The true test of purpose comes into play when determining the imposition of e-learning plans and courses. E-learning plans are generally not subject to sales and use tax as digital goods because the real thing being sold is the non-taxable education or training service. However, such courses may be taxable when related to job-related computer or software training at the rate of 6.35% and non-job-related computer or software training at the rate of 1%. While audiovisual works are included in many e-learning programs, the real purpose of the course is education or training and not the sale of the digital good. Therefore, the service is non-taxable. On the other hand, if a company enacts an online training plan related to the job, it is a taxable service since it qualifies as a business management consulting service. However, general education seminars, refresher courses, courses on current events in a particular field and courses giving rise to continuing education credits are not subject to tax.
Earning Sales Tax From Your Pain Window – WA Taxpayer Audit Assessment
The Washington Court of Appeals upheld the trial court’s decision that granted the DOR’s motion for judgment after finding that a taxpayer’s visual display work was subject to retail business tax and professions (B&O). A New York-based company that performed “roll out work” for its clients’ marketing campaigns, including hiring resident freelancers to perform window installation and repair work on its behalf. The taxpayer argued that these services did not meet the definition of a “retail sale” and therefore were not subject to retail sales tax.
The court noted that these transactions were in fact considered retail sales of installation services. Therefore, the taxpayer is assessed for unpaid B&O tax, retail sales tax, penalties, and interest.
Ignorance is No Defense – Tax Penalty for Business and Occupation of Washington Stands
Tax arbitrator Andrea Vingo ruled that a prepaid wireless company was properly penalized by the Washington Department of Revenue. The taxpayer filed monthly business and occupation taxes, but reported no income and therefore did not file an annual reconciliation in Washington. During an audit, the Department assessed the fees associated with the reconciliation and applied a penalty. The taxpayer asked the Tax Appeals Board to reinterpret the conflicting tax codes, arguing that the taxpayer could not be expected to file a reconciliation and therefore could not be penalized. The Board was not persuaded by this argument and ruled in favor of the Department.
New Mexico warns taxpayers to update forms
The New Mexico DOR warns taxpayers to use proper and updated forms to file business tax returns. As of May 1, 2022, taxpayers using outdated CRS-1 paper forms will face penalties and interest charges. The state DOR encourages taxpayers to use the online TAP portal. However, taxpayers who wish to continue filing their returns on paper should use the updated forms that are available on the DOR website. Form CRS-1 will only be accepted for filing periods prior to July 2021.
Confused about sales tax? Maryland List of Taxable Goods and Services Released
The Maryland Comptroller’s Office has published a list of tangible personal property and services subject to sales and use tax. This is not a complete list, and many factors go into determining whether a good or service should attract sales and use tax. Applicable law, regulation, and the comptroller’s tax publications can be examined in more detail to find details of how these findings arose.
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