Podcast appearances and mentions of Dakota V Wayfair

While the prospect of federal tax law changes has dominated the headlines and airwaves lately, there are several significant developments taking shape in the state and local tax (SALT) space that merit your attention as well. Guests Rick Najjar, J.D. and Ted Kontopoulos, J.D. join host Damien Martin to share and break down the developments you need to know for both your personal and business tax bills. Here's what they cover: How has South Dakota v. Wayfair, Inc. (Wayfair) shaped the SALT world and what does its future impact look like? [01:19] Surprises on the implementation of Wayfair [09:46] The future of nexus [11:37] Developments that businesses and their owners should know [17:24] The tax controversy “it depends” decision tree [23:35] Remote work and what it means to work somewhere [26:27] M&A considerations amid talk of potential federal tax rate increases [34:52] SALT workarounds [39:42] Closing thoughts [41:45] Learn more about Travis and get the additional resources mentioned in the episode here! GET MORE SIMPLY TAX We're excited to also provide video content to strengthen your tax mind! Check it out on our YouTube channel. A complete archive of our episodes is available on our website and YouTube playlist. We'd love to hear from you! Email feedback and questions to SimplyTax@bkd.com. Connect with Damien on social media! LinkedIn | Twitter | Instagram | YouTube

Many companies do business in multiple states in the U.S. What they might not be aware of is that tax regulations in each state might mandate them to collect and pay sales and use tax for transactions in those states. This is true even if the company does not have a physical presence in that state. In this episode, we’re taking a look at the specific laws that every business owner should know in order to remain compliant with state tax regulations. Joining me for this insightful conversation is tax expert and attorney, Justin Hepworth. Justin is a partner in the Tax and Estate Planning Practice Group in Sheppard Mullin’s Orange County office. His practice encompasses a broad range of state and local tax matters, from planning, compliance, and transactional matters to controversy matters in audit and through litigation. Justin regularly advises clients on state and local tax implications of restructurings, mergers, acquisitions, spinoffs, and asset sales. He advises on audit defense, voluntary disclosure, unclaimed property (escheat law), and other controversy and compliance matters. He has extensive experience handling a broad range of multistate issues, including nexus, sales and use tax exemptions, sourcing and characterization, research and development credits, unitary business matters, California Prop. 13 change in ownership issues, and residency planning and audits. What We Discussed in This Episode: What is the significance of the 2018 Supreme Court case of South Dakota v. Wayfair, Inc.? What is the “physical presence” test and how was it challenged by the South Dakota case? How does a Court have authority to decide cases under the Commerce Clause? What is “economic nexus” and how does it apply to companies in today’s economy? Do state sales and use taxes only apply to the sale of physical goods in a state? What about foreign companies doing business in the U.S.? Do they have to pay sales taxes in every U.S. state they do business in? How do sales and use taxes affect mergers and acquisitions? What are “marketplace facilitator laws”? Is there an exodus from California? Resources Mentioned: South Dakota v. Wayfair, Inc. (2018) Contact Information: Justin’s Sheppard Mullin attorney profile  Thank you for listening! Don’t forget to SUBSCRIBE to the show to receive every new episode delivered straight to your podcast player every week. If you enjoyed this episode, please help us get the word out about this podcast. Rate and Review this show in Apple Podcasts, Amazon Music, Stitcher Radio, Google Podcasts, or Spotify.  It helps other listeners find this show. Be sure to connect with us and reach out with any questions/concerns: LinkedIn Facebook Twitter  Sheppard Mullin website This podcast is for informational and educational purposes only. It is not to be construed as legal advice specific to your circumstances. If you need help with any legal matter, be sure to consult with an attorney regarding your specific needs.

The disruptions due to COVID has hastened many industry tax trends simmering on the surface even before the pandemic hit. These new rules and trends can have a lasting effect beyond  2022 and even the next five years. Moreover, with economic stimulus packages rolling out from governments worldwide, it's no secret these governing authorities will be looking for ways to charge indirect taxes to refill their coffers. Thomson Reuters’ own Chris Harris, Chris Reich, and Dan LeCompte from KPMG offer information on what tax professionals need to know and understand as they navigate discussion on automation, people, process, technology, and how it integrates with their organizations.   Additional resources: Chris Harris LinkedIn, Chris Reich LinkedIn, Dan LeCompte LinkedIn.   How States Responded to South Dakota v. Wayfair in 2018 Economic nexus: How to keep up with changing sales and use tax requirements Use automated tax software to safeguard your indirect tax team How to Optimize Tax & Finance Functions   The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. © 2021 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. The following information is not intended to be “written advice concerning one or more Federal tax matters” subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

It’s been over two years since the Supreme Court’s decision in South Dakota v. Wayfair, and its impact has been substantial. Add in the onset of the coronavirus pandemic, with its role in driving individuals toward online shopping, and you have a seismic impact in the tax world. In this podcast, Jennifer Karpchuk, shareholder and state and local tax practice cochair for Chamberlain Hrdlicka Attorneys at Law in Philadelphia, joins us to dissect current developments related to Wayfair and COVID-19. To read the full transcript click here.

Guests Mary Reiser and Jana Gradeva join host Damien Martin to unpack state and local tax (SALT) developments and discuss areas you should focus on amid an uncertain and rapidly changing environment. Here’s what’s covered: How state and local jurisdictions generally apportion a taxpayer’s employment income [01:53] What role does payroll play in apportionment formulas for businesses? [10:57] Sales tax considerations for telecommuting [13:17] How have states responded to the many employees working remotely due to the pandemic, and what are the related implications for remote employees? [14:08] What are the state and local considerations of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provisions? [16:21] Now that we’re a little more than two years in since the landmark U.S. Supreme Court decision in South Dakota v. Wayfair, Inc. (Wayfair), how have states responded? [25:04] Marketplace facilitator rules [31:25] Audits after Wayfair [35:36] What should taxpayers and their advisors focus on now from an income tax perspective? [41:05] How Wayfair has impacted mergers and acquisitions [47:00] “It depends and it’s changing all of the time” [50:11] Learn more about our guests and get additional resources here.

It’s the Supreme Court ruling that changed the landscape for online retailers. South Dakota v. Wayfair has given states more latitude to collect sales tax on out-of-state internet sales. Our guest is Scott Thomas, a Senior Advisor at DGC. He is going to give us an in-depth look at the South Dakota v. Wayfair decision, and how online sales will now be treated by the states, the businesses, and the customers. This podcast is brought to you by DGC. For all of your accounting, tax, and advisory services, you can turn to us. Where there’s unique perspective, there’s DGC. Visit our website: www.dgccpa.com

One of the most significant tax developments still impacting corporations is South Dakota v. Wayfair. This monumental Supreme Court decision gave states more latitude to collect sales tax on out-of-state businesses. What if your business has not filed corporate tax returns in states where you should have? What do you have to do in order to come clean? On this episode of “Unique Perspectives – The DGC Podcast,” our guest is Scott Thomas, JD, LLM, a Senior Advisor at DGC. Scott discusses what corporations should do if they need to file returns in other states or what they should do if they are unsure where they stand. As always, this podcast is brought to you by DGC. For all of your accounting, tax, and advisory services, you can turn to us. Where there’s unique perspective, there’s DGC. Visit our website: www.dgccpa.com

* Use coupon code PODCAST25 for 25% off this webcast * Webcast URL: https://www.theknowledgegroup.org/webcasts/state-sales-tax/ In 2018, the U.S. Supreme Court ruled in favor of the state in South Dakota v. Wayfair, Inc. The decision has overruled a long-standing standard allowing states to charge remote sellers for in-state transactions. Consequently, several states have adopted new rules that specify what sets out a tax duty on sales and usage, known as nexus. They have also started to expand the economic nexus standard sanctioned in Wayfair beyond sales tax systems, introducing economic nexus provisions for corporate income taxes. As complexities cloud this particular area of law, concerned companies need to closely track not only the legal landscape, but also the administration and compliance processes for these transactions. Our panel of key thought leaders and practitioners will offer a discussion on the important changes surrounding state sales tax. This LIVE Webcast aims to help you understand the changes in the state sales tax after the South Dakota v. Wayfair, Inc. Decision. Speakers will also provide best compliance practices and strategies to keep apace with emerging developments. For any more information please click on the webcast URL at the top of this description.

Es posible que no haya escuchado sobre el caso de South Dakota v. Wayfair, Inc., pero la decisión de la Corte Suprema en este caso podría afectarle. ¿Qué decidió la Corte Suprema? ¿Qué es Wayfair? Y la pregunta más crítica de todas es: ¿Responsabilidad de los vendedores remotos para recaudar, enviar y reportar los impuestos sobre las ventas de Texas después de Wayfair? Escuche mientras Reyna Muñoz transmite las respuestas dadas por el abogado Colman Jackson a estas preguntas apremiantes sobre impuestos. Si disfruta de este podcast, asegúrese de estar atento y suscribirte para más episodios de la firma de abogados de impuestos, litigios e inmigración de Coleman Jackson, P.C. Visite la firma de abogados de impuestos, litigios e inmigración de Coleman Jackson, P.C. en línea en www.cjacksonlaw.com.

While you may not have heard about the case of South Dakota v. Wayfair, Inc., the Supreme Court's decision in this case might affect you. What did the Supreme court decide? What is Wayfair? And the most critical question of all is the: Liability of Remote Sellers to Collect, Remit and Report Texas Sales Taxes After Wayfair? Listen along as Attorney Coleman Jackson answer these pressing tax questions. If you enjoy this podcast make sure to stay tuned and subscribe for more episodes from the taxation, litigation and immigration Law Firm of Coleman Jackson, P.C. Visit the taxation, litigation and immigration law firm of Coleman Jackson, P.C. online at www.cjacksonlaw.com.

Tax Notes legal reporter Jennifer McLoughlin interviews Richard Cram, director of the Multistate Tax Commission’s National Nexus Program, on the state of the sales tax landscape two years after the Supreme Court ruling in South Dakota v. Wayfair Inc. McLoughlin moderates a discussion between Bradley Scott, finance director of the jewelry component wholesaler Halstead Bead Inc., and Scott Peterson, vice president of U.S. tax policy and government relations at Avalara Inc.For additional coverage, read these articles in Tax Notes:Smaller Sellers Searching for Relief in Post-Wayfair WorldSmaller Businesses Struggle Most With Post-Wayfair ComplianceStates Could Lower Nexus Thresholds to Address Revenue ShortfallsStates Extend Sales Tax Deadlines, May Pass More Marketplace BillsSmall Businesses Ask Congress to Act on Remote Seller LawsMTC Finalizes 2019 White Paper on Wayfair Implementation Issues***CreditsHost: David D. StewartExecutive Producers: Jasper B. Smith, Faye McCrayShowrunner: Paige JonesAudio Engineers: Derek Squires, Jordan ParrishGuest Relations: Nicole White

Tax collecting and reporting has always been complex, and with new legislation comes new layers of complication. This is only going to accelerate as businesses and the government alike try to keep up with technological advancements. Tax departments are leaning on IT more than ever to make recommendations and help to implement tax automation solutions. In this episode of Tax Technology Today, Chris Livingston, Cloud Business Leader with Vertex Inc., explains how the landmark court decision in South Dakota v. Wayfair is affecting how IT and Tax departments work together, and what preparations for business post-Wayfair need to be considered. “Companies may need to invest in new technologies and new processes. Businesses really need to be prepared.” The good news is that in this new world, there’s even more impetus to tear down silos between departments. “IT needs to know a little bit about tax,” says Livingston, “and tax needs to know a lot about IT so that they can do their jobs and everything can flow smoothly.” Tune in to discover the three critical questions you need to ask potential vendors, and what constitute some of the best practices for evaluating tax software vendors. Spoiler alert: Security should play a huge role in evaluating and selecting a partner for this critical business function. And Livingston points out that you’ll need to be sure your change management game is on point as well.  Produced by IDG Communications, Inc., in association with Vertex

State and local tax experts continue to wrestle with the complexities of the 2018 South Dakota v. Wayfair U.S. Supreme Court decision. Part of that effort is finding a way to explain how the decision affects the companies they work or the clients they serve. Ilya Lipin, managing director of state and local tax with BDO USA LLP, and Jennifer Weidler Karpchuk, senior counsel with Chamberlain Hrdlicka, review the key points of the case and how to communicate them. Both experts coauthored “Pennsylvania Online Sales Tax Law Changes after Wayfair” and this topic will be covered in greater length at PICPA’s CFOs and Controllers Conference on March 19, 2020, in King of Prussia. To read the full transcript click here.

For those of you who do business across state lines, your days of paying taxes in a single state are pretty much over. Since the U.S. Supreme Court ruled on South Dakota v. Wayfair, one by one, states across the country have taken steps to become more aggressive when it comes to collecting tax dollars from companies that do business in their states.  Introducing the new way of doing business.  Scotty “Z” Zielaskiewicz, a state and local tax manager and indirect tax expert with Rea, joins us on this episode of unsuitable on Rea Radio to provide us with an update with regard to what the state of business looks like since Wayfair was made the law of the land just over a year ago. He will explain what businesses can do to comply with these major tax law changes and, in response, he will lay out a strategy for how business owners can protect themselves and their businesses moving forward. Listen to this episode of unsuitable to learn: How companies can start the process of “Autogration” (Automation + Integration) What your business can do to maintain compliance, even as changes continue to alter the landscape of state and local taxes across the country. What considerations you should take if you're thinking of selling your business and how new tax rules can impact your exit strategy. You can also learn more about the major Supreme Court ruling while gaining some additional expert insight when you check out these resources: https://www.reacpa.com/insight/wayfair-one-year-later/ ( Wayfair – One Year Later”) https://www.reacpa.com/insight/new-rules-how-to-conduct-business-after-the-south-dakota-v-wayfair-decision/ ( New Rules: How To Conduct Business After The South Dakota v. Wayfair Decision”) https://www.reacpa.com/insight/episode-163-state-tax-concerns-keeping-you-up-at-night/ ( Episode 163 – state tax concerns keeping you up at night?”) If you liked this episode of unsuitable on Rea Radio, hit the like button or share it on social media. You can also use https://urldefense.proofpoint.com/v2/url?u=https-3A__www.google.com_url-3Fq-3Dhttps-3A__www.google.com_url-3Fq-253Dhttps-3A__soundcloud.com_tags_ReaRadio-2526amp-3Bsa-253DD-2526amp-3Bust-253D1495715306637000-2526amp-3Busg-253DAFQjCNEO7cuFlEr4TprDlXnPLFfc9-2Dgibw-26sa-3DD-26ust-3D1495715306647000-26usg-3DAFQjCNEzY2V0AC9u7-5FBmQFuJKyVAvJyQeg&d=DQMGaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=k7LfU80KH4iNnyPfAqQ-rX5QpCf0a3QOjTYt0O4ZNmU&m=T1q209PKwbilMnNtQPiJxrBmabVSEA0vG_jEl1oE1Fg&s=2nQGrmKAd8X40UODzRu5Qf8X4SHKpfADfpIyDje_vsE&e= ( #ReaRadio) to join the conversation on Facebook and Twitter, and you can watch the podcast in action on the https://urldefense.proofpoint.com/v2/url?u=https-3A__www.youtube.com_channel_UC-5FeV4nJToshDK5yNISpZH1w&d=DQMGaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=k7LfU80KH4iNnyPfAqQ-rX5QpCf0a3QOjTYt0O4ZNmU&m=nPEHxkyMiraiLhboRvg_aol6-fqT9JdWkaDW1OWOlxw&s=HoyT0c7uSAdLfAmwU0Ps8RC4nUbrxhjRpa5Cx18qNlA&e= ( Rea & Associates YouTube channel). We've also included access to additional resources at https://www.reacpa.com/podcast (https://www.reacpa.com/podcast). Also, don't forget to learn more about Rea & Associates by checking out our website at https://www.reacpa.com (https://www.reacpa.com. )

The recent U.S. Supreme Court ruling in South Dakota v. Wayfair will dramatically change the landscape for online sellers when it comes to sales tax. Any business that sells goods remotely could be affected, which means some companies may need to invest in new technology and processes for taxes.  In Episode 1 of our podcast series on the changing space of tax technology, we will talk with thought leaders from Vertex about what the ruling means for the end-to-end tax process at affected businesses. What should businesses being doing to prepare to comply with new rules? How could automating the tax process assist with the new calculation and reporting requirements of the Supreme Court decision? Produced by IDG Communications, Inc., in association with Vertex

When selling products or services online, there are some challenges you will face that you typically will not deal with in a traditional storefront. One of these challenges is E-commerce tax when selling to customers outside of your state.Who Is Avalara And What Do They Do?In this episode we are joined by Laura Moses representing Forbin’s E-commerce partner, Avalara. Avalara provides technology to businesses of all sizes that allows them to automate their sales tax collection and remittance obligations.In the past, states could only tax businesses with a physical presence in their state. Today, economic activity in a state (economic nexus) can trigger a sales tax collection obligation. In June of 2018, South Dakota v. Wayfair ruled against Wayfair and said that they are obligated to register, collect and remit to South Dakota going forward. And since then all but 2 states have established a revenue threshold in which businesses are obligated to pay taxes based on that state’s threshold.Some businesses may want to keep up with the E-commerce obligation manually. For a business to keep up with their own E-commerce sales tax responsibility, the business would have to find the sales tax rate for every ship-to address of every order, and those rates would need to be verified every month because they do change monthly. They would also need to file the sales and use tax return with every jurisdiction that they file in and manually keep track of their sales volumes and invoices in every state, to determine if they are meeting the economic thresholds as their business is growing.Avalara Partnership with Forbin E-Commerce Sites.Forbin E-commerce sites have a pre-built integration with Avalara. This integration automatically updates monthly rates, rules and boundaries based on Avalara’s updates of over 10,000 jurisdictions and this takes all of the manual work out of your tax remittance.Avalara WebinarAvalara will be hosting a webinar  on October 15th at 2 pm EST. to further explain E-commerce tax and answer questions from attendees. Click the link below to sign up for this educational webinar. http://bit.ly/AvlrForbinWebinarIf you are interested in Forbin's web solutions or products, visit our website at https://www.forbin.com

The sales tax implications of the South Dakota v. Wayfair, Inc. United States Supreme Court decision are far reaching — perhaps even more than accountants and bookkeepers realize! Blake and David sat down with sales tax experts Dena Oberst and Diane Yetter at Accountex USA in Boston to get an overview of the Wayfair decision, what it means for our clients, and what it means for our own professional services firms. You may not realize it, but the way you sell software and services via engagement letters could create "nexus" for your firm in many states, which might result in a burdensome compliance requirement. Tune in to learn more!

