Navigating Divergent State Sales Tax Treatment of Product and Service Warranties and Software Maintenance Contracts
Recording of a 110-minute CPE webinar with Q&A
This webinar will provide tax professionals with a detailed update on the latest state tax developments and trends for multi-state companies buying or selling warranties. The panelist will offer compliance approaches to adjust to multi-state developments.
Outline
- General state tax issues with warranties
- Treatment of mandatory vs. optional warranties
- Handling of contracts covering physical products vs. software
- Special issues with extended warranties
- Taxability or exemption parts and labor
- More complex issues with warranties
- States that impose “true object” tests
- When and where using third-party warranty administrator can trigger sales tax nexus
- Handling of inventory withdrawals of repair parts
- Taxability of deductibles
- Specific large state examples
- Options for adjusting a multi-state tax compliance strategy
Benefits
The panelist will bring you current on these and other critical areas:
- Variations among states’ sales tax policies covering mandatory vs. optional or extended warranties
- Software maintenance agreements: which states opt to treat service contracts differently when they cover software vs. a tangible product
- Potential nexus traps: when using a third-party warranty administrator can create sales tax duties for your company in a state
- Current hot topics: impact of state court and administrative rulings; issues such as extended warranties purchased online
Faculty
Sean Evans
Director, Tax Advisory Services
DuCharme McMillen & Associates
Mr. Evans provides a variety of nationwide tax advisory services including sales/use tax process reviews, nexus... | Read More
Mr. Evans provides a variety of nationwide tax advisory services including sales/use tax process reviews, nexus studies, sales/use tax training, and voluntary disclosure negotiations. Additionally, he is skilled in developing tax matrices designed to support clients’ business process requirements as well as strategic tax planning. He also serves as project manager for tax software implementations and business process reviews. He has 20 years of experience in transaction tax consulting. Prior to joining DMA, he was a Senior Tax Manager for a national tax firm, where he conducted both public and on-site training courses on sales/use tax as well as federal information reporting.
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