In this episode of the SALTovation podcast, we speak with Sandra Wiley, President of Boomer Consulting - an organization dedicated to guiding CPA firms towards success by leveraging leadership, talent, growth processes, and technology. Sandra shares her unique perspective and critical strategies that drive CPA firms. Building a connected community through meaningful relationships can enable firms to create a culture that fosters collaboration and allows individuals to thrive. Listen this week as we discuss the progressive edge of CPA firms today, focusing on community, leadership, and diversity.Topics discussed in this episode:CPA firm consultation: focusing on community, holistic leadership, and innovationCommunity building is crucial, particularly with remote work, fostering relationships and collaboration Holistic leadership: considering the whole person, integrating personal and professional lives for a balanced approach to management.How CPA firms are evolving in an increasingly competitive spaceProactive adaptation to automation and resource diversification is key to future-proofing CPA firms Quotables“When I think of holistic leadership today, it's looking at the whole person. When we look holistically at who people are, the human side of them, they are personal and professional. Diversity and inclusion and feeling like you belong somewhere, that is a part of well-being.” -Sandra Wiley [13:15]“Young people are coming into firms today with a long list of all the questions they have for ‘what are you going to do for me?’ There are a lot of people who hate that, but that's what they're doing. They're going to come through the door and ask ‘What kind of training are you going to give me?’, ‘What do I do if my kids are sick? Can I work from home three days a week? If we don't have good answers, they will walk down the street and find another company that will give them what they want.” -Sandra Wiley [25:00]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!Talk To A Tax Advocate Today:https://taxops.com/contact/

This episode originally aired on: https://www.boomer.com/post/e174-billing-time-vs-delivering-value-shifting-mindsets-in-the-cpa-industryOn this episode of the Boomer Briefing Podcast, Allen Gregory, Partner, Federal Tax at TaxOps, talks about billing time versus delivering value to clients. Allen and host Marc Staut, Shareholder and Chief Innovation and Technology Officer at Boomer Consulting, dive into how removing hourly rates can add value to client relationships and improve an accounting firm’s client retention.Allen shares how TaxOps has used value-based pricing since its inception. This experience has taught us how fixed-fee pricing creates collaborative client relationships and a culture of trust and accountability within the firm. Two key components, clear communication and experienced staff, are also key to ditching charge hours and making fixed-fee engagements work for clients, staff and partners.Subscribe on your favorite podcast app:https://saltovation.captivate.fm/listenhttps://linktr.ee/taxops Follow Us on Socials:https://www.linkedin.com/company/taxops-llchttps://www.youtube.com/channel/UCMB1ZQNGXM_F777SIEl8Vjw Talk To A Tax Advocate Today:https://taxops.com/contact/

This week we continue our discussion with Paul Miller, Vice President & Deputy Director of the ACMA, and David Swetnam-Burland, Partner at Brann & Isaacson. As remote sellers navigate the new state tax laws and consumer privacy regulations, the need for federal legislation to provide clarity and consistency for businesses operating across multiple states has increased. Listen as we discuss the impact of local home rule cities, such as in Colorado, on compliance efforts and how the ACMA advocates for federal solutions to protect their members and promote industry growth. Topics discussed in this episode:The MTC's updated interpretation attempts to align tax laws with the digital era, impacting businesses that operate online.The definition and application of 86-272 is a central point of contention, with states leveraging different interpretations to expand their tax bases.Legal challenges, especially in California and New York, are proving pivotal in establishing how nexus laws apply and are enforced.Local compliance, notably in Colorado's home rule cities, adds complexity to the remote sellers' tax obligations and merits close legal attention.Quotables“From the ACMA's perspective, our approach, as I mentioned earlier, is always to try to get a federal bill passed into law, because organizations like ours, we're very small comparison to, say, the milk industry or something. We're serving a pretty specific constituent, and they are located throughout the states and they're being chased by different states, and we don't have the means to chase after those states to defend them.” -Paul Miller [17:51]“It is one thing for the Supreme Court to say we created a rule in 1992, now we're in 2018. We don't like our rule as much as we did then, or the composition of our court has changed sufficiently so that we no longer have five votes in favor of that rule.” -David Swetnum-Burland [03:50]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of the SALTovation podcast, Meredith interviews Paul Miller, Vice President & Deputy Director of the ACMA, and David Swetnam-Burland, Partner at Brann & Isaacson. Both discuss the changes in tax regulations that have taken place after the Wayfair decision, the ACMA's mission, and the legal challenges that businesses face today. They also talk about the efforts