Cloud Computing And Support For Canned Software Is Taxable In Pennsylvania

Overview The Pennsylvania Board of Finance and Revenue recently reviewed petitions from One Market Data LLC, which contested the revocation of its sales tax license and the assessment of taxes, penalties, and interest for the period between January 2020 and December 2022. The company argued that its services were not subject to sales tax under […]

Ohio Board Rules True Object Determines Taxability Of Services

Overview CheckFree, a financial services provider in Ohio, sought a refund of over $2 million in sales and use tax paid between July 1, 2011, and June 30, 2015. The company argued that its payment authorization and bill payment services are not taxable in Ohio. However, the Department of Taxation denied the claim, asserting that […]

What Is IRS Backup Withholding Tax For Contractors

Overview When you have contractors that worked for your business, you need to issue a 1099 when paying them more than $600. However, as the business owner, you can be liable for their tax. Why Backup Withholding Applies When contractors do not have a taxpayer ID number, such as a Social Security Number (SSN) or […]

U.S. Sales Tax Audit For Canadian Companies

Overview A U.S. sales tax audit for Canadian companies involves ensuring compliance with the sales tax requirements of each U.S. state where the business operates. Below are key considerations to understand: 1. Nexus Determination Nexus refers to having sufficient physical or economic presence in a U.S. state, which obligates the company to collect sales tax […]