Arizona Department of Revenue Deputy Director Grant Nülle, Ph.D., talks with our lobbyist, Ryan DeMenna, DeMenna Public Affairs, about the Wayfair decision and how remote sellers will be taxed in Arizona. Please see the resources available on the AZDOR website at https://azdor.gov/transaction-privilege-tax/retail-sales-subject-tpt/out-state-sellers You can also reach the dedicated AZDOR E-Commerce Compliance and Outreach Team, who are subject matter experts: 833-AZeSALE (833-293-7253) or azesale@azdor.gov Remote Sales Into Arizona On May 31, 2019, Arizona Governor Doug Ducey signed House Bill (H.B.) 2757 into law. This legislation requires remote sellers and marketplace facilitators—to begin filing and paying transaction privilege tax (TPT) in Arizona starting October 1, 2019. The legislation is the result of a 2018 ruling by the U.S. Supreme Court in the South Dakota v. Wayfair case. The decision allows states to require out-of-state businesses without a physical presence to collect and remit tax on sales from transactions in their state. Because of Arizona’s new laws, retailers selling items of tangible personal property into Arizona should carefully review the information provided on the AZDOR website to determine whether they must pay Arizona TPT. Outline of Podcast: 5:20 Discussion on Arizona HB 2757 7:50 How litigation or congressional action could impact the legislation 8:15 Execution of the law we have in Arizona – What the AZDOR is working on to define who is a remote seller Defining who they believe qualifies under the Wayfair structure Outreach to those who qualify Providing resources on the AZDOR website 12:25 Dr. Nülle talks about the implementation methods 16:35 Most difficult element to implement to date – communicating the change 19:23 Liability relief that might be available to businesses who may make mistakes as they work to implement Wayfair 22:20 Major implementation dates and dedicated AZDOR team contact information

