IRS Form 1099, 1099-NEC, and Form 1099-MISC: Advanced Issues and Updates

Drop Shipments: Understanding Sales Tax Treatments of the Seller, Shipper, and Customer (OnDemand Webinar)

$199.00

SKU: 408953EAU

Description

Stay up to date on the sales tax laws for drop shipments.Businesses everywhere are looking for ways to reduce the cost of doing business. One alternative that businesses consider is the utilization of drop shipments. A drop ship transaction involves three different entities the seller, the customer, and the shipper of the product. This material will discuss the various impacts of a drop shipment to each entity. The information will educate you as to what exactly a drop ship transaction is and the implication of the transaction. Both the seller and the shipper might have requirements to charge sales tax and this topic will assist in navigating the waters of a drop ship transaction. The impact of the Wayfair Supreme Court decision will be discussed so that you understand the impact to sales tax. Lastly, the material will provide information concerning the importance of securing an exemption certificate and what other documentation can be provided to exempt the transaction between the seller and the shipper.

Date: 2021-08-24 Start Time: End Time:

Learning Objectives

Drop Shipments
• What Is a Drop Shipment?
• Advantages of Utilizing a Drop Ship Scenario
• Disadvantages of Utilizing a Drop Ship Scenario
• Wayfair Impact on Drop Shipments

Seller
• What Are the Impacts of a Drop Shipment Transaction?
• Steps the Seller Needs to Take to Document the Transaction
• Exemption Certificate Requirements
• Audit Implications
• Wayfair Impact

Shipper
• What Are the Impacts of a Drop Shipment Transaction?
• Steps the Shipper Needs to Take to Document the Transaction
• Exemption Certificate Requirements
• Audit Implications
• Wayfair Impact

Customer
• What Are the Impacts of a Drop Shipment Transaction?
• Steps the Customer Needs to Take to Document the Transaction
• Exemption Certificate Requirements
• Audit Implications
• Wayfair Impact

Mary Jo Dolson, CPA-Marcum LLP, Mark Thomas – Marcum LLP

IRS Form 1099, 1099-NEC, and Form 1099-MISC: Advanced Issues and Updates

Drop Shipments: Understanding Sales Tax Treatments of the Seller, Shipper, and Customer (OnDemand Webinar)

$199.00

SKU: 408116EAU

Description

Get an update on the sales tax laws for drop shipments.Many retailers and suppliers engage in transactions that are known as drop shipments without full consideration of the tax effects. In light of the Supreme Court’s decision in South Dakota v. Wayfair, Inc., et al., nearly every state that imposes sales and use taxes has amended their laws, regulations, and guidance to force out of state retailers and suppliers to collect sales taxes on their behalf. Despite some commonalities, the various laws are frequently inconsistent and counterintuitive. This topic will help you identify drop shipments and determine when your business or client may need to collect sales taxes in the various states, specifically focusing on the federal constitutional underpinnings and the ways states have chosen to update their laws, regulations, and guidance, as well as determine the best way to bring their business or client into compliance.

Date: 2020-10-08 Start Time: End Time:

Learning Objectives

What Is a Drop Shipment and Why Are They Used?

What Is the Location of the Sale in a Drop Shipment?

Tax Treatment of the Parties
• Retailer
• Supplier
• Customer

How Much Is the Sales/Use Tax?
• Final Sales Price
• Are Shipping and Handling Taxable?

What Is Nexus and How Much Is Enough to Be Substantial?
• Physical Presence
• How Substantial Is Substantial?
• Trailing Nexus • How Long Do I Have Nexus?
• Affiliate Nexus
• Click-through Nexus
• Economic Nexus
• Physical Presence Requirement Was Eroding Before Wayfair
• South Dakota v. Wayfair, Inc., et al.
• Reporting and Notification Regimes

Am I in Compliance?
• Two Questions:
• Are My Goods/Services Taxable in Each Jurisdiction?
• Do I Have Substantial Nexus in Each Jurisdiction?
• Options to Become Compliant

CPE ,Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.

Matthew E. Foreman, J.D., LL.M.-Law Offices of Matthew E. Foreman, P.C.