Allyn Tax

Make That Nexus Connection The Arizona Department of Revenue has issued a transaction privilege tax (TPT) ruling discussing how Arizona determines whether an out-of-state business has "substantial nexus" with the state for purposes of imposing the TPT, county excise tax, use tax, and city privilege taxes, as well as the sourcing rules. A business does not have to have a physical location in Arizona to be subject to TPT. An out-of-state business may be subject to TPT if the business is engaged in an activity within Arizona under one of the taxable business classifications and it has a "substantial nexus by physical presence" with Arizona. Remote sellers and marketplace facilitators without substantial nexus by physical presence may still be subject to TPT if they have economic nexus with Arizona (i.e., when their annual gross proceeds of retail sales or gross income derived from retail sales to customers in Arizona prior to any statutory deductions therefrom, are more than $100,000). The ruling provides examples of activities that would create physical or economic nexus and thus make the taxpayer subject to TPT. State specific taxes can be complex and difficult to interpret. Allyn Tax acts as an extension of your team to help your business minimize liabilities, mitigate costs, maintain compliance, and maximize tax savings. If you need additional guidance on how to approach analyzing, reporting, and remittance of tax, ask an expert here: https://lnkd.in/eMTnUw3y

Today, we want to hear from you! Navigating Vendor 1099s is crucial to a successful season! We've put together this quick poll to gain a better understanding of what will help you be successful with the 1099 process. We encourage you to take a moment to cast your vote, and if you have any additional insights or questions, please don't hesitate to share them in the comments below! Allyn’s tax team is staffed with seasoned tax professionals and consultants experienced in all aspects of Federal, multi-state and local tax compliance and consulting for large U.S. and global corporations. Serving businesses across the U.S. and Canada, Allyn International specializes in filing Form 1099 and requesting Form W-9 for U.S. taxpayers. If you need additional guidance for 1099 season, ask an expert here: https://lnkd.in/eMTnUw3y #AllyInAllyn #TaxIsFun #AllynTax #1099s

Update Your Resale Certificates, and Check It Twice The Illinois Department of Revenue has issued an informational bulletin to all persons who, in the ordinary course of business, lease or rent tangible personal property. Effective January 1, 2025, they are considered retailers subject to Illinois' sales and use tax laws, in accordance with the Retailers' Occupation Tax Act, and must register with the Department and pay tax on their lease or rental receipts. Leases of tangible personal property are considered sales at retail, and those who lease or rent property from Illinois businesses have tax itemized on receipts. Beginning January 1, 2025, taxpayers may use Form CRT-61 (Certificate for Resale) to claim an exemption on purchases of merchandise that will be leased or rented if the lease or rental of that item is subject to retailers' occupation tax. Although tax does not apply to receipts prior to January 1, 2025, any amounts received on and after that date are subject to tax, including amounts received on contracts in place prior to January 1, 2025. The change does not impact leases or rentals of items that must be titled or registered with the state, such as motor vehicles. State specific taxes can be complex and difficult to interpret. Allyn Tax acts as an extension of your team to help your business minimize liabilities, mitigate costs, maintain compliance, and maximize tax savings. If you need additional guidance on how to approach analyzing, reporting, and remittance of tax, ask an expert here: https://lnkd.in/eMTnUw3y

