MSPSALT offers online retail seller services to businesses with sales and use tax, state income and franchise tax filing and planning needs. We have proven experience with performing nexus analysis and providing tax strategies to mitigate hefty tax liabilities.
The evolution of shopping from brick-and-mortar stores to online has exposed retailers to state tax responsibilities in areas they may not have had formerly.
Most states have enacted sales tax collection requirements after a U.S. Supreme Court ruling in favor of the state of South Dakota v. Wayfair, particularly creating a compliance headache for e-commerce businesses. The ruling allows states to require all out-of-state online sellers to collect and remit sales tax on taxable goods (if sales exceed $100,000 or 200 transactions). This ruling hit online retail sellers particularly hard because their presence of online sales to anyone across the country left their business vulnerable to other state tax liabilities, like state income and franchise taxes.
Whether it’s products or services being offered, online retail seller platforms like Wayfair pioneered the footprint used by states to enact tax laws subjecting out-of-state businesses to sales tax collection, state income and franchise tax reporting requirements.