There are few subjects like indirect taxes for confusing people. The facts needed to determine tax liability often elude business owners. And let’s not forget that businesses across the country are waiting for a United States Supreme Court decision that will determine the taxability of Internet sales.

Overlooked, underestimated, and under the radar. That’s the best way to describe consumer use tax. The less popular cousin of sales tax, consumer use tax is one of the most mismanaged compliance issues for clients. That’s because most clients don’t know what it is, never mind how to comply with it. But ignorance isn’t bliss. In fact, mismanaging use tax ranks in the top five for costliest compliance mistakes made by companies, according to accounting and tax consulting firm Peisner Johnson.

Why wasn’t online sales tax included in the 2018 omnibus spending bill?
Recently Congress passed the 2018 omnibus spending bill after finalizing the language at the last minute. Lawmakers on both sides of the aisle, specifically Rep. Kristi Noem, were pushing to include online sales tax legislation, but ultimately the House’s chief deputy whip, Rep. Patrick McHenry, “Signaled…that Noem’s measure won’t be included in the omnibus and hasn’t had enough vetting.”

Many tax experts believe the impending Supreme Court decision on economic nexus will have a dramatic impact on the way states can tax out-of-state retailers. The court’s ruling in South Dakota v. Wayfair, Inc., could expose interstate sellers to new tax obligations and challenges. In Part 2 of this article we offer snapshots of what could happen.