The national economic shutdown has majorly impacted state tax revenue. States have seen a particularly steep decline in sales tax revenue due to mass retail establishment closures over the past few months.
With consumer spending down and budget pressures due to not just decreased revenue but also increased costs, what tactics will states use to recover revenue as quickly as possible?
You can expect states to become more aggressive in their enforcement of economic nexus laws. Audit departments will gear up to audit more out-of-state and online retailers who engage in business in their state.
If your company needs to get compliant and register due to economic nexus or physical presence in a state, a voluntary disclosure agreement (VDA) or participation in state tax amnesty programs can limit your liability and exposure.
A VDA is an opportunity to negotiate with a state to receive certain benefits by proactively disclosing prior period tax liabilities. Companies that register under an amnesty program usually can pay back taxes without any penalties or interest if they register within the program timeframe.
Learn how to maximize the benefits of getting straight with a state using a VDA or amnesty program in this 90-minute webinar.
Who should attend?
This webinar is essential for remote sellers, including online sellers, online marketplace sellers, and sellers making sales into multiple states. Financial and operations personnel who deal with sales and use tax as part of their responsibilities will also greatly benefit from this webinar. General practitioners, with minimal to no experience all the way to highly experienced pros are appropriate for this course.
Diane L. Yetter, President & Founder, YETTER and Sales Tax Institute
Diane L. Yetter is the “Sales Tax Nerd TM” as well as a strategist, advisor, speaker and author in the field of sales and use tax. She is president and founder of YETTER Tax, a sales tax consulting and tax technology firm in business since 1996. She is also the founder of The Sales Tax Institute, which offers live and online courses to educate business professionals about sales and use tax.
More About Diane L. YetterIf you discover your company has sales tax nexus in some states, the logical next step is to register. However, if your nexus exposure extends back several years or if the liability is material, the financial implications of getting compliant can be significant. Penalties and interest related to unpaid taxes add up quickly.
Revenue shortfalls stemming from the pandemic mean states will be more vigilant in seeking out non-compliant companies. You don’t want to wait to be found in an audit where the state will be less forgiving and the penalties and interest much more stringent.
Entering a VDA with a state can provide some relief. A VDA typically limits the “lookback” period for unpaid tax which can greatly reduce the tax due and waives certain penalty and interest amounts. States may be more flexible with VDA terms right now in order to get cash up front and in the door more quickly.
On occasion, a state will offer a tax amnesty program. An amnesty program allows unregistered and already registered taxpayers alike to report unpaid or underpaid tax liabilities in exchange for interest and penalty abatement.
Given recent events, sales tax experts hypothesize that states may begin to offer new sales tax amnesty programs in the coming months to encourage businesses to comply with economic nexus laws. Ohio is already considering a bill that would grant temporary tax amnesty to delinquent payers. The state seeks to boost state revenue following the pandemic with tax payments that may not ordinarily be paid without an incentive.
There are strategic decisions that must be made if your company is in a position to choose between entering a VDA or registering under a state amnesty program.
Learn how to find the right fit for your company and use a VDA or amnesty program to your advantage in this webinar.
In this 90-minute live webinar taught by sales tax expert Diane Yetter of the Sales Tax Institute, you’ll learn how to navigate voluntary disclosure agreements and tax amnesty programs. You’ll learn how to make the most of the benefits provided to create the best financial outcome for your company.
Plus, you can get answers to your specific sales tax questions directly from Diane during the Q&A portion of the webinar.
Webinar attendees can earn 1.5 hours of CPE credit in the “Taxes” field of study
Prerequisites: This course requires no prerequisites or advance preparation.
Program Level: Basic
Delivery Method: Group Internet-Based
Additional Information about CPE
Questions about the registration or webinar process, or need help troubleshooting? Visit the Live Webinar FAQ page to get answers.
Custom sales and use tax trainings are available for those needing a specialized program.