SALTovation: Navigating the Complexities of State and Local Tax by Aprio

By SALTovation by AprioBusiness Careers

SALTovation: Navigating the Complexities of State and Local Tax by Aprio episodes

September 02, 2021SUTS in Flux, Part 2
In this episode, Judy Vorndran, Tram Le and Connie Zoerink from TaxOps’ SALTovation Team, continue their conversation about the impact of Colorado’s Sales and Use Tax System (SUTS) and some of the issues for taxpayers to consider.

What You Will Discover:

[00:14] Accommodating and managing the risk

[03:18] How to navigate licenses

[07:24] Things to consider

Quotables:

“On audit, just remember that while SUTS is the new system, most of these cities have had auditors in place for many, many years, and they have a robust audit system. They can assess penalties and interest and they can go back as far back 10 years, I’ve seen 10+ years of information being audited.” -Connie Zoerink [02:32]

“They certainly have a right to enforce as far back as they want, so that is always a concern that taxpayers have.” -Judy Vorndran [03:13]

“You don’t want to get caught not collecting the right rate.” -Tram Le [08:39]

Relevant Links:

Simplify Colorado Sales Tax

Colorado Municipal League

Subscribe on your favorite podcast app:
https://saltovation.captivate.fm/listen
https://linktr.ee/taxops

Follow Us on Socials
https://www.linkedin.com/company/taxops-llc
https://www.youtube.com/channel/UCMB1ZQNGXM_F777SIEl8Vjw

Talk To A Tax Advocate Today
TaxOps Website: https://taxops.com/contact/

Production Support
This episode was produced with support from Truth Work Media. www.truthworkmedia.com
Mentioned in this episode:
Schedule a Call with the Aprio Team Now!
Introductory Call
11 min
August 26, 2021SUTS in Flux, Part 1
In this episode, Judy Vorndran, Tram Le and Connie Zoerink from TaxOps’ SALTovation Team, talk about Colorado’s Sales and Use Tax System (SUTS) and some of the challenges and risks they are seeing with this system.

What You Will Discover:

[00:27] What is SUTS

[01:26] What is a home rule

[03:47] How it logically works

[04:40] Challenges and risks

[07:33] Risks with historic nexus

Quotables:

“We truly don’t know how it’s going to roll out, because not all cities are on SUTS. I think we have 17 out of the 71 cities that haven’t signed on or haven’t finalized their agreement to participate. So I think that can get pretty complicated at this point if there are taxpayers who are interested and ready to sign on and make it less complicated.” -Tram Le [04:40]

“It’s important to talk to an expert before you go out and register all these cities through SUTS and make you sure understand who the cities are and references.” -Judy Vorndran [06:38]

“If you register on SUTS using your perspective registration date going forward from today say, there could be a historic nexus issue, and so we’re just concerned that taxpayers may be audited or there may be some issues raised with that where there could be some big money involved with that.” -Connie Zoerink [08:03]

Relevant Links:

DR 1002 - Colorado Sales/Use Tax Rates

DR 0800 - Location/Jurisdiction Codes for Sales Tax Filing

Subscribe on your favorite podcast app:
https://saltovation.captivate.fm/listen
https://linktr.ee/taxops

Follow Us on Socials
https://www.linkedin.com/company/taxops-llc
https://www.youtube.com/channel/UCMB1ZQNGXM_F777SIEl8Vjw

Talk To A Tax Advocate Today
TaxOps Website: https://taxops.com/contact/

Production Support
This episode was produced with support from Truth Work Media. www.truthworkmedia.com
Mentioned in this episode:
Schedule a Call with the Aprio Team Now!
Introductory Call
11 min
August 19, 2021States Tackling Post-Wayfair Enforcement
In this episode, Judy Vorndran and Stacey Roberts from TaxOps’ SALTovation Team share the types and trends in enforcement they are seeing as a result of the Wayfair case and other taxpayer considerations in this highly-charged area of tax.

What You Will Discover:

[00:29] What they are seeing with Post-Wayfair Enforcement

[02:17] Making sure you file what needs to be filed

[06:31] Possibly more enforcement as things reopening

Quotables:

“If you don’t collect (sales tax) and you have a duty to collect it, it’s on you and you can pass it to your customer, but it’s always on you.” - Judy Vorndran [02:23]

“(States) need money, so I think we’re going to start to see a little bit more enforcement occur.” - Stacey Roberts [06:45]

Subscribe on your favorite podcast app:
https://saltovation.captivate.fm/listen
https://linktr.ee/taxops

Follow Us on Socials
https://www.linkedin.com/company/taxops-llc
https://www.youtube.com/channel/UCMB1ZQNGXM_F777SIEl8Vjw

