Nothing is simple when it comes to taxation these days, is it?
Take Internet sales, for example. Do we tax them? Who has jurisdiction? Who gets the revenue?
No easy answers there, but Congress is trying to find some via the Marketplace Fairness Act.
The bill sailed through the Senate and is hitting some rough waters in the House, and pros and cons abound.
Still, its sponsors hope it will address a decidedly modern issue: How do you tax products and services in a borderless world?
The Internet is great at tearing down walls. if you’re a Maryland-based company and you sell something online to someone who lives in Missouri, who gets the sales tax revenue? Should sales taxes apply at all?
Great questions, and the folks at Avalara are trying to come up with some answers.
Avalara’s Ray Bigley spent some time with me recently to outline what CPAs need to know about the proposed legislation. He boils it down to these key areas:
Those will be moot points if the bill stalls in the House, of course. Stay tuned.
In the meantime, listen to my interview with Bigley in its entirety:
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