being made to address the complications that arose after the Wayfair ruling, which led to a significant shift in sales and use tax obligations for remote sellers.Listen to the SALTovation podcast here: https://saltovation.captivate.fm/listen. Topics discussed in this episode:The ACMA has extended its advocacy from catalog mailers to encompass a broader range of remote marketers, responding to the industry’s digital transformation.Wayfair ruling's aftermath has led ACMA to push for federal legislation that simplifies sales tax collection, addressing the complexities of state-by-state compliance.The legal challenge against California's interpretation of Public Law 86-272California's Technical Advice Memorandum and Publication, which may affect future state tax policy.The intricacies of sales and income tax laws post-Wayfair pose significant burdens on businesses, especially smaller entities, and ongoing advocacy and legal efforts are crucial in addressing these challenges.Quotables“The ACMA's original mandate was to keep postage rates in checked for catalogs, and we've done so quite effectively throughout to the present day. We evolved over the years, and in the early two thousand and ten s, I guess we call it, we picked up on the growing efforts to overturn the 1992 standard in quill versus North Dakota, which upheld that catalog, and other direct marketing companies were not required to collect sales or use taxes from customers residing in states in which those companies have no physical presence.” -Paul Miller [01:54]“As much as the states might like to change the policy in this area, we don't believe, and the ACMA doesn't believe, that a public guidance document or a state tax regulation from a state level is a way to do that. This is a federal statute under the supremacy clause. It provides a clear rule for and I think one thing the states tend not to appreciate is the ACMA and our client base are businesses of all sizes.” -David Swetnam-Burland [08:35]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of the SALTovation podcast, we continue our conversation with Mike Bernard, VP of Tax Content and Chief Tax Officer at Vertex, a global provider of indirect tax software solutions. We examine the threefold increase in fee impositions within three years, underpinning the expectation of continued expansion in this domain. We also explore the burgeoning landscape of state and local taxation, where green fees, neighborhood assessments, and intricate policies intertwine with local economies and legislative nuances. Mike also shares insights on the future of sales and use taxes, the impact of commercial real estate devaluation, and the potential taxation of services. Topics discussed in this episode:There's been a significant increase in environment-related fees, which is reflective of a broader trend towards eco-conscious taxation.Fees are emerging as a preferred alternative to sales tax increases due to the ease of implementation and their transaction-based nature.Diverse new fees create operational and compliance challenges for businesses, requiring sophisticated tax software and calculated strategies.The sales and use tax is positioned to become more prominent in funding state budgets, especially considering economic downturn resistance and recovery.Professional services taxation complexity may continue to be addressed indirectly through audit practices, while explicit taxation of services remains a point of debate.Quotables“Fees can be passed with relative ease. They're easy to audit because it's on normally a per-transaction basis. And so I think if you think about how local communities or local districts want to continue to raise revenue without raising the sales tax rate, these are going to be a significant portion of that. And I will tell you this, a lot of our customers are very aware of this and they want to make sure that at least we stay apprised of making sure that in our monthly data update, we get those fee positions updated with that as well, so that they're charging proper fees as well.” -Mike Bernard [01:43]“The devaluation of commercial real estate in the urban cores puts pressure on budgets. So you're seeing this massive kind of revaluation because people are either hybrid work or they're not having to go in five days a week. And so now these commercial buildings are being revalued. And so property tax revenues are starting to be greatly impacted.” -Mike Bernard [13:37]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of the SALTovation podcast, we speak with Mike Bernard, VP of Tax Content and Chief Tax Officer at Vertex, a global provider of indirect tax software solutions. As tax complexities increase and technology advances, Mike shares his invaluable insights drawn from his vast experience in the tax domain. We delve into the role of a Chief Tax Officer at a software company, the importance of understanding clients' unique needs, and the challenges of implementing and upgrading tax technology. Mike also shares insights on the future of sales tax compliance and the work Vertex does to advocate for administrative ease and efficiency in tax policy. Topics discussed in this episode:Mike brings a wealth of experience from his background as US Tax Counsel at Microsoft and now as Chief Tax Officer at Vertex.Vertex Inc. prioritizes staying current with tax updates through monthly data updates and maintaining solid professional relationships with Departments of Revenue.The conversation highlights the importance of adaptable tax software in handling various sales