SALTovation: Making Sense of State and Local Tax

In this episode of the SALTovation podcast, we continue our conversation with Chris Muntifering, Executive Director at the Institute for Professionals in Taxation. We explore the role of the Institute for Professionals in Taxation (IPT) and its unique position in the landscape of tax organizations, highlighting how it distinguishes itself from competitors like the Council of State Taxation. Chris discusses the rigorous process behind IPT's advocacy efforts, including the criteria for supporting cases that benefit its members and the importance of engaging younger professionals as the landscape of tax professionals continues to evolve.Key Takeaways:The CMI program emphasizes the importance of both experience and education in taxation roles.IPT aims to support its members by providing resources and guiding them through tax issues.The process of submitting amicus brief requests is detailed and requires careful consideration.IPT is focused on education while other organizations may also engage in advocacy efforts.Engaging younger professionals is a key initiative for the future success of IPT.The CMI exam is designed to test both knowledge and practical experience in the field.ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!Mentioned in this episode:Sales Tax NerdAre you a Sales Tax Nerd? Do you feel alone in your work? Do others understand what you deal with on a daily basis? Are you looking for your “people”? You need to check out The Sales Tax Nerd Community! It brings together helpful resources, ongoing training, and camaraderie. With free webinars, on-demand courses, and quarterly Office Hours with the original Sales Tax Nerd, Diane Yetter, you're never short on accessible information and relief from the chaos of sales tax. Get your toughest questions answered by knowledgeable members of the community. Network with peers, access exclusive content, get discounts on our live courses, and gain over 28 CPE credits each year. Click the Sales Tax Institute link in the description, and use the code SALTOV10 for 10% off your membership today! https://www.salestaxinstitute.com/sales-tax-education/sales-tax-nerd-community-membershipTax NerdSALT Contact

In this episode of the SALTovation podcast, Chris Muntifering, Executive Director at the Institute for Professionals in Taxation. Chris shares his journey from a finance graduate to a seasoned tax professional, emphasizing how he fell into property tax and eventually became a key player in IPT. Chris discusses the importance of education in tax management, with IPT providing resources for professionals at all levels, from basic to advanced training across various tax disciplines. Listen this week as we explore the importance of community, mentorship, and continuous learning in the field of taxation.Key Takeaways:Chris's journey into tax began unexpectedly, showcasing how many professionals enter the field.The Institute for Professionals in Taxation (IPT) focuses on education across multiple tax disciplines.IPT's mission emphasizes providing broad-based education, catering to various levels of tax professionals.Networking and relationships are vital for tax professionals, as they provide essential resources and support.Chris highlights the importance of adapting tax knowledge in an evolving business landscape.ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!Mentioned in this episode:Sales Tax NerdAre you a Sales Tax Nerd? Do you feel alone in your work? Do others understand what you deal with on a daily basis? Are you looking for your “people”? You need to check out The Sales Tax Nerd Community! It brings together helpful resources, ongoing training, and camaraderie. With free webinars, on-demand courses, and quarterly Office Hours with the original Sales Tax Nerd, Diane Yetter, you're never short on accessible information and relief from the chaos of sales tax. Get your toughest questions answered by knowledgeable members of the community. Network with peers, access exclusive content, get discounts on our live courses, and gain over 28 CPE credits each year. Click the Sales Tax Institute link in the description, and use the code SALTOV10 for 10% off your membership today! https://www.salestaxinstitute.com/sales-tax-education/sales-tax-nerd-community-membershipTax NerdSALT Contact

In this episode of the SALTovation podcast, we continue our conversation with industry veteran Kim Blascoe. Kim discusses the critical need for upskilling talent within public accounting firms to meet the growing demand for advisory services. Kim shares why firms must assess their current skill sets and develop their teams to deliver effective advisory services as the industry shifts from a compliance-focused model to a more client-centric approach. Listen this week as we discuss how firms can adapt to these changes, and navigate the challenges posed by competition, and the increasing complexity of client needs.Key Takeaways:Upskilling existing talent in public accounting is crucial to meet client advisory needs.The pandemic has changed client expectations, making virtual consulting more accepted and effective.Client advisory services must focus on delivering real value beyond traditional compliance work.Firms should assess their service offerings to include advisory services for competitive advantage.Building relationships with clients is essential as advisory services evolve in public accounting.Smaller firms can leverage larger firms' resources to enhance their service offerings and expertise.ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!Mentioned in this episode:Sales Tax NerdAre you a Sales Tax Nerd? Do you feel alone in your work? Do others understand what you deal with on a daily basis? Are you looking for your “people”? You need to check out The Sales Tax Nerd Community! It brings together helpful resources, ongoing training, and camaraderie. With free webinars, on-demand courses, and quarterly Office Hours with the original Sales Tax Nerd, Diane Yetter, you're never short on accessible information and relief from the chaos of sales tax. Get your toughest questions answered by knowledgeable members of the community. Network with peers, access exclusive content, get discounts on our live courses, and gain over 28 CPE credits each year. Click the Sales Tax Institute link in the description, and use the code SALTOV10 for 10% off your membership today! https://www.salestaxinstitute.com/sales-tax-education/sales-tax-nerd-community-membershipTax NerdSALT Contact

In this episode of the SALTovation podcast, industry veteran Kim Blascoe. With over three decades of experience, Kim shares her professional journey from owning a tax and accounting practice to leading Whipley's national accounting practice and her current role at CPA.com. Kim sheds light on the importance of mentoring in accounting, the strategy behind merging firms, and how to best support CPA firms in their growth and transformation efforts. Listen as we discuss the challenges CPA firms face today, from technology adoption to talent retention.Key Takeaways:Mentoring and Career Development: Kim finds immense value in mentoring young professionals and guiding their career paths within the accounting industry.State and Local Tax Complexity: The episode highlights the intricacies of SALT, particularly how different state regulations impact businesses in a post-pandemic world.Digital Transformation: CPA.com's mission is to support firms through digital transformation, offering tools, education, and consulting to enhance technological adoption and practice growth.Specialization and Advisory Services: The importance of moving from generalist to specialist roles within accounting firms to provide high-value advisory services is emphasized.Talent and Technology Management: Firms struggle with retaining talent, upskilling employees, and keeping up with rapidly advancing technology, including the integration of AI.Quotables“We hear firms are talking about pulling people back into the office a couple of days a week so that there is that sense of community inside of the firms and a continuing of building culture because it is kind of hard to build culture when you spend all your time on virtual calls." -Kim Blascoe“I think all the service offerings that have been added need to have career paths so that individuals feel like they can become partner, and not everybody's desire is, but if the desire is to become partner, that we give them those opportunities in these other areas of service." -Kim BlascoeConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!Mentioned in this episode:Sales Tax NerdAre you a Sales Tax Nerd? Do you feel alone in your work? Do others understand what you deal with on a daily basis? Are you looking for your “people”? You need to check out The Sales Tax Nerd Community! It brings together helpful resources, ongoing training, and camaraderie. With free webinars, on-demand courses, and quarterly Office Hours with the original Sales Tax Nerd, Diane Yetter, you're never short on accessible information and relief from the chaos of sales tax. Get your toughest questions answered by knowledgeable members of the community. Network with peers, access exclusive content, get discounts on our live courses, and gain over 28 CPE credits each year. Click the Sales Tax Institute link in the description, and use the code SALTOV10 for 10% off your membership today! https://www.salestaxinstitute.com/sales-tax-education/sales-tax-nerd-community-membershipTax NerdSALT Contact

In this episode of the SALTovation podcast, we continue our conversation with Alicia Gelinas, President & CEO of COCPA. Alicia takes a deep dive into the evolving nature of professional networking, the impact of technology on relationship-building, and the significance of in-person interactions in an increasingly virtual world. With a focus on enhancing the CPA profession, she navigates through the challenges posed by remote work, the Amazon effect, and the need for robust personal connections within the CPA community. Alicia also discusses her vision for the future, aiming to leave a legacy of a connected, supportive, and forward-thinking CPA community.Key Takeaways:Evolving Networking Dynamics: Understanding how virtual connectivity influences professional networking and the enduring importance of in-person interactions.Strategic Focus of CoCPA: Emphasizing member support and advocacy through initiatives like leadership programs and scholarships.The Amazon Effect: Discussing the shift towards instant solutions and its impact on long-term professional relationship building.Emerging Trends: Highlighting the growing importance of ESG reporting and the role of CPAs in leveraging AI and other emerging technologies.Legacy and Community: Alicia's vision for fostering a sense of belonging and pride within the CPA profession through active engagement and professional support.Quotables"COCPA builds community for CPAs. CPAs need other CPAs, and we need a support group.” -Alicia Gelinas"If CPAs don't think about the role that they need to play, they will be left behind and somebody else will take the role of trust.” -Alicia GelinasConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of the Women to Watch in Sales Tax series, Diane Yetter of the Sales Tax Institute sits down with Meredith Smith, senior tax manager at TaxOps. Meredith shares her journey from starting in public accounting with a focus on income tax to becoming a self-taught sales tax expert at TaxOps. She sheds light on her role within TaxOps' State and Local Tax Group and offers insight into her pride in being adaptable and client-focused in the sales tax domain.Meredith discusses the importance of being a good listener, particularly in the advisory side of sales tax work. She talks about how sales tax often gets overlooked within companies and the necessity of advocacy for addressing both past obligations and future risks. Meredith's experience highlights how crucial it is to listen and understand client needs, making a significant impact in the compliance and consultancy aspects of sales tax. She also shares tips for women who are self-taught in sales tax, emphasizing the value of listening and advocating within their companies.Key Takeaways:Meredith Smith transitioned from income tax to sales tax, becoming self-taught to meet client needs at TaxOps.Listening to clients and understanding their specific circumstances are critical in providing effective sales tax advisory services.Advocating for the importance of sales tax within your company can help address both past and current obligations.Sales tax knowledge isn't typically taught in traditional education, making self-taught professionals quite common in the field.Staying updated and attentive to changes within your organization can reveal crucial sales tax implications.Resources:Sales Tax InstituteTaxOpsSubscribe on your favorite podcast app:https://saltovation.captivate.fm/listenhttps://linktr.ee/taxops Follow Us on Socials:https://www.linkedin.com/company/taxops-llchttps://www.youtube.com/channel/UCMB1ZQNGXM_F777SIEl8Vjw Talk To A Tax Advocate Today:https://taxops.com/contact/Mentioned in this episode:SALT Contact