Talk To A Tax Advocate Today
TaxOps Website: https://taxops.com/contact/

Production Support
This episode was produced with support from Truth Work Media. www.truthworkmedia.com
Mentioned in this episode:
Schedule a Call with the Aprio Team Now!
Introductory Call
10 min
August 16, 2021Digital goods and advertising taxes with Carolynn Kranz
In this episode of the SALTovation podcast, we speak with Carolynn Kranz, founder and managing member of Kranz & Associates, PLLC, and our own Judy Vorndran. Kranz & Associates is a Washington D.C. law firm that specializes in state and local tax. Carolynn shares her knowledge and perspective from her more than 20 years of experience in SALT to discuss digital taxation. She helps us understand what these taxes are and the impact they have on businesses.

Questions asked and answered in this Episode:

How has the taxation of digital goods evolved and where are the states headed?

What is the history of this using Microsoft as an example?

How do we handle the advertising taxes? Why now? Why was Maryland first? Why is it being challenged?

How did she get into software and digital goods?

What piece of advice does she offer to businesses in this space?

What You Will Discover:

[00:49] The evolution of digital goods taxation

[03:18] The history behind this with Microsoft as an example

[10:37] Two things to keep in mind with Washington’s digital space

[13:11] Why the advertising taxes are being challenged

[21:19] Other things she comes across in situs space

[30:19] Reactivity vs proactivity

[35:17] How Carolynn got involved in software and digital goods

[44:10] The piece of advice Carolynn offers to businesses

Quotables:

“I think in this instance, the issue is that for years, all of these items really did have a form of a tangible equivalent, and therefore, they were part of a tax base. So we’re seeing an eroded tax base… Things that were historically taxed are no longer being taxed, and so the states still want that piece.” - Carolynn Kranz [03:30]

“The question is is how do you do that situs for that, right? Because Washington does want to look through the transactions. So if you’re selling a service to somebody and the benefit is derived, not necessarily by the customer, but the customer’s customer, right? They’re going to look through that and that gets tricky, because how much information you have or maintain as a seller gets tricky.” - Carolynn Kranz [11:34]

“It’s a slippery slope, right? It really is, which is why when I’m working with sellers, whatever method you’re going to use, use it consistently.” - Carolynn Kranz [27:08]

“In this space, what’s tricky is if you’re selling to consumers, right? You got to be careful, because there is still this risk of class action in the sales tax space. and unless you have some binding guidance from the state, and even if you have that binding guidance, it doesn’t mean that somebody’s not going to bring a challenge against you, so you need to do what you can to protect yourself, especially if you’re selling to end users to consumers that might have more of an appetite to click that button to participate in a class action.” - Carolynn Kranz [42:07]

“You really, like you say, have to understand how business gets done from the sales all the way down to the booking of it, and the invoicing process, the delivering mechanism.” - Judy Vorndran [43:34]

“It is never as bad as it seems, and so in mind, it sounds like a big task, but it really isn’t at the end of the day. It’s all about baby steps. Spend a little time upfront to understand where you have an obligation to collect. Then look at on a dollar threshold where are those big numbers down to your small numbers and start figuring out those jurisdictions, and you can address them pretty quickly in my opinion and get on top of it right from the beginning.” - Carolynn Kranz [46:23]

Relevant Links:

Carolynn Kranz on LinkedIn: https://www.linkedin.com/in/carolynn-kranz-64267930

Kranz & Associates PLLC: https://saltattorneys.com

Subscribe on your favorite podcast app:
https://saltovation.captivate.fm/listen
https://linktr.ee/taxops

Follow Us on Socials
https://www.linkedin.com/company/taxops-llc
https://www.youtube.com/channel/UCMB1ZQNGXM_F777SIEl8Vjw

Talk To A Tax Advocate Today
TaxOps Website: https://taxops.com/contact/

Production Support
This episode was produced with support from Truth Work Media. www.truthworkmedia.com
Mentioned in this episode:
Schedule a Call with the Aprio Team Now!
Introductory Call
51 min
August 12, 2021U.S. State and Local Tax for Foreign Companies
In this episode, Judy Vorndran and Stacey Roberts, from TaxOps’ SALTovation Team, talk about what foreign entities or companies should keep in mind as they do business in the U.S. such as filing duties and nexus triggers that states can impose.