Ignorance is not bliss when it comes to sales tax. Believe it or not, today's topic is an exciting one for all buyers and sellers. Our guest is Diane Yetter from the Sales Tax Institute and Yetter Tax. She joins us to talk to us all about sales tax, sales nexus, click through Nexus, and more. Diane is a niche entrepreneur in her own right, uniquely helping other entrepreneurs navigate the tricky waters of sales tax. Diane businesses focus exclusively on sales tax, helping companies learn what sales tax means for them and what they need to do to be in compliance with state tax laws. SalesTax Institute and Yetter Tax are educational consultancies, providing people with all the tools they need to learn the why, when, where and how of remitting sales tax for each state where they do business. Episode Highlights: What click-through nexus is. Where and how affiliate payments are made. The Wayfair decision and the resulting state actions. Physical, Economic, and Marketplace nexus. Where to find the economic guide by state. Educational tools Diane offers on her website. Are there advantages to learning how these nexus' work versus hiring someone to do it? The penalties for collecting sales tax and not remitting it. Concerns and risks in the acquisitions realm. The process each state goes through to identify sellers out there. We go over the risks to buyers if the seller has not satisfied their state economic nexus. The odds of something coming back to haunt the new owner of a business if there are unpaid nexuses. The resources the Institute provides to help listeners wade through all this. Transcription: Mark: Alright guys welcome to another episode of the Quiet Light Podcast. Real quick before I talk to Joe; if anybody out there hasn't left a rating on the Quiet Light Podcast, do me a favor go to iTunes or Stitcher or wherever you listen to us, leave a rating, we certainly appreciate it. Makes us feel good. Makes us feel like we're doing a decent job at this whole podcasting thing. So thanks in advance to everybody that has done that. Okay, so Joe, when we're talking to a potential seller or even talking to a potential buyer one of the topics that comes up often, is how long does it take to complete the deal, right? And we have people wondering am I going to get this done in three months and what have you. The fact is these businesses are complex. On the upfront summaries what we see usually is pretty plain and simple. You see revenue, you see earnings, you see a multiple, and you kind of think well this should be nice and capsid and quick. And sometimes it is. But other times you have to look a little bit deeper. And you and I have talked about this before, right? For buyers to make sure you're looking beyond the multiple and the multiple is one point of data. And for sellers and buyers alike to also have patience with the process and understand that you're selling a complex asset. I know you had Carl on the podcast who is a recent buyer of one of our properties. And it was one of those situations where the deal took longer than expected and the numbers weren't as necessarily straightforward as maybe you would think when you just look at this. But the net result for him as a buyer and for a client were phenomenal by being patient and looking a little bit deeper. Joe: Yes, no question. This particular deal took I want to say from letter of intent to closing seven and a half months which is probably the longest I've ever had. There's really specific reasons for it. And Carl is partly to blame for it because he made a mistake on his application to the SBA lender. So we had to do the process essentially twice. The seller Kevin hung in there with Carl because Carl was a nice guy. It made a difference. And at one point when the deal fell apart, we had to go back. Well, my advice was to go back out to market for an awful lot more money because the business has grown a lot; probably worth $400,000 more. Carl and Kevin got along so well that Kevin said no I don't want to do that to Carl. Let's just bump the price thousand $160,000; crazy. Most buyers would walk away. They'd be like no. Yesterday it was this price today you want $160,000 more. Carl didn't do that and he's being rewarded greatly for it right away instant equity, in my opinion, a quarter of a million dollars in the business. And then some things that he's doing on his end immediately once that first container load comes in doubling the discretionary earnings because of a focus on reducing COGS. It's just fantastic what he's doing. And it's a great lesson for buyers and sellers to be patient, to be focused on helping each other, and not looking just at that multiple. Mark: You know I love this sort of story because I get it right from a buying standpoint you're looking at a lot of deal flow you need to evaluate businesses quickly. So the temptation is often to look at just the high-level metrics and to eliminate something based on that. But so many of these businesses and if I could just say you know maybe even a plug for Quiet Light you know when we bring a business to the market we usually believe in that company pretty strongly as being a good value play for buyers. And so taking the time to kind of dissect it and to understand more than the top-level metrics and what's going on underneath and look for those opportunities for that immediate win and again looking beyond that multiple. So this is a really good story of somebody doing just that and seeing a really quick reward on that. I want to listen to this. I want to hear all the dynamics. This is one of those more complex deals and I think a really good example of what happens when the deal isn't straightforward but still works out in the end. Joe: Yeah. Hey, one other thing. I had a really strange interruption everybody in the audience I want you to get 10, 15 minutes in. Chris, our producer asked me about a particular person. I'm trying to find out who this is. If you could just get that far listen in and shoot me a note. I want to try to track that person down. Thanks, Ben. I appreciate it. Let's go to the podcast. Joe: Hey folks it's Joe from Quiet Light Brokerage and believe it or not this is an exciting topic. It is about sales tax, sales tax nexus, click-through nexus; a term I had not heard until today. Our guest is Diane Yetter or she's from the Sales Tax Institute. So let me try that again. She's from the Sales Tax Institute, see being a podcaster is not as easy as it sounds. She's also from Yetter Tax; both all hers. Diane, welcome to the Quiet Light Podcast. Diane: Thanks, Joe. I'm glad to be here with you. Joe: Alright, so that I don't stutter and stumble my way through trying to tell people what you do, why don't you help us out with that? Diane: Sure. What we do is we are a business that focuses exclusively on sales tax. And we help companies learn what sales tax means to them. So we are primarily an education business. And then we also help them understand what they need to do to be in compliance with sales tax. So we do that through helping them understand where they have nexus, what's taxable that they buy and sell, help them get appropriate systems set up so that they can handle that correctly, and then in the hopefully not event that they get audited we can help them with that. So we do that through our consulting side. And then we also provide a variety of educational courses through our Sales Tax Institute. Joe: And it's good stuff. I just looked at some videos this morning and I've learned a bit already just in your free snippets online. And let's just throw out one of those things because I'm sure the vast majority of listeners have not heard of and I'm going to look at my notes click-through nexus. Let's just give them something that they don't know about right away before we reinforce what they should know about which is overall nexus and collecting sales taxes and the risks of not and the rewards of collecting when they go to sell their business someday. So why don't you just tell us what click-through nexus is, please? Diane: Sure. Click-through nexus is a concept that New York started in 2008. And it's really just the attempt to move to a digital equivalent of paying salesman commissions which was found to be constitutional back in a case against Crypto Corporation in about 1960. And so what click-through nexus is is when a promoter or a seller and this really was intended to go after Amazon. Back in the day when all Amazon sold was books and people like you, Joe, if you wrote a book and you put a link on your website that referred people to Amazon to go buy your book that you would then get paid a commission; a referral fee or making that referral to Amazon. So Amazon was the seller. You were not. They paid you for sending somebody to them. Really no different than a salesman going around and knocking on a door and when they made a sale they would get a commission. And so what New York started and about 25 other states followed along over the years is that paying that commission to somebody in a state if they generated at least a certain amount of sales. Most states had $10,000 of sales from one or more commissioned agents that that created nexus for the out-of-state seller in this example Amazon. Joe: Yeah. And it's a term I hadn't heard of before. I'm impressed if the state of New York actually originally called it click-through nexus back in 2008. Just curious do you know if they call it something else then and have [inaudible 00:09:09.2] click-through nexus? Diane: Well what it was affectionately or unaffectionately referred to by the media was the Amazon Tax. Joe: The Amazon Tax, okay. So most people look at nexus says okay I'm selling a physical product I've got a warehouse or Amazon has a warehouse in how many different states that's where my nexus is. What this is it's for the content sellers, it's for the affiliate marketers, it's for people that are doing product reviews where you don't actually have a physical presence. You don't have the—I'm sorry, the physical product. You're writing content, you're telling the story, you're doing reviews, and somebody in Hawaii—no I'm sorry, if you're in Hawaii and you write the content and somebody buys it in Minneapolis and there's no call center, there's no physical—I'm totally screwing this up, and there's no physical warehouse there, does that mean that you've got to collect sales taxes from that person that bought it or on that sale in Minneapolis? Diane: So what it applies to is if the seller; so in this case, if you are not the seller of the content that you're just the person promoting the content for somebody else that's selling it. Joe: The person that owns the physical product [crosstalk 00:10:24.5] sales taxes. Diane: The person that owns the physical product is the one that would need to collect the tax if they make payments to you as the promoter of it. Joe: Okay, so if anyone listening sells a brand on Amazon and also chose to do the affiliate program through Amazon and is allowing others to sell that product click-through. You should be collecting nexus wherever those sales. Is it—I'm sorry it's not where those sales occur or is it where that person that wrote the blog is? Diane: It is supposed to be a combination of those two. However, that's often difficult to ascertain as to whether or not that affiliate payment generated the sale in that state. And so it really is going after where the affiliate payment is made to. Joe: I got you. Okay, we may need title this to stumble through podcasts because sales taxes are crazy and there's so much information and misinformation. And is it really gray or is it all black and white conversations going out there that I think just the more we talk about the more we'll learn about it. So let's talk about the big Wayfair decision and what has come from that. Can you touch on that; what it was and the end result of for sales tax collection? Diane: Sure. So the confusion that we just talked about with the click-through nexus actually is almost kind of going away because of the Wayfair decision and the resulting state actions. So last June 21st; so close to a year ago, the U.S. Supreme Court issued their long-awaited decision in South Dakota v. Wayfair which was a record-breaking case in terms of how fast it got to the Supreme Court. The original law was only effective in May of 2016. So for a law to be in essence validated and decided by the Supreme Court in just over two years is pretty amazing. But basically what the case was a test and when South Dakota passed their law they wrote it in such a way that they were in violation of the longstanding Supreme Court decisions and Quill Corporation and National Bellas Hess as well as the Commerce Clause. And so what the Commerce Clause said is that a state cannot impose a tax collection responsibility on an out-of-state seller unless they have a substantial presence in the state. Now what the Quill case and the National Bellas Hess case over the last 50 years had interpreted is they added a word into that Commerce Clause test. They said substantial physical presence. What the Wayfair court determined was that physical was never a word in the Commerce Clause and that the state or the prior courts had simply interpreted it to require that physical presence. So by their decision where they actually stated that their decision in Quill was wrong; and they actually said that in the decision, they were overturning that Quill decision. By doing that they said physical presence is no longer a requirement before a state can impose a collection responsibility on an out-of-state business. Rather it needs to have a substantial presence. The company has to have a substantial presence in the state. And the South Dakota law defines substantial presence as having more than $100,000 of sales or more than 200 sale transactions which we define as an invoice into the state. And so that is— Joe: Does this make nexus defined as having a 3PL or Amazon having a warehouse, does this make nexus go away and it flips to what you're talking about now? Diane: It does not. Physical presence is still the first test that needs to be identified. So if there is an Amazon warehouse and you have inventory if you're an FBA seller then the economic nexus really doesn't matter. And the thresholds that are set in the states with the economic nexus are not relevant because of the physical presence of the inventory in the warehouse. Joe: Okay but if there's no physical nexus it then flips to economic nexus. Diane: Correct. Joe: Okay, and how many states currently have adopted the economic nexus? Diane: So we have almost all; every state has either enacted it and it's effective, enacted it and it will be effective. The latest one we have going effective I believe is July 1 right now, we've got some October ones that are in propose. And we've got I think its six states left that are in proposed status right now. The only one that has rescinded and doesn't look like it will pass this year is the state of Florida. Joe: God I love the state of Florida. Diane: Right. Joe: Where on your site and which sites; Sales Tax Institute or Yetter Tax can someone go right now and figure out which states have economic nexus? Do you have something like that? Diane: We absolutely do. So you can go to SalesTaxInstitute.com and then go to our resources section and on that, you'll see a link to the remote seller nexus chart. And on that there are; that page will have all of the different types of remote seller nexus. So the click-through we talked about, affiliate, marketplace, economic, and the notice and reporting. There will also be a link on their specific economic nexus state guide which will give you all of the various different nuances of the rules for economic nexus. Joe: Look at that you've even got a video in there as well. Fantastic. Okay, part of what you do at the Sales Tax Institute is education. You're training people to understand and learn about sales taxes. Are these a combination of in-person training or is it online training as well? Diane: So we do a variety of different types of training. We have monthly webinars that are live in-person or live webinars where you can actually interact with me and ask me live questions. So we have a variety of different topics that you can look at. Joe: Is there a cost to the webinars? Diane: There is. Those cost $175 but you can have your entire team gathered around one phone line and it's a single charge. Joe: And you'll sleep better that night or maybe not at all depending on really. Diane: Exactly. Joe: When I was looking at your some of the videos I wrote down is ignorance bliss?? And I think it's not when it comes to sales taxes. And we'll get into that a little bit more but—alright so there's a monthly webinar; very, very reasonable price. Diane: A monthly live webinar, we also have some on-demand webinars, and one of the ones that might be very helpful to those of you listening now is we have a sales tax 101 webinar. And so that's on-demand. The cost of that is also $175 but you can watch it as many times as you want in 30 days. And that will go through and give you all the basic concepts and it was updated after the Wayfair decision so it's got a lot of the current information about what's going on today. So we've got I think it's five on-demands and then we also have live in-person classes. So we have a three-day basics of sales tax class if you really need to get in depth. That's held in June annually and then we have; it is usually in Chicago. Joe: Okay. Diane: And then our advanced workshop is for people with four or more years of experience and that is held annually in the April-May. We just had that this year in Chicago and next year we'll be out on the West Coast. We also have a; we've offered it twice now, a nine-week online class. We call it sales tax jumpstart. So we will offer that again in September. Exact date not yet defined. And that is really meant and who a lot of our attendees have been in our first two cohorts of that are people that are like your listeners Joe that are smaller businesses, can't get away for three full days of sales tax, and we give them basically all the steps and tools for what they need to do to be compliant. So we break it down into two-hour blocks over nine weeks. And we also share with them a lot of the tools we use in advising our clients. So we try to help them be more self-sufficient. Joe: You know it's interesting as you're talking I know that we're sharing your URL. I mean we're 15 minutes into the podcast and we normally don't pitch and promote the people that are on. It's not about that it's about education. But I think that this is education that you can't listen to it; this podcast and understand everything about sales taxes. So I think I'm having Diane's share this folks early because this information is so complex and so in-depth and changing on a monthly basis because new states are enacting the economic nexus and you need to have some sort of downloadable chart to understand it. Or better yet Diane what we do here often is tell people to outsource. Like you can do the bookkeeping yourself but you're probably a marketer so focus on marketing and outsource the bookkeeping. Yeah, there's legal stuff you've got to do for your business, don't hire an attorney and bring them in-house so you'd outsource that. Why in the world does an entrepreneur that's running a small business with let's say a staff of six need to go through the Sales Tax Institute and learn all of these things themselves when they can hire a company just to do it all for them. I know you don't do that; you train, you educate, you consult. Why not just hire a company to do it all? Again is that a little bit of ignorance is bliss you still have to know it or can you just hire one of these firms that we hear about that will help you set it up and collect and pay the states, what to do and you just don't worry about it. Is that a fantasy? Diane: It's not exactly. You could certainly hire. There are a couple of different things that you need to do. If you're selling on a marketplace platform there are less requirements that you need to worry about and that is because the actual tax calculation is going to be handled by the marketplace. Joe: Let's call the marketplace Amazon. Is that Amazon is going to collect them? Diane: Amazon is the marketplace; correct. If you're selling on Amazon you don't need to acquire software to calculate the tax because Amazon is calculating the tax on that order. Now Amazon is going to send you the data and the financial dollars that they collect in the sales tax. In some of the states, you are going to have to prepare the sales tax return and remit that tax directly to the state. Now the trend that we're seeing in 2019 is states are saying you know what we're going to remove the burden to the sellers that sell on marketplaces and put that tax collection and remittance responsibility on the marketplaces. And so we've got a vast number of states that already have enacted that legislation. And we've got a large number of states that have it still proposed this year. We call this our marketplace nexus on our charts. And so what we're assuming is that—I think there's only five or six states that don't have any legislation proposed to this year or passed yet. And the rest of them are really moving towards saying we're going to remove that burden. Joe: Okay I just want to say. I love that. I love all in capital letters marketplace nexus because that takes the burden out of the hand of the entrepreneur, right? I mean they're just— Diane: It does as long as they are only selling on a marketplace. Joe: Right. Diane: I think what we find is a lot of the sellers that sell on marketplaces also have their own website. Joe: They should. In my opinion, it'll bring a higher value. The problem is that Amazon is growing at such a pace. There are more businesses that used to be 75% let's say Shopify, 25%t Amazon and now it's flipped. Diane: Right. Joe: That will level out over time I'm sure. But yeah let's talk about that. So somebody that is selling on third-party marketplaces but they've also got an Amazon store—I mean their own website, even if they're only selling 5% of their total revenues. Diane: Correct. So where it gets challenging is most of the states require you to include the sales on the marketplaces along with your direct sales in determining whether or not you exceed the threshold to determine if you have substantial taxes. With most states its $100,000 of sales or 200 transactions. So if you're very successful on Amazon and only selling maybe 5 to 20% of your sales are on your own website then you still may exceed those thresholds. And now you do need to have some sort of solution in your direct sales to calculate the tax and then you'll have the responsibility for remitting it. So yes there are companies that sell software that can integrate with your e-commerce platform. Some of the e-commerce platforms have some of the software baked in so to speak so that you don't have to separately license it. Joe: Which ones have that baked in? Diane: So Shopify Plus has a baked-in version of Avalara. Magento I think has some baked in of either Avalara or [inaudible 00:23:58.2] depending upon the version that you're on but others you may have to pay a license fee for that calculation side. The second piece of it is once you calculate and collect the tax you need to remit that tax to the various different tax authorities. Those software companies also could do that for you as an outsource, your bookkeeper may be able to do that for you, and there are also other firms that we work with that are just sales tax outsourcing compliance, providers. My firm doesn't do that but we do work with other firms that do. Joe: Do you have references for those firms on your website? Diane: We do. Joe: Okay. Diane: We got those on our website. Joe: So what would happen if somebody signs up for Shopify plus they collect all this money and they don't properly set up the remittance or the payment to the states? How long is it going to take for the states to figure out and what are they going to do? Diane: Well collecting tax and not remitting it is about the worst thing you can do. Joe: Can we call that a crime? Diane: It actually is criminal fraud. It will earn you an orange jumpsuit. Joe: It is the new black so that's— Diane: It is the new black. You're right. Joe: Thank you. I have to say it. Sorry, everyone. Diane: You had to. Everybody does. So just as you never want to be withholding income taxes from your employee's paychecks and not turn those over to the government collecting sales tax and not remitting it is at that same level. Sales taxes when you collected are considered trust taxes. So you need to make sure that you are remitting the tax that you collect. How quickly will the state find you? That really depends. Often it can happen because an auditor bought something from you and then doesn't see you registered. Or it could be a customer that complains. Joe: That could just be bad luck. Do the right thing folks; do the right thing. Ignorance is definitely not bliss. Let's talk about this a little bit. We're 20 minutes in let's get to the meat of what—say potential buyers and potential sellers are concerned about with both marketplace nexus and economic nexus know, right? Alright, I'm going to just redefine the economic nexus. I get that's when you hit a certain threshold. What's the first nexus? Oh, it's physical nexus. Diane: Physical; correct. Joe: Alright. So yeah this is the stumble through podcast. I'm going to rename it all. Okay, so we've got a business for sale. They've done four million dollars in revenue in the last 12 months. Let's just say they're keeping 20% so the profits are $800,000. The business is for sale for three and a half, four-time multiple and they get three point two million dollars. And let's say that they've been around for five years. They're selling on third-party marketplaces at this point it's probably that 75% there and 25% elsewhere on their own Shopify store, Zulily whatever the case might be. If they're only collecting sales taxes where they have physical nexus and in their own home state and I buy the business; it's an asset sale, not a stock sale. Diane: Right. Joe: What's the risk to me if any? Diane: So I think the first thing is if they're actually collecting in all of the states who have physical presence; so where they've got inventory sitting in an Amazon warehouse they're steps ahead because that's where we're finding a lot of the risk is that these Amazon sellers are not collecting in the states where there is inventory in the warehouse. So if the only risk that they have are the states where there was economic nexus past which the earliest the state goes back on any of that for all practical purposes we have a couple of outliers is June 21st which is the date of the decision 2018 with New York. We've got Massachusetts and Ohio that go back a little bit further because they have something just to add a little bit more confusion to it Joe that's referred to as cookie nexus which is a digital present. So if you drop cookies which every Amazon seller is dropping cookies on their visitor's websites—on their devices so that they can track them. That was deemed to be a physical presence in both Ohio and Massachusetts so they go back a little bit further. Let's take those guys out. Joe: Okay. Diane: So if we're saying today we're selling our business we've been registered in all of my Amazon warehouse states and I've just got economic nexus going back almost a year. And if I haven't been registered in those states then there is a risk although we think that it's probably not a great risk if it is just the economic nexus. Okay? Average sales tax rate across the country is somewhere between 8 ½, 9% is the average rate. Of course, we've got some lower and we've got some higher. And so your risk is not 8 ½% of your profit but 8% of your gross sales. And so it's 8 ½% of—let's say 25% of your 4 million is in economic only nexus, 8 ½% of your million for the last year of sales. Joe: And then you've got to further divide it up into—you've got to hit that economic nexus in those individual states. And with where you've got the physical nexus we're going to count that money and see if we hit that average $100,000 threshold or 200 transactions. It's very complex. Almost to the point where it makes me wonder if that state employee in the sales tax division making whatever they make really cares and is going to dig deep to try to find you that sold a widget after you've sold all the assets of your business. What is the process the state goes through to identify people that are selling products that didn't collect sales taxes properly? Diane: So just as probably most of the sellers listening to this podcast are using data analytics to figure out what should they price their products at, what is a hot product to sell, the states are starting to use data analytics and advanced methods to identify sellers. They've also used methods including subpoenaing; their subpoena power to go to Amazon and ask for the list of the sellers in their states. So we've seen I think about eight or nine states that have done that including New York and Connecticut and North Carolina, Wisconsin, California, Washington. So those are some of the states that have actually gotten that list of those sellers. And we know sellers have gotten those letters from those states saying we think you should be registered. Joe: Okay, they can figure it out is essentially what we're trying to say here. Let's talk about the risk to the—you said the risk to the seller it's still minimum if you've been collecting where you have physical nexus. So great that's the minimum. Well, what about the person that buys the business? And I'm going to try to say this in simple terms and you tell me, correct me, or lead me back on the right path here. Diane: Okay. Joe: Let's say I bought a business. I buy that business for three million dollars and it turns out that you; the seller didn't collect and pay on all the economic nexus that you may have had during your ownership and a few states figure this out and they go after you; your corporation. They're going to go after Diane's brand LLC. First, they're going to try to go after the state after you and if it's an empty—well if the LLC is an empty shell if you ever pierce that LLC by running personal stuff with a business they can then go after you personally for that. And then if you can't pay it on either of those things you're going to go okay well the assets are still being sold, the brand is still out there. I wonder who bought it. Let's go after them. Is that the right path and can they get all the way through to me if they first go after your LLC, can't get money out of the LLC, it's an empty shell or you closed it, okay fine they go after you because you pierced that corporate shell at one point, you're bankrupt, you've got nothing. Can they go after me and if so what's the real risk to me the buyer? Diane: They can and to clarify just a couple of things. Even without doing anything to pierce the LLC all the states have provisions that allow them to go after the officers, the owners, or responsible parties whether the business has been closed down or not. Joe: But everything else was I generally on the right path there in terms of the way it would work? Diane: Correct. They can and there is also provisions that they have that are called successor liabilities. So that means that if they sell the business then they can go after the seller—I'm sorry after the buyer. Joe: Let's just put a point of clarification on that successor liability, you said sell the business. These are assets sales for the most part. They're buying the assets of the business, not the entity itself. Does that successor liability carry through in that case? Diane: It does. Joe: Okay, are they going to go to that successor first or is that going to be the last resort? Diane: It depends on the state and it also can depend on whether or not the rules were followed. Most of the states have something called a bulk sale notification requirement that applies on the sale of bulk assets. So this is not typically required on a stock deal but it is required on an asset deal. And so if you sell those assets there is a requirement that the state be put on notice that that is happening so that they can do a couple of different things. One they now know that this transaction is occurring. In some states, there might actually be a tax on the transaction itself. The second thing is that it gives the state the opportunity to give what's called the tax clearance certificate. So if they've recently done an audit let's say of the seller they can tell the buyer this is all clear. If there hasn't been a sale made or if God forbid the company has not been registered in the state then they can provide information to the buyer in terms of an amount to put into escrow and withhold from the purchase price. Joe: Again though I'm trying to just visualize how that heck the state is going to do this. I buy the assets of the business. It's Diane's brand. I go to the state of North Carolina to get a tax clearance certificate or—no that's for the past is that right? Diane: Correct. Joe: So I want to start collecting sales taxes on my newly formed corporation for Diane's brands. Diane: Correct. Joe: And I do that there's going to—and I actually think I know the answer here. I was going to say how the heck is the state going to know that they were everest passed sales. Diane: Right. Joe: There's a questionnaire that I have to answer that have there been past sales. A few things, I mean I've heard some people just say no or whatever, people in authority, people that are experts like you, I've seen attorneys on this bulk sale notification go yeah no we're not doing that. Are these people just flat out wrong or is it—look the key thing here is risk. I think what I'm trying to help people understand and I need you to throw out numbers for me. I'm trying to understand the odds because that's what these sellers and buyers are going to look at because you can't change the past. You can't change what you did four years ago in terms of sales tax collection. In some case, you don't have to because economic nexus didn't exist back then. But what are the odds of this carrying through in this scenario? Again I'm buying your brand. You've been around. You sold four million bucks in the last 12 months. And I know you can't do this everybody calls labor the legend and I remember just after college I was at a temp agency trying to get a job and had to take a typing test. Diane: Yes. Joe: And I did it. And I was terrible. Terrible was like 82% accuracy at the time and the guy tells me it was. But I'm like what are you talking about. Like Larry Bird shot 66% from the free throw line and he was a legend. That actually got me the job nothing else; my expertise and anything else nothing. But Larry the Legend got me the odds, percentages; that's what people want to know. So I'm buying it. How much—is this going to keep me up at night or is there like a five or 10% risk here that some of this may carry through? Diane: So I think it depends on a couple of factors. So I hate to give you a fudged answer but here's a couple. Joe: I have to put you on the spot. We are recording. Diane: Yeah. So here's a couple of things that come into play. If the only nexus is economic I think the risk is fairly low. If you have been an FBA seller you've got inventory in the state and you haven't been collecting. I think that risk is significantly higher because there is now ways that the states are getting that information. Joe: Fairly low is 3% is that what you're talking? Diane: I would say transactions happening within the first year, we're saying it's probably—you know will the state come after somebody for economic less than 20% chance. Joe: Okay but first I bought your brand; first I'm going to go after you. First, they're going to go after your LLC then they're going to go after you. If they can't get money from either of those then they're going to come after me. So is that 20% on me or is it 20% first to you and then you're all saying— Diane: I think it's about 20% that they're going to go and find that an economic seller did not register when they should have; an economic nexus seller. Joe: And unless you're bankrupt they're going to take money from you first. Diane: Correct. Joe: And how do they get that money? Diane: They will do an audit. So they will look at your books for reference and then they will calculate an assessment. Joe: And if you can't write them a check you're going to work out a payment program. Diane: Correct. Joe: They are attorneys that can negotiate that down. Diane: Correct. Joe: All that still applies? Diane: Yup that would still apply. Joe: Okay, so economic nexus pretty low. Diane: Correct. Joe: Physical nexus fairly high but again even though their sell-through nexus—is that what you call it? There's so many different nexus here. The physical first; they're going to go after you first. The buyers here the concern should be fairly low unless the seller of the business is ultimately going to be filing for bankruptcy and there's no money there, right? Diane: Correct. And how you would get caught as you said when you're filling out your registration application for your business because now you're going to be compliant. One of the questions that is on there is did you buy this business from anybody else. And that's on I think virtually every state application. And that's how it would be identified. Now if you choose to leave that blank the applications are signed under penalty of perjury. Although I have never seen a state actually pursue perjury charges on somebody that answered the questionnaire incorrectly; I got to advise you that that's what it says. Joe: Sure. Okay, and we are 35 minutes in and generally we want to keep this short. Honestly, I feel like I could talk to you about this for another 35 minutes but I don't dare because the listeners would just drop right off a cliff. So Sales Tax Institute, Yetter Tax, what resources; we talked about them at the beginning and I was writing down—I can't even read my own notes, what resources are you making available on the length that we're providing. You're giving us a link on the QoP podcast so we know it's there and you're providing some specific resources for anybody listening. What are those? Diane: Correct. So we're going to make it easy for your listeners Joe. We're going to give you a specific link, SalesTaxInstitute.com/quiet-light-podcast and we're going to load all of these great resources that we talked about right there so it'll be one place that your listeners can go to. And on there we're going to give them the ability to download our white paper that talks all about these different kinds of nexuses and what you need to do. We're going to give them the link to what we call our remote seller nexus chart which will include all the different types of nexus; click-through affiliate which is common ownership and agencies doing things on your behalf, the economic nexus, the marketplace nexus, and the one that we didn't have time to get into which is the awful notice and reporting which is when you don't collect tax. So that chart will be on there. We're going to have a chart for the economic nexus which is all the states and the different thresholds by state, their actual effective dates, what dollars do you include in doing that threshold calculation. We're going to give you a link to one of our greatest FAQs about what is nexus that has a little video about all of those nexus types explaining what they are. And then we also offer a service called our Wayfair Risk Analysis. We can take your data and go through and do the analysis to figure out what your risk is as well as where should you be right. Joe: I love that. I hate that we're at the end of the podcast for that part of it because a lot of people just want to have this done for them. So you can do a risk analysis as part of— Diane: Absolutely. Joe: And do they—is that through Yetter Tax or the Sales Tax; since it'd actually to be through the link but look people listen and then they type it in. So if they go to is it Yetter Tax would they be able to figure out that analysis? Diane: The easiest thing to do is go to the SalesTaxInstitute.com and then click on the consultation button. Joe: I got it. Diane: Then you will see a link to our Wayfair Risk Analysis there. Joe: Alright, Diane you know your stuff. You are a sales tax nerd. I see it. I'm not insulting you. I see that on your Twitter handle. Thank you for being such a nerd and understanding this and sharing the knowledge with everyone here. Ignorance is not bliss. Learn about sales taxes because if you don't it's going to come up and bite you somewhere unpleasant and that's in your wallet. Thank you for your time, Diane. I greatly appreciate it. Diane: Thank you, Joe. It's been a pleasure. Links and Resources: https://www.salestaxinstitute.com/quiet-light-podcast https://www.salestaxinstitute.com http://www.yettertax.com/ https://www.linkedin.com/in/dianeyetter https://twitter.com/yettertax?lang=en Economic Nexus State Guide: https://www.salestaxinstitute.com/resources/economic-nexus-state-guide Remote Seller Chart: https://www.salestaxinstitute.com/resources/remote-seller-nexus-chart Wayfair Risk Analysis: https://www.salestaxinstitute.com/wayfair-risk-analysis Sales Tax Software Vendors: https://www.salestaxinstitute.com/resources/tax-software FAQ: What do I need to know about the Wayfair Case and Economic Nexus?: https://www.salestaxinstitute.com/sales_tax_faqs/wayfair-economic-nexus FAQ: What is nexus? : https://www.salestaxinstitute.com/sales_tax_faqs/what_is_nexus Whitepaper: Nexus after Wayfair – What you need to Know: https://www.salestaxinstitute.com/resources/five-things-to-understand-nexus-whitepaper Sales Tax 101 On-Demand Webinar: https://www.salestaxinstitute.com/sales-tax-education/sales-tax-101-on-demand-webinar Sales Tax Jumpstart Live Online Class: https://www.salestaxinstitute.com/sales-tax-education/sales-tax-jumpstart Consulting Service: http://www.yettertax.com/about-us-services/

From word processing to filing taxes, there's a software solution for everything these days. As society continues to change and legislation alters the way business is done, there are people who are hard at work developing programs to address these changes. Take South Dakota v. Wayfair, for example. Overnight, the way companies calculated and paid taxes in the various states they do business changed. Fortunately, tech solutions were immediately available to make the changes a little more tolerable.  Kathy LaMonica, a senior manager and technology consultant on Rea's state and local tax team, joins Dave Cain on unsuitable to talk about the various tech solutions available and how they can save businesses from costly fines and penalties now that Wayfair is the law of the land.  Easing Compliance Burdens & Audit Risk Using new software and automation can significantly simplify the filing process – and a streamlined process frees up your time to focus on tax planning and savings strategies. Leveraging software and process improvements can also assist with audit proofing a business, or at least help you get a handle on sales tax issues before an auditor knocks at the door. If your business operates or sells in multiple states, listen to this episode to learn: Why you can't just wait and see if a state your operate in knocks at your door. Instead, you need to be proactive about tracking your out-of-state sales or you are at risk. How software can simplify the tax calculation (both what is taxable and what rate should be charged). What software you might want to use in your business. If you liked this episode of unsuitable on Rea Radio, let us know by hitting the like button or by sharing it with your professional networks on social media. You can also use #ReaRadio to join the conversation on Facebook and Twitter, and you can watch the podcast in action on the Rea & Associates YouTube channel. We've also included access to additional resources on our website at www.reacpa.com. Finally, if you have questions about your technology options, feel free to reach out to Kathy directly at www.reacpa.com/biography/katherine-lamonica.

