Have you heard the latest online sales tax news coming out of Indiana?
Every time we turn around, it seems there’s a new development in the online sales tax debate. As states continue to get involved and look for new ways to bolster their revenue, the issue continues to grow larger and more complex. Now Indiana is looking to the courts to settle the matter.
Indiana’s Online Sales Tax Lawsuit
On August 29, IndyStar reported that Indiana’s Attorney General filed a lawsuit asking Marion Superior Court (in Indianapolis) to find the state’s online sales tax law constitutional. ” The law, which went into effect July 1, requires out-of-state businesses to collect and remit the same sales taxes as Indiana-based businesses.”
This isn’t the first lawsuit Indiana’s online sales tax law, House Enrolled Act 1129, has been involved in. American Catalog Mailers Association and NetChoice argued the legislation was unconstitutional back in June. Continue reading →
Here’s an example of how tricky amnesty programs can be.
If you saw our blog post last week, you know that there is a lot of amnesty program activity taking place right now. Although there are benefits to these types of programs, we have some objections to the way they work, including:
A client fact pattern often needs to fit exactly into the state’s amnesty time window to be effective.
The types of taxes considered under the amnesty can be limited and may not encompass our client’s entire picture.
The rules for an amnesty program tend to be fairly rigid, not offering much leniency for either overpayments or underpayments.
Check out last week’s post for more detail. In the meantime, read on for an instance of how difficult amnesty programs can be. Continue reading →
We are seeing a lot of amnesty program activity taking place among the states right now. So what is an “amnesty program”? It is a specific initiative determined by a state’s legislature and governor, where delinquent taxpayers can come forward, make themselves known to the state, and file tax returns (and pay taxes) on specific taxes that the state designates through the program. An amnesty limits the taxable period covered, (e.g. all taxes due before 1/1/13), and the time period for coming forward (e.g. the taxpayer must come forward between 9/1 – 10/15/15 to be eligible).
The benefit to an amnesty program is it allows taxpayers to come forward voluntarily for back taxes. The understanding is that the taxpayer comes forward and the state will generally waive penalties and interest; it’s a method of bringing companies into compliance in a non-punitive way.