There were 568 press releases posted in the last 24 hours and 150,702 in the last 365 days.

Tax attorney Richard Lehman reviews South Dakota v. Wayfair, a recent United States Supreme Court tax decision

Richard S. Lehman, Tax Attorney in Boca Raton, FL

Richard S. Lehman, Tax Attorney in Boca Raton, FL

Website of Richard S. Lehman, U.S. Tax Attorney

Website of Richard S. Lehman, U.S. Tax Attorney

Richard S Lehman, Video on IRS Amnesty FATCA and FFI Reporting on Youtube

Richard S Lehman, Video on IRS Amnesty FATCA and FFI Reporting on Youtube

In his most recent published article, Richard S. Lehman comments on the case that overturns precedent about seller’s liability to collect and remit sales tax.

United States Taxation and Immigration Law, LLC (N/A:N/A)

the majority opinion overturned long established precedent of physical presence test and upheld the constitutionality of the South Dakota law”
— Richard Sam Lehman, Tax Lawyer in Florida
BOCA RATON, FLORIDA, UNITED STATES, November 24, 2018 /EINPresswire.com/ -- Long established Supreme Court precedent has held that “that an out-of-state seller’s liability to collect and remit the tax to the consumer’s State depended on whether the seller had a physical presence in that State, but that mere shipment of goods into the consumer’s State, following an order from a catalog, did not satisfy the physical presence requirement.” Richard Sam Lehman, in a recently published Blog article, reviews the changes brought about by South Dakota v. Wayfair. If state may not require the seller to collect the sales tax, they have to rely on self-reporting by individual purchasers, which results in significant lost tax revenue for the states. This obviously has increasing significance in today’s ecommerce, with state tax losses estimated at between $8 to $33 billion every year.

The estimated impact on South Dakota is even higher than normal because South Dakota has no income tax, relying significantly on sales tax revenue. South Dakota estimated that it loses $48 to $58 million in lost sales tax. In order to remedy the problem of lost tax revenue, South Dakota passed a law that “requires out-of-state sellers to collect and remit sales tax “as if the seller had a physical presence in the state.” §1. The Act applies only to sellers that, on an annual basis, deliver more than $100,000 of goods or services into the State or engage in 200 or more separate transactions for the delivery of goods or services into the State.” The enforcement of the act was stayed “until the constitutionality of the law has been clearly established.” After the law was struck down in state courts due to US Supreme Court precedent, the Supreme Court granted cert.

Mr. Lehman points out that the majority opinion noted that modern commerce clause cases “rest upon two primary principles that mark the boundaries of a State’s authority to regulate interstate commerce. First, state regulations may not discriminate against interstate commerce; and second, States may not impose undue burdens on interstate commerce.” Built upon these principles, “[t]he Court will sustain a tax so long as it (1) applies to an activity with a substantial nexus with the taxing State, (2) is fairly apportioned, (3) does not discriminate against interstate commerce, and (4) is fairly related to the services the State provides.” Acknowledging the criticism that the physical presence test has received, the majority opinion acknowledged that the test is no longer appropriate measure of substantial nexus. “The ‘dramatic technological and social changes’ of our ‘increasingly interconnected economy’ mean that buyers are ‘closer to most major retailers’ than ever before— ‘regardless of how close or far the nearest storefront.’” “[T]he real world implementation of Commerce Clause doctrines now makes it manifest that the physical presence rule as defined by Quill must give way to the ‘far-reaching systemic and structural changes in the economy’ and ‘many other societal dimensions’ caused by the Cyber Age.” Thus, the majority opinion overturned long established precedent of physical presence test and upheld the constitutionality of the South Dakota law. The case is South Dakota v. Wayfair, Inc., No. 17-494.

The review will be published in full on the Blog of Richard Lehman at https://richardlehmanblog.blogspot.com/

About Richard Sam Lehman, Florida Tax Attorney

Richard S. Lehman, Tax Lawyer, has established a sophisticated private practice focusing on tax law. His background, education, and experience has distinguished him in this complex field. A published author and noted speaker, Mr. Lehman has carved a reputation as a powerful client advocate.

Website:
https://thelehmantaxlawlibrary.com/
Youtube Channel: https://www.youtube.com/channel/UCTH1JITaiKhUSC3MTxFVXYg
Attorney Profile: https://solomonlawguild.com/richard-s-lehman%2C-esq
Blog: https://richardlehmanblog.blogspot.com/

Richard S. Lehman, Attorney at Law
United States Taxation and Immigration Law, LLC
+ + +1 561-368-1113
email us here
Visit us on social media:
Facebook
Twitter
LinkedIn

Richard S. Lehman Tax Lawyer in Florida: Clawback in Taxation


EIN Presswire does not exercise editorial control over third-party content provided, uploaded, published, or distributed by users of EIN Presswire. We are a distributor, not a publisher, of 3rd party content. Such content may contain the views, opinions, statements, offers, and other material of the respective users, suppliers, participants, or authors.