What You Will Discover:

[01:20] Why states don’t have to follow the U.S. treaties for income tax and sales tax

[03:37] How to comply when states request a copy of federal income tax return

[04:34] Other non-income based taxes don’t have treaty protection

Quotables:

“Just as a reminder, right, treaties are income tax only. And it’s maybe not quite half, maybe over a half of the states actually do not follow treaties, which might be a surprise.” - Stacey Roberts [03:20]

“You can never really count on looking at our federal government when you are deciding to do business in America and think you’re one and done. ‘There’s a treaty, and I have nothing else I have to do in America.’” - Judy Vorndran [06:27]

Subscribe on your favorite podcast app:
https://saltovation.captivate.fm/listen
https://linktr.ee/taxops

Follow Us on Socials
https://www.linkedin.com/company/taxops-llc
https://www.youtube.com/channel/UCMB1ZQNGXM_F777SIEl8Vjw

Talk To A Tax Advocate Today
TaxOps Website: https://taxops.com/contact/

Production Support
This episode was produced with support from Truth Work Media. www.truthworkmedia.com
Mentioned in this episode:
Schedule a Call with the Aprio Team Now!
Introductory Call
8 min
August 05, 2021What is Nexus: A Primer
In this episode, Judy Vorndran and Stacey Roberts, from TaxOps’ SALTovation Team, provide some things to think about with respect to nexus and what that means from a state and local tax perspective.

What You Will Discover:

[00:32] What is nexus and what taxpayers need to know

[02:46] What is affiliate nexus

[03:36] Stacey and Judy’s reactions to sales tax changes post-Wayfair

[07:22] Why the states can tax this

Quotables:

“From a state income tax perspective, those kind of economic nexus rules have been in place for years, and so I’m kind of not surprised that sales tax has finally caught up.” - Stacey Roberts [03:58]

“I think if you can send an invoice and get something to a customer out of your own state or out of your own country, why can’t you tax them?” - Judy Vorndran [07:34]

Subscribe on your favorite podcast app:
https://saltovation.captivate.fm/listen
https://linktr.ee/taxops

Follow Us on Socials
https://www.linkedin.com/company/taxops-llc
https://www.youtube.com/channel/UCMB1ZQNGXM_F777SIEl8Vjw

Talk To A Tax Advocate Today
TaxOps Website: https://taxops.com/contact/

Production Support
This episode was produced with support from Truth Work Media. www.truthworkmedia.com
Mentioned in this episode:
Schedule a Call with the Aprio Team Now!
Introductory Call
10 min
July 29, 2021Use Tax
Stacey Roberts and Connie Zoerink, from TaxOps’ SALTovation Team, wrap their mini-series on transaction taxes by discussing use tax. They explain how it differs from sales tax and its reporting and licensing requirements.

What You Will Discover:

[00:56] The difference between sales tax and use tax

[02:04] Reporting requirements for the purchaser

[04:08] Does shipping affect the tax rate

[07:11] Remediation options for noncompliance

[08:33] Licensing and reporting requirements

Quotables:

“This is a type of tax that maybe may not be top of mind for taxpayers out there, but definitely one that can maybe be a surprise unfortunately under audit where we tend to see that come in as a surprise, or inquires from the state.” - Stacey Roberts [00:19]

“A lot of times, the vendor will not charge tax. So if they did not charge tax on an item that’s actually taxable in your jurisdiction, then you need to accrue and self-remit the use tax to the jurisdiction.” - Connie Zoerink [01:29]

Subscribe on your favorite podcast app:
https://saltovation.captivate.fm/listen
https://linktr.ee/taxops

Follow Us on Socials
https://www.linkedin.com/company/taxops-llc
https://www.youtube.com/channel/UCMB1ZQNGXM_F777SIEl8Vjw

Talk To A Tax Advocate Today
TaxOps Website: https://taxops.com/contact/

Production Support
This episode was produced with support from Truth Work Media. www.truthworkmedia.com
Mentioned in this episode:
Schedule a Call with the Aprio Team Now!
Introductory Call
12 min
July 22, 2021Unclaimed property
Stacey Roberts and Connie Zoerink, from TaxOps’ SALTovation Team, continue their mini-series about transaction taxes with talk about unclaimed property. While unclaimed property is not a tax, it does fall into the state and local tax area.