In this episode of the SALTovation podcast, we continue our conversation with Alicia Gelinas, President & CEO of COCPA. Alicia explores the evolving landscape of the accounting profession, the need for better marketing to young professionals, salary disparities, and the importance of creating supportive professional networks. She also touches on the critical role of advocacy and lifelong learning and offers insights into the systemic challenges and solutions facing the field today. Listen this week as Judy and Alicia discuss the critical role of professional associations like the COCPA in advocating for CPAs and enhancing community engagement among accounting professionals. Key Takeaways:Career Diversity in Accounting: Alicia's journey showcases the wide array of opportunities within the accounting profession, from traditional roles in public accounting to leadership positions in professional organizations.Importance of Passion: Aligning personal passions with professional work can lead to a more fulfilling career; Alicia's transition into coaching and subsequent leadership roles highlights this.Challenges in the Profession: The accounting profession faces significant challenges, including underrepresentation among young professionals and the need to better market the advantages and opportunities within the field.Advocacy and Support: Organizations like COCPA play a crucial role in advocating for CPAs, providing continuous professional development, and fostering a supportive community.Systemic Changes Needed: Issues such as competitive compensation, enhancing the profession's public image, and adapting to new technologies are vital to attracting and retaining talent in the accounting sector.Quotables"The theme that has emerged is that we as accountants, are not great marketers. So we haven't been telling a compelling story about what the profession means.” -Alicia Gelinas"Whatever I do, it doesn't matter as long as I turn my passions into my paycheck.” -Alicia GelinasConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!Mentioned in this episode:SALT Contact

In this episode of the SALTovation podcast, we continue our conversation with Sam Breslow on the complexities of state and local tax regulations, highlighting the challenges of accessing historical tax information, the implications of different source and destination tax laws, and the intricacies of Colorado's local tax system. Through real-world case discussions like Ohio's VBF case and Illinois's leveling the playing field regulations, Sam provides valuable insights for businesses navigating the labyrinth of tax compliance. Listen this week to get expert tips on managing voluntary disclosure agreements and learn about the ongoing efforts to simplify tax!Key Takeaways:Historical FYIs and FOIA Requests: The sanitization of FYIs led to significant challenges for practitioners who used these documents for tax comfort, highlighting the critical role of FOIA in accessing pivotal information.VBF Case Insights: The Ohio VBF case emphasized the necessity for taxpayers to maintain extensive records that demonstrate the final destination of goods to ensure proper sourcing for gross receipts taxes.Colorado Local Tax Complexities: Remote sellers face an arduous task navigating Colorado's diverse local tax requirements, especially given the inconsistencies in the adoption of model ordinances and participation in the SUTS system.Leveling the Playing Field in Illinois: Illinois' complex tax system, including the differentiation between remote and in-state sellers, presents numerous challenges, with pending legislation aiming to simplify the existing labyrinthine structure.Strategic Tax Planning: Both Judy and Sam stress the importance of strategic planning and staying informed about statutory changes to effectively manage state and local tax obligations and avoid inadvertent compliance issues.Quotables"If a state needs a flowchart to decipher its law, that's probably a sign that maybe it violates due process because it's so cumbersome to use.” -Sam Breslow"I advise my clients to pay very close attention to when they adopted the model ordinance, which for those of you that maybe aren't as familiar, that means that you're pretty much saying if you're subject to tax at the state level, if you give over 100,000 sales at the state level, you're subject to tax localities, which is unconstitutional.” -Sam BreslowConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of the SALTovation podcast, we speak with Samantha Breslow, a seasoned expert in state and local tax, who is serving as a prominent attorney at HMB, a firm recently acquired by Kilpatrick. Sam shares her thoughts on the intricacies of tax compliance, the significance of maintaining professional relationships, and the hurdles faced when dealing with aggressive tax authorities. Listen as we take a deep dive into the Colorado local tax landscape, revealing the challenges and strategies for navigating the state's unique taxing jurisdictions. Check out the VVF Intervest LLC v. Harris - BTA Case No. 2019-1233 (Sept.13, 2023) case here. Key Takeaways:Navigating Career Transitions: Sam's transition from aspiring family lawyer to tax attorney emphasizes the importance of flexibility and open-mindedness in career paths.Complex Tax Cases: The episode highlights challenging cases like the Illinois business non-business income issue and the Tractor Supply decision in South Carolina, offering insights into tax litigation strategies.Colorado Local Tax Nuances: An in-depth look at Colorado's taxing jurisdictions sheds light on the complexities of local compliance and strategic voluntary disclosures.Impact of Professional Relationships: Maintaining relationships within the industry plays a crucial role in career development and effective case management.Evolving Tax Laws: Discussions around the VDF case, digital services taxation, and leveling the playing field in Illinois underscore the dynamic and ever-changing nature of state and local tax laws.Quotables"There aren't that many wins in the scheme of things, at least within my career so far, because we do ultimately resettle a lot because it's in the best interest of the taxpayer a lot of the times to settle.” -Sam Breslow [13:16]"When a state doesn't modify their ordinance or their statute but changes the way that they're doing things, I don't know if that's necessarily right.” -Sam Breslow [20:00]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of the SALTovation podcast, we continue our discussion with Florian Hanslik, a seasoned tax professional specializing in VAT. Listen as we take a brief detour from U.S. taxation to explore European VAT systems. We cover the regulatory framework, audit processes, and the fascinating trajectory of VAT towards digitalization within the EU. Florian provides foresight into the increasing digitalization of VAT compliance and how businesses need to adapt to these evolutionary changes in the tax landscape.Key Takeaways:EU VAT Directive and Adaptation: The VAT Directive sets standard guidelines that EU countries must implement but allows for local adaptations, leading to significant variations in VAT rates and regulations.Role of the EU Court of Justice: The Court ensures uniform application of the VAT laws across member states, influencing national legislation and compliance practices.Digitalization of VAT Compliance: Moving towards a unified e-invoicing system by 2035 to streamline trade within the EU, despite countries like Poland and Italy having already implemented their systems.VAT Audits in Different Jurisdictions: Distinct audit practices in countries like Switzerland, Germany, and Italy, showcasing a range of approaches from trust-based to more bureaucratic methods.Future Trends in VAT: Increasing digitalization is anticipated to simplify audit processes and compliance but may also bring challenges related to data privacy and system integration.Quotables"You have to take states by the hand and say, okay, now let's first question, what do you want to do? These are the facts. Let's go to the right side or to the left side. Yes. Let's say yes, let's say no, because it will be difficult for them to decide. So you have to take their hand and guide them through.” -Florian Hanslik [00:49]"What I really like here in Switzerland is that the tax authorities talk about their clients when they talk about the companies they have to audit. And it's really a client system. They don't want to act mean. They want to ensure that going forward it will be done correctly.” -Florian Hanslik [18:46]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of the SALTovation podcast, we speak with Florian Hanslik, a seasoned tax professional specializing in VAT. Transitioning from a rich background in politics to becoming an indirect tax expert, Florian discusses how his international upbringing and previous work with the European Parliament seeded his deep interest in global tax systems. Florian discusses the importance of understanding VAT in different countries, the role of comprehensive networks, and the need for businesses to be proactive in managing their VAT obligations, especially in an era of rapid e-commerce growth. Florian also notes significant future changes, particularly in the taxation of streamlined events, and underlines the necessity for companies to stay ahead of evolving tax regulations.Key Takeaways:Career Transition and Passion: Florian shares his journey from a political background to VAT specialization, inspired by his love for internationalism and global work environments.Importance of Networks: Building a reliable network of tax professionals globally is crucial for effectively managing VAT obligations across different regions.Evolving VAT Landscape: The rise of e-commerce has significantly impacted VAT regulations, requiring businesses to stay adaptive and informed about international tax laws.Future of VAT Compliance: Upcoming changes in 2025, especially concerning digitally streamed events, will require global businesses to reassess their VAT strategies and ensure compliance.Proactive Tax Planning: Florian emphasizes the importance of early and ongoing dialogue with tax experts to avoid the pitfalls of late compliance and unanticipated tax obligations.Quotables"It's wonderful talking with the companies, understanding the issues and the questions they have. When you understand the VAT system in one country, you can use it in all the other countries. It's everywhere, more or less working the same, but with some local specifics.” -Florian Hanslik [08:05]"E-commerce platforms are now being taxed and marketplaces are taxed. Now we have big changes coming in 2025 where events that are streamlined are being taxed when it's streamlined to a private individual. So if there's an event in the U.S and somebody sitting in Switzerland is participating at this event because it is streamlined and they are paying for this, then this event organizer has to register in Switzerland and has to challenge VAT.” -Florian Hanslik [15:30]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this enlightening episode of "Women to Watch in Sales Tax," host Diane Yeter sits down with Tram Le, Senior SALT Manager at TaxOps, to delve into the intricacies of state and local tax compliance. Tram shares insights into the multifaceted services provided by TaxOps and underscores the importance of proper tax strategy and audit support. As an expert in the nuanced area of sales tax, Tram's perspective is a must-listen for those navigating this often misunderstood field.TaxOps is portrayed as a small yet powerful boutique firm that is a one-stop solution for state and local tax needs. Tram emphasizes the critical nature of advisory services and the role of technology in achieving compliance. She also discusses her rewarding experiences as an educator at the University of Texas in Arlington, where she imparts her knowledge to graduate tax students. Tram's passion for teaching and her pride in enlightening students about the complexities of sales tax shine through, making this episode both informative and inspiring.Key Takeaways:Comprehensive SALT Services: TaxOps offers a full spectrum of state and local tax services, including consulting, advisory, audit support, and tax software recommendations.Educational Impact: Tram finds great reward in teaching state and local tax at the University of Texas in Arlington, noting the excitement and interest of her students as a significant accomplishment.Undervalued Field: State and local tax is often underestimated in terms of complexity and importance. Tram encourages professionals to recognize and value their expertise in this specialized area.Women in Sales Tax: Tram advises women in the field to be proud and confident in their work, recognizing the significant value they bring to their organizations.Continuous Learning: Staying updated and spreading awareness about the complexities of sales tax can lead to better compliance and a greater appreciation of the field.Subscribe on your favorite podcast app:https://saltovation.captivate.fm/listenhttps://linktr.ee/taxops Follow Us on Socials:https://www.linkedin.com/company/taxops-llchttps://www.youtube.com/channel/UCMB1ZQNGXM_F777SIEl8Vjw Talk To A Tax Advocate Today:https://taxops.com/contact/

