority to implement a remote seller solution or codify the physical presence standard into federal law. Whether Congress takes up the issue is a “wait-and-see” proposition.

However, Wayfair has created many more questions than answers. Adapting your business to the new sales and use tax landscape will take time, even though you may need to react quickly.

To learn more, please read RSM’s alert, U.S. Supreme Court kills Quill physical presence or contact us directly to discuss how Wayfair may affect your business.

 

Supreme Court of the United States building in Washington, DC, SCOTUS has issued decision in South Dakota v. Wayfair

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
https://rsmus.com/what-we-do/services/tax/state-and-local-tax/sales-and-use-tax/u-s–supreme-court-kills-quill-physical-presence.html

Disclaimer

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Employee Benefits Update: February/March 2017

This issue’s topics include:

Get your fiduciary house in order
DOL’s newest regulations require plan sponsor action

The majority of the U.S. Department of Labor’s complex regulations mandating fiduciary status for individuals dealing with retirement investment decision-making involve investment advisors. But the regulations, which are scheduled to take effect on April 10, 2017, also require plan sponsors to take certain steps. Remember, plan sponsors are always the fiduciary, and the regulations expand the definition of fiduciary status. A sidebar discusses the distinction between investment education and investment recommendations or advice.

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Who’s to blame?
Court equitably apportions fiduciary misdeeds

When a fiduciary breach occurs, some fiduciaries may be more culpable than others. And when that’s the case, the court can order those parties to indemnify other fiduciaries who were, despite their technical status as fiduciaries, without blame. This article summarizes a recent case of the U.S. Court of Appeals for the Seventh Circuit where the court equitably apportioned relief in a fiduciary duty setting.

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Hardship withdrawal programs require strict administration

While not required, most 401(k) plans offer a hardship withdrawal option. The IRS recently updated its guidance on how plan sponsors can remedy errors in the administration of hardship withdrawals. This article highlights the basics of hardship withdrawals and how to correct mistakes when administering a hardship withdrawal program.

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2016 vs. 2017 retirement plan limits

This chart contains updated retirement plan limits for 2017.

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Compliance alert

This feature lists a few key tax reporting deadlines for February through April.

Read More

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please feel free to contact me directly.

Want to learn more?

Join our Employee Benefit Plan Resources group on LinkedIn for more frequent updates on recent developments and best practices and discuss related topics with your peers.

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Federal Tax Weekly: December 10, 2015

This issue’s topics include:

  • Obama Signs Highway Bill With Tax Offsets; Negotiations Continue On Omnibus And Extenders
  • Chief Counsel Reaffirms Prior Guidance On Computer Costs: Some Costs Must Be Capitalized; Others Deductible
  • IRS Clarifies Proposed Regs’ Substantiation Option For Charitable Contributions
  • Damages And Legal Expenses Paid By Corporation’s Managing Shareholder To Satisfy Judgment Were Deductible Business Expenses
  • IRS Extends Time Limits For Issuing Tribal Economic Development Bonds

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As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please feel free to contact us directly.

Federal Tax Weekly: December 3, 2015

This issue’s topics include:

  • IRS Increases Tangible Property Expensing Threshold For Taxpayers Without AFS
  • Wolters Kluwer Computes 2016 Luxury Vehicle Limits, Fringe Benefit Caps
  • Chief Counsel Reviews When Employers May Exclude From Income Cost Of Health Insurance Coverage
  • IRS Launches Form W-2 Verification Code Pilot Program For 2016 Filing Season
  • Chief Counsel Determines Civil Tax Issues For Taxpayer Convicted Of Filing False Or Fraudulent Returns

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As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please feel free to contact us directly.

Federal Tax Weekly: November 19, 2015

This issue’s topics include:

  • Agencies Finalize Regs for ACA’s Market Reforms
  • IRS Launches 2016 PTIN Renewal Season
  • IRS Makes Progress in Curbing Business Tax Identity Theft
  • Generic Drug Manufacturer Required to Capitalize Legal Fees Incurred to Obtain FDA Approval
  • IRS Reminds Taxpayers of Advantages of Health FSAs

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As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please feel free to contact us directly.

Federal Tax Weekly: November 12, 2015

This issue’s topics include:

  • MyRA Starter Roth IRA Now Available Nationwide
  • IRS Releases Revised Form 1042 And Instructions
  • Audits of Individual Tax Returns Drop Again
  • IRS Extends Safe Harbors for Distressed Homeowners
  • Highway Bill Goes to Conference; Extenders Could Move

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As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please feel free to contact us directly.

Federal Tax Weekly: November 5, 2015

This issue’s topics include:

  • Obama Signs Budget Agreement Repealing TERFA Audit Rules
  • IRS Reduces PTIN User Fee
  • IRS Issues Guidance on Private Activity Bond Restrictions
  • Real Estate Developer Cannot Use Home Construction Contract Method to Defer Income
  • Consts of Internet Domain Names Are Code Sec. 197 Intangibles

Federal_Tax_Weekly

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As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please feel free to contact us directly.

Federal Tax Weekly: October 22, 2015

This issue’s topics include:

  • IRS Updates Guide For Safeguarding Taxpayer Data
  • IRS Proposes Updates To Administrative Appeals Process For Docketed Tax Court Cases
  • Social Security Wage Base Stays At $118,500 For 2016; “Nanny Tax” Threshold Rises To $2,000
  • IRS Reminds Employers, Insurers Of Approaching ACA Information Reporting Deadlines
  • IRS’s Implementation Of FATCA Improving, But More Work Is Needed

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As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please feel free to contact us directly.

Federal Tax Weekly: October 15, 2015

This issue’s topics include:

  • PACE Act Amends ACA Definition Of Small Group Market
  • IRS Issues Correcting Amendment For Temporary NPC Regs
  • Disaster Relief Available For South Carolina Flooding
  • Debtor Payments On Serial Loans Trigger Reporting
  • OECD Releases Final BEPS Package

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As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please feel free to contact us directly.

Federal Tax Weekly: October 8, 2015

This issue’s topics include:

  • IRS Reaches FATCA Milestone with Information Exchanges
  • “Unit Dose” Production Qualifies For Code Sec. 199 Deduction
  • Tax Court Finds Taxpayer Liable For COD Income
  • IRS Provides Relief To Drought Stricken Farmers, Ranchers
  • TE/GE Highlights Activities For FY 2016

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As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please feel free to contact us directly.

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