Wayfair’s effect is reaching beyond sales tax.
As if the new burden of remitting sales taxes to several thousand taxing jurisdictions wasn’t daunting enough, accountants are now warning businesses that the U.S. Supreme Court’s Wayfair decision creates compliance issues beyond state and local sales taxes.
Members of the Pennsylvania Institute of Certified Public Accountants (PICPA) are advising clients to be on the lookout for new obligations in income taxes and financial reporting for businesses that follow generally accepted accounting principles.
Nearly 11,000 separate taxing jurisdictions in the U.S. currently impose some sort of sales tax, Matthew D. Melinson, a CPA and partner in Grant Thornton’s Philadelphia office and leader of the Atlantic Coast region state and local tax practice, co-wrote in an article on PICPA’s website.
States are likely looking for ways to leverage the ruling to expand revenue collection, not only with sales taxes but also for income and franchise taxes, Melinson told Bloomberg Tax Sept. 6.
Daily Tax Report: State
by Ryan Prete
September 7, 2018
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