In this episode of the SALTovation podcast, Judy Vorndran focuses on the current challenges facing the accounting profession, particularly the shrinking pipeline of accountants. Judy highlights how the SALT field offers a dynamic and intellectually stimulating career path. She also discusses the various career trajectories within the field, from litigation to compliance to technology implementation, each presenting unique challenges and opportunities.*The number of taxing jurisdictions in the U.S. is hard to capture at any one point since it is a moving target. As of June 2024, by some counts, there were over 13,000 taxing jurisdictions combined from 45 states and the District of Columbia, which have a general sales tax, and 38 states with local sales taxes.*Key Takeaways:Multifaceted Nature of SALT: The interplay between legal analysis and compliance makes the SALT profession both challenging and rewarding.Diverse Career Paths: Opportunities within SALT extend beyond traditional roles, encompassing litigation, technology, and international tax issues, among others.Intellectual Engagement: The logical and strategic aspects of tax law require creativity and decisiveness, making it an engaging field for problem solvers.Educational Gaps: There's an ongoing need for more focused SALT education in accounting and law programs, despite its pervasive impact on everyday life.Practical Impact: Knowledge in SALT is crucial given its daily impact, from sales tax to property tax, underlining the importance of skilled professionals in the field.Quotables"As a CPA, you read the laws and you learn to apply them. That makes you a big part of America.” -Judy Vorndran [06:51]"Every single day we are all impacted by state and local taxes, our property taxes on our housing, our sales taxes on our food, our mobile telephone, our WiFi, and our electricity bill. There is tax all over the place in America and we just don't even see the bite-sized pieces it takes out of our pie.” -Judy Vorndran [09:30]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of the SALTovation podcast, Diane Yetter, President and Founder of YETTER Tax and the Sales Tax Institute shares insights on streamlining tax administration, the impacts of COVID-19 on tax enforcement, and the critical importance of choosing the right tax automation solutions. Diane also addresses the complications arising from differing taxability rules within Colorado, Louisiana, and Arizona, highlighting the need for conformity and how the current tax automation tools often fall short. SALTovation listeners can get 10% off Sales Tax Institute training with discount code: SALTovation10Key Takeaways:Streamlining Tax Administration: The necessity for states, particularly those with home rule jurisdictions like Colorado, to simplify and unify taxability rules and compliance processes.Impact of COVID-19 on Tax Enforcement: Post-pandemic changes in audit practices and enforcement highlight the need for businesses to stay vigilant and prepared.Tax Automation Pitfalls: Common mistakes businesses make when implementing tax automation solutions without adequate consultation, and the importance of ensuring that tax software meets the specific needs of a company.Transaction Due Diligence: Insights into the due diligence process, especially in M&A activities, emphasizing the risks of unknown liabilities and the benefits of voluntary disclosure agreements.Global Tax Compliance: Financial and administrative burdens faced by businesses selling internationally, with specific focus on VAT compliance in the EU and other regions.Quotables“A lot of these newer, smaller platforms don't realize the complexities and are setting up their taxability rules based solely on what the state rule is.” -Diane Yetter [01:40]"Ignorance is never an excuse. If you are in business, you have an obligation to know all of the laws that apply to your business.” -Diane Yetter [24:15]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of the SALTovation podcast, Judy Vorndran discusses the vital role data plays in sales tax compliance, especially in an era where businesses often operate beyond traditional storefronts. She elaborates on why software often fails to completely address tax needs, and takes an in-depth look at the complexities introduced by home rule jurisdictions and how they influence the overall tax compliance profile of a business.Topics discussed in this episode:Data Integration: Properly integrating billing, inventory, and customer data is crucial for accurate sales tax compliance.Software Limitations: Many software solutions offer a minimum viable product that may not cater to specific business needs, highlighting the importance of manual oversight.Nexus and Tax Mapping: Understanding what constitutes nexus and accurately mapping taxability are key to avoiding compliance pitfalls.Home Rule Complexities: Jurisdictions with home rule can significantly complicate the tax compliance process, requiring businesses to stay informed about various state and local regulations.Automation Cycle: The cycle encompasses data gathering, system integration, and continuous updates to reflect changing tax laws and business operations.Quotables"You need to understand all the things in the cycle, the entire machinery in your business process. We have had to morph our world of automation to understand that process." -Judy Vorndran [13:25]“The issue with home rules is that we don't have one system of record. We have several home rule states where there are separate filings for the cities than there are from the state. We have a subsystem” -Judy Vorndran [21:33]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of the SALTovation podcast, Diane Yetter, Founder of the Sales Tax Institute, returns to share valuable insights into sales tax education, significant legislative updates, and advances in the industry. Diane discusses the challenges businesses face with Nexus, audit complexities, and the importance of choosing the right sales tax software. She also shares her experience testifying before the U.S Senate Finance Committee, emphasizing the need for standardized e-commerce thresholds and reduced compliance burdens for businesses. SALTovation listeners can get 10% off Sales Tax Institute training with discount code: SALTovation10Topics discussed in this episode:Sales Tax Nexus: Nexus remains a critical topic, with ongoing debates about physical and economic standards across different states.Audit Preparedness: Post-COVID, states are reactivating audits. Proper documentation and exemption certificate management are more vital than ever.Software Solutions: Companies must carefully select sales tax software that fits their specific needs, considering evolving sales channels and technological changes.US Senate Testimony: Diane Yetter highlighted the importance of reducing compliance burdens and achieving consistent economic Nexus thresholds.Continuous Education: The Sales Tax Institute offers numerous resources, including webinars, on-demand classes, and community forums that help professionals stay updated on tax laws and best practices.Quotables“We really need to reduce the burdens on business. Physical nexus standards and inconsistent application of them across the states is an issue. We need to have some sort of consistency so that businesses know exactly what is going to create nexus.” -Diane Yetter [06:32]“There are many more products on the market today, so being able to share about that and also sharing: How do you go about selecting the right one for your business? There are so many out there, it's so easy to get confused about which one should I actually use. Which one meets your needs?” -Diane Yetter[18:06]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of the SALTovation podcast, we continue our conversation with Nancy Prosser, General Counsel at the Multistate Tax Commission, on the purpose and work of the MTC in promoting uniformity and assisting taxpayers with compliance in state and local tax matters. She explains how the MTC develops model statutes and regulations, and the challenges they face in getting states to adopt them. Nancy also shares insights into the selection process for uniformity projects and highlights the current projects focused on the taxation of digital products and partnerships. Listen this week as Nancy addresses the complexities of adopting and adapting MTC recommendations and the role of stakeholder input in the process.Topics discussed in this episode:The MTC's purpose is to facilitate the appropriate determination of tax liability, promote uniform tax systems, assist taxpayer compliance, and avoid duplicate taxation.States are sovereign entities and thus decide independently whether to adopt MTC's model statutes and recommendations.Uniformity projects at the MTC can be initiated by both member states and public stakeholders, showcasing a collaborative effort toward state tax policy refinement.The MTC actively studies tax policy and aims to offer resources and models to better handle emerging and complex tax issues, like the taxation of digital products and partnerships.Quotables“It is an ongoing effort. I don't know that there's ever going to be a perfect way for the MTC to spread the word, but we appreciate opportunities again like this podcast and the technology that we have today to reach out and talk to people and do the best we can to explain who we are and what we do. We are hoping to develop good models that show people how to do it well and do it right.” -Nancy Prosser [10:03]“The essence to me of those projects are studying these areas to see, okay, what's going on in the economy on this front, what are the states doing or not doing and how, you know, collectively with, again, that stakeholder input, can we perhaps make recommendations that will help everybody do it more easily.” -Nancy Prosser [19:05]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of the SALTovation podcast, we speak with Nancy Prosser, General Counsel at the Multistate Tax Commission. Nancy shares her experiences navigating through the complexities of introducing major legislative tax changes and discusses the intricacies of rule-making and policy development. She also talks about the importance of collaboration and transparency within the tax community, be it through engaging with different states' revenue departments or fostering constructive dialogues within the MTC.Listen this week as we take a look at the evolution of tax legislation and policy from the trenches of legal administration to the broader scope of multi-state coordination. Topics discussed in this episode:Nancy Prosser's unconventional journey into state and local tax The implementation of Texas' franchise tax reform: heavy emphasis on rule development, training, and taxpayer education to ensure a smooth transitionThe Multistate Tax Commission plays a pivotal role in addressing interstate tax policy issues and fostering a collaborative approach amongst state tax administrations.The symbiotic relationship between tax professionals across sectors and the mutual growth derived from sharing expertise.Quotables“We brought the multistate tax commission in to do training to help taxpayers and practitioners understand how the comptroller's office was going to administer this very major shift.” -Nancy Prosser [08:38]“As I advanced through the agency and had more of a kind of global perspective on the agency itself in our work, it dawned on me more and more that decisions that were made in terms of tax policy did not just affect Texas, obviously, but did impact the world because so many people were doing business in Texas.” -Nancy Prosser [20:43]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of the SALTovation podcast, we continue our conversation with Sandra Wiley, President of Boomer Consulting - an organization dedicated to guiding CPA firms towards success by leveraging leadership, talent, growth processes, and technology. From the hard truths about work-life balance to the strategic dilemmas CPA firms face, Sandra discusses the importance of embracing change, spreading decision-making power, and having the correct mindset. Listen this week as we talk about the growing significance of the accounting profession and the incredible potential it holds for future generations of professionals. Topics discussed in this episode:The accounting profession is undergoing a transformative shift, prioritizing work-life balance and cultural adaptation in the recruitment and retention of talent.Effective leadership and navigating change are pivotal in the modern accounting landscape, particularly demonstrated during the transition to remote work practices.Creating uniform processes in CPA firms can significantly enhance efficiency, but success hinges on the commitment and adaptability of all team members, not just technology.The next generation of accountants is motivated by different values, such as community service and societal impact, requiring a shift in how the profession is presented to potential recruits.Unveiling the true functional dynamics within a firm leads to valuable process improvements.Quotables“Firms today have to tune into what the next generation is defining as important to them. We have to meet them where they're at. We cannot impose our life and how we lived our life on them.” -Sandra Wiley [06:09]“The accounting profession is on the brink of being one of the most important professions in our entire world. It is right in front of us to start developing and changing that business model so that we can get there faster with our clients, to be their advisors, their consultants, and their partners in their businesses.” -Sandra Wiley [26:22]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of the SALTovation podcast, we speak with Sandra Wiley, President of Boomer Consulting - an organization dedicated to guiding CPA firms towards success by leveraging leadership, talent, growth processes, and technology. Sandra shares her unique perspective and critical strategies that drive CPA firms. Building a connected community through meaningful relationships can enable firms to create a culture that fosters collaboration and allows individuals to thrive. Listen this week as we discuss the progressive edge of CPA firms today, focusing on community, leadership, and diversity.Topics discussed in this episode:CPA firm consultation: focusing on community, holistic leadership, and innovationCommunity building is crucial, particularly with remote work, fostering relationships and collaboration Holistic leadership: considering the whole person, integrating personal and professional lives for a balanced approach to management.How CPA firms are evolving in an increasingly competitive spaceProactive adaptation to automation and resource diversification is key to future-proofing CPA firms Quotables“When I think of holistic leadership today, it's looking at the whole person. When we look holistically at who people are, the human side of them, they are personal and professional. Diversity and inclusion and feeling like you belong somewhere, that is a part of well-being.” -Sandra Wiley [13:15]“Young people are coming into firms today with a long list of all the questions they have for ‘what are you going to do for me?' There are a lot of people who hate that, but that's what they're doing. They're going to come through the door and ask ‘What kind of training are you going to give me?', ‘What do I do if my kids are sick? Can I work from home three days a week? If we don't have good answers, they will walk down the street and find another company that will give them what they want.” -Sandra Wiley [25:00]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!Talk To A Tax Advocate Today:https://taxops.com/contact/

