Changes Towards The Collection of Sales Tax
Do you remember the Supreme Court’s ruling on South Dakota v. Wayfair, Inc.?
The ruling allowed states to collect sales tax from companies with “substantial nexus” within the state (check out our post “The Supreme Court’s Ruling on Sales Tax” for more information).
Well, a new bipartisan bill has been introduced to clarify the sales tax collection requirements. The bill, called the Online Sales Simplicity and Small Business Relief Act, would most notably ban retroactive taxation and create a small business exemption.
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States would not be able to collect sales tax on sellers prior to June 21, 2018 (the date of the Supreme court ruling).
Furthermore, the bill has a $10 million exemption for small businesses until the states come to an agreement, which must also be approved by Congress, that simplifies the collection to the point of not needing a small business exemption.
On a different note, if you want to help the victims of recent natural disasters, the IRS has a search feature which allows taxpayers to find verified charities to avoid scammers.
Learn more about the online sales bill from Michael Cohn’s article!
Additionally, you can learn more about how to avoid scammers from Jeff Stimpson’s article.