12 Days of Taxmas On the twelfth day of Taxmas, Allyn’s Tax Team gifted me… 1099 Decision Tree Poem In the land of tax, a Christmas tree bright, Guiding decisions, oh what a sight! Baubles of choices, sparkling and clear, To 1099 or not, let's bring holiday cheer! Branch by branch, the decisions unfold, On this tree of wisdom, a story is told. Twinkling lights of criteria, shining so bright, Illuminate the path, making decisions just right. Check each ornament, with detail and care, Does your vendor fit? Is the relationship fair? Follow the tinsel trail, so merry and keen, On the 1099 Decision Christmas Tree, it's a festive scene! With every choice made, let's celebrate, For tax decisions, this tree is first-rate! So, dance around the tree, in holiday glee, Navigating the 1099 decision, as festive as can be! Merry decision-making and happy holidays to thee, With the 1099 Decision Christmas Tree! Allyn’s tax team is staffed with seasoned tax professionals and consultants experienced in all aspects of Federal, multi-state and local tax compliance and consulting for large U.S. and global corporations. Serving businesses across the U.S. and Canada, Allyn International specializes in filing Form 1099 and requesting Form W-9 for U.S. taxpayers. If you need additional guidance for 1099 season, ask an expert here: https://lnkd.in/eMTnUw3y #AllyInAllyn #TaxIsFun #AllynTax12DaysofTaxmas #1099s

Allyn Tax Fun Facts Happy Monday! Are you ready for more Allyn Tax Fun Facts? To learn more, ask an expert here: https://lnkd.in/eMTnUw3y #AllyInAllyn #AllynTax #TaxIsFun #AllynTaxFunFacts

12 Days of Taxmas On the eleventh day of Taxmas, Allyn’s Tax Team gifted me… Addressing common issues and challenges faced during 1099 reporting Vendor 1099 Reporting poses common tax department challenges, with a key issue being vendor compliance, particularly with accurate Form W-9 submissions. To mitigate errors, establish a robust vendor onboarding process with clear instructions and educational resources to enhance compliance and reduce discrepancies. Data aggregation and validation pose challenges due to inconsistencies from various sources. Using validation tools and thorough pre-filing audits can rectify discrepancies, enhancing reporting accuracy and reducing audit concerns. These challenges are often compounded by evolving regulatory landscapes. Tax laws can undergo changes that impact reporting requirements, necessitating a keen eye on updates and shifts in compliance guidelines. Staying abreast of these changes through continuous monitoring and seeking guidance from tax experts can help mitigate risks associated with outdated reporting practices. By proactively addressing these common issues, tax departments can foster smoother Vendor 1099 Reporting processes, ensuring accurate submissions, and upholding compliance with ever-evolving regulations. Allyn’s tax team is staffed with seasoned tax professionals and consultants experienced in all aspects of Federal, multi-state and local tax compliance and consulting for large U.S. and global corporations. Serving businesses across the U.S. and Canada, Allyn International specializes in filing Form 1099 and requesting Form W-9 for U.S. taxpayers. If you need additional guidance for 1099 season, ask an expert here: https://lnkd.in/eMTnUw3y #AllyInAllyn #TaxIsFun #AllynTax12DaysofTaxmas #1099s

Expanding to a New Location: Leveraging the Benefits of Freeport Exemptions In light of the recent presidential election, president-elect Donald Trump has made a statement regarding the future of tariffs. He has expressed interest in increasing tariff rates up to 60% on items from China, and 10-20% on goods from other countries. For more information on these changes, please refer to Post Election: US Tariff Risks. If these changes are implemented, we can expect to see a shift in supply chains and pricing fluctuations. Rather than waiting to see how these decisions unfold, businesses can take proactive steps by opening their own warehouses in the U.S. to mitigate the impact of rising tariff costs. While taxes are unavoidable, there are strategic considerations to decide when selecting states for your future operations and minimizing your personal property taxes. Allyn’s tax team consists of seasoned professionals skilled in Federal, multi-state, and local tax compliance and consulting for large U.S. and global corporations. We leverage this expertise to your advantage, filing property tax returns in every U.S. jurisdiction. Our services include conducting opportunity reviews across all U.S. states, providing proactive strategies to enhance tax compliance, reviewing asset listings, returns, and tax bills, performing onsite property reviews, managing tax payments, and preparing and filing returns. Additionally, we offer tax compliance management, process improvement, and audit defense to support your company. Don’t miss out on strategic insights to minimize personal property taxes—click the link to read more: https://lnkd.in/eRyvH6TJ