scenarios, including bundles and emerging digital assets like NFTs and cryptocurrencies.The need for upfront investment in understanding business systems to create efficient and compliant tax reporting solutions.Engagement with Multi-State Tax Commissions and Departments of Revenue helps Vertex in navigating and influencing the administrative aspect of evolving tax policies without direct lobbying.Quotables“One thing that you find out at Vertex when you serve a larger community of customers is that you have to come with this idea that they're all on their technology journey. Nobody's ever the same. Even though they may be in the retail business as an industry, or they may be in oil and gas, or they may be in leasing, or they may be in financial services, they're all at a different place as you move along their journey as to how technologically capable they are of serving not just their internal corporation, but their customers.” -Mike Bernard [07:49]“You always have to gauge yourself and give them the ability to move up or move down wherever they're at in that space and serve them the best that you can. some clients require a more handheld type of service and others, you can put things out there and give them a direction. then check back with them in a week and they will have accomplished some of the things that they set out to do.” -Mike Bernard [12:10]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of the SALTovation podcast, we continue our discussion with Richard Jones, attorney at Sullivan & Worcester, on recent landmark cases and their implications on tax policies and practices. Richard discusses two important state and local tax cases: Akamai and Bass Holdings. We delve into the complexities of determining whether a company is selling software or services, and the taxation implications. We also explore the concept of unitary business and its impact on apportionment. Listen as we provide valuable insights into the nuances of these cases and offer advice on navigating state and local tax issues. Tune in to gain a deeper understanding of these key topics in the world of taxation!Topics discussed in this episode:The pronunciation and role of Akamai in the technology and tax world, exemplify the challenges in classifying software versus services within taxation.The significance of the unitary business principle in SALT litigation and its application in recent tax cases, specifically referenced in the 'Vas Holdings' debate.An explanation of how court decisions can overturn long-standing tax policies, offering a fresh perspective on statutory interpretations and SALT applications.Richard’s experiences in the courtroom, shed light on the strategies used in SALT litigation to secure favorable outcomes.The encouragement to question accepted tax policies and insights into the pendulum of taxpayer victories in recent SALT litigation.Quotables“Get a good tax advisor to know the difference between the tax rules that really shouldn't be challenged and those that might have some grounds for looking further into.” -Richard Jones [29:40]“The pendulum can change, though, if you get more aggressive positions taken by the Department of Revenue, you tend to have more success from taxpayers as long as there's not too much deference and some fresh looks at by the courts or the judges as to the proper application.” -Richard Jones [32:42]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of the SALTovation podcast, we speak with Richard Jones, an attorney at Sullivan & Worcester in Boston, specializing in state and local tax for over two decades. Richard dives into two significant Massachusetts court cases: Oracle USA Inc. and US Auto Holdings. In the Oracle case, the Massachusetts Supreme Judicial Court upheld the ability to apportion sales tax for software sales and clarified the parameters of the Commissioner of Revenue's authority. In the US Auto Holdings case, the court struck down the concept of "cookie nexus" and denied the state's ability to retroactively apply the Wayfair decision. Listen this week as Richard provides insights into the implications of these cases and their potential impact on other states.Topics discussed in this episode:State and local tax issues often involve unsettled and controversial areas, making them interesting and challenging for attorneys.Apportioning sales tax for software sales is a reasonable approach and should be considered in other states.The concept of "cookie nexus" is not valid, as physical presence requires something tangible.The Massachusetts Supreme Judicial Court's decision in US Auto Holdings prevents the retroactive application of the Wayfair decision.Quotables“Many states, like Massachusetts, have changed the definition of tangible personal property to say things that are tangible personal property plus software. We're just calling it a fiction. Fine. Okay. But what happens then is that now you have something that can be used simultaneously and exists simultaneously in many different states at the exact same time.That doesn't happen with the widget. So you have a new question.” -Richard Jones [09:57]“After the oracle decision, the floodgates opened for everyone filing abatement claims that didn't think they could before. And we've seen shifting sands in terms of the degree in which the department will be satisfied with the apportionment. I can't say I am happy with the way the sands have been shifting. Sometimes you can find out exactly what percentage of your employee headcount use the software and where they are because the software has a