This episode originally aired on: https://www.boomer.com/post/e174-billing-time-vs-delivering-value-shifting-mindsets-in-the-cpa-industryOn this episode of the Boomer Briefing Podcast, Allen Gregory, Partner, Federal Tax at TaxOps, talks about billing time versus delivering value to clients. Allen and host Marc Staut, Shareholder and Chief Innovation and Technology Officer at Boomer Consulting, dive into how removing hourly rates can add value to client relationships and improve an accounting firm's client retention.Allen shares how TaxOps has used value-based pricing since its inception. This experience has taught us how fixed-fee pricing creates collaborative client relationships and a culture of trust and accountability within the firm. Two key components, clear communication and experienced staff, are also key to ditching charge hours and making fixed-fee engagements work for clients, staff and partners.Subscribe on your favorite podcast app:https://saltovation.captivate.fm/listenhttps://linktr.ee/taxops Follow Us on Socials:https://www.linkedin.com/company/taxops-llchttps://www.youtube.com/channel/UCMB1ZQNGXM_F777SIEl8Vjw Talk To A Tax Advocate Today:https://taxops.com/contact/

This week we continue our discussion with Paul Miller, Vice President & Deputy Director of the ACMA, and David Swetnam-Burland, Partner at Brann & Isaacson. As remote sellers navigate the new state tax laws and consumer privacy regulations, the need for federal legislation to provide clarity and consistency for businesses operating across multiple states has increased. Listen as we discuss the impact of local home rule cities, such as in Colorado, on compliance efforts and how the ACMA advocates for federal solutions to protect their members and promote industry growth. Topics discussed in this episode:The MTC's updated interpretation attempts to align tax laws with the digital era, impacting businesses that operate online.The definition and application of 86-272 is a central point of contention, with states leveraging different interpretations to expand their tax bases.Legal challenges, especially in California and New York, are proving pivotal in establishing how nexus laws apply and are enforced.Local compliance, notably in Colorado's home rule cities, adds complexity to the remote sellers' tax obligations and merits close legal attention.Quotables“From the ACMA's perspective, our approach, as I mentioned earlier, is always to try to get a federal bill passed into law, because organizations like ours, we're very small comparison to, say, the milk industry or something. We're serving a pretty specific constituent, and they are located throughout the states and they're being chased by different states, and we don't have the means to chase after those states to defend them.” -Paul Miller [17:51]“It is one thing for the Supreme Court to say we created a rule in 1992, now we're in 2018. We don't like our rule as much as we did then, or the composition of our court has changed sufficiently so that we no longer have five votes in favor of that rule.” -David Swetnum-Burland [03:50]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of the SALTovation podcast, Meredith interviews two experts - Paul Miller, Vice President & Deputy Director of the American Catalog Mailers Association (ACMA), and David Swetnam-Burland, Partner at Brann & Isaacson, Both of them are well-versed in state and local tax laws. They discuss the changes in tax regulations that have taken place after the Wayfair decision, the ACMA's mission, and the legal challenges that businesses are facing today. They also talk about the efforts being made to address the complications that arose after the Wayfair ruling, which led to a significant shift in sales and use tax obligations for remote sellers.Topics discussed in this episode:ACMA, with Paul's guidance, has extended its advocacy from catalog mailers to encompass a broader range of remote marketers, responding to the industry's digital transformation.Wayfair ruling's aftermath has led ACMA to push for federal legislation that simplifies sales tax collection, addressing the complexities of state-by-state compliance.David highlights the legal challenge against California's interpretation of Public Law 86-272, emphasizing the importance of federal precedence over state tax regulations.The legal battle resulted in a favorable ruling for ACMA regarding California's Technical Advice Memorandum and Publication, which may affect future state tax policy.The intricacies of sales and income tax laws post-Wayfair pose significant burdens on businesses, especially smaller entities, and ongoing advocacy and legal efforts are crucial in addressing these challenges.Quotables“The ACMA's original mandate was to keep postage rates in checked for catalogs, and we've done so quite effectively throughout to the present day. We evolved over the years, and in the early two thousand and ten s, I guess we call it, we picked up on the growing efforts to overturn the 1992 standard in quill versus North Dakota, which upheld that catalog, and other direct marketing companies were not required to collect sales or use taxes from customers residing in states in which those companies have no physical presence.” -Paul Miller [01:54]“As much as the states might like to change the policy in this area, we don't believe, and the ACMA doesn't believe, that a public guidance document or a state tax regulation from a state level is a way to do that. This is a federal statute under the supremacy clause. It provides a clear rule for and I think one thing the states tend not to appreciate is the ACMA and our client base are businesses of all sizes.” -David Swetnum-Burland [08:35]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of the SALTovation podcast, we continue our conversation with Mike Bernard, VP of Tax Content and Chief Tax Officer at Vertex, a global provider of indirect tax software solutions. We examine the threefold increase in fee impositions within three years, underpinning the expectation of continued expansion in this domain. We also explore the burgeoning landscape of state and local taxation, where green fees, neighborhood assessments, and intricate policies intertwine with local economies and legislative nuances. Mike also shares insights on the future of sales and use taxes, the impact of commercial real estate devaluation, and the potential taxation of services. Topics discussed in this episode:There's been a significant increase in environment-related fees, which is reflective of a broader trend towards eco-conscious taxation.Fees are emerging as a preferred alternative to sales tax increases due to the ease of implementation and their transaction-based nature.Diverse new fees create operational and compliance challenges for businesses, requiring sophisticated tax software and calculated strategies.The sales and use tax is positioned to become more prominent in funding state budgets, especially considering economic downturn resistance and recovery.Professional services taxation complexity may continue to be addressed indirectly through audit practices, while explicit taxation of services remains a point of debate.Quotables“Fees can be passed with relative ease. They're easy to audit because it's on normally a per-transaction basis. And so I think if you think about how local communities or local districts want to continue to raise revenue without raising the sales tax rate, these are going to be a significant portion of that. And I will tell you this, a lot of our customers are very aware of this and they want to make sure that at least we stay apprised of making sure that in our monthly data update, we get those fee positions updated with that as well, so that they're charging proper fees as well.” -Mike Bernard [01:43]“The devaluation of commercial real estate in the urban cores puts pressure on budgets. So you're seeing this massive kind of revaluation because people are either hybrid work or they're not having to go in five days a week. And so now these commercial buildings are being revalued. And so property tax revenues are starting to be greatly impacted.” -Mike Bernard [13:37]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of the SALTovation podcast, we speak with Mike Bernard, VP of Tax Content and Chief Tax Officer at Vertex, a global provider of indirect tax software solutions. As tax complexities increase and technology advances, Mike shares his invaluable insights drawn from his vast experience in the tax domain. We delve into the role of a Chief Tax Officer at a software company, the importance of understanding clients' unique needs, and the challenges of implementing and upgrading tax technology. Mike also shares insights on the future of sales tax compliance and the work Vertex does to advocate for administrative ease and efficiency in tax policy. Topics discussed in this episode:Mike brings a wealth of experience from his background as US Tax Counsel at Microsoft and now as Chief Tax Officer at Vertex.Vertex Inc. prioritizes staying current with tax updates through monthly data updates and maintaining solid professional relationships with Departments of Revenue.The conversation highlights the importance of adaptable tax software in handling various sales scenarios, including bundles and emerging digital assets like NFTs and cryptocurrencies.The need for upfront investment in understanding business systems to create efficient and compliant tax reporting solutions.Engagement with Multi-State Tax Commissions and Departments of Revenue helps Vertex in navigating and influencing the administrative aspect of evolving tax policies without direct lobbying.Quotables“One thing that you find out at Vertex when you serve a larger community of customers is that you have to come with this idea that they're all on their technology journey. Nobody's ever the same. Even though they may be in the retail business as an industry, or they may be in oil and gas, or they may be in leasing, or they may be in financial services, they're all at a different place as you move along their journey as to how technologically capable they are of serving not just their internal corporation, but their customers.” -Mike Bernard [07:49]“You always have to gauge yourself and give them the ability to move up or move down wherever they're at in that space and serve them the best that you can. some clients require a more handheld type of service and others, you can put things out there and give them a direction. then check back with them in a week and they will have accomplished some of the things that they set out to do.” -Mike Bernard [12:10]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of the SALTovation podcast, we continue our discussion with Richard Jones, attorney at Sullivan & Worcester, on recent landmark cases and their implications on tax policies and practices. Richard discusses two important state and local tax cases: Akamai and Bass Holdings. We delve into the complexities of determining whether a company is selling software or services, and the taxation implications. We also explore the concept of unitary business and its impact on apportionment. Listen as we provide valuable insights into the nuances of these cases and offer advice on navigating state and local tax issues. Tune in to gain a deeper understanding of these key topics in the world of taxation!Topics discussed in this episode:The pronunciation and role of Akamai in the technology and tax world, exemplify the challenges in classifying software versus services within taxation.The significance of the unitary business principle in SALT litigation and its application in recent tax cases, specifically referenced in the 'Vas Holdings' debate.An explanation of how court decisions can overturn long-standing tax policies, offering a fresh perspective on statutory interpretations and SALT applications.Richard's experiences in the courtroom, shed light on the strategies used in SALT litigation to secure favorable outcomes.The encouragement to question accepted tax policies and insights into the pendulum of taxpayer victories in recent SALT litigation.Quotables“Get a good tax advisor to know the difference between the tax rules that really shouldn't be challenged and those that might have some grounds for looking further into.” -Richard Jones [29:40]“The pendulum can change, though, if you get more aggressive positions taken by the Department of Revenue, you tend to have more success from taxpayers as long as there's not too much deference and some fresh looks at by the courts or the judges as to the proper application.” -Richard Jones [32:42]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of the SALTovation podcast, we speak with Richard Jones, an attorney at Sullivan & Worcester in Boston, specializing in state and local tax for over two decades. Richard dives into two significant Massachusetts court cases: Oracle USA Inc. and US Auto Holdings. In the Oracle case, the Massachusetts Supreme Judicial Court upheld the ability to apportion sales tax for software sales and clarified the parameters of the Commissioner of Revenue's authority. In the US Auto Holdings case, the court struck down the concept of "cookie nexus" and denied the state's ability to retroactively apply the Wayfair decision. Listen this week as Richard provides insights into the implications of these cases and their potential impact on other states.Topics discussed in this episode:State and local tax issues often involve unsettled and controversial areas, making them interesting and challenging for attorneys.Apportioning sales tax for software sales is a reasonable approach and should be considered in other states.The concept of "cookie nexus" is not valid, as physical presence requires something tangible.The Massachusetts Supreme Judicial Court's decision in US Auto Holdings prevents the retroactive application of the Wayfair decision.Quotables“Many states, like Massachusetts, have changed the definition of tangible personal property to say things that are tangible personal property plus software. We're just calling it a fiction. Fine. Okay. But what happens then is that now you have something that can be used simultaneously and exists simultaneously in many different states at the exact same time.That doesn't happen with the widget. So you have a new question.” -Richard Jones [09:57]“After the oracle decision, the floodgates opened for everyone filing abatement claims that didn't think they could before. And we've seen shifting sands in terms of the degree in which the department will be satisfied with the apportionment. I can't say I am happy with the way the sands have been shifting. Sometimes you can find out exactly what percentage of your employee headcount use the software and where they are because the software has a technology and sometimes you can't.” -Richard Jones [21:02]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of the SALTovation podcast, Stacey Roberts and Meredith Smith speak with hosts of the TaxChats podcast, Scott Dyreng, Professor of Accounting at Duke's Fuqua School of Business, and Jeff Hoopes, Associate Professor at Kenan-Flagler Business School at the University of North Carolina at Chapel Hill. They discuss the $10,000 state and local tax (SALT) deduction cap and explore the impact of the cap on taxpayers, particularly in high-tax states. They discuss various strategies and issues related to SALT, the political dynamics surrounding the cap, potential future changes, and the complexities of filing taxes in multiple states. Topics discussed in this episode:The $10,000 state and local tax deduction cap and its impact on taxpayersThe cap's effect on business owners with income flowing through multiple statesImpact of the cap on taxpayers in high-tax states like California, New York, and New JerseyThe potential future of the salt cap and the political dynamics surrounding itWorkarounds implemented by some states to mitigate the impact of the capImplications of state income tax on personal salaries and employment taxesThe complexity of filing taxes in multiple states and the potential for double taxationQuotables“Another part that we haven't mentioned here is also very important is this deduction only exists for people if you itemize your tax itemize on your tax return. So that's like 90% of taxpayers don't itemize their tax return. And it's pretty much just like with income. So the 90% 90% of taxpayers the lower income people the 90% lower. So a lot of people don't itemize at all. This doesn't have any effect. So you're only starting with the 10% richest people. And then from there only the people that like exceed that $10,000.” -Jeff Hoopes [11:05]“It's kind of like letting the business pay the tax at the state level, not having it flow through and then only flowing through the after-tax amount. Whereas in the pre world, I was like flowing through the whole amount and being forced to pay a claim. It was like an individual thing. So it sort of converted it from an individual tax to a business tax.” -Scott Dyreng [21:37]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

