BarbriSFCourseDetails
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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Corporate Tax

Date & Time
  • event Date

    Thursday, May 12, 2022

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    110 minutes

Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$247.00
CPE
ALL

This course will provide guidance to tax professionals and advisers on key issues regarding the sales taxation of products and services. The panel will provide a detailed analysis of transactions and products containing both taxable and nontaxable components, classifying products and services for sales tax purposes, and documentation, as well as offer best practices for audit defense for taxpayers.

Faculty

John E. Hayashi
Managing Director, Tax
BPM

Mr. Hayashi serves as a Managing Director of Tax at BPM, with nearly 30 years of public accounting and private industry experience in State and Local Taxes (SALT). He helps his clients respond to SALT issues, with a specialization in sales tax and use tax that's currently in high demand after the Supreme Court's decision in South Dakota v. Wayfair, Inc. (2018). Mr. Hayashi is a leader in BPM's SALT group, which serves as a single point of contact for clients to analyze their state and local tax liabilities, as well as state and local tax deductions. He listens to client needs to plan and implement strategies that minimize identified liabilities.

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Suzanne P. Leighton
Director, Tax
BPM

Ms. Leighton is a Director in the State & Local Taxes (SALT) practice at BPM, where she provides consulting advice on state tax-related issues to clients in a variety of industries. Her work includes preparing nexus studies for clients and assisting clients with resolving their assessments issues with state tax agencies. Ms. Leighton has special expertise in state income tax, partnership taxation and resolution of state tax matters. Prior to BPM, she spent 14 years in Pennsylvania’s Department of Revenue in their enforcement division, where she helped guide tax policy and recommended legislation designed to increase compliance.  

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Tad Gebeyehu
Director – Indirect Tax
BPM

Mr. Gebeyehu is a Director in BPM’s Tax practice, helping clients of various sizes and across various industries with their multi-state sales tax needs. With more than 13 years of experience in state and local tax (SALT) matters, including time spent in the Big Four, he brings together his strong technical skills with a commitment to listening to clients closely to deliver optimal results.

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Description

Companies providing a mixed bag of products and services face special challenges in determining where and how its products and services will be taxed. There is a general lack of clarity and uniformity among states regarding taxes on transactions combining both products and services. Tax professionals must understand the nuances of these types of transactions and potential sales tax implications.

Among the challenges companies face in assessing whether they will be subject to transaction taxes in a particular state is determining the nature of the service or product offered. For many states, whether the transaction is subject to tax may come down to identifying the "true object" of the item sold. This is particularly true where the transaction has multiple bundled elements. In most jurisdictions, including a taxable product or service in a bundle with an otherwise nontaxable service may make the entire transaction subject to tax.

Other factors impacting whether services and products are subject to transaction tax are different states' rules for sourcing, how the various states treat and classify certain products and services, and whether the state has special rules for specific items.

Listen as our experienced panel discusses the various challenges of determining the proper tax treatment of transactions containing both taxable and nontaxable components. The panel will also offer techniques for structuring contracts and transactions in an attempt to segregate taxable from nontaxable services and products and to establish effective audit defense strategies.

Outline

  1. Determining the application of sales tax to products and services
  2. Describe transactions with both taxable and nontaxable components
  3. Discuss recent state sales tax legislation
  4. Offer best practices for tax professionals and multistate businesses to compute the tax due on bundled sales of products and services

Benefits

The panel will discuss these and other key issues:

  • What approaches are states taking to define the nature of products or services for purposes of determining taxability for sales and use tax?
  • How do various states treat contracts and transactions that contain both taxable and nontaxable components for state sales and use tax purposes?
  • How are states approaching the question of the taxability of mixed bag transactions?
  • What are the common techniques for structuring contracts and transactions to segregate taxable from nontaxable services and products?

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Understand the factors used in determining various states' approaches to taxing sales of services and products
  • Ascertain methods for structuring contracts and transactions to properly exempt nontaxable services from state sales tax
  • Ascertain specific techniques for segregating nontaxable services and products
  • Determine appropriate audit defense strategies for positions taken

  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite: Three years+ business or public firm experience at mid-level within the organization, preparing complex tax forms and schedules; supervisory authority over other preparers/accountants. Specific knowledge and understanding of state sales and use tax on products, goods and services affecting multistate companies.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).