technology and sometimes you can't.” -Richard Jones [21:02]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of the SALTovation podcast, Stacey Roberts and Meredith Smith speak with hosts of the TaxChats podcast, Scott Dyreng, Professor of Accounting at Duke’s Fuqua School of Business, and Jeff Hoopes, Associate Professor at Kenan-Flagler Business School at the University of North Carolina at Chapel Hill. They discuss the $10,000 state and local tax (SALT) deduction cap and explore the impact of the cap on taxpayers, particularly in high-tax states. They discuss various strategies and issues related to SALT, the political dynamics surrounding the cap, potential future changes, and the complexities of filing taxes in multiple states. Topics discussed in this episode:The $10,000 state and local tax deduction cap and its impact on taxpayersThe cap's effect on business owners with income flowing through multiple statesImpact of the cap on taxpayers in high-tax states like California, New York, and New JerseyThe potential future of the salt cap and the political dynamics surrounding itWorkarounds implemented by some states to mitigate the impact of the capImplications of state income tax on personal salaries and employment taxesThe complexity of filing taxes in multiple states and the potential for double taxationQuotables“Another part that we haven't mentioned here is also very important is this deduction only exists for people if you itemize your tax itemize on your tax return. So that's like 90% of taxpayers don't itemize their tax return. And it's pretty much just like with income. So the 90% 90% of taxpayers the lower income people the 90% lower. So a lot of people don't itemize at all. This doesn't have any effect. So you're only starting with the 10% richest people. And then from there only the people that like exceed that $10,000.” -Jeff Hoopes [11:05]“It's kind of like letting the business pay the tax at the state level, not having it flow through and then only flowing through the after-tax amount. Whereas in the pre world, I was like flowing through the whole amount and being forced to pay a claim. It was like an individual thing. So it sort of converted it from an individual tax to a business tax.” -Scott Dyreng [21:37]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

As we continue our discussion with Brad Scott, Director of Finance at Halstead Bead, Inc., an eCommerce wholesaler supplying jewelry businesses worldwide, Brad shares the challenges faced by small businesses in complying with state and local tax (SALT) regulations. He highlights the high costs of compliance and the potential consequences of non-compliance. Brad emphasizes the need for amnesty and a simplified and streamlined approach to help small businesses become compliant. He also calls for a centralized database of SALT rules and regulations to make compliance easier for businesses.Talking Tax Reform: https://taxfoundation.org/event/post-wayfair-remote-sales-tax-reforms/Guest Bio:Brad Scott is the Director of Finance at Halstead Bead, Inc., an eCommerce wholesaler supplying jewelry businesses worldwide. Halstead is a second-generation, family-owned, small business. Scott has been with Halstead for 21 years. He handles multi-state sales and income tax registrations, filings, reconciliations, and all other accounting for the business. Scott also leads Halstead’s legislative advocacy efforts to achieve multi-state sales tax policy uniformity & simplification and is the Chairman of the Committee on Tax Policy at the American Catalog Mailers Association (ACMA). Halstead Bead, Inc. was the plaintiff in a lawsuit against the State of Louisiana, represented by Joe Bishop-Henchman and Tyler Martinez of the National Taxpayers Union (NTUF). Scott graduated from Michigan State University with a BA in Finance.Topics discussed in this episode:Compliance with SALT regulations is costly and time-consuming for small businesses.Non-compliance can lead to significant financial penalties and even the closure of businesses.Amnesty should be considered as a solution for businesses that are not currently compliant.A centralized database of SALT rules and regulations would greatly simplify compliance for businesses.Quotables“I think the solution is going to be unpalatable from a policy position, but from a humane position. Amnesty is something that has to be considered and it's going to have to come out of the state houses of regulation and legislation because coming from Washington is going to be seen as a preemptive attempt.” -Brad Scott [06:20]“You've got practitioners, you've got businesses, and you've got policymakers. All of them need to recognize the role they play in this. A lot of business owners are afraid of putting their hands up for fear of being audited. But the reality is, until the people that make the decisions understand the vastness of this problem, they're not going to address it. ” -Brad Scott [21:55]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