As we continue our discussion with Brad Scott, Director of Finance at Halstead Bead, Inc., an eCommerce wholesaler supplying jewelry businesses worldwide, Brad shares the challenges faced by small businesses in complying with state and local tax (SALT) regulations. He highlights the high costs of compliance and the potential consequences of non-compliance. Brad emphasizes the need for amnesty and a simplified and streamlined approach to help small businesses become compliant. He also calls for a centralized database of SALT rules and regulations to make compliance easier for businesses.Talking Tax Reform: https://taxfoundation.org/event/post-wayfair-remote-sales-tax-reforms/Guest Bio:Brad Scott is the Director of Finance at Halstead Bead, Inc., an eCommerce wholesaler supplying jewelry businesses worldwide. Halstead is a second-generation, family-owned, small business. Scott has been with Halstead for 21 years. He handles multi-state sales and income tax registrations, filings, reconciliations, and all other accounting for the business. Scott also leads Halstead's legislative advocacy efforts to achieve multi-state sales tax policy uniformity & simplification and is the Chairman of the Committee on Tax Policy at the American Catalog Mailers Association (ACMA). Halstead Bead, Inc. was the plaintiff in a lawsuit against the State of Louisiana, represented by Joe Bishop-Henchman and Tyler Martinez of the National Taxpayers Union (NTUF). Scott graduated from Michigan State University with a BA in Finance.Topics discussed in this episode:Compliance with SALT regulations is costly and time-consuming for small businesses.Non-compliance can lead to significant financial penalties and even the closure of businesses.Amnesty should be considered as a solution for businesses that are not currently compliant.A centralized database of SALT rules and regulations would greatly simplify compliance for businesses.Quotables“I think the solution is going to be unpalatable from a policy position, but from a humane position. Amnesty is something that has to be considered and it's going to have to come out of the state houses of regulation and legislation because coming from Washington is going to be seen as a preemptive attempt.” -Brad Scott [06:20]“You've got practitioners, you've got businesses, and you've got policymakers. All of them need to recognize the role they play in this. A lot of business owners are afraid of putting their hands up for fear of being audited. But the reality is, until the people that make the decisions understand the vastness of this problem, they're not going to address it. ” -Brad Scott [21:55]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

This week on the SALTovation podcast we speak with Brad Scott, Director of Finance at Halstead Bead, Inc., an eCommerce wholesaler supplying jewelry businesses worldwide. Brad discusses the challenges and costs of sales tax compliance for small businesses. He shares his personal experience with the Wayfair decision and the impact it had on his company. He talks about the need for greater simplicity in tax policy to drive compliance and reduce the burden on small businesses. He proposes solutions such as a single audit per year from a designated taxing authority and a single rate model for states. Listen this week as we discuss the need for collaboration between business leaders and policy leaders to find effective solutions. Talking Tax Reform: https://taxfoundation.org/event/post-wayfair-remote-sales-tax-reforms/Guest Bio:Brad Scott is the Director of Finance at Halstead Bead, Inc., an eCommerce wholesaler supplying jewelry businesses worldwide. Halstead is a second-generation, family-owned, small business. Scott has been with Halstead for 21 years. He handles multi-state sales and income tax registrations, filings, reconciliations, and all other accounting for the business. Scott also leads Halstead's legislative advocacy efforts to achieve multi-state sales tax policy uniformity & simplification and is the Chairman of the Committee on Tax Policy at the American Catalog Mailers Association (ACMA). Halstead Bead, Inc. was the plaintiff in a lawsuit against the State of Louisiana, represented by Joe Bishop-Henchman and Tyler Martinez of the National Taxpayers Union (NTUF). Scott graduated from Michigan State University with a BA in Finance.Topics discussed in this episode:Sales tax compliance is a significant challenge for small businesses, requiring extensive time and resources.Simplifying tax policies and reducing the number of audits can drive greater compliance and reduce costs for businesses.The single rate model, as implemented in Texas, can significantly streamline sales tax collection and administration.Collaboration between business leaders and policy leaders is crucial to finding effective solutions for sales tax compliance.Quotables“There is an equal lack of awareness on the part of policymakers about what goes on within a small business, the challenges that we face, and what kind of resource drain they present. That has been the key focal point of our advocacy, bringing to bear the actual resource that we have to put into this and helping legislators to understand what a reasonable expectation is so that we can comply but also serve our customer base.” -Brad Scott [04:40]“If you start thinking about the sheer volume of businesses that are out there, I question how any state Department of Revenue could reach out to all of the businesses in every single state outside of their territory. It's just not a fair ask. So when you start talking about the sheer volume of communication that's not occurred, how many businesses are unaware of the Wayfair decision?” -Brad Scott [11:39]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this special 75th episode of the SALTovation Show, we are excited to bring you a rerelease of our very first episode! Join us as we take a trip down memory lane and get to know some of the SALTovation members who have been instrumental in our growth and success over the years.In this premiere episode, we will share our extensive years of experience in the field, as well as our personal journeys of when and how we joined TaxOps. Discover what drives these passionate professionals and hear their valuable insights and answers to questions from both business and non-business owners about tax.Topics discussed in this episode:Tram Le is a member of SALTovation and has over 10 years of working in the state and local tax. She shares her journey in the tax sector, and why she enjoys working at SALT. Judy Vorndran is the head of the state and local tax practice and has been practicing for 25 years. She shares her journey in the tax sector and the transition she has seen in her 25 years of practice.Alexander Korzhen's 15-year journey in state and local taxStacey Roberts shares her journey from federal tax to SALTUnderstanding the layers of the state and local tax blueprint whether as a small or large business. The assumption that all CPAs know about local and state taxes. Look where you can add value to your client as a CPA.How to understand Nexus when traveling for business from state to state.Quotables:“SALT is navigating the gray area that exists when laws are not written specifically to business and are not keeping track with business.” -Alexander Korzhen“There are layers upon layers of taxes across our nation that apply to each and every business.” -Judy Vorndran“A nexus questionnaire is really a fishing expedition from a state.” -Stacey RobertsConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!Talk To A Tax Advocate Today:https://taxops.com/contact/

This week on the SALTovation podcast we continue our discussion on the ever-changing landscape of state and local tax. Jordan Goodman, Attorney at HMB Law, discusses the changing landscape of state and local tax, focusing on the investee allocation cases and the shift from considering the location of the business to the location of the asset being sold. He highlights the confusion and lack of clarity in state tax laws, emphasizing the need for uniformity and clear guidelines. Jordan also touches on the challenges of remote work and the impact of automation on tax audits.Topics discussed in this episode:The investee allocation cases have changed the game in state and local tax, shifting the focus from the location of the business to the location of the asset being sold.The distinction between intangible and tangible assets is fading in the courts' minds, leading to the treatment of the sale of an asset as the same as the sale of the thing that owns the asset.State tax laws lack uniformity and clarity, causing confusion and challenges for businesses and tax professionals.The rise of remote work and automation has made tax audits more efficient and increased the likelihood of audits for businesses of all sizes.ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

This week on the SALTovation podcast we discuss the ever-changing landscape of state and local tax with guest Jordan Goodman, Attorney at HMB Law. Jordan highlights the rapid pace of developments in SALT and the challenges faced by businesses and taxpayers. Jordan talks about the need to understand the impact of changing policies and regulations on businesses and individuals. He also discusses recent court cases and their implications for taxpayers. Jordan raises concerns about retroactivity in tax laws and the need for fair and transparent processes in tax administration. Listen as Jordan shares his thoughts on the taxation of digital advertising and the evolving nature of nexus rules. Topics discussed in this episode:States' competition and the need to expand tax basesHow retroactivity in tax laws creates challenges for taxpayers and may violate due processChallenges faced by smaller retailers in dealing with compliance burdensAlternative apportionment and the court's role in determining its applicabilityThe need for a more comprehensive approach to apportionmentHow taxpayers can engage with state and local jurisdictions to address tax issues and work towards fair and reasonable solutions.Quotables:"I think the competition among the states and the locals now are really emphasized because everybody went to a single sales factor. You have to import it. But now they're realizing there's limitations to that and they've got to look at things differently. ” -Jordan Goodman [04:30]“The government is looking for the ability to raise revenue without offending the electorate by putting it on people. Whether it's corporations, which always was the tag, but now it's wealthy individuals. They don't pay their fair share, so you're kind of pushing the burden out to other people. And the wealthy people only get one vote. So it's a very good common man type argument.” -Jordan Goodman [08:06]“If you're going to pass a regulation it has to go through a certain process and you have to have open comments and time for it and meetings and it's got to go for a first reading and a second reading and all the states are different. It's a unique way to challenge things but it can be very effective.” -Jordan Goodman [16:04]“I was raised with this principle that as an advocate, I can argue both sides of any issue and I actually think I'm obligated to do it. The state should pick a side, right? They have to decide what side they're on and go with it. Now, you may make half the people angry and half the people sad, but that's the choice they have to make for advocates. We can argue both sides and in fact makes my wife very angry when I just play devil's advocate because that's.” -Jordan Goodman [24:15]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