The U.S. Supreme Court’s 2018 South Dakota v. Wayfair decision upended a 26-year precedent that limited a state’s authority to tax goods being sold across state lines. A year later, states have amended their laws to target remote sellers and online sales platforms like Amazon.com Inc. Bloomberg Tax reporter Ryan Prete spoke with Diane Yetter, founder of the Sales Tax Institute and president of consulting firm Yetter Tax, to discuss the ruling’s legacy so far and possible future legal issues. She said legal challenges could begin with differing interpretations of the laws, and go as far as class-action lawsuits against sellers for not collecting the taxes appropriately.  Listen and subscribe to Talking Tax from your mobile device: Via Apple Podcasts | Via Stitcher | Via Overcast | Via Spotify

Tax Notes Today State reporter Paige Jones discusses the developments in states since the U.S. Supreme Court's June 21, 2018, decision in South Dakota v. Wayfair Inc.See the Tax Notes Nexus Tracker and these articles for more coverage:One Year Later: Experts Discuss Aftermath, Future Impact of WayfairNo New Streamlined Member States a Year After WayfairNCSL SALT Task Force Contemplates Its Future Post-WayfairRemote Sellers Seeking Relief as States Shift to Marketplace LawsNew Hampshire Wages War Against Wayfair

Technology continues to change the way that Americans are doing business. More consumers than ever are shopping online, helped by outdated laws about sales tax collection for remote sellers. Congress was asked to act and change the laws, but when they moved too slowly, the states took their own action. Enter South Dakota v. Wayfair, a lawsuit that made a lot of headlines in 2018. Now, retailers like Wayfair, Amazon, and others are forced to start meeting “economic nexus” laws, which state that the threshold for whether or not you must charge sales tax in a state no longer depends on whether you have a brick-and-mortar location there, but on your volume of sales or transactions with its residents. An estimated $34 to $35 billion are on the line here, so states are becoming increasingly aggressive about getting their money. On this episode of “Weaver: Beyond the Numbers,” we interviewed George Rendziperis and Shane Stewart of Weaver’s State and Local Tax Services practice about how the landscape is changing with these new economic nexus laws. Is your company complying with the new laws in every state where you have customers? What could happen if you don’t get into compliance within the next 24 months? How can you comply across state lines, and how will each state know if you owe sales tax? Listen here, or on Apple Podcasts & Spotify.

* Use coupon code PODCAST25 for 25% off this webcast * Webcast URL: https://www.theknowledgegroup.org/webcasts/south-dakota-v-wayfair-decision/ In its South Dakota v. Wayfair, Inc. decision, the Supreme Court abandoned Quill Corp. v. North Dakota's physical presence nexus standard, giving states broadened ability to collect tax from online sellers. To settle the remaining South Dakota issues, South Dakota and Wayfair Inc., et al., entered into an agreement wherein the latter will have to comply with the former's remote seller law. The South Dakota ruling is expected to have sweeping implications on online retailing and modern e-commerce. Companies need to keep themselves abreast of the recent developments in sales tax collection, particularly in light of South Dakota, to ensure compliance and avoid litigation. Listen as a panel of distinguished professionals organized by The Knowledge Group provide the audience with the latest sales tax issues in South Dakota v. Wayfair, Inc. Speakers, among other things, will discuss what there is to know in the evolving sales tax landscape. For anymore information please click on the webcast url at the top of this description.

Pick up where guests Mary Reiser and Ken Taylor left off in All the Wayfair - Part 1 as they join host Damien Martin to address common questions on how the U.S. Supreme Court ruling on South Dakota v. Wayfair, Inc. (Wayfair) is changing the sales and income tax landscape for businesses and their owners. Here’s what they cover: How should I approach uncertainty after Wayfair? @1:10 Can I contractually pass a sales and use tax obligation on to someone else? @ 6:08 How is deciding to collect sales tax or file income tax returns a business decision? @ 8:31 Can’t I just do the same thing I did last year? @ 14:56 What approach are businesses and their owners actually taking in response to Wayfair? @18:15 How might factor-based income tax nexus standards effect small and medium-sized businesses @ 24:49 BIO FOR GUESTS Mary Reiser is a member of BKD’s State & Local Tax (SALT) Services division. She focuses on compliance and consulting for various SALT issues involving multistate entities, including audit defense, nexus analysis, voluntary disclosure and buy- and sell-side due diligence. Her primary experience is in the areas of income and franchise tax and sales and use tax. Connect with Mary on LinkedIn Ken Taylor is a senior managing consultant in BKD’s SALT division. He provides indirect tax consulting services to both public and private companies, including facilitation of automating sales and use tax compliance, technical assistance and research, audit defense, opinion memos, due diligence reviews for purchasers, identification and recovery of overpayments and sales and use tax function effectiveness reviews. Connect with Ken on LinkedIn     ADDITIONAL RESOURCES Previous episodes of “Simply Tax” on Wayfair: Episode 57: All the Wayfair - Part 1 Episode 32: What Now After Wayfair? Episode 28: Just Add Salt Articles on Wayfair Wayfair – State Tax Update (January 22, 2019) As the Dust Settles in the Post-Wayfair World: Economic Nexus Landscape (September 25, 2018) Quill Is Overturned – A New Era in Economic Nexus for Sales Tax (June 1, 2018) U.S. Supreme Court to Review Nexus for Sales Tax (February 1, 2018) Webinars on Wayfair State Income & Sales Tax Update for Manufacturers & Distributors (September 12, 2018) What Does the Wayfair Ruling Mean for Your Organization? (August 14, 2018) GET MORE “SIMPLY TAX” A complete archive of our episodes is available on our website and YouTube playlist. We’d love to hear from you! Email feedback and questions to SimplyTax@bkd.com. Connect with Damien on social media! LinkedIn | Twitter | Instagram

As we discussed in Just Add Salt and What Now After Wayfair?, the U.S. Supreme Court ruling on South Dakota v. Wayfair, Inc. (Wayfair) forever changed the landscape of nexus for state sales tax purposes. Guests Mary Reiser and Ken Taylor return to the podcast to discuss how developments stemming from this landmark decision have been shaping the sales and income tax landscape for businesses and their owners. TIME STAMPS OF WHAT’S COVERED What’s nexus? @2:40 Economic nexus @3:50 The evolution of income tax nexus standards @5:23 Public Law 86-272 @8:53 Economic nexus is here to stay @11:14 Do you know where your inventory is? @15:56 What to do this tax filing season if you have inventory in multiple states @18:36 How to approach gathering the info you need @24:29 Inventory is taxable @27:18 What does Wayfair mean for Public Law 86-272? @29:21 Taxation of services as part of the Wayfair analysis @37:28 Market sourcing after Wayfair @44:23 BIO FOR GUESTS Mary Reiser is a member of BKD’s State & Local Tax (SALT) Services division. She focuses on compliance and consulting for various SALT issues involving multistate entities, including audit defense, nexus analysis, voluntary disclosure and buy- and sell-side due diligence. Her primary experience is in the areas of income and franchise tax and sales and use tax. Connect with Mary on LinkedIn Ken Taylor is a senior managing consultant in BKD’s SALT division. He provides indirect tax consulting services to both public and private companies, including facilitation of automating sales and use tax compliance, technical assistance and research, audit defense, opinion memos, due diligence reviews for purchasers, identification and recovery of overpayments and sales and use tax function effectiveness reviews. Connect with Ken on LinkedIn     ADDITIONAL RESOURCES Articles on Wayfair Wayfair – State Tax Update (January 22, 2019) As the Dust Settles in the Post-Wayfair World: Economic Nexus Landscape (September 25, 2018) Quill Is Overturned – A New Era in Economic Nexus for Sales Tax (June 1, 2018) U.S. Supreme Court to Review Nexus for Sales Tax (February 1, 2018) Webinars on Wayfair State Income & Sales Tax Update for Manufacturers & Distributors (September 12, 2018) What Does the Wayfair Ruling Mean for Your Organization? (August 14, 2018) GET MORE “SIMPLY TAX” A complete archive of our episodes is available on our website and YouTube playlist. We’d love to hear from you! Email feedback and questions to SimplyTax@bkd.com. Connect with Damien on social media! LinkedIn | Twitter | Instagram

Get an inside look at the new online marketplace requirements established by the recent South Dakota v. Wayfair Supreme Court case.

* Use coupon code PODCAST25 for 25% off this webcast * Webcast URL: https://www.theknowledgegroup.org/webcasts/sales-tax-landscape/ Based on Supreme Court rulings in 1992, sales tax can be collected on online purchases if the seller has a “physical presence” in the state. However, this decision has been reversed in the South Dakota v. Wayfair case. On June 21, 2018, the Supreme Court decided that online sellers can now be required by the state to pay sales tax. According to the Supreme Court, modern e-commerce does not fall in the same category with the qualifications that led to the Quill decision, thus, requiring the seller to have a physical presence in the state. As online retailing and modern e-commerce continuously flourishes into a bigger industry, this ruling will be a key player to the changes coming to present sales tax compliance and collection. In this LIVE webcast, a panel of key thought leaders organized by The Knowledge Group will provide an overview to help you understand the critical elements of the South Dakota v. Wayfair case decision and its potential effects on online retailing industry, the sales tax collection and compliance landscape. Key issues that will be covered in this course are: - South Dakota v. Wayfair – An Overview - Latest Updates and Developments - Implications to Sales Tax Landscape - What's to Come for the Online Retailing Industry? - Sales Tax Compliance and Collection in the Years to Come For anymore information please click on the webcast url at the top of this description.

Paige Jones talks to Jim Ford of Global Tax Management about how retailers are preparing to collect and remit sales and use taxes in the wake of the U.S. Supreme Court's decision in South Dakota v. Wayfair Inc.

Matthew Schaefer, a Partner at the law firm Brann Isaacson, has focused for nearly 20 years on state tax matters and contested proceedings before courts and administrative tribunals.  He was co-counsel before the U.S. Supreme Court for the Respondents in South Dakota v. Wayfair Inc., 135 S.Ct. 2080 (2018) and for the Petitioner in Direct Marketing Association v. Brohl, 135 S.Ct. 1124 (2015).  Matthew advises numerous e-commerce vendors, multi-channel merchants, and trade associations, and has represented the challengers in nearly every leading court case testing the constitutionality of state “economic presence” laws that impose burdensome tax and regulatory obligations on remote sellers.Matt is a co-author of ‘Eyes on eCom Law,' a blog that reports on legal developments of interest to direct marketers and online sellers.Brann Isaacson is unique among its peers—a boutique law firm grounded in Maine that represents over 100 large and small online and multichannel companies across the country. The firm is general counsel to L.L. Bean, one of the most prominent and admired retailers in the industry. Today, we advise many of the companies in the Internet Retailer's Top 500 Guide, as well as many small companies that hope someday to be included in that list.Brann Isaacson is based in Lewiston, Maine which is approx. 40 miles north of Portland and 135 miles north of Boston.  It was in Lewiston where Muhammad Ali had his first title defense, knocking out Sonny Liston in the infamous phantom knockout.

In this week’s episode Connecticut Dept of Revenue 1st Assistant Commissioner Lou Bucari joins Eric and discusses what the states have been dealing with prior to the South Dakota v. Wayfair decision, what is now happening behind the scenes that the Supreme Court has spoken, and what the impact to tax practitioners and their clients will be. Eric will also discuss the new business opportunity this creates for practitioners.   Link to the decision in South Dakota v. Wayfair: https://www.supremecourt.gov/opinions/17pdf/17-494_j4el.pdf

On today’s episode of Just the Tips, Dean and I punch above our weight a bit by having Richard Chapo, a lawyer specializing in internet law for businesses, on the show. Richard is a business lawyer in San Diego who has been practicing for 25 years and advises small and large online businesses on how best to comply with laws applicable to conducting business online. We dig into some pretty gnarly legal stuff this week, including GDPR, collecting sales tax, and what's up with Apple and its back taxes. This is a great episode of Just the Tips that you won’t want to miss. What is an Internet lawyer? Sometimes the Internet may feel like a lawless land, so I had to ask Richard what he means when he calls himself an Internet lawyer. And he said that when he started out, it was just a pretty simple thing, but it’s become increasingly complex over the years, including sophisticated privacy statutes like GDPR, shifting sales tax questions and copyright issues. If you have an online business, or even just an online component to your business (as many do), you need to listen to this week’s episode of Just the Tips. What do business owners need to watch out for online? Richard, of course, watches the space closely for any legal issues that may pop up, and it’s fascinating to hear him run through examples big and small of mistakes people make online. He cited everything from Apple owing massive back taxes in Europe, to very small companies making mistakes early on that become huge problems as they scale, to casinos failing to properly disclose information in promotional videos. The legal world is, as always, a minefield, but luckily Richard knows where the mines are buried. This is truly a unique and fascinating episode of Just the Tips. What do businesses have to do with GDPR? Of course one of the most prominent laws impacting online businesses this year has been GDPR, the General Data Protection Regulation passed in the EU focused on data protection and privacy. As Richard says, the right to privacy in the EU is as valued as the right to free speech in the U.S., and GDPR is the enforcement of that right. As Richard says, a company’s decision to comply with GDPR should be based on the cost of compliance. If you have only 10 sales in the EU, but the cost of compliance is $10,000, maybe it makes more sense to not sell in the EU than comply with GDPR. We think of the Internet as a worldwide thing, but regulations like GDPR could actually segment it. Really interesting stuff from Richard on this week’s episode of Just the Tips. Supreme Court and the state sales tax One of the big decisions to impact businesses that sell online was South Dakota v. Wayfair, a case heard by the Supreme Court in June. As Richard says, the legal precedent on whether businesses in one state that sell to another state have to pay the sales tax in that other state came from the 1970s and was based on catalog sales. And it held that businesses did not have to pay that sales tax. But things have changed, in June the Supreme Court reversed that decision. What does that mean for your business? Well, Just the Tips is always here for the free legal advice, so you have to listen to this episode! Outline of This Episode [3:28] What is an Internet lawyer? [4:44] What do business owners need to watch out for online? [7:39] What mistakes do people make? [16:38] Complying with international law [21:28] GDPR [29:00] Supreme Court and the sales tax [29:47] How Erik audits a company’s marketing [38:36] Don’t let this stuff stop you from selling online Musicfor “Just The Tips” is titled, “Happy Happy Game Show” by Kevin MacLeod (http://incompetech.com) Licensed under Creative Commons: By Attribution 3.0 License Resources Mentioned Richard Chapo Connect With James and Dean James P. Friel: AutoPilot Entrepreneur Program: www.jamespfriel.com/autopilot Facebook Group: https://www.facebook.com/groups/autopilotentrepreneur Site: www.jamespfriel.com Dean Holland: Blog: www.DeanHolland.com FB Page: https://www.facebook.com/DeanHollandHQ Digital Business Entrepreneurs: https://www.facebook.com/groups/DigitalBusinessEntrepreneurs/  

Today’s show is a little different. Instead of talking about what’s going to happen tomorrow, we’re talking about something pretty important that’s happening today: South Dakota v. Wayfair, the U.S. Supreme Court decision that clears the way for out-of-state retailers to collect sales taxes from customers, even if they have no physical presence in the state. There’s a lot of uncertainty surrounding the ramifications of this decision still, but one thing is for certain: the world of sales tax is getting a whole lot more complicated. So we sat down to talk with Scott Peterson, Vice President of U.S. Tax Policy and Government Relations at Avalara, which a company that makes software that provides automated tax compliance. To learn more, and for the complete show notes, visit blionline.org/blog. Resources: Learn more at (http://avalara.com/) Connect with Scott: LinkedIn | Twitter Avalara compiled a lot of help info here: avalara.com/us/en/learn/sales-tax/South-Dakota-Wayfair.html Read: “U.S. Supreme Court allows states’ sales taxes on online sales, overturns Quill physical presence rule” Future-Proof is produced by Podcast Masters

Confusion has been swirling after the recent U.S. Supreme Court ruling on South Dakota v. Wayfair, Inc. (Wayfair). Guest Ken Taylor joins host Damien Martin to break down this landmark decision, clear up misconceptions and explain the potential effects on businesses large and small. TIME STAMPS OF WHAT’S COVERED [1:26] The significance of the U.S. Supreme Court decision in Wayfair [8:44] Nexus? [12:14] A lot has changed since Quill Corp. v. North Dakota, 504 U.S. 298 (1992) [15:07] The difficult business decision [18:30] You need good information to comply with sales and use tax rules [21:15] What Wayfair means for purchasers [23:32] Now is the time make changes to your systems and processes [26:00] Failing to properly address sales and use taxes can affect mergers and acquisitions [29:54] Advice for businesses and their owners in responding to Wayfair [34:51] What happens if you wait to comply? [38:21] That's a lot to consider, and you need perspective BIO FOR GUEST Ken Taylor is a senior managing consultant in BKD’s State & Local Tax Services (SALT) division. He provides indirect tax consulting services to both public and private companies, including facilitation of automating sales/use tax compliance, technical assistance and research, audit defense, opinion memos, due diligence reviews for purchasers, identification and recovery of overpayments and sales/use tax function effectiveness reviews. Connect with Ken on LinkedIn   ADDITIONAL RESOURCES Background article: U.S. Supreme Court to Review Nexus for Sales Tax Article: Quill Is Overturned – A New Era in Economic Nexus for Sales Tax Webinar: What Does the Wayfair Ruling Mean for Your Organization? GET MORE SIMPLY TAX A complete archive of our episodes is available on our website and YouTube playlist. We’d love to hear from you! Email feedback and questions to SimplyTax@bkd.com Connect with Damien on social media! LinkedIn | Twitter | Instagram

A focus on a historic year in taxes.  A discussion of the tax legislation starting in fall 2017 with the Tax Cuts and Jobs Act and going into July 2018.  The focus includes other tax events such as the Supreme Court sales tax case South Dakota v. Wayfair and the nomination hearing of proposed IRS Commissioner Charles Rettig.

