Brian Gordon, CPA, is the Director of State and Local Taxes at Sanders Thaler Viola & Katz, LLP. Previously, Brian was with the NYS Department of Taxation and Finance as the District Audit Manager in Manhattan and Brooklyn. He is a member of the NYSSCPA New York, Multistate & Local Taxation Committee and writes and speaks on various tax issues. He can be reached at 516-704-7130 or 516-510-6041 and email: bgordon@st-cpas.com.

STVK in the News

Sales Tax Audit Success

Sometimes, in order to get through the bumpy road of starting a new business, sales tax payments might get missed and you might fall behind in your sales tax obligation. This is not an enviable position to be in as New York State shows very little leniency for business owners in this situation. If sales tax is collected, sales tax must be remitted to New York State. It is not your money to pay other bills with. Although this is a difficult situation to deal with, I just closed a case for a client in this exact situation. I was able to get a penalty reduction for the client and put them in an installment payment plan that will enable them to handle the sales tax liability and continue on to succeed in their business. My many years of experience as the District Audit Manager for NYS Department of Taxation gave me the ability to handle this difficult situation successfully.

If you have problems with sales tax, residency audits or any state and local tax problem, feel free to call Brian Gordon at 516-938-5219.

Upcoming Speaking Engagements

Brian Gordon will be speaking for the NYSSCPA - Nassau Chapter Small Firm MAP:

He will also be speaking for NCCPAP:

News and Technical Information

Colorado Wins Round Two on Use Tax Reporting Requirements for Remote Sellers

This article originally appeared in the April 2016 TaxStringer and is reprinted with permission from the New York State Society of Certified Public Accountants.

In 2010, Colorado enacted a law that imposes use tax reporting obligations on many remote sellers with no nexus to the state. This law does not require them to collect sales or use tax; it only requires them to report the sales information to both the purchaser and the state of Colorado, notifying them of a use tax liability. This can be equated to filing Form 1099 to ensure the reporting of income.

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Challenge to Alabama's New Nexus Rule: Internet Sales

The state of Alabama passed new regulations that would require out-of-state sellers with no physical presence in Alabama to collect Alabama Use Tax if they have sales to Alabama customers exceeding $250,000. This took effect January 1, 2016.

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Connecticut Changes to Market-Based Sourcing

On June 2, 2016, the Governor of Connecticut signed legislation adopting market-based sourcing for purposes of a corporation apportioning receipts from services. This is effective for years beginning on or after January 1, 2016. The effect of the change to market-based sourcing is that income from services will now be considered Connecticut source income if the customer receives the benefit of the service in Connecticut regardless of where the service was performed. However, this does not necessarily result in a nexus determination in Connecticut. If you have no physical presence in Connecticut, and no other nexus connection, you would need $500,000 (subject to annual adjustments) to be subject to Corporation Tax in Connecticut. Prior to this change, the method was called Cost of Performance Method, which means that income was sourced to the location that the service was performed. Market-based sourcing has been adopted by many states, and the list is growing. New York State adopted economic nexus and market based sourcing for all receipts beginning January 1, 2015.

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For more information regarding State and Local Taxes, please visit
Brian Gordon's S.A.L.T Blog at:
www.st-cpas.com/blog.