This week on the SALTovation podcast, we continue our conversation with Katherine Loughead, Senior Policy Analyst at the Tax Foundation, on various state and local tax issues. Katherine discusses the impact of the Tax Cuts and Jobs Act (TCJA), the trend of state tax reform and relief, and the challenges of tax policy in a complex political landscape. Katherine also touches on the importance of broadening tax bases and lowering rates, as well as the need for simplicity and transparency in tax laws.Topics discussed in this episode:The TCJA eliminated the deduction for entertainment expenses and imposed limitations on state tax deductions, which has had a significant impact on high-tax states.Many states have been implementing income tax rate reductions in recent years to promote tax competitiveness and economic growth.New Mexico and South Dakota have broad sales tax bases, which has motivated them to reduce sales tax rates.The complexity and lack of transparency in tax laws can create challenges for businesses and taxpayers.There is a growing trend of states exploring new revenue sources, such as digital advertising taxes and wealth taxes, but it is important to consider the impact on economic growth and avoid picking winners and losers.Quotables:"In an ideal world, if you want to really have an ideal tax system where you can create a lot of economic growth and have simplicity, you should do things this way. But it gets messy because politics is politics and so you have to work within that system and do the best you can. But we like to talk to lawmakers about how ideally tax codes should look like they were designed on purpose. But a lot of times people are coming in and out of the legislature and new governors have vastly different agendas.” -Katherine Loughead [01:37]"This has definitely been the biggest wave of state income tax reform and relief the U.S has ever seen. With so many states reducing their rates, and many times, not just once, but several states have come in and reduced their rates twice over the last three years, several times. A lot of them are prescribing future rate reductions and then when revenue continues to come in stronger than they expected, they're able to then adjust those and bring rates down a little bit lower.” -Katherine Loughead [07:29]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

This week on the SALTovation podcast, Katherine Loughead, Senior Policy Analyst at the Tax Foundation, discusses the importance of sound tax policy and how the Tax Foundation is conducting tax policy research to inform policy deliberations at the state, federal, and international levels. She talks about the impact of the Tax Cuts and Jobs Act (TCJA) and the Wayfair decision on state tax policy. Katherine also emphasizes the need for states to adjust to the new normal, including the rise of remote work and the need to attract businesses and taxpayers. Topics discussed in this episode:The role of the Tax FoundationTrends in tax policy over the past five yearsStates' unexpected revenue surplus post-pandemicHow income tax complexity makes it hard to predict liabilitiesChallenges of property assessments and the public perception of taxesHelping the public understand tax systems Quotables:"The Tax Foundation is a nonprofit, nonpartisan 501 tax policy research organization and we've actually been around for over 85 years now and we work to advance sound tax policy at the state, federal, and international levels.” -Katherine Loughead [00:50]"Switching from federal to state has been interesting because so much happens every single year at the state level. So there are many ways you can help move the needle in the right direction. Instead of being a very small part of a big wheel, you're able to be one of a few players that are really having an impact, and that's been highly rewarding.” -Katherine Loughead [05:35]"We've had, of course, the pandemic and all of the state responses to that, everything that's happened at the federal level since then with federal aid and then now coming out of the pandemic, we've seen states have a lot more revenue on hand than they initially expected.” -Katherine Loughead [12:13]“People remember exactly what they paid in property taxes in a certain year, but don't add up all their receipts or have a strong sense of how much they're paying in sales taxes. It's a little bit here and a little bit there, but over time that adds up quite a bit. With income taxes, there's so much complexity to the income tax system where you get exemptions here and deductions there and then clawbacks here.” -Katherine Loughead [16:01]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of SALTovation, we continue our conversation with Olga Goldberg, SALT Partner at Pierce Atwood LLP. They discuss the importance of taxpayer advocacy and the surprising stance taken by the New Hampshire Department of Revenue Administration in a recent tax case and delve into the topic of taxpayers litigating against tax assessments, even when the amount at issue may not be significant. They highlight the importance of pushing the issue to get answers and establish precedents for future cases. They also touch on the uptick in battles over disclosing information in recent years and emphasize the need for clients to be prepared for the additional costs and challenges that may arise in tax litigation.Topics discussed in this episode:Potential risks associated with disclosing confidential taxpayer informationAdditional costs and risks associated with public disclosureHow states like Massachusetts and Connecticut handle residency and income taxMaine's recent confidential taxpayer decisionChallenges businesses face in protected information during legal proceedingsQuotables:"To establish a true answer, like Wayfair, it's probably not a big deal. Just go ahead and collect. You can agree on something, but at least you have that public answer that in theory, you know, people are going to be held to or states or businesses or whatnot.” -Olga Goldberg [02:51]"One of the recent battles that we've had which is not even a tax issue is confidential. The attorney general or the assistant AGs have been really pushing for the disclosure of confidential taxpayer information, like tax returns, and then just confidential information of the taxpayer, like details, of contracts and other information.” -Olga Goldberg [04:40]"Luckily, at least so far, trial courts seem pretty skeptical of the AG's arguments, they've been ruling in our favor, and they've been protecting this information. So, that's the good news, that it's not getting out there, but the bad news is that it's adding to the costs of a case that might not have a ton of evidence.” -Olga Goldberg [08:07]“Maine has a court-created second avenue to an exemption, which is that you can just file a declaratory judgment requesting an exemption, whether or not you have filed an application or whether or not you have requested abatement. So, you have two options, you can go the abatement route or you can go this declaratory judgment route.” -Olga Goldberg [20:22]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of SALTovation, Meredith Smith and Alexander Korzhen speak with Olga Goldberg, SALT Partner at Pierce Atwood LLP. Olga shares her journey into the field of law and specialization in state and local tax. Olga delves into the challenges and concerns surrounding remote employees, particularly concerning nexus and withholding. She discusses the current legal issues she consistently argues in state and local tax and the challenges and concerns associated with remote employees, particularly regarding nexus and withholding. Tune in to hear more about Olga's unique journey and insights into state tax.Topics discussed in this episode:Law is problem-solving in the real worldNavigating remote employee tax issuesCompliance with remote work taxesResidency audit complexitiesMaine Safe Harbor New Hampshire residency requirements explainedQuotables:"One of the reasons I like to work with our employment lawyers is because we talk a lot about, how we are going to document this information, and what kind of policies the company should have in place.” -Olga Goldberg [16:13]"There are two paths to being treated as a resident. One is common law domicile and two is statutory residency. So New Hampshire does not have a statutory residency. It's common law principles and they have a statute that defines what a residence is.” -Olga Goldberg [25:25]"If you're in a situation where you have this super low bar to clear to be treated as a New Hampshire resident under this department position, and you don't have a resident tax credit, which, to me, does not seem entirely constitutional, it's going to result in a lot of double taxation.” -Olga Goldberg [29:33]“The pandemic opened the playing field, but then you have these established larger employers who maybe they did and maybe they didn't shift their policies during the pandemic, but then they contracted again. So they're kind of shifting back because of these tax policies, tax rules, and the difficulty of compliance.” -Olga Goldberg [18:01]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of SALTovation, Meredith Smith and Judy Vorndran continue their conversation with Masha Yevzelman, Litigator at Fredrikson & Byron, P.A. They discuss the challenges of litigating tax cases and the lack of consistency in state tax laws. They highlight the need for factor presence thresholds and small business exemptions. Masha shares examples of significant cases, including a property tax exemption dispute between government entities and a residency case involving conflicting state interpretations. Masha, Judy, and Meredith emphasize the importance of understanding the impact of tax decisions on individuals and businesses.Topics discussed in this episode:Factor presence threshold standards for income taxChallenges faced by large businesses in tax litigationImpact of state tax rates on controversyTax consequences of residency decisionsShift in remote work and its impact on tax considerationsQuotables:"When you look at a visual of which states have factor presence for income tax purposes, it's pretty clear that it's a very small number of states. But what's interesting about the MTC position is the MTC said if you're going to adopt this website position state, you should have factor presence.” -Masha Yevzelman [01:27]"That's why the litigation is a challenge. You've got to have the big taxpayers doing it, not the little guys unless there's a giant class action that takes time, effort and bandwidth to support. So you just don't see the advocacy unless you're a large multinational business.” -Judy Vorndran [03:01]“Some cases really aren't suitable for settlement. Like I said, it's kind of an all or nothing proposition. It's an ongoing issue. Clients need certainty, too. And so even like settling a few years in an unprincipled way doesn't fix it because then what about all the later years where the facts are the same and the law is the same and what are we going to do then?” -Masha Yevzelman [04:50]"We're seeing more aggressive state positions. If you know that that's the position of the Department of Revenue and the auditor is applying it and the appeals officer is going to apply it, then really the only way to challenge it is through litigation.” -Masha Yevzelman [06:01]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of SALTovation, Meredith Smith and Judy Vorndran speak with Masha Yevzelman, Litigator at Fredrikson & Byron, P.A. She shares her journey into the field of law and discusses the various areas of law she practices, including tax disputes and litigation, and the increasing trend of audits and enforcement in state and local tax. Masha talks about her experiences with audits and trends in the field, including the increase in Nexus audits and residency audits. She also provides insights on remote employee compliance and the impact of marketplace laws.Topics discussed in this episode:The increasing trend of audits and enforcement in state and local taxLicensure issues when practicing in multiple statesThe potential impact of new legislation in MinnesotaThe challenges and compliance issues related to remote employeesThe Wayfair decision and marketplace lawsQuotables:“I'm seeing marketplace audits, because of the proliferation of the marketplace laws across the country, faster than anything has ever happened in the history of state and local tax, in two years.” -Masha Yevzelman [06:14]"I think in terms of audit trends, I think they're going to be going after 86 to 72 really hard, and that is getting litigated, and it's going to be litigated more and more.” -Masha Yevzelman [08:33]"I tell some of my clients it's three thousand a year in compliance costs to hire a remote employee. I'm sorry that you didn't realize your agnostic hiring policy was going to create all this compliance. You're there and you may not make any money, but you still have all these compliance duties.” -Masha Yevzelman [19:40]“I think remote work is a really big space right now in the advice side because I think the taxpayers and clients are kind of trying to figure out what do we do with all these remote workers. I think that will transition to the states doing something about it, too.” -Masha Yevzelman [20:34]Subscribe on your favorite podcast app:https://saltovation.captivate.fm/listenhttps://linktr.ee/taxops Follow Us on Socialshttps://www.linkedin.com/company/taxops-llchttps://www.youtube.com/channel/UCMB1ZQNGXM_F777SIEl8Vjw Talk To A Tax Advocate TodayTaxOps Website: https://taxops.com/contact/Production SupportThis episode was produced with support from Truth Work Media. www.truthworkmedia.com