This week on the SALTovation podcast we speak with Brad Scott, Director of Finance at Halstead Bead, Inc., an eCommerce wholesaler supplying jewelry businesses worldwide. Brad discusses the challenges and costs of sales tax compliance for small businesses. He shares his personal experience with the Wayfair decision and the impact it had on his company. He talks about the need for greater simplicity in tax policy to drive compliance and reduce the burden on small businesses. He proposes solutions such as a single audit per year from a designated taxing authority and a single rate model for states. Listen this week as we discuss the need for collaboration between business leaders and policy leaders to find effective solutions. Talking Tax Reform: https://taxfoundation.org/event/post-wayfair-remote-sales-tax-reforms/Guest Bio:Brad Scott is the Director of Finance at Halstead Bead, Inc., an eCommerce wholesaler supplying jewelry businesses worldwide. Halstead is a second-generation, family-owned, small business. Scott has been with Halstead for 21 years. He handles multi-state sales and income tax registrations, filings, reconciliations, and all other accounting for the business. Scott also leads Halstead’s legislative advocacy efforts to achieve multi-state sales tax policy uniformity & simplification and is the Chairman of the Committee on Tax Policy at the American Catalog Mailers Association (ACMA). Halstead Bead, Inc. was the plaintiff in a lawsuit against the State of Louisiana, represented by Joe Bishop-Henchman and Tyler Martinez of the National Taxpayers Union (NTUF). Scott graduated from Michigan State University with a BA in Finance.Topics discussed in this episode:Sales tax compliance is a significant challenge for small businesses, requiring extensive time and resources.Simplifying tax policies and reducing the number of audits can drive greater compliance and reduce costs for businesses.The single rate model, as implemented in Texas, can significantly streamline sales tax collection and administration.Collaboration between business leaders and policy leaders is crucial to finding effective solutions for sales tax compliance.Quotables“There is an equal lack of awareness on the part of policymakers about what goes on within a small business, the challenges that we face, and what kind of resource drain they present. That has been the key focal point of our advocacy, bringing to bear the actual resource that we have to put into this and helping legislators to understand what a reasonable expectation is so that we can comply but also serve our customer base.” -Brad Scott [04:40]“If you start thinking about the sheer volume of businesses that are out there, I question how any state Department of Revenue could reach out to all of the businesses in every single state outside of their territory. It's just not a fair ask. So when you start talking about the sheer volume of communication that's not occurred, how many businesses are unaware of the Wayfair decision?” -Brad Scott [11:39]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this special 75th episode of the SALTovation Show, we are excited to bring you a rerelease of our very first episode! Join us as we take a trip down memory lane and get to know some of the SALTovation members who have been instrumental in our growth and success over the years.In this premiere episode, we will share our extensive years of experience in the field, as well as our personal journeys of when and how we joined TaxOps. Discover what drives these passionate professionals and hear their valuable insights and answers to questions from both business and non-business owners about tax.Topics discussed in this episode:Tram Le is a member of SALTovation and has over 10 years of working in the state and local tax. She shares her journey in the tax sector, and why she enjoys working at SALT. Judy Vorndran is the head of the state and local tax practice and has been practicing for 25 years. She shares her journey in the tax sector and the transition she has seen in her 25 years of practice.Alexander Korzhen’s 15-year journey in state and local taxStacey Roberts shares her journey from federal tax to SALTUnderstanding the layers of the state and local tax blueprint whether as a small or large business. The assumption that all CPAs know about local and state taxes. Look where you can add value to your client as a CPA.How to understand Nexus when traveling for business from state to state.Quotables:“SALT is navigating the gray area that exists when laws are not written specifically to business and are not keeping track with business.” -Alexander Korzhen“There are layers upon layers of taxes across our nation that apply to each and every business.” -Judy Vorndran“A nexus questionnaire is really a fishing expedition from a state.” -Stacey RobertsConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!Talk To A Tax Advocate Today:https://taxops.com/contact/

This week on the SALTovation podcast we continue our discussion on the ever-changing landscape of state and local tax. Jordan Goodman, Attorney at HMB Law, discusses the changing landscape of state and local tax, focusing on the investee allocation cases and the shift from considering the location of the business to the location of the asset being sold. He highlights the confusion and lack of clarity in state tax laws, emphasizing the need for uniformity and clear guidelines. Jordan also touches on the challenges of remote work and the impact of automation on tax audits.Topics discussed in this episode:The investee allocation cases have changed the game in state and local tax, shifting the focus from the location of the business to the location of the asset being sold.The distinction between intangible and tangible assets is fading in the courts' minds, leading to the treatment of the sale of an asset as the same as the sale of the thing that owns the asset.State tax laws lack uniformity and clarity, causing confusion and challenges for businesses and tax professionals.The rise of remote work and automation has made tax audits more efficient and increased the likelihood of audits for businesses of all sizes.ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

