Fundamental
Concepts and the Streamlined Sales Tax Project: Sales, use, gross receipts taxes –
their similarities and differences. Determining whether the tax
is imposed on the purchaser or seller. Taxation of services, tangible
personal property, contractors, corporate and partnership transactions.
Sales and use taxes on the local level. The administrative aspect:
licenses, permits, collection fees, exemption certificates, filing
requirements. The effect of the Streamlined Sales Tax Project on
promoting sales and use tax compliance and uniformity between the
jurisdictions. Recent developments.
Jurisdiction, Nexus
and the Internet: Discussion of changing nexus standards for sales and use tax purposes — from physical to economic presence and the impact on collection and remittance requirements. Overview of U.S. Supreme Court decisions through Wayfair and state responses to date. Treatment of drop shipments, delivery in company trucks, warehousing, national versus local advertising, collections, financing, other service activities. Destination and title passage issues. Potential effect of having employees work at home during Covid. How to respond to nexus questionnaires. Opportunities for voluntary disclosure and prospective compliance. Recent administrative, legislative and court developments.
Services,
Software, Leases and Other Special Transactions: Application
of sales and use taxes to the various forms of computer software — canned,
custom, electronic, load-and-leave; pure services and mixed
transactions; installation and fabrication labor; repairs and
warranties; leases, short-term rentals, installment sales,
sale/leasebacks, leases with an operator; sales of assets in
mergers, acquisitions, liquidations or corporate reorganizations;
sales to government, exempt and charitable organizations; construction
contractors. Supporting the exemptions – problems of
proof. Planning and refund opportunities.
Determining the Taxable
Base: The inclusion or exclusion of specific items
in determining the gross proceeds or sales upon which the tax is
based. Treatment of cash and trade discounts, coupons, rebates,
returns and allowances, transportation expenses, trade-ins, finance
charges, repossessed property, bad debts and taxes paid to other
jurisdictions. Impact of the separately stated rule on the taxability
of gross receipts and how transactions may be structured to minimize
the imposition of tax.
Hot Topics in Sales
and Use Taxation: The latest administrative, court and legislative developments on various hot topics in sales and use taxation such as: qualifying for the manufacturing exemption; how states are taxing intercompany, information, telecommunication, and other services; sourcing issues in multijurisdictional transactions; procedural limitations on refunds and assessments; and more, with a focus on the planning and refund opportunities arising therefrom.
Ethics and Managing the Sales and Use Tax Function: Structuring the sales and use tax function to maximize effectiveness while complying with personal ethical standards and those set by the AICPA, ABA, local state CPA societies and bar associations. Setting record retention policies, including best practices for converting to, and maintaining, electronic records that can be trusted. Motivating and training staff to apply sales and use tax laws correctly to both purchases and sales. Using software programs to manage exemption certificates and file sales and use tax returns. Procedures for filing refund claims, amending returns, and responding to notices.
Preparing for Audits and Litigation: How to handle a sales or use tax audit, from the arrival of the audit notice to the post-audit review. Ethical considerations. Statistical samplings – their benefits and burdens. Conducting audits in an electronic environment. Analyzing whether to protest an assessment to the administrative, trial and appellate levels. Working effectively with outside counsel.
Problems: Practical application of the concepts
presented. |
