{"id":3726,"date":"2020-02-11T09:52:18","date_gmt":"2020-02-11T14:52:18","guid":{"rendered":"https:\/\/keysolutions.us\/blog\/?p=3726"},"modified":"2020-02-11T09:52:19","modified_gmt":"2020-02-11T14:52:19","slug":"interstate-commerce-speed-trap-wayfair-supreme-ct-decision-rears-its-ugly-head","status":"publish","type":"post","link":"https:\/\/keysolutions.us\/blog\/interstate-commerce-speed-trap-wayfair-supreme-ct-decision-rears-its-ugly-head\/","title":{"rendered":"Interstate Commerce Speed Trap \u2013 Wayfair Supreme Ct. Decision Rears Its Ugly Head"},"content":{"rendered":"\n

Bensalem PA Business Owner Receives $1.6 Million Sales Tax Bill from California <\/strong><\/p>\n\n\n\n

Background<\/strong><\/p>\n\n\n\n

It was reported by the Philadelphia\nInquirer<\/a> that Brian Freifelder, who sells\nclothing, shoes, and groceries on Amazon.com out of a small warehouse in\nBensalem, received an assessment notice from California that he could owe as\nmuch as $1.6 million for sales tax (just for the first six months of the year).\nCA says he is liable for the tax that he didn\u2019t collect from consumers who\nbought his goods through Amazon. His tax attorney called this \u201can interstate\ncommerce speed trap.\u201d<\/p>\n\n\n\n

Freifelder is among what\nis believed to be hundreds of thousands of third-party merchants on Amazon who\nwere informed by the CA Department of Tax and Fee Administration that they\nshould have been collecting taxes on sales to CA residents as far back as 2012.\n<\/p>\n\n\n\n

When Amazon opened its\nfirst warehouse in California in 2013, it escaped the obligation to collect the\ntaxes on sales by third-party merchants on the company\u2019s site, apparently by\nconvincing state officials that it was not the retailer obligated to collect\nsales tax in those cases \u2014 a distinction that has since been undermined by\ncourt decisions in South Carolina, Pennsylvania, and elsewhere.<\/p>\n\n\n\n

CA\u2019s position is that when\nFreifelder\u2019s goods showed up at an Amazon warehouse in CA, he had the same\nobligation to collect sales tax as any retailer with a store there \u2014 even if he\nhad no idea where Amazon was storing his goods.<\/p>\n\n\n\n

Current Tax Rule<\/strong><\/p>\n\n\n\n

CA and other states now require\n\u201cmarketplace facilitators\u201d to collect sales taxes. PA has issued its rules in Sales\nand Use Tax Bulletin 2019-01<\/strong><\/a> <\/strong>which became effective for transactions that occurred on or after July\n1, 2019. We discussed the revised economic nexus standards for PA and\nPhiladelphia in our August\n7, 2019 blog<\/strong><\/a> and NJ and\nPA\u2019s reaction to the Wayfair court case in our December 19, 2018 post<\/strong><\/a>. <\/p>\n\n\n\n

The Wayfair nexus\nstandard not only affects sales taxes. PA\nUpdated its corporate income tax nexus standard as we discussed on November 7,\n2019<\/strong><\/a>.<\/p>\n\n\n\n

We discussed the 2018\nU.S. Supreme Court Wayfair<\/em> decision on July 24, 2018<\/strong><\/a> which did away with the decades-old standard that states could force\nretailers to collect sales tax only if they had a physical presence in the\nstate, making marketplace facilitator laws possible.<\/p>\n\n\n\n

Tax Planning Tip<\/strong>: <\/p>\n\n\n\n

If you are a seller of tangible goods and you have not already contacted your tax professional to evaluate your nexus tax exposure, do so today rather than wait to receive your $1.6 million tax assessment notice. <\/p>\n\n\n\n

