While the landmark South Dakota v. Wayfair Supreme Court decision flipped the traditional physical presence nexus standard on its head, the foundational requirement in the Commerce Clause of the U.S. Constitution prohibiting states from enacting tax requirements that discriminate against or unduly burden interstate commerce remains. As we approach the Wayfair fifth anniversary, this principal […]
Unclaimed property is generally defined as a fixed and certain interest in intangible property that is held, issued or owed in the course of a holder’s business that has gone unclaimed for a specific period of time (the dormancy period) by the rightful owner. At its most basic level, unclaimed property laws are intended to […]
A wide variety of speakers and presentations addressed some of the major issues affecting the wine industry at the 2023 Sovos ShipCompliant Wine Summit, which took place in Napa on April 19-20. Some of the highlights from the 18th annual event are presented below. Sovos ShipCompliant updates Larry Cormier, vice president and general manager, Sovos […]
Largely fueled by necessity during the COVID-19 pandemic, Federal and state governments throughout the U.S. have updated their tax withholding and information reporting processes. With funds given via the Coronavirus Aid, Relief, and Economic Security (CARES) Act, states can now create modernized state tax systems. This includes new or updated online systems and processes for […]
Earlier this week, Nebraska lawmakers passed a bill that would update the state’s liquor laws. State Senator John Lowe introduced LB376, which passed with a 41-0 vote. Under the bill, Nebraska will now create a brand registration for the state’s Liquor Control Commission to accurately identify and track alcoholic products imported into the state. This […]
For craft beer lovers, expanded direct-to-consumer (DtC) beer shipping is at the top of their wish list, according to the third annual Direct to Consumer Beer Shipping Report. Released last month by Sovos ShipCompliant in partnership with the Brewers Association, the data showed that 88% of regular craft beer drinkers believe there should be greater […]
Moving from an on-premise sales tax engine to one in the cloud can help businesses better manage their sales tax obligations. Whether organizations need improved oversight and management of exemption certificates, an automated process for tracking ever-evolving regulatory changes or more comprehensive compliance reporting, a cloud migration project may be needed. However, there are several […]
It’s no secret that non-alcoholic beer is having a moment, and the segment is pointing to continued growth. First Key reports that dollar sales of non-alcohol (NA) beer, wine and spirits brands doubled between 2020 and 2022, with non-alcoholic beer accounting for over 80% of the market share of the category. What was once a […]
If you have been reporting 1099s for a while, you know that Tax Identification Number (TIN) matching is essential to ensure you don’t receive notices or penalties from the IRS. TIN matching typically occurs at two points when paying a vendor or customer: when onboarding a new vendor or customer based on information collected on […]
This blog was updated on November 28, 2023 Direct state reporting for 1099s has increased regulations over the past decade. These regulations include earlier due dates, lowered thresholds and additional reporting requirements. States have also seen late reporting, inaccurate and non-reporting for decades. When an individual or business does not pay the proper amount of […]
Drone usage has increased significantly in recent decades, far beyond their initial use in the military. They can be expensive themselves and, equally, can also cause damage to other parties or property, which is why many people and companies choose to insure them. This blog considers the insurance premium tax (IPT) and parafiscal charge treatment […]
Canada’s Border Services Agency (CBSA) has introduced CARM, a new process to modernise and digitalize import of goods in Canada. The agency’s vision is to deliver a globally leading customs experience that facilitates legitimate trade, improves compliance and revenue collection and contributes to securing Canadian Borders. What is CARM? CARM, which stands for CBSA Assessment […]
Taxes are one of the primary compliance concerns for direct-to-consumer (DtC) shippers of wine, and one of the more complex ones. The 47 states, plus D.C., that permit DtC shipping of alcohol want to ensure there is parity between alcohol sold in-state and any coming from out-of-state sources. So, if a bottle of wine is […]
Direct state reporting obligations can quickly become complicated for any business, and if done incorrectly, state penalties can add up rapidly. Direct state reporting has been required by many states for decades, however, only recently have we seen states increase enforcement surrounding their reporting requirements. States that participate in the Combined Federal State Filing (CF/SF) […]
Kentucky just entered its third year of DtC alcohol shipping, opening doors for wineries, breweries and distilleries to expand their product reach. The change was especially welcomed by the Kentucky Distillers’ Association (KDA), which helped craft and guide the landmark DtC bill in 2020 that established these permissions. Founded in 1880, the KDA is the […]
The IRS created the Combined Federal State Filing (CF/SF) program more than 20 years ago to help alleviate the administrative burdens on small businesses reporting 1099 information to states. This program integrates federal and state filings. The IRS uses information filed in federal filings and then forwards relevant information to states on a business’ behalf. […]
The California Voluntary Compliance Program (VCP) is now available, according to an announcement from the California State Controller. For the first time, we are hearing from the State Controller’s Office (SCO) regarding the VCP authorized by the California legislature in September 2022. The announcement on the SCO’s website provides guidance concerning the upcoming program and […]
Sovos ShipCompliant’s recent 2023 Direct-to-Consumer (DtC) Wine Shipping Report, released with our partner Wines Vines Analytics, showed the first-ever decline in both value (-1.6%) and volume (-10.3%) of shipments. While these numbers are concerning, it’s important to look at the industry in its entirety and keep in mind the overall context of pandemic responses from […]