12 Days of Taxmas On the tenth day of Taxmas, Allyn’s Tax Team gifted me… Best Practices for Organizing and Retaining Necessary Documents 1. Centralized Digital System: Create a centralized and secure digital repository for all vendor-related documents, including Form W-9s, transaction records, and filed 1099 forms. Using electronic storage ensures easy access, efficient search capabilities, and protection against physical damage or loss. 2. Consistent Naming Conventions: Develop a standardized naming convention for files to ensure uniformity and easy identification. Use clear and descriptive names that indicate the purpose, vendor name, and relevant year, making it straightforward to locate specific documents. 3. Categorized Folders: Organize documents into well-defined and labeled folders based on categories such as vendor name, tax year, and document type. This hierarchical structure simplifies navigation and retrieval, streamlining the process of finding required information. 4. Version Control: Implement version control practices for files that may undergo changes, such as corrected 1099 forms. Use clear file naming conventions to distinguish between different versions and maintain a record of changes made. 5. Regular Audits and Cleanup: Conduct periodic audits of your document repository to ensure accuracy, relevance, and compliance. Remove outdated or unnecessary files to prevent clutter and confusion, ensuring that only current and pertinent records are retained. Allyn’s tax team is staffed with seasoned tax professionals and consultants experienced in all aspects of Federal, multi-state and local tax compliance and consulting for large U.S. and global corporations. Serving businesses across the U.S. and Canada, Allyn International specializes in filing Form 1099 and requesting Form W-9 for U.S. taxpayers. If you need additional guidance for 1099 season, ask an expert here: https://lnkd.in/eMTnUw3y #AllyInAllyn #TaxIsFun #AllynTax12DaysofTaxmas #1099s

12 Days of Taxmas On the nineth day of Taxmas, Allyn’s Tax Team gifted me… 1099 Essentials: Key Concepts and Common Challenges In the United States tax system, the 1099 form plays a vital role in ensuring accurate reporting of various types of payments made to non-employees, such as independent contractors, freelancers, and vendors. This form is named after Section 1099 of the U.S. tax code, which governs how these payments are reported to the Internal Revenue Service (IRS). The primary purpose of the 1099 form is to provide the IRS with a detailed account of income earned by recipients during the tax year. This information helps the IRS verify that individuals and businesses are reporting their income correctly, promoting transparency and compliance within the tax system.  Allyn’s tax team is staffed with seasoned tax professionals and consultants experienced in all aspects of Federal, multi-state and local tax compliance and consulting for large U.S. and global corporations. Serving businesses across the U.S. and Canada, Allyn International specializes in filing Form 1099 and requesting Form W-9 for U.S. taxpayers. Click the link to see how Allyn can support your business during 1099 season: https://lnkd.in/ebYM6jZ5 #AllyInAllyn #TaxIsFun #AllynTax #AllynTax12DaysofTaxmas #1099s

Get Your Taxes in a Row The Illinois Department of Revenue has issued a compliance alert to increase participant compliance in the Department's direct pay permit program (DPP). Many participants are not in compliance with the record-keeping, filing, and payment requirements for purchases made under DPP. The Department will issue a notice of direct pay annual review to taxpayers reminding them of reporting obligations, and effective January 1, 2025, participants must complete an annual review of all transactions for the previous calendar year and submit confirmation of the review, no later than March 31, of the following calendar year. If the taxpayer was in business for less than 12 months during the calendar year, or part of the calendar year is under an active audit, the annual review must be conducted for the short-year period not under audit. Participants are responsible for filing Form ST-1-X (Amended Sales and Use Tax and E911 Surcharge Return) for any filing period where a transaction was incorrectly taxed. Failure to comply may result in a $6,000 penalty for the transactional review reporting period. State specific taxes can be complex and difficult to interpret. Allyn Tax acts as an extension of your team to help your business minimize liabilities, mitigate costs, maintain compliance, and maximize tax savings. If you need additional guidance on how to approach analyzing, reporting, and remittance of tax, ask an expert here: https://lnkd.in/eMTnUw3y