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A 12-Step Program on How to Respond to Wayfair

10/08/2018  |  By: Brian McCuller, JD, CPA, Shareholder, Practice Leader Tax

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You have most likely heard of the Wayfair, Inc. sales tax case issued on June 21, 2018, by the U.S. Supreme Court. The following objectives are to reduce risk and improve cash flow. 

Action Steps

  1. Determine Prospective Nexus
  2. Determine Prior Year Nexus
  3. Evaluate State Income Tax Nexus Impact
  4. Determine Taxability
  5. Identify Exemptions
  6. Get Your Use Tax Right
  7. Obtain Exemption Certificates
  8. Mitigate Prior Year Liability
  9. Consider Tax Decision Software
  10. Assess Outsourcing Compliance
  11. Register & File
  12. Monitor and Maintain

LBMC's Wayfair Diagnostic

The Diagnostic will be based upon the following information:

  • What states your company is currently registered and collecting sales tax (copies of most recent sales tax returns for each state along with any accompanying workpapers)
  • Your company’s sales by state report for most recent 12-month period
  • Your company’s number (volume) of sales transactions by state report
  • Detailed description and explanation of the products and/or services your company sells
  • Detailed description and explanation of the customers your company sells to
  • Sample contracts (i.e., sales agreements, invoices, etc.)
  • Sample exemption certificates received from customers (if applicable)

LBMC tax tips are provided as an informational and educational service for clients and friends of the firm. The communication is high-level and should not be considered as legal or tax advice to take any specific action. Individuals should consult with their personal tax or legal advisors before making any tax or legal-related decisions. In addition, the information and data presented are based on sources believed to be reliable, but we do not guarantee their accuracy or completeness. The information is current as of the date indicated and is subject to change without notice.

Posted in: Tax