This week on the SALTovation podcast we discuss the ever-changing landscape of state and local tax with guest Jordan Goodman, Attorney at HMB Law. Jordan highlights the rapid pace of developments in SALT and the challenges faced by businesses and taxpayers. Jordan talks about the need to understand the impact of changing policies and regulations on businesses and individuals. He also discusses recent court cases and their implications for taxpayers. Jordan raises concerns about retroactivity in tax laws and the need for fair and transparent processes in tax administration. Listen as Jordan shares his thoughts on the taxation of digital advertising and the evolving nature of nexus rules. Topics discussed in this episode:States' competition and the need to expand tax basesHow retroactivity in tax laws creates challenges for taxpayers and may violate due processChallenges faced by smaller retailers in dealing with compliance burdensAlternative apportionment and the court’s role in determining its applicabilityThe need for a more comprehensive approach to apportionmentHow taxpayers can engage with state and local jurisdictions to address tax issues and work towards fair and reasonable solutions.Quotables:"I think the competition among the states and the locals now are really emphasized because everybody went to a single sales factor. You have to import it. But now they're realizing there's limitations to that and they've got to look at things differently. ” -Jordan Goodman [04:30]“The government is looking for the ability to raise revenue without offending the electorate by putting it on people. Whether it's corporations, which always was the tag, but now it's wealthy individuals. They don't pay their fair share, so you're kind of pushing the burden out to other people. And the wealthy people only get one vote. So it's a very good common man type argument.” -Jordan Goodman [08:06]“If you're going to pass a regulation it has to go through a certain process and you have to have open comments and time for it and meetings and it's got to go for a first reading and a second reading and all the states are different. It's a unique way to challenge things but it can be very effective.” -Jordan Goodman [16:04]“I was raised with this principle that as an advocate, I can argue both sides of any issue and I actually think I'm obligated to do it. The state should pick a side, right? They have to decide what side they're on and go with it. Now, you may make half the people angry and half the people sad, but that's the choice they have to make for advocates. We can argue both sides and in fact makes my wife very angry when I just play devil's advocate because that's.” -Jordan Goodman [24:15]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

This week on the SALTovation podcast, we continue our conversation with Katherine Loughead, Senior Policy Analyst at the Tax Foundation, on various state and local tax issues. Katherine discusses the impact of the Tax Cuts and Jobs Act (TCJA), the trend of state tax reform and relief, and the challenges of tax policy in a complex political landscape. Katherine also touches on the importance of broadening tax bases and lowering rates, as well as the need for simplicity and transparency in tax laws.Topics discussed in this episode:The TCJA eliminated the deduction for entertainment expenses and imposed limitations on state tax deductions, which has had a significant impact on high-tax states.Many states have been implementing income tax rate reductions in recent years to promote tax competitiveness and economic growth.New Mexico and South Dakota have broad sales tax bases, which has motivated them to reduce sales tax rates.The complexity and lack of transparency in tax laws can create challenges for businesses and taxpayers.There is a growing trend of states exploring new revenue sources, such as digital advertising taxes and wealth taxes, but it is important to consider the impact on economic growth and avoid picking winners and losers.Quotables:"In an ideal world, if you want to really have an ideal tax system where you can create a lot of economic growth and have simplicity, you should do things this way. But it gets messy because politics is politics and so you have to work within that system and do the best you can. But we like to talk to lawmakers about how ideally tax codes should look like they were designed on purpose. But a lot of times people are coming in and out of the legislature and new governors have vastly different agendas.” -Katherine Loughead [01:37]"This has definitely been the biggest wave of state income tax reform and relief the U.S has ever seen. With so many states reducing their rates, and many times, not just once, but several states have come in and reduced their rates twice over the last three years, several times. A lot of them are prescribing future rate reductions and then when revenue continues to come in stronger than they expected, they're able to then adjust those and bring rates down a little bit lower.” -Katherine Loughead [07:29]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