Last time we talked about State and Local Taxes, Joe Popp and Scott Zielaskiewicz were our guests and we were waiting for the Supreme Court to rule on the monumental South Dakota v. Wayfair case. Well, in case you haven't heard, the decision has been made and South Dakota came up victorious. Joe Popp, Rea's SALTiest Tax Ninja, is back with host, Dave Cain to talk about what this means for your business and what you need to do today to prepare for the massive changes that are about to take place as a result of this outcome. What does Wayfair Mean? As we wrote in our blog post, New Nexus Rules To Result From Monumental South Dakota vs Wayfair Case, the Wayfair case has a relatively simple message: “if you really make use of the marketplace in a state, you should comply with their sales tax laws.” This replaces the basic message of the case it overturned, Quill, which was “if you don't have physical presence in a state, then you shouldn't have to comply with that state's sales tax laws.” Basically, a business' physical presence isn't required for a state to tax them – participation in the marketplace may be enough. If your business sells anything in multiple states, online or otherwise, you will be interested in these other topics discussed in this episode: What does South Dakota v. Wayfair mean for business owners today (and what it may mean in the near future)? What do business owners need to do now that the Supreme Court has ruled on the South Dakota v. Wayfair case? How Wayfair may affect selling a business. If you liked this episode of unsuitable on Rea Radio, let us know by hitting the like button or by sharing it with your followers on social media. You can also use #ReaRadio to join the conversation on Facebook and Twitter, and you can watch the podcast in action on the Rea & Associates YouTube channel. We've also included access to additional resources on our website at www.reacpa.com.

Lynn Nichols Federal Tax Update Podcast July 16, 2018, edition   We are back after a short hiatus! Listen as Lynn Nichols provides commentary on 8 Items pertaining to current developments in U.S. tax law. This week’s topics include: OUR PROGRAM THIS WEEK INCLUDES . . . . . .   Termination of S Corp Election Inadvertent The IRS ruled that a company will be treated as continuing to be an S corporation from the date its subchapter S election was inadvertently terminated when a trust became an ineligible shareholder, provided some conditions are met. [LTR 201824003; 10/27/2017, rel. 6/15/2018] (FIVE LIKE THIS IN SAME WEEK ! ! !) IRS Scraps Leveraged Partnership Rules, Keeps Bottom-Dollar Ban The IRS is reverting to old rules on leveraged partnerships in response to an executive order calling for the removal of burdensome regulations, but bottom-dollar guarantees didn’t make the cut. [Tax Notes Today; June 19,2018, article by Eric Yauch] IRS Proposed Disguised Sales Regs Would Reinstate Prior Regs The IRS has published proposed regulations on the allocation of partnership liabilities for disguised sales, adding that if finalized, the proposed regs would reinstate prior final regs on allocations of excess nonrecourse liabilities of a partnership.  [REG-131186-17; 83 F.R. 28397-28401; 6/19/2018]   Medical Marijuana Business Can't Claim Deduction for Wages The Tax Court held that deductions for wages a couple received from their medical marijuana S corporation weren’t attributable to cost of goods sold and are disallowed under section 280E as attributable to trafficking a controlled substance, rejecting the couple’s claim that denial of the deduction is discriminatory. [Loughman, Jesse M.; No. 21464-15; T.C. Memo. 2018-85, 6/18/2018]   Decedent Held Rights to Cash Surrender Value of Life Insurance The Tax Court refused to hold that sections 2036 and 2038 are inapplicable in valuing a decedent’s interests in three split-dollar life insurance agreements to the cash surrender value at the date of death because the bona fide sale exception was not satisfied and held that summary judgment on inapplicability of section 2703 was inappropriate. [Cahill, Estate of Richard F.; No. 10451-16; T.C. Memo 2018-84, 6/18/2018]   Microcaptive Insurer Case Leaves Open Questions The Tax Court granted the IRS another victory June 18, adding to the agency’s arsenal for combating abusive captive insurance arrangements, but the opinion failed to offer additional guidance for taxpayers.  [Tax Notes Today; 6/20/2018, Article by Emily Foster]   Property Manager Was Employee; Company Hit With Employment Taxes The Tax Court held that the property manager for a company that operated an apartment complex was an employee and not an independent contractor and held the company liable for employment taxes, additions to tax, and penalties; the court held that the company wasn’t entitled to relief under section 530 of the Revenue Act of 1978. [Hampton Software Development LLC; No. 30231-13L; T.C. Memo. 2018-87, 6/19/2018]   Fraudulent Filer Can’t Avoid Penalties With Amended Returns   The Tax Court held that an individual who admitted to filing fraudulent returns but who later filed amended returns reporting additional income was still liable for the penalties, finding that he could not avoid fraud penalties by filing amended returns because an amended return doesn’t purge the original fraudulent filing or fraudulent intent. [Gaskin, Gary et al. v.; No. 7475-17; T.C. Memo. 2018-89; 6/20/2018]   S. Supreme Court Overturns Quill, Freeing States to Tax Online Sales The U.S. Supreme Court held June 21 in South Dakota v. Wayfair Inc. that the physical presence standard in Quill Corp. v. North Dakota is "unsound and incorrect," freeing states to require tax collection on remote sales. [Tax Notes Today; 6/22/2018, Article by Jad Chamseddine]     [South Dakota v. Wayfair Inc.; No. 17–494]

This week's episode covers the new Supreme Court Justice, "Second Best" Brett Kavanaugh, a Justice who no one knows anything about, but can't help buy try to analyze.  Then, "First Best" Brett and "The One and Only" Nazim discuss South Dakota v. Wayfair and how the Court should approach overruling precedent.  Law starts at (04:38).

SCOTUS has changed the relationship between citizens and taxation. Miss America activists don’t want to change the Miss America pageant; they want to change human nature. Finally, a stirring tribute to Joe Jackson. (No individual stock talk.)

On June 21, 2018, the supreme court sided with the state of South Dakota in their suit against Wayfair. On the surface, it appears to be a fair ruling.  But for small online businesses, it is not that simple There are over 12,000+ sales tax jurisdictions in the United States, and that should leave you concerned about your business. So join Kristin Ingram, CPA, MSAT and Jeffery Ingram as the discuss the potential impact of the ruling on your small business.  For complete show notes check out the podcast on @ smallbiz.life/146 SOUTH DAKOTA v. WAYFAIR, INC., ET AL. Sales Tax Nexus risk after the Wayfair Case Types of nexus Links ((((((((((((((((((((((((((( Visit Show notes ))))))))))))))))))))))))) http://smallbiz.life/146   ((((((((((((((((((((((((((( Mentions links ))))))))))))))))))))))))) SOUTH DAKOTA v. WAYFAIR, INC., ET AL. https://www.supremecourt.gov/opinions/17pdf/17-494_j4el.pdf Sales Tax Nexus risk after the Wayfair Case https://www.salestaxinstitute.com/sales_tax_faqs/what_is_nexus   ((((((((((((((((((((((((((( Rate and Review us in iTunes ))))))))))))))))))))))))) https://itunes.apple.com/us/podcast/small-biz-life/id1039595496 Small Biz Life Podcast   ((((((((((((((((((((((((((( Like our Facebook Page ))))))))))))))))))))))))) https://www.facebook.com/smallbizlifepodcast/   ((((((((((((((((((((((((((( Join our Facebook Group ))))))))))))))))))))))))) https://www.facebook.com/groups/SmallBizLife/   ((((((((((((((((((((((((((( Twitter  ))))))))))))))))))))))))) https://twitter.com/JefferyWIngram https://twitter.com/KristinLIngram https://twitter.com/SBLPodcast   ((((((((((((((((((((((((((( Affiliate Mentions links )))))))))))))))))))))))))   TaxJar https://www.taxjar.com/?rfsn=1495821.f3c4e9

