Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals

Get Ready for 2015:

Understanding and Adopting the

New Tax Rules and Regulations

• Understand 2015 changes in sales tax provisions for key

states

• Discover how to improve compliance practices relative to

increasingly dynamic sales tax laws and regulations

• Understand the current status of key provisions of the

Marketplace Fairness Act (MFA) or “internet sales tax”

After attending this event you will be able to:

Learning Objectives

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Welcome to Proformative

Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals

Get Ready for 2015: Understanding and

Adopting the New Tax Rules and RegulationsShane Ratigan, JD, LLM, Tax Law and Compliance

Expert, Avalara, Inc.

Shane Ratigan, JD, LLM

5

• Tax Law and Compliance Expert at Avalara, Inc.

• Responsible for managing compliance processes, reporting and tracking trends in compliance environment. Subject Matter Expert on sales tax compliance for internal and external stakeholders.

• Graduate of University of Washington School of Law (LLM Taxation), Syracuse University College of Law (JD), and State University of New York at Plattsburgh (B.S. Accounting and Business Administration).

• Small Business Advisor on tax planning and succession issues for 10 years.

Agenda

• Marketplace Fairness Act Update

• Trends

– Rewards Cards

– Cloud Based Services

– Use tax for Businesses

– Exemption Certificate Management

• Notable Changes State by State

Marketplace Fairness Act of 2013

• Allows states to require out-of-state

businesses to collect sales tax

• Requires some tax simplification similar to

SST type admission requirements

• Applies to anyone making remote sales

Marketplace Fairness Act of 2013State and local sales and use tax simplifications required

for the states to participate:

– Central administration of tax for remote sellers

– Single audit for all state and local taxing jurisdictions within

a state for remote sellers

– Single return for remote sellers

– Limitations on return filing frequency(state/local) for remote

sellers

– Uniform sourcing rules for remote sellers

– Some liability relief for remote sellers and “certified software

providers”

Marketplace Fairness Act of 2013

Marketplace Fairness Act of 2013

• A permission slip from the US Congress for the

states to enforce collection obligation on sellers

outside their borders.

• Relates to the concept of nexus and the ability

of other states to compel your company to

collect

• Does not relate to taxability or rates or

jurisdictions

Marketplace Fairness Act of 2013

• No requirement of uniform taxability rules

• No requirement of uniform rates

• No alteration to existing nexus rules for

businesses who are not obligated by the

proposed bill

Marketplace Fairness Act of 2013.

• http://www.gpo.gov/fdsys/pkg/BILLS-

113s743rfh/pdf/BILLS-113s743rfh.pdf

Remote seller = Any out-of-state business entity that sells into a state in which that seller “… would not legally be required to pay, collect, or remit state or local sales and use

taxes unless provided by this Act.”

Marketplace Fairness Act of 2013

Thank you for your interest in this presentation.

View the on-demand webinar or download the full

presentation at:

www.Proformative.com

Get Ready for 2015: Understanding and

Adopting the New Tax Rules and Regulations