2507, 2016

Leases of Mobile Medical Imaging Equipment – May Provide Tax Refund Options

By |July 25th, 2016|Categories: Compliance, Leases, Medical Industry, Refunds, SalesTaxSupport.com Articles|

This month, James R. Dumler, a senior sales tax specialist at McClellan Davis and featured contributor at Sales Tax Support, discusses sales tax refund opportunities related to the leasing of mobile medical imaging equipment in his latest article. Sales Tax Support publishes articles written by experts and thought leaders in the specialized field of sales and use tax with small and medium sized business owners in mind. Visit salestaxsupport.com to read James’informative article “Leases of Mobile Medical Imaging Equipment - May Provide Tax Refund Options”

1507, 2016

Board of Equalization Audit Procedures Put Bars at Risk of Overstated Audit Liabilities

By |July 15th, 2016|Categories: Compliance, Restaurants and Bars|

The Board of Equalization (BOE) often selects bars for sales and use tax audits. The fact that bars can deal with a significant amount of cash, and can often times have more relaxed financial controls than other types of businesses, make them an ideal target in the eyes of the BOE. In the audit of a bar, an auditor will generally examine the business’ sales records and then seek to verify the recorded amounts with a markup analysis. The markup analysis contains intricate computations and the auditor’s inability to identify certain intricacies can lead to erroneous conclusions that appear to [...]

807, 2016

Are Tips Subject to Sales Tax in California?

By |July 8th, 2016|Categories: Compliance, Restaurants and Bars|

If you’re a restaurant owner that’s been through a California sales tax audit, you probably asked the auditor the above question at some point during the process. The answer you probably received was, “It depends,” or, “Sometimes.” If you’re lucky, you didn’t get further clarification in the form of an audit bill for tax on your employees’ tips. The underlying principle is deceptively simple: if the amounts of your tips are optional (left up to the customers), and all of the tips are actually distributed to your employees, the tips are not taxable. If a tip charge is mandatory (required [...]

2806, 2016

McClellan Davis Fights for Taxpayer Rights

By |June 28th, 2016|Categories: Compliance, Leadership, Sales Tax Policy|

On May 24, 2016, Jesse McClellan, Esq., Managing Partner, testified before the Members of the Board of Equalization at the California Taxpayers’ Bill of Rights Hearings regarding two issues that have been historically problematic for taxpayers.  The first issue addressed pertained to the Board’s practice of permitting the Business Tax and Fees Department (Department) and/or the Legal Appeals Division (Appeals) to remove cases from the board hearing calendar without any meaningful reason or timetable.  The second issue pertained to the lack of review for Administrative Protest denials.   The first problem: A hearing before the elected members of the Board [...]

1406, 2016

State-by-State Physical Nexus Criteria

By |June 14th, 2016|Categories: Compliance, Nexus|

Sales and use tax nexus is a very fluid and evolving area of tax law, and although Congress has historically been considered to be the sole gatekeeper to change, states have recently become emboldened in their efforts to unilaterally lower nexus barriers.  For example, on March 22, 2016, South Dakota passed S.B. 106 which effectively establishes an economic nexus standard.  The law requires remote sellers to register and collect use tax on its sales into South Dakota if its sales into the state exceed $100,000 annually, or it makes 200 or more separate sales into the state; notwithstanding a complete lack of [...]