Tax and Legal Challenges in the Cannabis Industry with Nick Richards: Part 2In this episode, Meredith and Judy continue their conversation with Nick Richards, partner and co-chair of the cannabis law group at Greenspoon Marder LLP. They explore the differences between the psilocybin and cannabis industries, specifically focusing on the challenges they face with federal regulations, taxes, and audits. Nick talks about the implications of the federal tax code 280E. He also discusses the economic benefits of marijuana businesses to their local communities, the stigma and education that still need to be overcome for progress to be made, and the potentially life-changing palliative effects of psilocybin for those suffering from terminal illnesses.Topics discussed in this episode:Tax implications for the psilocybin industry Cannabis industry challenges and opportunitiesThe battle against stigma in the psilocybin and cannabis sectorsWhat You Will Learn:01:00 The 280E “add-back”08:37 Stigma and challenges surrounding the use of psilocybin for terminal illness18:27 How tax professionals can help in the cannabis and psilocybin industries Quotables:“The psilocybin industry doesn't want to be compared to the marijuana industry. The problem is that the federal government is going to see them the same and the roadmap that we have, the experience that we have, is from the cannabis industry.” -Nick Richards [00:25]“When the cannabis industry got started, people didn't understand 280E. When 280E showed up, they sort of said that can't be right. Here is the reality of 280E in a very simple example. 280E applies to deductions but not to the cost of goods sold. If I buy a mushroom to sell and I pay $2 for that mushroom and then I pay my salesperson a $2 salary and they sell it for $5, I just made a dollar. But because of 280E, I am not going to be able to deduct the $2 I paid on my salesperson.” -Nick Richards [02:37]“Because of the way our system works, state tax returns start at line 35 of the federal tax return. So if you're in a company that is subject to 280E, you're going to pay that tax again at the state level because it takes off from line whatever of the local level.” -Judy Vorndran [04:45]“I don't think it is fair to treat a legitimate business like it's not a legitimate business. It's kind of what you're saying Indirectly by disallowing expenses and otherwise, and then regulating and retransferring things that are muddled.” -Nick Richards [10:20]

In this episode, Meredith and Judy speak with Nick Richards, an expert in taxation for the cannabis industry, and partner and co-chair of the cannabis law group at Greenspoon Marder LLP. Nick shares his journey from working in the IRS to becoming an expert in cannabis taxation. He also discusses how he navigates the ever-changing landscape of taxation for cannabis businesses. Together, they discuss the high taxes and legal challenges that cannabis businesses face. They also explore the recent changes in the classification of Delta Eight and Delta Nine and psilocybin, and how they impact the industry. Topics discussed in this episode:Nick's Journey to the Cannabis and Psilocybin IndustriesRegulatory Changes in Colorado for Psilocybin and CannabisMycelium and the Cannabis IndustryWhat You Will Learn:04:34 Tax Ops' Proactive Approach to Cannabis and CBD Companies06:11 Tax Implications of Hemp and Psilocybin in the Cannabis Industry13:48 Understanding the Language of the Psilocybin Space15:14 The Benefits of Psilocybin and MushroomsQuotables:“There are not robust regulations around the marijuana industry. So this year what we're seeing in that space is that a lot of those CBD manufacturers went ahead and were doing something called Delta Eight and Delta Nine, which is THC derived from hemp. Now many states are going back in and saying they think you're a marijuana company. Guess what tax applies to all of your sales for the past four years? The marijuana tax.” -Nick Richards [05:16]“There's just so many things I think that are still wrong about how we're handling this legal industry. And now we're, like, going after it more for classification issues when there's no alternative substance in a THC, going back to penalties.” -Judy Vorndran [06:31]“The rules are still being written in the mushroom space. It looks to us like it's sort of less retail and more medical, which is good for the industry if that allows them to be profitable. Because it starts to align with a case out there in the marijuana space called Champ rather than subsequent cases that found that all the activities of a cannabis-related enterprise were subject to a code section called 280 E rather than just the specific area where the sale of marijuana was occurring.” -Nick Richards [09:20]“The problem with a lot of the cannabis cases was that they put so many expenses on the other non-280 E company that it could never make a profit. So it was found to be not a legitimate company and merely just part of the cannabis company. And again, that's because they're so limited, the only other thing they can sell are bongs and T-shirts. -Nick Richards [13:24]

Meredith Smith and Judy Vorndran continue their conversation with Wendy Walker, a Solution Principal at Sovos, in the latest episode of the SALTovation podcast. They talk about the state of the IRS, federal tax legislation, and how the current policies are trickling down into states. Ohio, Colorado, the District of Columbia, and Maryland eliminated paper processing for withholding taxes, 1099s, and W-2s, drastically reducing electronic filing threshold requirements. Wendy, Meredith, and Judy discuss the challenges that come with trying to stay on top of different reporting regulations across different legal entities, both at the federal and state levels. Topics discussed in this episode:Tax compliance challenges for businesses and governmentsTax Reform in Colorado Understanding the challenges of the IRS caseload What You Will Learn:03:20 The Challenges of Tax Reporting and Government Iteration15:31 Tax Compliance Challenges for Businesses25:02 Practical Solutions to Simplify Taxpayer Systems33:06 Cybersecurity and TaxationQuotables:“We see the IRS reducing the electronic filing threshold requirement so that they can get at paper processing. They're trying to eliminate paper, they're kryptonite according to the taxpayer advocate. Even the IRS recognizes that there's a subset of the population that's never going to get off paper so they do need to offer that.” -Wendy Walker [01:23]“There is no happy medium. It's like the government's forcing businesses into sending it into their formats and their requirements. But on the flip side, business needs to conform to gap rules and other regulations and legal requirements. So it is very difficult, particularly when there's such disparity across so many agencies.” -Wendy Walker [05:09]“Small startup businesses are not complying for good reasons. They can't they don't have the wherewithal, and they don't have the tools. But here they are taking a chomp out of the native businesses, taking away from all the bricks and mortar, but they're not fully compliant. So they're taking tax dollars away from governments to change the character of how you and I do business. And all those legacy companies are gone.” -Judy Vorndran [05:36]“The IRS is promoting more bank account reporting or expanded bank account reporting for certain taxpayers. So if we're going to fix them, let's fix the problem. If they need transparency, let's find a way to give them transparency instead of giving them more information that just sort of directionally gets them there from a compliance perspective.” -Wendy Walker [23:10]

Meredith Smith and Judy Vorndran host Wendy Walker, a Solution Principal at Sovos, in the latest episode of the SALTovation podcast. They discuss the Inflation Reduction Act, which provided the IRS with $80 billion to upgrade the taxpayer experience. The recent Taxpayer Advocate Report to Congress, however, revealed that the IRS is short-staffed and underfunded, resulting in a surge of unanswered phone calls and delayed correspondence, which is causing a rising federal deficit. Wendy and Meredith suggest potential solutions for the IRS, such as acquiring funding to improve their service and transitioning from conventional communication methods to modern ones. Topics discussed in this episode:What is the Inflation Reduction Act?IRS Funding and Taxpayer Experience ImprovementPotential Improvements for IRS: Modernization What You Will Learn:7:53 IRS Focus on Digital Asset Reporting, Modernization, and Tax Literacy15:00 Benefits of the Child Tax Credit and Taxpayer Education Efforts16:04 IRS Funding for Pre-Filing Services, Education, and Taxpayer AdvocacyQuotables:“In 2020, the Taxpayer Advocate Report to Congress indicated that the third most serious problem that the IRS faced is that they are significantly underfunded to service taxpayers and collect tax. The report cited that they're unable to answer millions of taxpayer phone calls, they're unable to process timely correspondence, and that our federal deficit continues to grow as a result of that underfunding.” -Wendy Walker [00:55]“How many people want to do a job that feels like everybody's mad at you? Right. How do you encourage a culture that takes care of these people who are trying to care for the people? So we have to make it like, less adversarial, but then also generate those people to come in.” -Judy Vorndran [07:09]“99% of the revenues that our federal government operates on get collected by the IRS. So you would think that we would be more concerned with ensuring they had the funds and the people right to make sure those systems can do that efficiently.” -Wendy Walker [07:53]“The IRS doesn't have funding to do any of that education outreach on their normal appropriations that they're given from Congress. So funding is important for the IRS to be able to bring things out of paper publications that are really hard to find and are buried and get them out onto the Internet leverage searches so that taxpayers can really take advantage of some education before filing.“ -Wendy Walker [16:47]

In this episode of the SALTovation podcast, Stacey Roberts is joined by Tim Noonan, Tax Lawyer and Partner at Hodgson Russ in New York, to discuss state and local tax issues. They talk about tax and legal issues related to private equity firms targeting certain companies and the importance of understanding where the target companies operate to determine any filing obligations. Stacey and Timothy also discuss the 2018 Wayfair case, and why tax professionals need to be knowledgeable to help clients navigate the process within state and local jurisdictions. Topics discussed in this episode:The need for expertise in transaction tax matters during big dealsWhat is the 2018 Wayfair case?Tax implications of private equity and hedge fund transactions What You Will Learn:2:10 State and Local Tax Considerations for Private Equity Firms8:07 Understanding Nexus and State Tax Implications for Business Transactions11:54 Residency Rules and Tax Audits in Different StatesQuotables:“State tax issues and private equity deals are an underrated issue. You and I think it's the most important issue because that's what we do every day. But we've gotten called in on both sides of these deals where someone's getting acquired and they haven't collected sales taxes in many years. We have to clean that up and figure out if your sales are taxable in this many states. We clean that up through voluntary disclosure.”- Timothy Noonan [04:22]“With the Wayfair case in 2018, you now have all these sellers who might not be watching what happens at the Supreme Court level and don't realize that every state has come out and said if you have a certain amount of sales in the state, which isn't very high threshold, you should be collecting sales tax in 46 different states and thousands of local taxing jurisdictions. So that can be messy.”- Timothy Noonan [07:11]“The rules in most states are either similar or the same. Someone leaving Colorado has the same residency test as someone leaving New York. There's a domicile test. California's rule is a little bit different, but they all sort of sound like the same concepts of this domicile test. So in that sense, the rules are the same.”- Timothy Noonan [12:02]“A lot of wealth creation that happens for folks in the private equity world is through pieces of their target companies they acquire and then they sell again. It is carried interest. It is the piece of these companies that are treated as capital gain. It's intangible. So in addition to that capital gain benefit of carried interest, it has an important effect on state taxes too.“- Timothy Noonan [16:34]

