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In the five years since the Supreme Court case of South Dakota v. Wayfair, Inc., every state with a sales tax has enacted a law regarding economic nexus. However, Wayfair did not change the constitutional requirement that sales tax cannot represent an undue burden on interstate commerce. To the contrary, it can be argued that […]

Texas is not the most complicated state when it comes to sales tax. Like Alabama, there are a plethora of local rates, but there aren’t the same tapestry of special rates and rules. Nonetheless, Texas has adopted a Single Local Use Tax rate and allows any remote seller (aside from marketplace facilitators) to use this […]

When most businesses think of unclaimed property, they likely consider outstanding checks issued from primary operating accounts, overlooking other sources that may hold potential exposure. Failure to recognize these exposures could result in significant interest and penalty assessments once discovered. Some of the most overlooked sources of potential unclaimed property include the following: Voided checks […]

This blog was updated on November 28, 2023 Businesses of all sizes must properly determine what tax information to report, where to report it, how to report it and when it needs to be reported. Each state can have its own requirements—and those requirements can change—making it increasingly complicated for organizations when it comes time […]

When South Dakota first adopted its thresholds for determining what remote sellers would become obligated to collect and remit their sales tax, the state specified that it would apply to companies that had, on an annual basis, $100,000 in gross sales or engaged in 200 or more separate transactions into the state. Once the Wayfair […]

Colorado created the Sales and Use Tax System (SUTS) in 2017, providing a statewide local filing portal, sales tax lookup tool and a robust tax matrix. The system is currently available for businesses with retail sales over $100,000 per year and has around 50 participating locals. Given the number of “home rule” cities in Colorado, […]

While there is no statewide sales tax in Alaska, locals are given wide authority to impose and collect sales tax through enacting local ordinances. Around 100 of these boroughs and cities have stood up their own sales tax requirements. In order to benefit from the 2018 Wayfair case, the taxing locals realized they needed a […]

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 […]