What You Will Discover:

[00:47] What is unclaimed property

[01:50] Reporting requirements

[03:39] States can audit unclaimed property

[04:55] Reporting deadlines

[06:01] Where to go to find out if you have money owed to you

Quotables:

“Unclaimed property is actually not a tax, but it typically falls in the state and local tax area just because it’s something that is reportable or claimable from every state.” - Connie Zoerink [01:29]

“Like you said, it’s not a tax, but it’s a reporting that taxpayers really need to be aware of, and in some cases, this could be low-hanging fruit for some states.” - Stacey Roberts [04:42]

Subscribe on your favorite podcast app:
https://saltovation.captivate.fm/listen
https://linktr.ee/taxops

Follow Us on Socials
https://www.linkedin.com/company/taxops-llc
https://www.youtube.com/channel/UCMB1ZQNGXM_F777SIEl8Vjw

Talk To A Tax Advocate Today
TaxOps Website: https://taxops.com/contact/

Production Support
This episode was produced with support from Truth Work Media. www.truthworkmedia.com
Mentioned in this episode:
Schedule a Call with the Aprio Team Now!
Introductory Call
9 min
July 15, 2021Business personal property tax
In a mini-series about transaction taxes, Stacey Roberts and Connie Zoerink, from TaxOps’ SALTovation Team, talk about business personal property tax and share what taxpayers should consider and remember about this tax.

What You Will Discover:

[00:45] What is business personal property tax

[01:46] Assessment dates based on county

[02:12] If lease property counts

[02:43] Disclosure options

[04:12] Deadline for reporting

Quotables:

“I think something that I’ve seen over time that might trip up taxpayers is the fact that there are certain locations or jurisdictions where inventory is reportable, and I think that can be surprising.” - Stacey Roberts [03:49]

“Due dates are all over the board unfortunately for taxpayers, so you kind of have to be on top of all of that, but typically they’re anywhere from March to May timeframe.” - Connie Zoerink [04:20]

Subscribe on your favorite podcast app:
https://saltovation.captivate.fm/listen
https://linktr.ee/taxops

Follow Us on Socials
https://www.linkedin.com/company/taxops-llc
https://www.youtube.com/channel/UCMB1ZQNGXM_F777SIEl8Vjw

Talk To A Tax Advocate Today
TaxOps Website: https://taxops.com/contact/

Production Support
This episode was produced with support from Truth Work Media. www.truthworkmedia.com
Mentioned in this episode:
Schedule a Call with the Aprio Team Now!
Introductory Call
7 min
July 05, 2021Multistate Tax Commission with Helen Hecht
In this episode of the SALTovation podcast, we speak with Helen Hecht, Uniformity Counsel at the Multistate Tax Commission (MTC), and our own Judy Vorndran. Helen provides insight into how the MTC works towards its mission and her role as uniformity counsel.

Questions asked and answered in this Episode:

What is the progression of Helen’s career and how did she end up at the MTC?

Can you give a high-level overview of what the MTC is and its purpose?

What is she doing as uniformity counsel?

How are the states going to administer a digital tax on advertising?

What You Will Discover:

[00:47] The path that brought Helen to the MTC

[13:14] An overview of what the MTC is and its purpose

[20:58] Early success with states’ adoption of Uniform Division of Income for Tax Purposes Act (UDITPA)

[23:43] What she does as uniformity counsel

[31:08] Their approach to assimilate the laws

[33:54] How the states plan to administer a digital tax on advertising

[42:49] The new standards due to the Wayfair decision

[47:30] An unusual situation in which MTC has a solution

[51:28] Why Wayfair decision was great for state and local practitioners

Quotables:

“If I can say one thing to people starting out in this field, don’t discount working in government, because some of the work can be the most fun you’ll ever do.” - Helen Hecht [08:49]

“Technology is a huge tool for everybody. We would not be where we are today if it weren’t for the advances in technology.” - Helen Hecht [12:19]

“It’s interesting though. You’re organized and you have ideas, but you have no teeth, right? There’s no bite to your will to make people agree.” - Judy Vorndran [20:45]

“Sometimes you have to stop and say, ‘Quit trying to fit the square peg in the round hole, and let’s figure out if there’s a different way to do this. And why are we trying to do it?’” - Helen Hecht [37:14]

“Identify the right problem. YOu know, that’s what they always tell you when you’re trying to solve a problem. The most important thing is to make sure you identify the actual problem.” - Helen Hecht [41:24]

Relevant Links:

The Multistate Tax Commission: https://www.mtc.gov

Helen Hecht on LinkedIn: https://www.linkedin.com/in/helen-hecht-2406ab1a

Subscribe on your favorite podcast app:
https://saltovation.captivate.fm/listen
https://linktr.ee/taxops

Follow Us on Socials
https://www.linkedin.com/company/taxops-llc
https://www.youtube.com/channel/UCMB1ZQNGXM_F777SIEl8Vjw

Talk To A Tax Advocate Today
TaxOps Website: https://taxops.com/contact/

Production Support
This episode was produced with support from Truth Work Media. www.truthworkmedia.com
Mentioned in this episode:
Schedule a Call with the Aprio Team Now!
Introductory Call
1 hr 2 min

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