In this episode of the SALTovation podcast, Meredith Smith and Judy Vorndran continue their conversation with Alex Oxford, Founder of TaxValet. Alex discusses how businesses have begun to shift their traditional cold and concrete environment to one with more emotional intelligence. He shares why he believes this shift has allowed for more of an emotionally safe environment for people to work in and how creating a culture with more emotional intelligence, allows for better communication and collaboration between teams, ultimately leading to more success for companies. Topics discussed in this episode:The value of creating emotionally safe and open work environments Assigning tasks to team members based on individual strengthsUsing data to help your client make the best decisions What You Will Learn:1:47 Creating a Safe and Accepting Work Environment at Tax Ballet9:37 Sales Tax Registration and Employee Engagement Platforms12:41 Exploring the Emotional Side of BusinessQuotables:“Every single person is unique in their own way, even the people who aren't that unique, because sometimes tax accountants, are just kind of tax accountants. And that's okay. Creating an environment where it's okay to show up and be who you are, and you will be loved, accepted, cherished just as you are is important.” -Alex Oxford [02:27]“If our core purpose is to transform negative emotions and it's something positive for our clients, partners, and employees, if we have too many clients, then we're not going to be able to deliver on that promise for new clients coming in the door. And we're not going to be able to deliver it for our employees because they're going to be overworked and stressed out.” -Alex Oxford [07:08]“We're able to do surveys for different departments. But when we talk about data, I think it's really easy for a lot of business owners and data junkies like myself to just think about the quantitative. But a lot of it is the qualitative information gathering.” -Alex Oxford [11:19] “One of the things that I'm the most excited about is being able to proactively identify issues with our clients that need to be escalated higher up in the chain of command before the client realizes it needs to be escalated and before the employee realizes it needs to be escalated and then being able to look at these issues and pinpoint what the root cause is.” -Alex Oxford [12:21]

In this episode of the SALTovation podcast, Meredith Smith and Judy Vorndran speak with Alex Oxford, Founder of TaxValet, a company focused on providing innovative tax solutions and helping clients navigate the complexities of the tax system with comprehensive solutions that are tailored to their individual needs. Alex discusses common emotional reactions clients have, like stress, anxiety, and overwhelm, when walking through sales tax problems and why it is important to create positive experiences for them. He also talks about TaxValet's core purpose: to transform negative emotions into something positive for its clients, partners, and employees. Topics discussed in this episode:TaxValet's core purpose and approach to sales taxBuilding a client experience tailored to their individual needsCreating psychological safety in the workplace and in client relationships What You Will Learn:[02:07] Exploring the need for professional services in the SMB Market[06:26] Streamlining tax solutions for E-commerce and software businesses[15:40] Creating a culture of safety and transparency in the workplaceQuotables:“Our purpose as a company is to transform negative emotions into something positive for our clients, our partners, and our employees. We are looking at sales tax not just being about the numbers, but understanding our clients are stressed out and overwhelmed and that is the problem we are solving.” - Alex Oxford [04:37]“We know that as a company if we are there to support you as an employee you will be there to support the business later on. Focusing on trust and creating psychological safety so that people feel safe to talk about things and will challenge each other.” - Alex Oxford [16:32]“I'm a big believer in honesty, transparency and taking care of the people that work with you and are a part of your family.” - Judy Vorndran [17:20]“As leaders we owe it to our team to be the best leaders we can be, to show up as servant leaders and help them grow, develop, and realize what they are fully capable of.” - Alex Oxford [17:26]

In this episode of the SALTovation podcast, Meredith Smith and Judy Vorndran continue their discussion with Jenn Penn, a Contract Lobbyist at Dome Strategies in Colorado, on simplifying tax through lobbying and other special interest groups. Jenn talks about TABOR, the Tax Payer Bill of Rights, and discusses how much power, because of the constitution, can the state impose on cities. She also shares the 2023 goals of the Colorado Sales Tax Coalition and what they hope to see the legislator consider in this next session.Join us in simplifying Colorado's Sales Tax at simplifycosalestax.com. Topics discussed in this episode:TABOR and the Colorado Municipal League Non-partisan legislation and 2023 goals of the Simplify Colorado Sales Tax Coalition What You Will Learn:[01:15] SB 2232[06:08] TABOR[13:02] Goals for enhancing the SUTS program in 2023Quotables:“The Colorado Municipal League is a non-profit that represents the municipal governments at the legislator but they are also an advocacy and informational arm back to those local governments for all of the things that pass.” - Jenn Penn [04:12]“A lot of cities don't have captive legal teams and have to source that with a third party. A municipal league is the keeper of the information for all the different cities and a tremendously helpful resource.” - Judy Vorndran [04:43]“Joint resolutions direct local governments and the business community to work together and have conversations to find a better, more simplified way to work on building permits and building permit process.” - Jenn Penn [14:53]“Colorado is one of the first states to implement the retail delivery fee. What is to prohibit another state from doing the same thing? There is a lot of precedent nationally that could be set based off of this delivery fee.” - Meredith Smith [18:54]

In this episode of the SALTovation podcast, Meredith Smith and Judy Vorndran talk with Jenn Penn, a Contract Lobbyist at Dome Strategies in Colorado. Jenn works with businesses to simplify tax and build coalitions for other special interest groups. Jenn talks about legislative sessions and shares the vision of the SUTS system, a sales and use tax online filing system within the Colorado Department of Revenue for businesses and local governments to work together and have one place to file their sales and use taxes. Join us in simplifying Colorado's Sales Tax at simplifycosalestax.com. Topics discussed in this episode:The formation of the sales tax coalitionLegislative sessions and lobbyingThe SUTS System What You Will Learn:[01:21] Jenn's professional journey [11:45] The Sales Tax Coalition [19:22] Creating a competitive economic environment in Colorado Quotables:“Lobbyists are really an integral part of the process. We are targeted communications. A lot of businesses hire PR. Lobbyists really help businesses, non-profits, and other organizations communicate with the state legislator.” - Jenn Penn [02:37]“The mission of the sales tax coalition is to reform Colorado's complicated sales tax system with the goal of making it fair, simple, and predictable for businesses in a way that is revenue neutral to have any adverse impacts on local and state public services and create a competitive economic environment for Colorado that will attract additional employers and trade organizations.” - Jenn Penn [18:53]“The general view of taxpayers isn't such that they won't file. They just need to know how to file and they need to have a mechanism that is easy enough to understand to make it happen.” - Meredith Smith [21:16]“People are starting to see with technology getting better and better, there is more compliance. This is good for business. Because it is meant to be a voluntary system, not an extractive system. It is a win-win for business and governments. ” - Judy Vorndran [17:13]

In this episode of the SALTovation podcast, Alex Korzhen, Tram Le, Meredith Smith, and Stacey Roberts discuss the importance of having a state and local tax provider that is knowledgeable about all tax types that states impose. They also discuss the importance and value of taking a holistic approach to tax services and how sales tax software vendors tend to not offer that approach. Topics discussed in this episode:What to think about when you buy state and local tax servicesMulti-industries and multi-tax typesRisk analysis and evaluating circumstances for your businessWhat You Will Learn:[01:21] Overlapping complexities of state and local tax laws[03:55] Sales tax software vendors[07:23] Making decisions and understanding risks with your SALT provider Quotables:“It is important to make sure your tax provider is knowledgable and they have that big picture understanding of all tax types and not just a narrow understanding.” - Tram Le [00:52]“We are a multi-state provider. It sets us apart. We are well-versed in all states, not just one or two. We bring a different perspective to taxpayers who are in multiple jurisdictions.” - Stacey Roberts [02:01]“We can see the big picture and we can see the macro ramifications. We can make decisions, not in a vacuum and it is one of the biggest advantages of working with a group like us.” - Alex Korzhen [03:02]“We will always give you what the law says but we are nimble enough to also say it is up to you to make what that business decision is and to make a practical decision based off of your circumstances.” - Meredith Smith [07:24]

In this episode of the SALTovation podcast, Meredith Smith, and Tram Le talk continue their discussion with Dan DeLau, a founding partner of TaxOps, and Professor at the School of Business at Colorado Christian University. DeLau shares the important attributes of students that are considering pursuing an accounting major. He talks about why individuals need to possess the ability to interact with clients so they can provide excellent tax advice that clients can benefit from. He also shares his thoughts on how recruiting students before college could bring more people into the accounting profession. Topics discussed in this episode:Attributes of successful accountantsRecruiting high schoolers into accounting programs Misconceptions about what accountants doWhat You Will Learn:[01:34] Daniel DeLau on advising students pursuing business majors[11:38] The need for accountants as complexities in state and local tax grow[18:29] Presenting accounting opportunities to students before collegeQuotables:“It is not just green visors, playing with numbers, and auditing bank records. Something that has kept me in the accounting profession is all the different types of businesses and industries I get to work with on a daily basis.” - Meredith Smith [04:04]“There are more and more rules and complexities that accountants have to deal with. Whether they are focused on tax work or auditing, those additional complexities are the reason we need more and more people going into the profession to respond to the situations that our clients might be up against.” - Daniel DeLau [11:30]“Data is showing that students by the eighth grade are making career choices. As they choose classes to take in high school they are already deciding what career path they desire.” - Tram Le [19:45]If we want to increase the pipeline of individuals going into accounting, we need to start well before the college level. We need to hit the high schools and have the high schools highlight the benefits of what an accounting profession can be.” - Daniel DeLau [16:48]

In this episode of the SALTovation podcast, Meredith Smith, and Tram Le talk with Dan DeLau, a founding partner of TaxOps, and Professor at the School of Business at Colorado Christian University, with decades of domestic and international experience in accounting. DeLau and the team discuss why the number of students enrolling in accounting is down, what that means for businesses, and the future of the accounting profession.    They also talk about how globalization has created complexities in accounting and tax laws, and the additional requirements it places on smaller organizations.     Topics discussed in this episode: How globalization and the internet have changed tax laws  The decline in accounting enrollment over the past 30 years Present-day hurdles to excelling in accounting and tax law   What You Will Learn: [01:44] Daniel DeLau on globalization [07:35] Complexities in the accounting profession [13:10] State-by-state requirements for obtaining an accounting degree   Quotables: “There are a majority of reasons we have seen a decline in the profession over the last twenty to thirty years. One of them is if you look at the traits of a good accountant they have good time management skills, pay attention to detail, and have good organizational skills. Those are the same traits that are important for someone who wants to focus in computer information systems.” - Daniel DeLau [09:13] “In finance and data analytics students don't need that extra year of education. In Texas, we require one hundred and fifty hours, but in most states candidates need one hundred and twenty hours to sit and take the accounting exam. It is another big hurdle.” - Tram Le [12:38] “I have to put on my sales hat and entice students to pull the trigger on an accounting major today. I talk to them about the benefits associated with the profession but many of them ultimately have those critical thinking skills you need and they just get it. It is like a puzzle to them and they enjoy solving it.” - Daniel DeLau [14:19] “I think when you are younger people talk about different careers. But in terms of becoming an accountant, I feel I was recruited by my advisor in undergrad who was an accounting professor. He encouraged me to take this path and I'm not sure I would be in this field if it wasn't for career mentorship.” - Tram Le [15:48]