Amazon News Amazon Prime Day this year has leaked and will be July 16-17  Amazon today announced the acquisition of Pillpack for $1b Amazon recruits small businesses, to deliver packages Amazon was fourth-largest advertiser in the US ahead of Walmart, GM and Ford. Amazon is merging 1P and 3P and the robots are winning vs merchants - "hands off the wheel" Industry News Supreme court rules in favor of South Dakota in South Dakota v. Wayfair, Inc., et al.  The ruling effectively overturns the previous Quill Corp. v. North Dakota precedent and opens the door for all states to require e-commerce sites to collect and remit sales taxes to states. Amazon stands to be the biggest winner in the ruling.  Amazon already collects sales tax on all 1P sales.  Amazon will now be able to charge 3P merchants 2.9% to collect tax for them.  Amazon 1P will be more competitive with 3P and other e-commerce sites (eBay, NewEgg, etc..). Small E-Commerce sites and marketplace sellers are the biggest losers, as they will now need to collect sales tax (and likely pay a 3rd party to do it on their behalf), and navigate a multitude of complex out of state sales tax laws that are likely to emerge. All eyes turn now turn to Congress, to see if they will pass a law to clarify/simplify the sales tax collection issue on behalf of small businesses. Listener Questions Alex Volakis asks: Should others try the Warby Parker school bus store concept. Who do you think would benefit most from it? Amit Agarwal asks: Do customers like bundled products or do they like to create their own bundles? What are different merchandising tactics used to sell a collection of products? Jill Dvorak asks: Any leadership or managing through change tactics. at the corporate level to infuse more nimbleness in established brands? "The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail (Management of Innovation and Change)" by Clayton M. Christensen "The Lean Startup" by Eric Ries Don't forget to like our facebook page, and if you enjoyed this episode please write us a review on itunes. Episode 136 of the Jason & Scot show was recorded on Thursday, June 28th 2018. http://jasonandscot.com Join your hosts Jason "Retailgeek" Goldberg, SVP Commerce & Content at SapientRazorfish, and Scot Wingo, Founder and Executive Chairman of Channel Advisor as they discuss the latest news and trends in the world of e-commerce and digital shopper marketing. Transcript Jason: [0:25] Welcome to the Jason and Scott show this is episode 136 being recorded on Thursday June 28th 2018 I'm your host Jason retailgeek Goldberg and as usual I'm here with your co-host Scot Wingo. Scot: [0:40] Hey Jason welcome back Jason and Scott show listeners. Well Jason listeners that are paying very close attention will notice we took a little bit of summer vacation off so we haven't really podcast for last couple weeks but it's exciting to get back to it and we have a lot of news report on and some analysis of some big things that happened in e-commerce of the last couple of weeks plus we've had some listeners very patiently waiting some for with some questions that they wanted to ask us so that's going to be rude the real focus of the show tonight. So let's start off with some. Amazon news your margin is there. It wouldn't be a Jason Scott show without some Amazon news and there is no shortage today we're going to go through kind of the cream of the crop here so that the big one is and I know you've been on pins and needles Jason like I am is when is Amazon Prime day well it has leaks and it looks like it's going to be July 16th to 17th and like last year they're going to do kind of the day of the half of deals so I'm pretty excited I've been saving some of my Gadget money on the side and I'm going to be watching carefully to see what's offered this year. Jason: [2:04] Yeah I am right there with you it's it feels like as the as it gets more and more in French do not do the deals and stuff get better every year and I think there's been some interesting evidence that it's now starting to have a meaningful impact on back-to-school that people are literally. Like planning their back-to-school spend around Sunday. Scot: [2:25] Yeah any gadgets on your wishlist or I think you already have every flavor of the Amazon Echo if it's cracked but anything not that you don't have. Jason: [2:35] So to be honest of the stuff that's currently available I there's nothing on my wishlist so I'll be. Curious to hear if there's some deal that usually it'll be a deal on something that entices me or something that's relatively new released there are some new fire products that I don't have but I'm not sure I really need to add him to my repertoire. Scot: [2:58] Got it I I save all year for my little accessory cables so I'll probably be buying like 20 iOS cables and USB C use and we go to those like crazy at my house so this is my time of year when I stock up on all that good stuff. Jason: [3:14] My wife thinks I have a hoarding problem with those things and I like but I'm not smart enough to wait for the deal so I you know I get my eyes I would be the one customer that would do the subscription service from anchor. Scot: [3:26] Yes I Do by a lot of anchor product on Prime day that's like there the juicy stuff I keep an eye out for. Jason: [3:32] Yes and I'm a little OCD about it I like I have much cooked my cables color coded so I got all my lightning cables are red and All Nite Nite my USB or black so I can. Easily visually identify what I need. Scot: [3:50] Brickell there was a big acquisition today I know that you're probably excited about cuz we've talked about this category on the show did you see that one. Jason: [3:56] I did I did and I have to go back and check our predictions but I think this is even one of my predictions for the air which I'm so excited about. Scot: [4:05] Darn it. Jason: [4:07] Yes I I thought you might not have considered that but there today Amazon announced that they acquired a company called pillpack and this is a 1 billion dollar acquisition which is not the biggest obviously with with Whole Foods but on the bigger side of the Acquisitions for Amazon and pillpack is a male fulfillment Pharmacy. They specialize in custom packaging so their primary customer are. Dogs that have chronic conditions and have to take multiple prescriptions daily and pill pack make these. Custom packages of their particular caplet so you get this right you know nicely old. Baggy of the pills you're supposed to take everyday and so that simplifies life for a lot of people that have to take a lot of medications. And it is a good customer experience and arguably. [5:04] It is in and of itself a nice way to reduce friction and improve the. The prescription processed but I think the reason most people are are super interested in the Amazon acquisition is less because of their unique Twist on mail-order prescriptions and more the fact that. This is Amazon buying a licensed Pharmacy and jumping into the pharmacy space with two feet. We've seen them sort of toad it before course they they made an investment in drugstore.com many years ago and last year they got a bunch of. Medical equipment pharmaceutical licenses in a bunch of states which allowed them to sell like. [5:47] Oxygen dispensing equipment and gloves and a lot of the the medical equipment but this is now giving them access to actually fill. Prescription medications and so you know a lot of us have been speculating that this would be another industry that Amazon would attack. And you're as usually happens with these things with Amazon. That you know I think they're market cap went up by you had ate the investment a billion dollars their market cap went up by like 15 or 20 billion today depending on what time you looked, and the big pharmaceutical companies Walgreens and CVS lost about 15 billion dollars in market cap today and it was kind of funny I think Walgreens had an investor call today and and that you know that. That the Walgreens CEO at you know actually other the phrase that we we make fun of on the show all the time, that he's not very worried about Amazon that pharmaceutical Pharmacy is much more complicated than all the other categories Amazon's tackled and it'll be much different. Scot: [6:50] I'll never figure it out just like a apparel and what Macy's said there they can't figure it out return. Jason: [6:55] Exactly return Macy's is positive the returns are too complicated and all the apparel companies are positive that everyone wants to try clothes on before they order on them. And not excetera excetera usually a Bad Bet there are complications to the pharmacy but I would argue that that Amazon is very good at solving for complications. And then just a couple other sort of interesting Snippets around the acquisition there are rumors that that. Walmart was the primary acquire of pill pack and the Amazon swooped in at the last minute with a higher offer and sort of. Stole pill pack out from under Walmart. Scot: [7:40] Do you know if I know Amazon with myself registering in a bunch of States just go back to them into all the us or you know. Jason: [7:51] I don't think so but I think he'll pack has only certain states that they had access to and there still is a pretty big bear you're like like still having the pharmaceutical licenses one thing but really, be a hundred percent in the pharmacy space you also need all the insurers. To agree to partner with you and light accept your. Your claims against all the various insurance companies and so what would a lot of the traditional pharmacies think is the big barrier to Amazon is the Amazon doesn't have those. There's deals with all the insurers and so you know. Not sayings on can't cut all those deals and they probably will but that's potentially a multi-year process and so a lot of people are speculating that the day 1 Amazon would focus on the subset of the pharmaceutical Market that's paying out-of-pocket for for medication either because they're under uninsured or because the. Because they have some limitations or restrictions on the insurance that make them want to pay out of pocket and then you know there's. I got some speculation that Amazon would would even acquire an insurer which would then of course let them be the Fulfillment partner for that right and there's. There's that you know there's a separate initiative the Amazon is doing with Warren Buffett. [9:19] Yeah around revamping Healthcare and and you know one of the the speculated outcomes of that is a potential new insurance product that could potentially partner with and with Amazon Pharmacy. Scot: [9:30] Yeah they just announced the CEO for that energy so seems like it's getting some momentum there for those who didn't listen to kind of our predictions for the year maybe you know what what's this mean for a CVS or Walgreens near us a Amazon successfully can compete on the pharmacy side at least the pill dispensing are those things convenient enough still or do you think that this is a problem. Jason: [9:57] Yep so here's what's interesting so that the traditional drug stores that are Walgreens and CVS is. Their whole business is predicated on foot traffic coming in to fill prescriptions in so the. Like they they don't tend to be super price competitive on all the over-the-counter products that they sell in the store and they don't tend to be a destination for any of those products for very many consumers but what happens is you going to get your Lipitor and you realize. That you need some snacks or you need some tissue paper or you need some Advil or whatever the case is while you're in the store. And so have a significant number of customers no longer need to visit Walgreens to pick up their prescription. The Walgreens brick-and-mortar model literally doesn't work like there is not a like another compelling reason for traffic to go in those stores. [10:56] And so you know either that would you know put Walgreens in huge distress or Walgreens would have to sort of find some way to reinvent their their retail space. And you know most most of that analysts look at those retailers and say hey the big Investments those guys are making these are in insurance companies and they're really their their plan is to sort of pivot from being a brick-and-mortar retailer to being a. A healthcare provider that's not tied to brick and mortar. And you knows we talk about a few times on the show Amazon doesn't have to capture 50% of the pharmacy market or anything like it you know if they can take a a 10% or 15% and in the traffic of those stores. [11:38] Like that probably put them over a Tipping Point that makes those doors not profitable and so it's. A very material threat to traditional drug stores. Whether Amazon successful or not if a bunch of consumers just decide that it's better to have their Pharmaceuticals delivered to home. I'm in there many companies trying to do that then you know that puts that same stress on those drug stores, it's been interesting the kind of traditional mail order pharmacy hasn't really gained a lot of momentum so there's a insurers insurance companies drive people to mail order pharmacy and there's a percentage of. Consumers there get their stuff VIA mail order at the percentage of people that use my order has actually shrunk a little bit in the last couple of years and so it'll be interesting if. Amazon can come up with a new enough experience or these custom pill packs are a big enough value-add that they, you know permanently change that that consumer Behavior which will you know really put a challenge in the drugstores and I I would expect to see a ton of drug stores close. Scot: [12:44] It just sounds so slow mail delivery. Jason: [12:47] Yeah and maybe mail is the wrong word right like I mean you know you can imagine all kinds of same-day fulfillment centers like at the moment. You know people tend to get get the home delivery of prescriptions when they're tronic things that you take you around right and when you you know God forbid you're sick and the doctor calls in a prescription or you go see a doctor and they call in a prescription that you pick up like those are the things you're more likely to walk in and and get that but of course there's no reason that pharmacies couldn't. Prepare those those meds or Amazon you don't own pharmacies couldn't prepare those meds and deliver on in 1 hour to your house. Scot: [13:26] Yeah yes so it could be a cool Prime thing like Prime Pharmacy where yeah Auto refills the pharmacies I deal with like they never called the doctor and do stuff right so Amazon consult a lot of that stuff so. Jason: [13:41] There's a ton of friction in current experience that like we as consumers are just learn to deal with that that you can imagine someone like Amazon taking out of the experience and and make it game changing like in the in the same way that Uber disrupted the taxi industry. Scot: [13:57] Cope well that was one of your predictions of one of mine was about Amazon delivery and today there was an announcement about that sort kind of kind of even on this I guess Amazon sent out this really interesting effectively up a call to on chores to build delivery capability that that Amazon will then leverage there as we've covered on the show a lot there the really worried about the capacity out there in the network they're building their own direct this is really what I would consider a call to arms for entrepreneurs to build a 1099 kind of delivery Network yeah I talked about going out starting a business for a minimum of 10K wish you the vans that are Amazon branded uniforms and then they talk about how and their models of doing this. [14:43] You can make up to $300,000 in profit a year that's pretty interesting in. A little unknown thing is FedEx Ground did this they had they had a lot of 1099s their individuals and then there was some kind of a court thing that happened where that was deemed did they should be employees so they world all that up into businesses so when you see FedEx Ground delivery out there it is a it is a 1099 Network it'll frequently say you know FedEx Ground operated by and they'll be some little LLC brand they're kind of small down by the door. Doubt they have built a similar, Network so this is going to be interesting to see how Amazon build this out if they're certain areas they're targeting and then also what this means for the flex drivers which is more of an Uber individual kind of a thing there's a lot of work a lot of people believe the Uber 1099 model is at risk that that same kind of litigation will happen that they're actually should be treated as employees this would Guild Amazon another kind of an option on delivery if that were to happen to the flex driver thing too so so kind of covers several basis I thought that was pretty interesting. Jason: [15:55] Yeah and I in my mind I could imagine. That it's easier for Amazon to enforce and Achieve certain service levels with these. Individual with his business operators over the 1099s i e you know it's like you can require these businesses to buy these Amazon branded trucks into wear Amazon uniforms and things that are like, less convenient and economically viable to impose on individual 1099 work. Scot: [16:32] Yeah I should have mentioned it but one of the things they're going to provide is the software so there, I can give you all the software needed to run a business like this I think it's from an acquisition they did that they have kind of been using internally or maybe as part of flex and now they've there they're part of this whole deal is they will give you the software which is kind of a clever way for them to have visibility into the SLA is right they can kind of see if your using their software in the cloud presumably they be able to see you know how you're doing against LA's the required to use their software because they didn't want to be able to see them. Jason: [17:08] Yeah I mean I read through the whole program and to me it feels exactly like franchisee model like I mean they've they've completely template eyes the whole business they they give you all the processes and software like they literally have like. The Dead training program down in the hiring recommendations for these businesses and they have the whole economic model is it like they essentially say that like hey you know depending on how quickly you scale you're going to make between you're going to net between 70k and 300K a year in this business. [17:48] Anything else about the Amazon do it by the way what I just found someone interesting the Amazon delivery was this big plans PR thing and they had a bunch of media to Seattle and they you know gave the media all the story under embargo and so you know today was the big announced a and they got a bunch of press over that over all that and then it it feels like I kind of got stepped on when they announce the pillpack acquisition you know which they did none of this pre-press planning for. Scot: [18:20] Yeah yes sometimes the best plans going to get Crush by that the dip The Pride react to Walmart into that position was on its own timetable that they couldn't control and it just kind of unfortunately probably landed on the same day happen sometimes. Jason: [18:36] Another interesting thing that came out last week is at age does this evaluation of all the top advertisers every year and a surprise, appearance on the top 10 list was Amazon as the fourth largest Advertiser in the United States so they're spending more on Advertising then folks like for GM and they're the retailer that spending a listen advertising so they're actually spending more and advertising than Walmart it. Scot: [19:10] Yep that's interesting it's funny because it's for you know for the longest time basil said they would never really do marketing cuz they prefer to put all that money into shipping fee and you know that that word of mouse with mouth was the best marketing but then once they came out. With Kindle they had to really kind of start doing some marketing In and Out imagine if you looked up the bulk of that is going to be around Alexa. Jason: [19:34] Yeah no I think that's I think that's why Fair they develop a bunch of owned Brands and they've they've had the market to support those owned brands. But I do think you know that and they've kind of had them float on this they are also investing a lot more in Performance Marketing for just a core retail business at the moment then they. They have it in the recent past said so you know you leveraging Google products and things like that to drive more traffic to Amazon. Scot: [20:03] Another interesting Amazon news piece this is kind of more internal facing but I think listeners will find it pretty fascinating it was a little bit of clickbait so that you know the article came out of Bloomberg and it it showed one of the the Kiva warehouse robots and it said you know Amazon's robots are moving for the warehouse to headquarters which kind of you like what are they going to deliver pencils or what's going on what's really happening is as we've reported on the show we had to Andrea lay on and she was telling us about some projects they had internally where an AI World very frequently negotiate with indoors and they call it this whole hands off the wheel initiative, there's several layers so that there's there's vendor negotiations but then there's also you know on the first party side. [20:52] Putting machines against humans to see who can piss pick the best products to put on Amazon and buy. [21:00] And at the same time you also have the marketplace side of Amazon so what's happening is it looks like they're squishing all this together now the guy that ran the third-party marketplaces moved over to a new project that's on an ounce Peter Pharisee so they wrapped up the marketplace and the 1pt mused to be very despair teams you I would go to Amazon in in meetings and introduce people across his team so it was funny and it looks like the Common Thread there is less peep so more machines can imagine these categories because they effectively do a better job more machines doing negotiations and less people and then this kind of integration of 1p and 3p I think this is good because we found a lot of vendors get really confused and mixed messaging from Amazon where they'll go to one team in Amazon the go to the marketplace apparel team and say hey we want to do X Y and Z in those say you know oh no you have to do this that the other and then the one p team will get a whole different answer so I think this ultimately be good and you're the 3p team the three-piece cider Amazon bigger than the one piece side so I think it'll be great to have a lot of that DNA kind of mixed in there and you know there's a downside this Automation and can be pretty frustrating to companies that are used to the old school you know having going to. [22:23] Bendle and chicken someone's hand and showing them the products and those kinds of things this is essentially you can stay home and chat robot and have the same outcome of the Amazon now so you know it'll be interesting to see how vendors net out on this change but it did pretty interesting the automation you know what they at least according to Amazon's data has beat out people is as it comes to merchandising and negotiating with Thunders. Jason: [22:50] Yeah for sure who the things are interesting to me about that merger I do feel like there's a way when they were more siloed in which sellers could potentially take advantage of this I was so I do think they're brands that, wanted to sell 3p on Amazon didn't want to be one piece hours because they wanted to control their own pricing like in in principle, if you're going to be a three-piece seller on Amazon Amazon has the right to like also be a one piece seller but a lot of, Brie and seemingly fell between the cracks there and we're able to be pure 3-piece hours without being bothered by the 1p guys and there's a lot of speculation that now that one p m 3 p r kind of merging that like you know that Aunt Amazon going to be a lot more purposeful about who can be a 3p seller without without Amazon having the option to be a one piece hour. [23:46] So it'll be interesting to see how that plays out, and then that's the thing that I chuckle at with the hands off the wheel I think it's a super app metaphor if you're a very big seller on Amazon you do have a a human contact and you have this personal relationship and I think what's funny about that is it's exactly like the the safety driver in the autonomous vehicles like you know it maybe makes you feel better that there's a guy sitting in the driver seat but he actually isn't touching the steering wheel and so you can have all the good conversations and take him to dinner and do other relationship building you want. But at the end of the day it's the computer that's deciding you know what the the terms of your your trade relationship are with Amazon. Scot: [24:35] Summary of some of the Amazon highlights over the last couple of weeks biggest news item is our very own Supreme Court in the United States got involved in e-commerce and I know you have a lot of interesting insights on this one so I'm anxious to hear your thoughts about what happened there. Jason: [24:57] So this is a case that the Supreme Court heard several months ago and they they ruled I guess this would be the last week now. The actual case the Supreme Court ruled on is called South Dakota vs Wayfair Overstock and do egg and a lot of people sort of shorten it to South Dakota vs Wayfair. And essentially South Dakota passed a law that said we're going to require sell sellers. To collect sales tax when people in South Dakota buy goods from them even if the seller doesn't have. A presence in South Dakota and that there's actually a precedent. Based on a ruling the Supreme Court ruled on in 1992 that South Dakota can't do that right like there's this. President called quill which was confusingly enough it was actually quill vs North Dakota. That the Supreme Court ruled on a 1992 that essentially said. [26:03] In order for a seller to be required to collect sales tax for a given State they had to have a physical presence in that state to establish Nexus and so a lot of. Pure play online retailers. Based on that rule like avoided having a presence in big populated states so that they didn't have to charge sales tax in those States. And it actually determined where Amazon's corporate headquarters would be when Jeff Bezos was starting the company that. President was already in place and so they they pick Seattle because it was a good techhub that didn't have a huge population and wouldn't be a huge customer base and avoided. Having a presence in States like California that would be huge customer bases and in the early days of Amazon. Amazon was super restricted with their employees they wouldn't let their employees you know do business travel to the states they wouldn't let the campus recruiters like go to the the job fairs in the college dates because they were there being super careful too. Avoid establishing a physical presence so they could have avoided paying taxes. [27:11] Into this this the Supreme Court in this ruling essentially reverses that quill precedents and so so so now it's going to be possible for states to pass a law that essentially require. I'm all us out of state sellers to collect sales tax and remitted to the the states. [27:34] And you know there's a couple of interesting things in that first of all. You are a ton of the media you know I was writing about how what a big win for Mainstreet this was and you know how was a blow to Amazon and. You know that the national retail Federation you know kind of claim though it was a victory for retailers and in tax fairness and all these things. The reality is in my mind the biggest winner in this deal is Amazon and the reason I say that is because. Amazon is already collecting tax Amazon gave up avoiding that Nexus a number of years ago. They're collecting tax in every state that has attacks and the reason they do that is they wanted to put distribution centers everywhere and they wanted to put Prime now centers everywhere and they just found it. Was better for them to collect the taxes then to have all these impediments on where they could have a physical presence. So this actually makes Amazon more competitive with other online pure plays right so it it it actually makes Amazon more competitive with Overstock and Newegg and and like all these. Visa vertical specialty retailers like a faucet that you know specialize in plumbing fixtures in our aren't collecting tax. So it helps Amazon's 1p business be more competitive. [28:52] That detect the sales tax that Amazon isn't collecting is from 3-piece hours who have the option to collect the tax or not and most don't. And so this ruling is going to require all of Amazon's 3p sellers to collect tax which is actually going to make Amazon's 1p business more competitive with the 3p business so that's a win. Also Amazon charges a 2.9% fee on all sales. In order to calculate and collect tax for those 3p seller so this is a huge new service fee that Amazon is going to start collecting from all their Marketplace vendors so that's a. A big win. This ruling makes Amazon more competitive with everyone else and really doesn't hurt Amazon's competitiveness. In any meaningful way. [29:47] Which is which is interesting and I would argue a lot of the the the media and info Scott wrong when they when they first heard about this announcement. Who's probably getting hurt by this is a lot of the small sellers right if you are a a a small business that's primarily selling via 3p on Amazon and eBay. You know your your cost just went up and potentially. There are about 12,000 tax jurisdictions in the US and so every one of those jurisdictions in theory could now pass a law that says you have to collect their tax and they can each have their own rules for the tax. And So It Goes could be a huge burden to the sellers. [30:32] Track and calculate these 12,000 different tax laws and so you're not allowed to have to cut the tax but you have to pay a bunch of money to collect the tax. Properly and that is a potential big burden for the small sellers. I would argue there's very few small brick-and-mortar retailers that aren't also trying to sell online and aren't also trying to ship out of state. So you know when people talk about this benefiting Main Street it's only benefiting the dinosaurs on Main Street that haven't figured out how to launch a Shopify site yet right. And so so it is going to be a potential burden on a new small businesses. And what's going to be most interesting to watch now is that the South Dakota version of the tax law is a very mild version of the law. It essentially says that all the different cities in South Dakota can't charge their own individual taxes that that dumb. We're going to have a Statewide system that's easier for businesses to comply with. And it'll also says that the state can't collect taxes retroactively so no one's going to be on the hook for their sales over the last 5 years but. [31:44] Any new state could now pass out a more aggressive version of the law it has more burdens for the the small business and that even tries to retroactively collect taxes for The Last 5 Years and it's it's unclear based on the Supreme Court ruling weather whether the states will be able to get away with the more aggressive version of this wall so that it's it's kind of going to the tech e-commerce taxes into a little bit of chaos while this all plays out and you know I think. [32:15] Everyone's hope which seems like a long shot is that what what could really simplify all this is it Congress sort of enacted a a lot the clarified what what how State should treat the taxes and Congress could pass a national law that essentially say is all the states have to, you know follow the same system in charge the same rate and there's lots of draft of these kind of laws there was one that was drafted a couple years ago called The Marketplace Fairness Act and it could allow all the states to collect sales tax but dramatically simplify the process of collecting those taxes for all the the online Sellers and protect all the online Sellers from retroactive taxes and things like that so like the right thing to do for our economy would be for Congress to pass a law but it you know it seems like there's a lot of partisan stuff going on in Congress and you know doesn't seem like there their they're passing a heck of a lot of common sense legislation at the moment. Scot: [33:19] Another interesting win for Amazon is there's a fair number of people that don't use at ba because Amazon just parked around an FBI and if you're one of these companies that's really you know of a carefully watching where your Nexus is you can't say to Amazon you can't say two things you can't say I only want my product Cindy's FBA facilities you also can't say you know where is my product right now so I can make sure that I'm tracking where I kind of I could have Nexus or not so presumably this get rid of that both objection and now you might as well just use that Paso another win for Amazon is FBA if we're going to go to a world pretty quickly here which seems like what you're predicting where every state is charging some form of tax. The NFPA is another enough was going to get more users because it's going to be enough there are no negatives for for doing that around Nexus. How do you say so if I may say I'ma an eBay or an Amazon Seller today what do I do do I need to start, cutting taxes out there one should start that right now like what's the action item on. Jason: [34:30] Yeah so at the moment you're only on the hook for the state you have a physical Nexus and and South Dakota. The each state has to pass an out-of-state tax collection law in order for them to then put this burden on on sellers and there are a number of states that have laws going through their state legislature right now and so you like your your immediate action is that you you do need to start you do not have a tax liability in South Dakota based on this ruling but you can anticipate didn't very short order all the states are desperate for money so of course they're all going to pass along some of the legislators are in a position to do it real fast summer going to be slow and and complicated the burden is going to keep going up and almost you know certainly the the way that most sellers are going to have to do this is you're going to have to pay a third party to calculate and remit all these taxes on your behalf and so that's another big winner in this is companies like taxjar and vertex and Olvera and those those companies that help businesses calculate and remit sale. Scot: [35:44] Yeah now, physical stores the taxes get down to you know literally the municipality so you could be in you know Secaucus New Jersey and they have a different apparel tax there's a tax on shipping but then certain there's no food tax or something that you cross into another area and the taxes are all different do you think this is going to get that complex or are you to the municipalities going to try to take there local tax structure in Buckhannon National kind of for that City kind of. Jason: [36:16] So here is going to be the balancing act all the municipalities would have like to pass their own laws so Secaucus would definitely like to have their own tax collection law and have their there sales tax laws imposed on all out of the jurisdiction Cellars the thing that's going to keep them all from doing that is that there's a a clause in the the the. [36:45] Though the prevailing tax laws that says States cannot put an undue burden on cross-state Commerce. And so the argument is going to be that it every municipality have their own set of laws and Secaucus has a tax holiday on this particular day and doesn't text food and all these different things the bat is going to trigger the Commerce Clause and and put an undue burden right and so part of the reason that the Supreme Court said they ruled in favor of South Dakota is because the law is was very carefully written to try to minimize that the the bird and right inside they don't date the it explicitly does not allow individual municipalities in South Dakota to have their own tax laws like they are there there's a Statewide tax system for out-of-state Sellers and so it knows. Supreme Court rule on any other than the South Dakota version so if Secaucus now pass is a really you know burdensome law and again Secaucus could also say and you owe is taxes for The Last 5 Years of sales. [37:58] Then you know someone's going to be able to litigate that and say it's a violation of the Commerce Clause and that potentially could make it back to the Supreme Court and you you know, the Supreme Court could choose to hear it or not and they could you know essentially say hey the South Dakota version is we going to bed the more you know arduous Secaucus version is not legal and so you know every States going to have to balance how aggressive they want to be you know with with how much we go Jeopardy they they they want to assume you know in case these things get where to get it. Scot: [38:36] Yes it feels like it's going to take like 5 to 10 years for this all the sort out and it's kind of a kind of a boring Plumbing topic but I think it's important for listeners cuz a lot of articles I read we're super confusing and I think you did a good job of summarizing. Jason: [38:50] One last point that just was kind of sad I give you actually listen to the the oral arguments in the case like the justices were asking really good questions how expensive is it for a small business to calculate their tax liability if this if we rule in favor of South Dakota how you know how much is incremental cost is is that going to impose on Wayfair bright and. It was really embarrassing, how little tangible information the lawyers in both side of this case had and how e-commerce works and I I say that like. If your lawyer like arguing a case before The Supreme Court that is like the Superbowl of litigation right and you'd expect like the most prepared best teams and yet you know it it's felt like the the level of preparation in knowledge about how digital Commerce work you know was was pretty pretty lacking in the justices openly expressed frustration that they couldn't get. You know clear answers to who you know some some reasonable questions about this so it you know it's further further evidence that, you know the economy and Technology are way way way ahead of the legal system. Scot: [40:08] Oh I nominate you to be a expert for the next to supreme court hearing on this. Jason: [40:13] Yeah I would make myself available that would be a pretty awesome gig. Scot: [40:19] Yeah and you get to wear a suit how fun is that. Jason: [40:21] I I have done some federal expert witness stuff in the you know I am willing to wear a suit for the the fees that you're able to charge as an expert witness. Scot: [40:31] Cool that that kind of wraps up the news section of the show and let's transition into some listener questions. [40:44] Question question question question question. Alright get the echo turned way up on that one our first question is pretty Technical and it comes from a friend of the show Scott Silverman this one goes back you mentioned this kind of in a phrase recently sniffing the tires Scott wants to know what do you recommend is the best technique for sniffing tires. Jason: [41:15] Hey Scott I totally appreciate the question sort of two-party answer if you are a casual Tire sniffer I think what you want to do is just you know get down on the ground get your nose is close to the tires as possible and you know really just sort of in intake the the fumes but if you're going to be a serious professional Tire sniffer what you really want to do is get the hydraulic jack and raise the car up to nose level because that actually allows a lot more oxygen under the tires which which you know helps more molecules get in your nose and really get you the whole bouquet of the tire. Scot: [41:56] And of course it's important to take the vehicle for a spin before you do this you get that like nice fresh smell. Jason: [42:03] Yeah you do want the rubber warmed up absolutely great point. Scot: [42:06] Our second questions comes from and I'll do a blanket apology there's some last names in here that may be a little tricky but I'll do my best this is from Alex Velasquez and he asks should others try the Warby Parker school bus tour concept and who do you think would benefit most from it I had no idea what this was so I figured this was a good question for you. Jason: [42:27] Yep so this is one of the early marketing tactics at Warby Parker did I think they actually did this before they open the formal store I'm so they I think they may be were using their corporate headquarters is a showroom but essentially what they did is they bought an old school bus decked it out and started driving to events and venues and things and letting people try on their glasses and it was a super effective marketing vehicle it's sort of a mobile pop-up store if you will and so in general I would say those kinds of things are a great tactic particularly for e-commerce business is what you know you feel like you'd benefit from a physical presence so I got a pop-up store avoids a lot of the costs of permanent rent you know which a lot of the times of the year the traffic in that that store is going to be low so you can do a pop-up just around Peak times and instead of it being fixed to one location the idea behind this bus is you could send the bus to a lot of different locations so there you know what be purchased per ticket clever and they've done a bunch of versions of since the school bus so they continue to use that tactic I do think it's a good customer acquisition and brand building tactic. [43:45] The there's actually a retailer that's been doing it much longer LL Bean literally have a. A bus built in the shape of their iconic rubber boot that they drive around and let people try on boots and kind of build their brand. Do that and they send it to outdoor festivals and stuff where where people might be interested in the boots so I think it's a good tactic. A lot of Brands could potentially benefit from it but the brands that would most benefit from it. Is if there's a a physical a or experiential element to the kind of products you're selling, so that it's not only are you building your brand awareness but you're also helping people you don't get that tactical experience so if you're selling. You know food and and you going to give people a chance to try it or you're selling apparel that gives people a chance to try sizes or. I feel the textiles are or you know things like that are particularly going to benefit from these kind of mobile pop-up store. Scot: [44:51] Cool and thanks for the question Alex. Jason: [44:59] So I think the next question is from vomit. A gyro and thanks God for just claiming that were massacring names do customers like bundled products or do they like to create their own bundles what are different merchandising tactics used to sell collections of product. Scot: [45:19] Yeah this is this is a good one you know it it kind of depends so. I like a system where the consumer has the you know a fair amount of power and convenience and they can choose to either buy a core product and its Associated add-ons and you have any Commerce system that is smart enough to kind of recommend the right things you know so it's not kind of recommending these things that are kind of random but they're frequently bought together. Which is a feature that you see on Amazon all the time now one tactic where this comes up a lot is in the world of marketplaces where. Frequently you'll be selling where you see this the most is in digital cameras this is kind of case study of this so what you see is you go to Amazon and you search for you know a Canon D40 which is a common camera and you know the tops quc is that core camera body SKU. [46:18] But then what a lot of people do is they will create a new skew by creating unique bundle. And I'll take a camera a memory card a set of lenses and a bag and a variety of things and I'll create a new skew a new Ace in in Amazon parlance and that is you can kind of a. You should have separate from the competitors for that Coeur Camera. [46:43] The be there for you know when consumer searches for Canon D40 if you've done this right you should have a pretty good shot at showing up higher level and then see you can effectively have a price that is much just submitted Lee discounted for that bundle and you're effectively hiding you know the discount in the margin by obfuscating it to the consumer making it harder for them to price compare so some things now you know this whole truth holds true for other marketplaces like eBay and Walmart eye center now the downside of this is Marketplace in her wise to the store frequently kind of challenging these things and saying you know does a bundle really make sense what are you doing here are you kind of ruining the customer experience. [47:33] So I've seen that used in it as a merchandising tactic there on your own website to I don't think I've seen as we have a child as we have this very clever skateboard a Cellar and they've come up with a couple private labels like their own wheels and things like that so when they they take a deck and skateboarding you have the deck which is just sold without wheels and and the the other pieces there and then they they take some private label stuff or owned brands do use Jason's language and it does create this kind of unique bundle that then isn't available anywhere else, and they can do a lot of relaxing things with pricing on that because they can't really change do the map the price but when they put their wheels on there they can offer this bundle that that is never more competitive anything else out there because they have got a known brand on the wheels and they have more margin and they can pass it on to the consumer so those are some of the things that come to mind for me Jason anything you want to add on bundling. Jason: [48:31] Yeah I would just say like the there are two similar but different things in my expenses, in different circumstances consumers want both so so every e-commerce platform uses a different vernacular but, binocular would be bundles versus kits right and so in this scenario a bundle could be. [48:56] A set of things that are recommended to go together right so shop the look you you one quick button and you add the blouse the pants the belt and shoes. But all four things get separately added to your cart and then you could edit the cart you could get two pair of the the blouses if you wanted and you could delete the shoes if you already had two shoes for example so it's, a shopping convenience to put related items together you know in and apparel is a common version of that like in crafting it could be a kit or project I got all the. All the items you need to make a sweater or something like that in food it could be by the recipe to get all the ingredients for a particular dish. But you know of course the customer might already have salt so you you know the customer could take salt out of the cart after they. They bought that bundle in a kids are often. Hard coded things that have to go together so it's one skew it shows up as one line item in the car you can't edit it. If any of the items in that cat are unavailable then the itin. The kid is unavailable in the order we get back ordered and things like that and so there are certain types of products. That lend themselves to kits and to your point. If you're going to have a special price on the the multiple item configuration than you probably want that to be a kid because you wouldn't want customers to. [50:25] Then delete three of the four items and still get a special price. But in some cases you just want to make it easier for people to buy multiple things and have a higher overall cart and then there's. A lot of nuances in the kits are they. Hard-coated manual kits what you would often cause static it where you know the skews are permanently tied together are there Dynamic kits that are built by recommendation engines or things like that are there customizable kids you know that have different options that customers can pick via VIA attribute type selections and and so it is super complicated thing and it is one of the things that can differentiate some of the e-commerce platforms from the others is their support for a broad range of these different options vary wildly and then when you throw in the ability to offer promotions on top of these bundles or kits that can get super complicated and so that you know if you know that that's a core part of your business that might drive you to select one one eCommerce platform versus another because it might have better support for the that the particular model year use. Scot: [51:35] Is anyone using AI to solve this like. Yeah I think I need Amazon's is kind of a group thing I'm sure there's gotta be like 10 AI vendors out there trying to solve this kind of Phoenix recommended product. Jason: [51:51] Yeah and I mean this man takes get tricky like I would argue that the the Panic recommendation vendors that have been around for 12 years like they're rich relevance in a certain is like they're there heavily AI base solution so it's almost like. Saying it AI recommendations versus not as kind of a difficult distinction to make the, that most of the product recommendation product that I'm aware of the you know are going to be closer to you. The most common model is they're going to recommend other products and you have to click each product separately to add it to the car they may offer bundles which is one-click ordering right in in Amazon does bundle the recommendations the right so right below the main product information on the product detail page there's always going to be up by these bring three things together which is you know it's the AI base recommendation engine is putting the three things that you most want together and you can choose to add one two or three of those things to your cart so that just that S Mart Convenience that Amazon's done to try to get the aov up that's the company that's the best example of using AI to actually create schitt's if you will is probably going to be Stitch fix right because they send one skew to your house which is a fixed with five items in it and they're primarily using AI to select which five items they send to your app. Scot: [53:18] Wrinkled her next question comes from jeweled work and she a skinny leadership or managing through change tactics and then over on the Facebook group I asked for clarification on that if I gave her a couple choices there and she said you're more at the corporate level so let's assume you're one of these Brands that's been around for a hundred years this is very much in the news right now where allottees activists are going into the established Brands and brand houses and shaking them up and you know really getting agitated they're not doing enough direct-to-consumer you seen folks like Campbell's down 30 40% due to all these changes happening and you know I heard your question is essentially how did these companies become more Nimble you know you've had this guy a hundred year plus world where the consumer didn't change very much and now they're changing constantly. What what do you recommend a brand do to get more nipple. Jason: [54:13] Yeah it's a great question Jill and the real answers if I had a perfect recommendation I probably wouldn't be bothering to do this podcast cuz it would make my job so much easier that I'd be you know waiting on an island somewhere because it is a huge challenge in general you see digital native companies are much better at being agile and nimble then big established Brands and it just so happens in my practice I mainly work with big established Brands and they all struggle with being at a a speed disadvantage TD small companies and the one exception is you know that the giant company Amazon is annoyingly. Add jolyn and Innovative despite their their size in the fact that they're you know now 20 years old. So two things to think about here the first is like a big question always comes up is. [55:07] Ivory Tower Innovation versus Grassroots Innovation right so you know Ivory Tower would be, let's set up an innovation lab right you know your target let's set up an innovation lab you know your Minneapolis wet set up at univation lab in San Mateo California and let's hire a bunch of people whose only job is to be Innovative and let them come up with all the new ideas. And if you're a store manager in Minnesota you know it's not your job to be Innovative right and so I having a dedicated focus on Innovation the hope his bees Innovation labs. Can can be more efficient you know there was a huge Trend in retail towards these labs and. Target Nordstrom Zappos Walmart you know all we're opening opening these stand-alone labs. [55:56] While some retailers definitely still have these Labs I would argue the trend is a little bit against the stand-alone lab so we've seen a lot of the retailers including Target Nordstrom. And a post move away from the dedicated Innovation lab model and so the alternative is. Create the ability for Innovation to come from the the main line Grassroots employees right into the the Marquee example of this is not a retail for me it's it's a Doe B and they had this clever product called. [56:29] Process called the Adobe Redbox and essentially any employee at Adobe that thinks they have a good idea for a new. Product or process or or service at Adobe can apply for this thing called in Adobe red box and it's a Innovation kit. And it's all the tools you need to sort of prototype your idea and get it to a level where you can present it. 288 sort of jury of Senior Management at the. Add Adobe and so it you know it's pretty clever it has things like a debit card in it that you can use to buy you don't web hosting services and it has. You know I'm feeling codes you can get to you know provide to some of your colleagues have them help you with certain things. And said that the idea is to make it easy for anybody with a good idea anywhere across the the organization to pursue that idea. [57:30] And so it the moment I see more retailers trying to Foster Innovation through. Providing processes and tools to their main line employees than I do the Ivory Tower but I certainly seen both work and I've seen both fail. The biggest advice I give to Legacy clients. To succeed in Innovation is not so much where that Innovation sits in the organization it's how The Innovation is approached and here like I highly recommend. Serta imitating the Amazon model right so you know Amazon famous we have this to Pizza teen model in the the premise behind that is. Hey any project we do we're going to narrow the scope such that it can be performed by you know a team no larger than could be fed by two pizzas. So that could be you no one four digit software developer or you know it might be six or seven people in your department. [58:31] But the idea being. The way to do Innovation is not to do some Grand pilot that has to integrate with 37 Legacy systems and has to get approval from 18 different departments and requires a team of 40. And you know by the time you you get an experience to live you will spend so much money and effort that you know if if the experience isn't successful. You know you you passed your company of Fortune and even if it is successful like the the business probably you know shifted from the time you started to the time you finish. The most successful Innovations are when you can you know find gorilla ways to do things scale at and make the the. Hiwot as independent and distinct from the rest of the organization as possible right and so to me the great example of that is. [59:23] Amazon Prime now, you know when they said like hey we want to deliver stuff in one hour they didn't say all right let's get a meeting together with the leaders of the Fulfillment center and figure out how we carve off some space in the Fulfillment center and figure it out we, change all our software in the Fulfillment center to support this one hour delivery and do all these things they they got some guys that said hey we're going to buy our own you know even though we own all this stuff, we're going to buy our own building for this pilot and we're going to write our own software and we're going to just keep things as simple and independent as possible get the experience out there in front of the customer as quickly as possible and learn from the customer, which elements of our idea are valuable and value by the customer and which ones aren't then we're going to refine it from there and only after we've. Proven The Innovation and unrefined it are we going to figure out how to integrate it into the rest of the Enterprise so I really like that sort of. Independence and you know we highly encourage a lot of these big Legacy Brands to sort of adopt a more agile. Business process so we talked about ad Joel a lot as a development technique technique but it really can be a a business process and you know sort of isolate these these projects as much as possible and make an independent initiative. Scot: [1:00:40] That's awesome so I'm up I come out at from a startup bad guy perspective I'm on my 4th company I started and like you have worked with a lot of Brands and I think the step a lot of them get wrong is what I would call buying soda I'll start doing something kind of innovative like selling director something and then the VP of sales will say woohoo oh hey wait a minute what are we doing I've gotten upset Channel partner that's upset wrestling direct and then doll the panic in the unwind the whole thing so before you go down some of the steps you recommended you know I think. [1:01:17] The key is got to get complete buy-in from the whole management team that this is going to be something they're there once committed to a book that I I now that kind of started this discussion is the innovator's Dilemma. This is kind of a must-read for people interest in this topic in this by Clayton Christensen I will put a link in the show notes and you know what does essentially does it talks about, how do companies get in this position and why and then it has some cases of the very few companies that have gotten out of this position so it's really important to get that buying from everybody because if everyone's not bought in you'll get this whole failure cycle of trying to do something really Innovative as a brand and then it gets squashed by people that really aren't bought in and then you know there nothing too happens and companies that are large and older is a lot of ideas get squished because what I call exception base management where you come up with this idea and then to what is start to happen to edge cases well you know what if you know a you know what if this isn't profitable what if this and that the other and that. [1:02:25] Becomes you just get kind of stuck in tar with that you have to have to get everyone bought into taking some risk that the company's also not used to Basil's has a really good letter on this stuff about it Amazon where they have commit to disagree is kind of thing you know so so you know we disagree but let's try it and see what happens like why not try it. Go try something and to that and there's really good book Jason mention you're taking some of these ads all kind of Concepts out of software development putting them in your company one of my favorites is called Lean Startup sat is geared towards when you're starting a company but I think big companies can learn a lot there and it kind of educate you on the languages start upset you know Facebook kind of famously has said go fast and break stuff and that's really kind of craving orientation towards not worrying about the exceptions and guessing put something out there and take a little risk and then see how customers react to it and then course-correct quickly so the answer to you know what is what you know maybe not and. [1:03:30] We won't know until you try so you got to kind of get your culture oriented towards trying stuff rapidly, iterating versus kind of a 18 month cycle of planning and hand-wringing and getting every little detail done and then putting something out to be agile yet to be able to put something out and fail I go over and over again the case study there for Amazon that's classic is the fire phone you know they they put a phone out there there's a million reasons that would fail and it failed Jason I think they're the only people that have one but if they didn't fail at that Fire Phone they would have never done Echo because they really wanted to be in the platform World they realized the failure the phone that that was going to be at and then they went all in on Echo and. That is part of the culture they have is it's okay to fail just going to do it quickly and inner eight and learn you can't just kind of like digging infinitely deep hole. Jason: [1:04:23] Yeah that's great advice. Scot we have a few more a great listener questions but I actually think we are going to have to hold them for our next show because it has happened again we've used up the an hour of our listeners very valuable time. And so if you enjoy the show we certainly would appreciate that that five star review on iTunes if you have anymore questions or follow-ups on these questions please do jump on her Facebook page and drop us a line or hit either of us up on Twitter because we will pick up the remainder of these questions and any new ones in the next show. Scot: [1:05:03] Thanks for joining server buddy. Jason: [1:05:05] Until next time happy commercing.

