Executive Briefings

It's Becoming More and More Likely That Internet Retailers Will Have to Collect Taxes

Ripples of anxiety are likely to be coursing through internet retailers this month. That's because two events - the introduction of the Marketplace Fairness Act in the U.S. Senate and an opinion written by Supreme Court Justice Anthony Kennedy - made it more likely than it has been in 50 years that they will have to collect taxes in states where they don't have a physical presence. If that happens, out-of-state retailers would be compelled to collect sales and use taxes in almost 10,000 state tax jurisdictions that, according to the Tax Foundation, exist across the United States.

It's Becoming More and More Likely That Internet Retailers Will Have to Collect Taxes

For small to mid-sized online sellers of goods or services, "something like this could put them out of business, because they don't have the internal infrastructure to be able to administer the sales tax," says Mary Alice Cashin, a principal at Ryan, a tax consulting firm.

Besides the tax-collection responsibility, they might also be subject to the added cost of audits by a plethora of jurisdictions, she adds.  Read Full Article

For small to mid-sized online sellers of goods or services, "something like this could put them out of business, because they don't have the internal infrastructure to be able to administer the sales tax," says Mary Alice Cashin, a principal at Ryan, a tax consulting firm.

Besides the tax-collection responsibility, they might also be subject to the added cost of audits by a plethora of jurisdictions, she adds.  Read Full Article

It's Becoming More and More Likely That Internet Retailers Will Have to Collect Taxes