If you have an online retail business, you may need to speak to tax and corporate counsel regarding a tax-exempt corporate reorganization pursuant to the Internal Revenue Code in order to comply with the U.S. Supreme Court’s 2018 holding in South Dakota v. Wayfair.
How did the Wayfair decision impact online business owners? In 2018, the U.S. Supreme Court ruled 5-4 in South Dakota v. Wayfair. The ruling held that states can mandate that businesses without a physical presence in a state with more than 200 transactions or $100,000 in-state sales collect and remit sales taxes on transactions in the state. This overturned previous cases.
Without a physical presence in the states where they sell their goods without collecting and/or remitting state sales tax to those jurisdictions where they have been required to do so since the Wayfair Decision — you may now owe sales tax in each of the jurisdictions that have adopted a Streamlined Sales and Use Tax Agreement.
For the Full Story: ForbesForbes
by Matthew Holden
November 13, 2019