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Accounting Today - - Tax Practice - From page 11 From page 12

Main­street Fair­ness Act or a ver­sion of it,” he said. “We’re all for­tune tell­ers at this point.”

Costs, im­me­di­ate and oth­er­wise

As a re­sult of the de­ci­sion, both sell­ers and con­sumers are likely to see added costs, ac­cord­ing to Jeff Glick­man, part­ner-in-charge of the SALT prac­tice at Top 100 Firm Aprio. “Many con­sumers who made pur­chases where sales tax was not charged may not have re­al­ized that they were re­quired to self-re­mit use tax to the state — in fact, this is one of the rea­sons that the states al­most unan­i­mously asked the Court to over­turn Quill,” he said. “Now, sales tax will likely be charged up­front, adding to the cost of goods and ser­vices pur­chased.“

“For sell­ers, there will be the im­me­di­ate costs as­so­ci­ated with work­ing with ad­vi­sors to un­der­stand their com­pli­ance obli­ga­tions,” he said. “This in­cludes up­dat­ing sys­tems and pro­cesses as nec­es­sary, de­cid­ing where they need to col­lect and re­mit, and whether their prod­ucts or ser­vices are tax­able and at what rates. Then there are the on­go­ing ad­di­tional costs of com­pli­ance such as pre­par­ing and fil­ing sales tax re­turns, main­tain­ing ex­emp­tion doc­u­men­ta­tion, and han­dling more au­dits and no­tices.”

“The de­ci­sion is a light­ning rod,” said Mark Friedlich, CPA, Esq., se­nior di­rec­tor for tax & ac­count­ing for North Amer­ica for Wolters Kluwer and a mem­ber of the Se­nate Fi­nance Com­mit­tee Chief Coun­sel’s Tax Ad­vi­sory Com­mit­tee on Tax Re­form.

“There will be a con­fus­ing hodge­podge of dif­fer­ent laws, which will im­pose an un­due bur­den on all sell­ers, large and small,” he said. “Congress will have to act, even though they haven’t done so for 26 years. It won’t hap­pen be­fore the Novem­ber midterms, but there will be a lot of pres­sure for them to step in and sim­plify the sales tax col­lec­tions and com­pli­ance process by pro­vid­ing one set of rates and stan­dards that ap­ply to all states that im­pose the sales tax.” AT

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