Episodes
Thursday Oct 21, 2021
What is R&D
Thursday Oct 21, 2021
Thursday Oct 21, 2021
In this episode, Stacey Roberts, from TaxOps’ SALTovation Team, and Jamie Overberg from TaxOps Minimization Group, talk about research and development tax credits, also known as R&D.
What You Will Discover:
[00:41] How TaxOps Minimization Group focuses on R&D
[01:45] Criteria for R&D credit
[03:23] Nuances of the state level
[08:29] Cloud costs
[10:31] Other states with increased audit activity
[12:55] This credit is for smaller companies too
Quotables:
“This credit is not just for big companies. It’s for smaller companies also, so you should try to get it.” -Jamie Overberg [15:02]
Thursday Oct 14, 2021
State taxation of cannabis
Thursday Oct 14, 2021
Thursday Oct 14, 2021
In this episode, Alexander Korzhen and Tram Le from TaxOps’ SALTovation Team, provide an overview of state taxation of cannabis. They explain how this taxation as an intrastate enterprise, meaning the product is licenced and sold in the state, will affect taxpayers.
What You Will Discover:
[00:26] Viewing from a state’s perspective
[02:29] State taxation of cannabis is an intrastate enterprise
[05:10] Exemptions to consider
Quotables:
“Understanding your role and understanding what types of taxes that you might be subject to in a given state is really hard to get your arms wrapped around.” -Tram Le [04:37]
“There’s a lot of consideration and a lot of detail from state to state.” -Alexander Korzhen [03:43]
Thursday Sep 30, 2021
Tips to Prep for an Audit
Thursday Sep 30, 2021
Thursday Sep 30, 2021
In this episode, Meredith Smith and Connie Zoerink from TaxOps’ SALTovation Team, share some tips on how to prepare for an audit.
What You Will Discover:
[00:51] How helpful it is to have a pre-audit call
[02:15] What documents to submit
[03:30] Auditors are people too
Quotables:
“I’ve gotten to know being on the industry side for a while too, getting to know auditors that they’re human too, and they have families, and they have interests and hobbies outside of auditing. And sometimes they’re really pleasant people, but they can be less pleasant when they’re stuck in the darkest corner of the basement of the file room with the invoices from 1972 or whatever. ” -Connie Zoerink [03:53]
“You can put in the work at the beginning to hone in your information could really pay off dividends in the end. That concept of short-term sacrifice for long-term gain.” -Meredith Smith [05:00]
Monday Sep 20, 2021
Streamlined Sales Tax Governing Board with Craig Johnson
Monday Sep 20, 2021
Monday Sep 20, 2021
In this episode of the SALTovation podcast, we speak with Craig Johnson, Executive Director of the Streamlined Sales Tax Governing Board. Craig talks about what the board does and shares some of their accomplishments since 1999 with both participating and nonparticipating states.
Questions asked and answered in this Episode:
What is Streamlined Sales Tax Governing Board?
What are some of Streamlined’s major accomplishments?
Why aren’t the other 22 states registered with the board?
What You Will Discover:
[00:44] What is Streamlined Sales Tax Governing Board
[02:48] Some of their major accomplishments
[07:40] Their central registration system for sellers
[13:22] Why other states don’t register to participate
[19:38] Creating uniform definitions using candy as an example
[29:13] The resolution to allow non-member states to participate
[35:47] Survey results from registered sellers
[41:34] What Craig is hopeful for the future
Quotables:
“We’ve made significant improvements and significant strides in making it easier for businesses.” - Craig Johnson [02:43]
“We didn’t really have, I don’t believe, a true appreciation for all the various nuances multi-state businesses face. We knew our laws inside and out. I knew our laws inside and out. Quite frankly, expected multi-state businesses to know them just as well, but while we’re focusing just on our laws, multi-state businesses, they're trying to do this and they’re focusing on every state’s laws that they’re operating in. And I think as part of our accomplishments, we now as states have a much better understanding and appreciate really for what multi-state businesses face and the challenges that they have.” - Craig Johnson [05:24]
“If you’re not in a Streamlined state and you’re going to make sales in any one of our member states, you can still register through Streamlined.” - Craig Johnson [13:11]
“We are trying very hard to walk that fine line of where does simplification or where does simplification in state sovereignty, where’s the ideal spot for them to meet?” - Craig Johnson [21:16]
“I want a business to focus on growing its business. I don’t want a business to focus on ‘I have to do my taxes. I have to calculate sales tax.’ Let somebody else do that.” - Craig Johnson [39:53]
“We have to listen to business. If we’re going to make things easier, we have to understand from the people that are actually doing the work on a day to day basis. What’s causing the problem? And then figure out what the response is and work with them, like ‘Ok, what do we see as a solution that works from both the states’ side and the seller’s side?’” - Craig Johnson [43:58]
Relevant Links:
Streamlined Sales Tax Governing Board: streamlinedsalestax.org
Craig Johnson on LinkedIn: linkedin.com/in/craig-johnson-97027b69
Thursday Sep 02, 2021
SUTS in Flux, Part 2
Thursday Sep 02, 2021
Thursday Sep 02, 2021
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
Thursday Aug 26, 2021
SUTS in Flux, Part 1
Thursday Aug 26, 2021
Thursday Aug 26, 2021
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
Thursday Aug 19, 2021
States Tackling Post-Wayfair Enforcement
Thursday Aug 19, 2021
Thursday Aug 19, 2021
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]
Monday Aug 16, 2021
Digital goods and advertising taxes with Carolynn Kranz
Monday Aug 16, 2021
Monday Aug 16, 2021
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