Archive for December 2016
Best Internal Control Practices for Schools
Schools are the perfect places to find new opportunities and challenges at every turn. Furthermore, the next challenge your institution faces may not be in the classroom. The front and back office, which includes the accounting department also require effective internal controls. Here are some best practices that should mitigate or prevent issues from happening…
Read MoreColorado Rules that Foreign Company Had Nexus Due to Consignment
Foreign companies that structure their U.S. business to avoid creating a permanent establishment in the U.S. may still be subject to state sales and use tax. By Alissa Graffius, SALT senior associate States require that a company collect and remit sales tax if it is doing business (i.e., has nexus) within the state. Typically, a…
Read MoreNebraska Refuses to Apply Sham Transaction to Deny Special Capital Gains Exclusion
Nebraska ruled that a taxpayer’s transactions to meet the requirements of a special capital gains exclusion were legal. By Jeff Glickman, SALT partner When a tax authority reviews a transaction, it not only makes sure that the taxpayer’s tax position meets the requirements of the statute, but it may also determine whether the transaction itself…
Read MoreWashington: Taxpayer Must Charge Sales Tax on Entire Charge for Taxable and Non-Taxable Services
A recent Washington tax determination illustrates the impact invoicing can have on the taxability of products and services. By Jess Johannesen, SALT manager Businesses analyze whether their products or services are subject to sales tax based upon the specific provisions of each state’s tax laws. However, businesses may overlook the fact that their invoicing practices…
Read MoreArizona Explains Who is Responsible for Tax Collection for Online Marketplace Transactions
An Arizona tax ruling states that an online marketplace is responsible for the state’s Transaction Privilege Tax if it provides certain services to third-party merchants and has control over fulfillment. By Alissa Graffius, SALT senior associate Online sales have skyrocketed due to the Internet. A majority of those sales are sold on retailers’ websites; however,…
Read MoreNew York Issues Advisory Opinion Pertaining to Personal Exclusion for Taxable Information Services
A recent New York Advisory Opinion examines whether certain information services qualify as exempt from sales and use tax. By Tina Chunn, SALT senior manager Some states will impose sales and use taxes on a specific service but may apply various exclusions such that the service would not be taxable. For example, a number of…
Read MoreGSA Schedule and OASIS Digital Tool Series – Market Research, Pricing, and Opportunities
GSA’s Professional Services Category created six short, informational videos about the Acquisition Gateway and a range of digital tools including:
Read MoreWho Gets a Form 1099 and When are They Due?
As the year draws to an end, many business owners face the challenge of determining which of their vendors will require a 1099. Failure to comply with this requirement may result in fines based on a per filing basis. However, with some basic planning this annual process is not as daunting as you may think.…
Read MoreUPDATE: U.S. Supreme Court Refuses to Hear Colorado Use Tax Reporting Case
On Dec. 12, 2016, the U.S. Supreme Court ended almost five years of litigation over Colorado’s use tax reporting law by declining to review the Tenth Circuit’s opinion. On Dec. 12, 2016, the U.S. Supreme Court declined to review the Tenth Circuit’s opinion in Direct Marketing Ass’n v. Brohl, thus ending almost five years of…
Read MorePrivate Schools: Accounting for Delinquent Accounts
Even schools with the most stringent of tuition policies can find themselves dealing with delinquent accounts. So, how do you account for them? How to Write-off the Balance? The accounting profession prefers the allowance method over the direct write-off method because it more accurately matches revenue with expenses. The accounts receivable will be presented on the…
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