Horizons Fall/Winter 2020

Oregon and other states adopted activity taxes which apply when gross sales exceed certain amounts. These states are expecting taxes from businesses shipping taxable goods or providing taxable services to customers in the state.

Any business that crossed these thresholds or who had employees working remotely may find themselves the target of an audit by the state or local jurisdictions. This is especially problematic when sales taxes are not collected from the customers at the time of the sales transaction. Businesses will continue to adapt and will need to be particularly diligent in identifying and making informed business decisions about tax collection and payment responsibilities. Questions that should be considered at least annually include: ∙ How has our business changed? Are we working and/or selling in new state or local jurisdictions? Have we concentrated our business activities to fewer states? ∙ What taxes are applicable to our activities in these jurisdictions? ∙ How are we tracking our activity against set economic presence thresholds? ∙ Do we have the appropriate employee and technology resources to address our tax collection and/or payment responsibilities? ∙ If tax exposure exists, what corrective measures are available to mitigate or eliminate additional tax, interest, or penalties? While things are still uncertain, state and local governments will surely be working hard over the next several months to rebuild funds necessary to support state and local services and enhance enforcement efforts of taxes legally due. While businesses will continue to adapt and adjust tax collection and payment responsibilities, The only thing certain for state and local tax questions is uncertainty.

TAX SERVICES

RubinBrown provides comprehensive tax services in such areas as tax consulting, tax reporting and tax controversies. Our Tax Services team has both the education and the experience to provide meaningful answers to personal and businesses tax issues.

Steve Brown, CPA Chair

Tax Services 816.859.7945 steve.brown@rubinbrown.com Tim Sims, CPA, CGMA Partner-In-Charge Tax Services 314.290.3434 tim.sims@rubinbrown.com Tony Nitti, CPA, MST Partner-In-Charge National Tax Services 720.709.5646 tony.nitti@rubinbrown.com Rhonda Sparlin, CPA Partner-In-Charge State & Local Tax Services 303.952.1243 rhonda.sparlin@rubinbrown.com Charlie Forsyth Accountant Tax Services 303.952.1248 charlie.forsyth@rubinbrown.com

U.S. Taxation in 2020

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