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Monday, April 16, 2018

April 17 - Doubly A Big Tax Day!

April 17 is the due date for 2017 individual returns as well as for calendar year corporations. It's not April 15 for 2018 because that was a Sunday so even with e-filing, a weekend date moves the due date to the next weekday.  But, if that is a holiday in the District of Columbia, then it is the next day. April 16 is Emancipation Day in DC making April 17 tax day.  But, isn't everyday really tax day since we pay taxes every day?

But April 17, 2018 is also a big day because the U.S. Supreme Court will hear oral argument in South Dakota v Wayfair, et al. The issue is whether the physical presence standard for sales tax nexus, dating back to 1992 from the Court's decision in Quill, should be changed. The relevance is that per Quill, if a seller does not have physical presence in a state, it doesn't have to collect sales tax from its customers in that state. The customers must instead self-assess and pay the use tax (same amount as the sales tax). States don't like this because many consumers don't know about use tax and it is much easier to have vendors charge it and remit it.

I have more on the background and relevance (and links) at this blog for the Southwestern Federal Tax textbooks that I help write and edit - here.  I hope you'll take a look.

What do you think? Is the physical presence standard outdated or still necessary to allow e-commerce to continue to grow?

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