The Dormant Commerce Clause of the Constitution prohibits states from imposing excessive burdens on interstate commerce without congressional approval. Consistent with this doctrine, in 1967, the Supreme Court held that a state cannot require an out-of-state seller with no physical presence in that state to collect and revoke taxes for goods sold or shipped into the state. The Court affirmed this holding in 1992 and 2015. However, in 2015, Justice Kennedy wrote a concurring opinion asking whether the Court should continue following precedent in light of additional dormant Commerce Clause cases and the recent significant technological and social changes that affect interstate commerce.In 2016, the South Dakota Legislature passed a law requiring sellers of “tangible personal property” who do not have a physical presence in the state to remit sales tax according to the same procedures as sellers who do have a physical presence. The act limited the obligation to sellers with gross revenue from sales in South Dakota over $100,000, or 200 or more separate transactions, within one year.The legislation's stated purpose was to help the state maintain revenue in the face of growing internet sales and a decrease in sales tax collections.Following the passage of the law, South Dakota sued many retailers who failed to comply. The state courts of South Dakota ruled for the retailers, considering themselves “duty bound to follow” the previous Supreme Court rulings. On June 21, the Supreme Court ruled in favor of South Dakota in a 5-4 decision authored by Justice Kennedy.Featuring:Dr. John S. Baker, Jr., Visiting Professor, Georgetown Law Teleforum calls are open to all dues paying members of the Federalist Society. To become a member, sign up here. As a member, you should receive email announcements of upcoming Teleforum calls which contain the conference call phone number. If you are not receiving those email announcements, please contact us at 202-822-8138.