This week on the SALTovation podcast, Katherine Loughead, Senior Policy Analyst at the Tax Foundation, discusses the importance of sound tax policy and how the Tax Foundation is conducting tax policy research to inform policy deliberations at the state, federal, and international levels. She talks about the impact of the Tax Cuts and Jobs Act (TCJA) and the Wayfair decision on state tax policy. Katherine also emphasizes the need for states to adjust to the new normal, including the rise of remote work and the need to attract businesses and taxpayers. Topics discussed in this episode:The role of the Tax FoundationTrends in tax policy over the past five yearsStates' unexpected revenue surplus post-pandemicHow income tax complexity makes it hard to predict liabilitiesChallenges of property assessments and the public perception of taxesHelping the public understand tax systems Quotables:"The Tax Foundation is a nonprofit, nonpartisan 501 tax policy research organization and we've actually been around for over 85 years now and we work to advance sound tax policy at the state, federal, and international levels.” -Katherine Loughead [00:50]"Switching from federal to state has been interesting because so much happens every single year at the state level. So there are many ways you can help move the needle in the right direction. Instead of being a very small part of a big wheel, you're able to be one of a few players that are really having an impact, and that's been highly rewarding.” -Katherine Loughead [05:35]"We've had, of course, the pandemic and all of the state responses to that, everything that's happened at the federal level since then with federal aid and then now coming out of the pandemic, we've seen states have a lot more revenue on hand than they initially expected.” -Katherine Loughead [12:13]“People remember exactly what they paid in property taxes in a certain year, but don't add up all their receipts or have a strong sense of how much they're paying in sales taxes. It's a little bit here and a little bit there, but over time that adds up quite a bit. With income taxes, there's so much complexity to the income tax system where you get exemptions here and deductions there and then clawbacks here.” -Katherine Loughead [16:01]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of SALTovation, we continue our conversation with Olga Goldberg, SALT Partner at Pierce Atwood LLP. They discuss the importance of taxpayer advocacy and the surprising stance taken by the New Hampshire Department of Revenue Administration in a recent tax case and delve into the topic of taxpayers litigating against tax assessments, even when the amount at issue may not be significant. They highlight the importance of pushing the issue to get answers and establish precedents for future cases. They also touch on the uptick in battles over disclosing information in recent years and emphasize the need for clients to be prepared for the additional costs and challenges that may arise in tax litigation.Topics discussed in this episode:Potential risks associated with disclosing confidential taxpayer informationAdditional costs and risks associated with public disclosureHow states like Massachusetts and Connecticut handle residency and income taxMaine’s recent confidential taxpayer decisionChallenges businesses face in protected information during legal proceedingsQuotables:"To establish a true answer, like Wayfair, it's probably not a big deal. Just go ahead and collect. You can agree on something, but at least you have that public answer that in theory, you know, people are going to be held to or states or businesses or whatnot.” -Olga Goldberg [02:51]"One of the recent battles that we've had which is not even a tax issue is confidential. The attorney general or the assistant AGs have been really pushing for the disclosure of confidential taxpayer information, like tax returns, and then just confidential information of the taxpayer, like details, of contracts and other information.” -Olga Goldberg [04:40]"Luckily, at least so far, trial courts seem pretty skeptical of the AG's arguments, they've been ruling in our favor, and they've been protecting this information. So, that's the good news, that it's not getting out there, but the bad news is that it's adding to the costs of a case that might not have a ton of evidence.”  -Olga Goldberg [08:07]“Maine has a court-created second avenue to an exemption, which is that you can just file a declaratory judgment requesting an exemption, whether or not you have filed an application or whether or not you have requested abatement. So, you have two options, you can go the abatement route or you can go this declaratory judgment route.” -Olga Goldberg [20:22]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of SALTovation, Meredith Smith and Alexander Korzhen speak with Olga Goldberg, SALT Partner at Pierce Atwood LLP. Olga shares her journey into the field of law and specialization in state and local tax. Olga delves into the challenges and concerns surrounding remote employees, particularly concerning nexus and withholding. She discusses the current legal issues she consistently argues in state and local tax and the challenges and concerns associated with remote employees, particularly regarding nexus and withholding. Tune in to hear more about Olga’s unique journey and insights into state tax.Topics discussed in this episode:Law is problem-solving in the real worldNavigating remote employee tax issuesCompliance with remote work taxesResidency audit complexitiesMaine Safe Harbor New Hampshire residency requirements explainedQuotables:"One of the reasons I like to work with our employment lawyers is because we talk a lot about, how we are going to document this information, and what kind of policies the company should have in place.” -Olga Goldberg [16:13]"There are two paths to being