FX Excursions

FX Excursions offers the chance for once-in-a-lifetime experiences in destinations around the world.

Out of State Obligations

by Kevin Ryan, CPA/Partner, Citron Cooperman

Oct 9, 2019

PHOTO: © ALEXANDERSIKOV – DREAMSTIME.COM

October 2019

A LITTLE MORE THAN A YEAR AGO, the Supreme Court, in the closely divided South Dakota v. Wayfair decision, ruled states can require most online retailers and many other sellers to collect sales tax, upending more than two decades of legal precedent. The decision affects businesses such as software vendors, equipment retailers, information sellers and any other business selling goods or services subject to sales tax. In other words, it reaches just about everyone. Whether you own a business or are a consumer, it impacts you in some manner. You may pay more now for the item purchased or, as a business owner, you are saddled with much more compliance work, needing to file various tax returns in additional states.

The 5–4 vote overturned the 1992 Supreme Court ruling in Quill Corporation v. North Dakota and eliminated the requirement that businesses be physically present in a state before their sales can be taxed, granting states the ability to collect taxes from out-of-state internet retailers. In 1992 Amazon founder Jeff Bezos was still working on Wall Street. In that year mail order sales totaled $180 million, quite a bit less than the $453 billion estimated in 2017 e-commerce retail sales. Citing reports Amazon surpassed Wal-Mart as the nation’s leading retailer, the court stated that when it decided Quill, “the court could not have envisioned a world in which the world’s largest retailer would be a remote seller.”

The case centered around a South Dakota law which requires remote sellers with more than 200 annual transactions or $100,000 in sales in South Dakota to collect the state’s sales tax. The court felt the law did not pose an undue burden on interstate commerce because it has a concise revenue or transaction threshold, is not retroactive, and the state has a simplified tax system.

One year later there is still confusion, and states and even cities are passing rules on the subject. Business owners should speak with their advisors and confirm they are collecting the required taxes and filing the correct tax returns. As a business grows or increases transactions in a certain city or state, it may exceed a threshold that will mandate it to file, collect or pay taxes.

As it was only decided by one vote, it seems this decision wasn’t an easy one and people can interpret it differently. Things may change again in the future, so stay tuned. Tax authorities are always looking to increase their tax base, and they have ways of finding those not in compliance. It is in your best interest to follow the law, even if it is frustrating and costly.

The content of this article is for informational purposes only. It is not intended to be a substitute for professional financial advice. Always seek the expertise of a certified financial advisor or other qualified provider with any questions you may have regarding personal finance, investment and money-related issues

Introducing

FX Excursions

FX Excursions offers the chance for once-in-a-lifetime experiences in destinations around the world.

Feature
Feb 17, 2020

Hurtigruten Offers Antarctica Cruises to See the Solar Eclipse in 2021

If you haven’t started planning for next year’s total solar eclipse viewing, you have some serious work to do. Next year’s total eclipse will only be visible from Antarctica and won’t happen again for 75 years.

Adventure of a Lifetime with Volvo

Looking for a truly unique travel experience and considering a new vehicle? The Volvo Overseas Delivery Program is the perfect solution to create your own adventure of a lifetime. Volvo allows you to custom order your new automobile tailored to fit your needs and desires. They will fly you to Sweden to pick up your Volvo so you can drive and explore Scandinavia and Europe on your terms for up to two weeks.

News
Feb 17, 2020

Alaska Airlines, American Airlines Expand Partnership, with Alaska Planning to Join oneworld

Alaska Airlines and American Airlines announced intentions to create an alliance. Benefits to passengers include access to more international destinations after Alaska joins the oneworld alliance in 2021, new service on American between Seattle (SEA) and Bangalore (BLR), new service on American between Seattle and London (LHR), a domestic codeshare expansion to include international routes from Los Angeles (LAX) and Seattle, and loyalty member benefits across both airlines. Loyalty members with additional lounge membership enjoy access to nearly 50 American Admirals Club lounges worldwide and seven Alaska lounges in the United States for same-day travel on American or Alaska flights.

Feature
Feb 17, 2020

Ethiopian Airlines Wants to Build New Airport in Addis Ababa

Ethiopian Airlines announced plans to build a $5 billion airport south of Addis Ababa. The airline’s CEO Tewolde Gebremariam said the airport would be able to handle 100 million passengers a year.

Goway Offers Travelers Journey of a Lifetime

Since 1970, Goway Travel has been committed to providing customized travel experiences for world travelers. Few things are better evidence of this commitment than being awarded the 2019 Trazees award for Favorite Tour Operator. Goway Travel heartily thanks the readers of Trazee Travel for this honor and for their confidence in Goway’s work in creating travel memories that’ll last a lifetime.

Daily
Feb 17, 2020

Four Seasons Seattle Unveils New Plant-Based Dining Option

Four Seasons Hotel Seattle recently unveiled a new stand-alone menu designed for travelers living a plant-based lifestyle. The wellness-focused, wholesome and altogether appetizing menu includes 10 new dishes.

Feature
Feb 15, 2020

Delta Air Lines Announces New Technologies, Including Parallel Reality

Delta Air Lines showed off several new technology initiatives at CES, the world’s largest electronics show, in Las Vegas last month.

A Lighter Footprint

United Airlines’ environmentally friendly efforts lessen the impact on local U.S. communities.

Daily
Feb 15, 2020

New Luxury Cruise Line, Atlas Ocean Voyages, Rounds Out Fleet

New luxury adventure cruise line Atlas Ocean Voyages continues to add ships to its fleet. The line’s first ship, World Navigator, is currently under construction and Atlas Ocean Voyages just purchased four additional ships — World Traveller, World Seeker, World Adventurer and World Discoverer — to follow. World Navigator is schedule to sail in 2021, with two more ships following in 2022, and the last two following in 2023.