The Dormant Commerce Clause of the Constitution prohibits states from imposing excessive burdens on interstate commerce without congressional approval. Consistent with this doctrine, in 1967, the Supreme Court held that a state cannot require an out-of-state seller with no physical presence in that state to collect and revoke taxes for goods sold or shipped into the state. The Court affirmed this holding in 1992 and 2015. However, in 2015, Justice Kennedy wrote a concurring opinion asking whether the Court should continue following precedent in light of additional dormant Commerce Clause cases and the recent significant technological and social changes that affect interstate commerce.In 2016, the South Dakota Legislature passed a law requiring sellers of “tangible personal property” who do not have a physical presence in the state to remit sales tax according to the same procedures as sellers who do have a physical presence. The act limited the obligation to sellers with gross revenue from sales in South Dakota over $100,000, or 200 or more separate transactions, within one year.The legislation's stated purpose was to help the state maintain revenue in the face of growing internet sales and a decrease in sales tax collections.Following the passage of the law, South Dakota sued many retailers who failed to comply. The state courts of South Dakota ruled for the retailers, considering themselves “duty bound to follow” the previous Supreme Court rulings. On June 21, the Supreme Court ruled in favor of South Dakota in a 5-4 decision authored by Justice Kennedy.Featuring:Dr. John S. Baker, Jr., Visiting Professor, Georgetown Law Teleforum calls are open to all dues paying members of the Federalist Society. To become a member, sign up here. As a member, you should receive email announcements of upcoming Teleforum calls which contain the conference call phone number. If you are not receiving those email announcements, please contact us at 202-822-8138.

The recent South Dakota v. Wayfair decision by the U.S. Supreme Court changed online sales tax. To discuss the details of the decision, and its impact on ecommerce merchants, there's no better observer than Shane Ratigan. He is senior manager, state and local tax for Clark Nuber, and a longtime nationwide authority on online sales tax matters.

We sit down with David Pelton, Strategy and Product Management Leader at Vertex Inc., to discuss the recent supreme court ruling in the South Dakota v. Wayfair case and the effect it will have on online retailers.

Sales tax, as you know it, has changed overnight. The United States Supreme Court has just overturned 26 years of law in their South Dakota v. Wayfair decision.

Jad Chamseddine talks to David Stewart about the U.S. Supreme Court's decision to overturn Quill in South Dakota v. Wayfair Inc. and the implications of that ruling for state tax collection on remote sales.

The decision has come down in the South Dakota v. Wayfair case. The 5 to 4 split decision by the Supreme Court could change how auction administration is handled forever. Due to this fact, host Andy Imholte, along with guest John Schultz break down the opinion of the court, and discuss possible next steps. Subscribe on iTunes | Google Play | Stitcher Episode LinkAuctionTax.comSCTOUS Blog Recap The Fast Talking Podcast is a small business building podcast as seen through the lens of auctioneers and auction professionals. Focusing on social media, marketing strategies, finance, operations, human resources, and time management, we provide focused discussions on important topics weekly.  

A review of the week's major US international tax-related news. In this edition:US Supreme Court rules in South Dakota v. Wayfair; major impact on all companies with sales to US, including foreign-based companies – US House Budget Committee approves FY 2019 budget resolution -- OECD releases two reports, on Hard-to-Value Intangibles and application of Transactional Profit Split Method

A case in which the Court overruled Quill Corp. v. North Dakota and National Bellas Hess, Inc. v. Department of Revenue of Illinois, holding that states may require sellers with no physical presence in the state to collect and remit sales tax for goods sold within the state.

The Supreme Court has issued their ruling in South Dakota v. Wayfair overturning a 1992 ruling that said states can only require sales tax in states that the store has a physical presence. This new ruling says states can require online marketplaces like Amazon to collect and pay sales tax.  This new ruling means that states can now more aggressively go after sellers and require they collect and pay sales tax for orders sent to their states. Former Amazonian John Naughton breaks down to tell us what this ruling means for sellers. 

The Tax Cuts and Jobs Act (TCJA) has been around for several months now, but state efforts to respond and adopt state-level reform is just getting started in many jurisdictions. Host Damien Martin cuts through the static of the SALT world with guest Mary Reiser by discussing the differences in state conformity and what the highly anticipated Supreme Court decision in South Dakota v. Wayfair, Inc. could mean for you and your business. TIME STAMPS OF WHAT’S COVERED [01:35] State conformity to the TCJA [02:04] Rolling conformity [03:04] Fixed state conformity [05:08] Selective conformity [07:06] The effect of the international provisions on states [09:15] State and local considerations play an important role when analyzing choice of entity [12:59] Pass-through business deduction at the state and local level [13:39] What Mary is watching for in SCOTUS’s decision in South Dakota v. Wayfair, Inc. [20:13] Mary’s advice to businesses and business owners on approaching SALTed uncertainty BIO FOR GUEST Mary Reiser is a member of BKD’s State and Local Tax (SALT) Services division. She focuses on compliance and consulting for various SALT issues involving multistate entities, including audit defense, nexus analysis, voluntary disclosure and buy- and sell-side due diligence. Her primary experience is in the areas of income and franchise tax and sales and use tax. Connect with Mary on LinkedIn GET MORE SIMPLY TAX A complete archive of our episodes is available on our website and YouTube playlist. We’d love to hear from you! Email feedback and questions you’d like answered to SimplyTax@BKD.com Connect with Damien on social media! LinkedIn | Twitter | Instagram

South Dakota v. Wayfair is a case before the Supreme Court that may change the face of the entire auction industry. Due to this fact, host Andy Imholte, along with guests John Schultz and Jim Fahey break down the testimony from Tuesday, April 17, 2018. After considering the testimony, they breakdown a few points of interest. Subscribe on iTunes | Google Play | Stitcher Episode LinkAuctionTax.comMore Perfect Podcast The Fast Talking Podcast is a small business building podcast as seen through the lens of auctioneers and auction professionals. Focusing on social media, marketing strategies, finance, operations, human resources, and time management, we provide focused discussions on important topics weekly.  

Congressional tax writers are aiming to shore up several tax issues—retooling the Internal Revenue Service, dealing with temporary tax provisions, and requiring online retailers to collect sales tax—left out of the 2017 tax act. The House just passed a package of bills that would establish an independent Office of Appeals at the IRS, boost cybersecurity, and update online systems. House Ways and Means Committee members also met to discuss the future of temporary tax credits and deductions, with an eye to release a plan by this summer about which should be made permanent and which should be eliminated. The U.S. Supreme Court also heard oral arguments in South Dakota v. Wayfair, Inc., a case that seeks to undo the court’s 1992 ruling in Quill Corp. v. North Dakota, prohibiting states from collecting sales tax from vendors without an in-state physical presence. The decision, which may come in June, could cause Congress to address the issue, after years of debate about state sales taxes and e-commerce. The question, as often happens, is how will the Senate react to what the House sends them. Reporters Laura Davison, Allyson Versprille, and Kaustuv Basu spoke with Talking Tax host Matthew Beddingfield on April 20 about the possibility for these tax ideas to gain traction this year.

Professors Ruth Mason, Michael Knoll of University of Pennsylvania Law School and Charlie Trost of Belmont College of Law discuss South Dakota v. Wayfair, a Supreme Court case tackling e-commerce taxes. (Knowledge@Wharton/SiriusXM, April 19, 2018)

On April 17, the U.S. Supreme Court heard oral arguments in the biggest state and local tax case in years. South Dakota v. Wayfair is a direct challenge to the high court’s 1992 ruling in Quill Corp. v. North Dakota, which prohibits states from imposing sales tax collection obligation on vendors lacking an in-state physical presence. The Justices explored a handful of topics during arguments, notably the role of Congress to regular inter-state commerce, the issue of compliance costs faced by small and medium-sized businesses, and how to define a new rule if they were to “kill Quill.” A decision is expected by June. Harley Duncan, leader of the state and local tax group of the Washington National Tax practice at KPMG LLP, sat down with Bloomberg Tax reporter Ryan Prete to analyze the oral arguments and discuss what sellers and states could face in the coming months while awaiting the decision.

South Dakota v. Wayfair, Inc. | 04/17/18 | Docket #: 17-494

Robert Mintz, a partner at McCarter and English, discusses a legal setback for President Trump after judge Kimba Wood rejected his initial request to keep prosecutors from reviewing evidence taken from Michael Cohen's office last week. And Greg Stohr, Bloomberg News Supreme Court reporter, discusses the news of the day from the court, including a decision to drop a high profile case over emails stored overseas. Plus, a recap of the arguments in South Dakota v. Wayfair, which could change how Americans shop online. They speak with Bloomberg's June Grasso.

Robert Mintz, a partner at McCarter and English, discusses a legal setback for President Trump after judge Kimba Wood rejected his initial request to keep prosecutors from reviewing evidence taken from Michael Cohen's office last week. And Greg Stohr, Bloomberg News Supreme Court reporter, discusses the news of the day from the court, including a decision to drop a high profile case over emails stored overseas. Plus, a recap of the arguments in South Dakota v. Wayfair, which could change how Americans shop online. They speak with Bloomberg's June Grasso. Learn more about your ad-choices at https://www.iheartpodcastnetwork.com

Should SCOTUS overturn Quill Corp. v. North Dakota? Lisa Soronen of the State and Local Legal Center shares her thoughts and more. This week, Municast addresses the ramifications of South Dakota v. Wayfair—a tax case that could overturn more than 50 years of legal precedent and will have enormous financial implications for both local governments and states. SCOTUS blog summary: http://www.scotusblog.com/case-files/cases/south-dakota-v-wayfair-inc/

That's right folks!!  The Supreme Court is coming after your precious Amazon purchases, as the case of South Dakota v. Wayfair, Inc. will decide whether adding State taxes to online purchases violates the Dormant Commerce Clause.  Brett and Nazim discuss Federalism and the DCC at length, brag about living in a State that will be unaffected by the whole ordeal, and sing a weird amount.  Law starts at (04:17).

Legal analysts Tiffany Bates and Elizabeth Slattery of The Heritage Foundation discuss several Supreme Court cases to watch in 2018, including an internet sales tax case (South Dakota v. Wayfair, Inc.), a forced union dues case (Janus v. AFSCME), and several free-speech cases. The event was recorded February 16, 2018, at the Conservative Women's Network luncheon, a monthly event co-sponsored by CBLPI and The Heritage Foundation.

Legal analysts Tiffany Bates and Elizabeth Slattery of The Heritage Foundation discuss several Supreme Court cases to watch in 2018, including an internet sales tax case (South Dakota v. Wayfair, Inc.), a forced union dues case (Janus v. AFSCME), and several free-speech cases. The event was recorded February 16, 2018, at the Conservative Women's Network luncheon, a monthly event co-sponsored by CBLPI and The Heritage Foundation.

While it may feel like we've covered all angles of tax reform in the last few episode of unsuitable, we're not done yet! Sure, we've hit the Tax Cuts and Jobs Act from a federal perspective – but what happens when we look at the implications of the legislation at the state level? Joe Popp, director of Rea's SALT team and a frequent flyer on the podcast, joins us to discuss the various considerations states are grappling with as a result of tax reform. And, while we're on the topic of state and local taxes, Joe is going to talk about a few other nexus concerns business owners will be left to contend with as the year continues to unfold. 2018 is the Year of SALT SALT, if you're not aware, stands for State and Local Tax. It's a broad field, but it's going to be significant this year as states shift their policies in response to federal tax reform. There will be some fun changes for businesses (like the New York or California response to itemized deduction limitations) – but, mostly, it's going to be complicated (or, if you're a SALT specialist, a lot of fun). If you are a business owner who operates in the United States, you will be interested in these other topics discussed in this episode: New rules will look at client sales by state, changing the way clients approach state taxation. What the proposed “Amazon Laws” in many states are, and how they will affect businesses using the Fulfillment by Amazon service. How South Dakota v. Wayfair Inc is challenging the court's “physical presence” nexus rule, and how the decision (due in June) will impact businesses. If you liked this episode of unsuitable on Rea Radio, let us know by hitting the like button or by sharing it with your followers on social media. You can also use #ReaRadio to join the conversation on Facebook and Twitter, and you can watch the podcast in action on the Rea & Associates YouTube channel. We've also included access to additional resources on our website at www.reacpa.com.

Tax law can be very complicated and frustrating, and a upcoming case before the US Supreme Court will only make it more so. In this episode, host Andy Imholte and guest John Schultz outline South Dakota v. Wayfair, Inc. and how it could regulate auction companies out of business. Subscribe on iTunes | Google Play | Stitcher Episode LinkAuctionTax.com The Fast Talking Podcast is a small business building podcast as seen through the lens of auctioneers and auction professionals. Focusing on social media, marketing strategies, finance, operations, human resources, and time management, we provide focused discussions on important topics weekly.