Tax man cometh

It’s clear that the taxing authorities are hurting for money. New York adopted a provision that requires that sellers to New York residents collect and pay to New York their sales tax even if the seller has no physical presence there. Thus, at least one internet seller has now withdrawn.  How will this provision interfere with electronic commerce?  What makes this seller unique? Why should physical presence make a difference concerning collection of tax on sales to in-state residents?

And California is seriously considering imposing a tax on professional services, even on lawyers! Would this violate the rules of confidentiality by requiring the disclosure of the client’s name when creating a report to the State? What other rules of professional conduct might be violated by such a provision? Stay tuned as the legislature continues its deliberations — and then almost certainly litigation to prevent its implementation.

Categorized in: Cash Flow - Finances