treated as a resident. One is common law domicile and two is statutory residency. So New Hampshire does not have a statutory residency. It's common law principles and they have a statute that defines what a residence is.” -Olga Goldberg [25:25]"If you're in a situation where you have this super low bar to clear to be treated as a New Hampshire resident under this department position, and you don't have a resident tax credit, which, to me, does not seem entirely constitutional, it's going to result in a lot of double taxation.” -Olga Goldberg [29:33]“The pandemic opened the playing field, but then you have these established larger employers who maybe they did and maybe they didn't shift their policies during the pandemic, but then they contracted again. So they're kind of shifting back because of these tax policies, tax rules, and the difficulty of compliance.” -Olga Goldberg [18:01]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of SALTovation, Meredith Smith and Judy Vorndran continue their conversation with Masha Yevzelman, Litigator at Fredrikson & Byron, P.A. They discuss the challenges of litigating tax cases and the lack of consistency in state tax laws. They highlight the need for factor presence thresholds and small business exemptions. Masha shares examples of significant cases, including a property tax exemption dispute between government entities and a residency case involving conflicting state interpretations. Masha, Judy, and Meredith emphasize the importance of understanding the impact of tax decisions on individuals and businesses.Topics discussed in this episode:Factor presence threshold standards for income taxChallenges faced by large businesses in tax litigationImpact of state tax rates on controversyTax consequences of residency decisionsShift in remote work and its impact on tax considerationsQuotables:"When you look at a visual of which states have factor presence for income tax purposes, it's pretty clear that it's a very small number of states. But what's interesting about the MTC position is the MTC said if you're going to adopt this website position state, you should have factor presence.” -Masha Yevzelman [01:27]"That's why the litigation is a challenge. You've got to have the big taxpayers doing it, not the little guys unless there's a giant class action that takes time, effort and bandwidth to support. So you just don't see the advocacy unless you're a large multinational business.” -Judy Vorndran [03:01]“Some cases really aren't suitable for settlement. Like I said, it's kind of an all or nothing proposition. It's an ongoing issue. Clients need certainty, too. And so even like settling a few years in an unprincipled way doesn't fix it because then what about all the later years where the facts are the same and the law is the same and what are we going to do then?” -Masha Yevzelman [04:50]"We're seeing more aggressive state positions. If you know that that's the position of the Department of Revenue and the auditor is applying it and the appeals officer is going to apply it, then really the only way to challenge it is through litigation.” -Masha Yevzelman [06:01]ConnectSubscribe on your favorite podcast app here.Follow us on LinkedIn and YouTube.Talk to a Tax Advocate Today!

In this episode of SALTovation, Meredith Smith and Judy Vorndran speak with Masha Yevzelman, Litigator at Fredrikson & Byron, P.A. She shares her journey into the field of law and discusses the various areas of law she practices, including tax disputes and litigation, and the increasing trend of audits and enforcement in state and local tax. Masha talks about her experiences with audits and trends in the field, including the increase in Nexus audits and residency audits. She also provides insights on remote employee compliance and the impact of marketplace laws.Topics discussed in this episode:The increasing trend of audits and enforcement in state and local taxLicensure issues when practicing in multiple statesThe potential impact of new legislation in MinnesotaThe challenges and compliance issues related to remote employeesThe Wayfair decision and marketplace lawsQuotables:“I'm seeing marketplace audits, because of the proliferation of the marketplace laws across the country, faster than anything has ever happened in the history of state and local tax, in two years.” -Masha Yevzelman [06:14]"I think in terms of audit trends, I think they're going to be going after 86 to 72 really hard, and that is getting litigated, and it's going to be litigated more and more.” -Masha Yevzelman [08:33]"I tell some of my clients it's three thousand a year in compliance costs to hire a remote employee. I'm sorry that you didn't realize your agnostic hiring policy was going to create all this compliance. You're there and you may not make any money, but you still have all these compliance duties.” -Masha Yevzelman [19:40]“I think remote work is a really big space right now in the advice side because I think the taxpayers and clients are kind of trying to figure out what do we do with all these remote workers. I think that will transition to the states doing something about it, too.” -Masha Yevzelman [20:34]Subscribe on your favorite podcast app:https://saltovation.captivate.fm/listenhttps://linktr.ee/taxops Follow Us on Socialshttps://www.linkedin.com/company/taxops-llchttps://www.youtube.com/channel/UCMB1ZQNGXM_F777SIEl8Vjw Talk To A Tax Advocate TodayTaxOps Website: https://taxops.com/contact/Production SupportThis episode was produced with support from Truth Work Media. www.truthworkmedia.com