Understand your unique situation.
This summer, the U.S. Supreme Court released its highly anticipated decision in South Dakota v. Wayfair, Inc., a case that has been referred to as the “tax case of the millennium.” In a five-to-four decision, the Supreme Court overturned the physical presence standard set forth in its own decision in Quill Corp. v. North Dakota. In that case, the U.S. Supreme Court ruled that a state could require a business to collect sales tax only if that business had a physical presence in that state.
The Wayfair decision has opened the door for states to enact economic nexus, and companies may be incorrectly advised to register and file for sales tax without fully understanding any prior sales tax exposure.
Your risk:
- Not understanding the importance of analyzing your unique situation
- Registering for sales tax now, which opens the door for the state to address prior years — racking up tax, interest and penalties
- Sales tax collection registration precluding you from participating in voluntary disclosure programs to address prior years
How a SALT Assessment can help:
Understand your unique situation with a SALT Assessment Review, which includes a nexus study of the top 10 states where you do business. Wipfli will help you understand in what various states you may have not only sales tax filing requirements, but also income tax and economic nexus for non-income taxes such as B&O, CAT, net worth and minimum taxes.
The benefits:
- Get specific recommendations to help you come into compliance
- Identify and estimate risk for prior years
- Identify any additional SALT needs
The details:
- To get started, Wipfli needs the most recent year’s worth of sales amounts summarized by state by final ship-to-customer location and number of transactions (by state)
- Wipfli will have you complete a nexus questionnaire to identify current and prior year business activities for selected states
- Wipfli will provide an upfront fee quote before beginning the analysis
Tax nexus table