<\/p>\n\n\n\n

If you would like to discuss your business or personal tax planning<\/a>, tax preparation<\/a> and other financial concerns with an experienced tax professional, we invite you to call 610-594-2601<\/a> today to make an appointment at our Exton PA CPA office<\/a> to discuss your situation. You can also schedule a consultation at Click Here<\/a>. <\/p>\n\n\n\n

Copyright \u00a9 2020 Keystone Financial Solutions, Inc.  All rights reserved. <\/strong><\/p>\n\n\n\n

BE SURE TO READ THE DISCLAIMER PAGE: Tax laws, IRS rules and regulations change frequently<\/strong>. Although we hope you’ll find this information helpful, this blog is for educational purposes only and should not be considered as the rendering of tax, legal or investment advice. The publisher shall not assume liability for any losses, injuries, or damages from the display or use of this information.<\/strong><\/p>\n\n\n\n

About F. Bryan Haarlander, EA, CTRS:<\/strong><\/p>\n\n\n\n

Bryan\nHaarlander is an IRS licensed Enrolled Agent and who owns and operates a\nspecialized tax services firm serving clients in the western suburbs of\nPhiladelphia, PA, which includes the cities of Chester Springs, Coatesville,\nCollegeville, Devon, Downingtown, Exton, Frazer, King of Prussia, Paoli, Philadelphia,\nPhoenixville, Pottstown, Radnor, Reading, Wayne, West Chester in Berks,\nChester,  Delaware, Montgomery and\nPhiladelphia Counties, as well as clients in Delaware, New Jersey, New York and\nthroughout the continental USA. <\/p>\n\n\n\n

A Certified Tax Resolution Specialist, Bryan is well-known for his IRS tax resolution expertise and his book How to Resolve Your IRS Tax Debt Problems. <\/strong><\/a><\/em><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Bensalem PA Business Owner Receives $1.6 Million Sales Tax Bill from California Background It was reported by the Philadelphia Inquirer that Brian Freifelder, who sells clothing, shoes, and groceries on Amazon.com out of a small warehouse in Bensalem, received an assessment notice from California that he could owe as much as $1.6 million for sales […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[61,4,56],"tags":[132,69,73,63,33,34,21,64,71,31,72,66,23,41,65,32,40,39,67,68,38,70,151,37,36,35,150,42,28],"class_list":{"0":"post-3726","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-local-tax-news","7":"category-pennsylvania-tax-news","8":"category-state-tax-news","9":"tag-accuracy-related-penalty","10":"tag-audits","11":"tag-bankruptcy","12":"tag-bryan-haarlander","13":"tag-chester-county-cpa","14":"tag-exton-accountant","15":"tag-exton-cpa","16":"tag-f-bryan-haarlander","17":"tag-first-time-abatement","18":"tag-frank-haarlander","19":"tag-innocent-spouse","20":"tag-installment-agreements","21":"tag-irs","22":"tag-irs-tax-debts","23":"tag-irs-tax-payments","24":"tag-keystone-financial-solutions","25":"tag-offer-in-compromise","26":"tag-oic","27":"tag-partial-installment-agreements","28":"tag-penalty-abatement","29":"tag-philadelphia-cpa","30":"tag-reasonable-cause","31":"tag-tax-adviser-near-me","32":"tag-tax-blog","33":"tag-tax-expert","34":"tag-tax-planning","35":"tag-tax-professional-near-me","36":"tag-tax-resolution","37":"tag-west-chester-cpa","38":"entry"},"aioseo_notices":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9W9tf-Y6","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/posts\/3726","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/comments?post=3726"}],"version-history":[{"count":10,"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/posts\/3726\/revisions"}],"predecessor-version":[{"id":3838,"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/posts\/3726\/revisions\/3838"}],"wp:attachment":[{"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/media?parent=3726"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/categories?post=3726"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/keysolutions.us\/blog\/wp-json\/wp\/v2\/tags?post=3726"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}