Tennessee Issues Update After Supreme Court’s Wayfair Decision

The Tennessee Department of Revenue recently issued a special notice that provides additional guidance regarding how Tennessee is reacting to the recent South Dakota vs. Wayfair U.S. Supreme Court decision.  Here is a brief summary of the notice:

  • There is no current change in Tennessee’s application of sales tax to sales made into Tennessee by out-of-state vendors with no physical presence in Tennessee.
  • Notification will be made regarding the effective date the change will take place.
  • Even though Tennessee has already passed a law establishing an “economic nexus” rule that aligns with the Supreme Court decision, the law has been prohibited from being enforced by the legislature until the Department fully reviews the Supreme Court Ruling and decides how to proceed.
  • At some point, this application will change to align with the Supreme Court ruling and Tennessee’s economic nexus law.
  • Taxpayers are encouraged to voluntary comply with the new decision and Tennessee’s law and for such taxpayers to begin charging and collection Tennessee sales tax.

The good news is the notice indicates that when the rule does eventually go into effect in Tennessee, there will be no retroactivity.  When the new date is announced, there will be no assessment by the Department of Revenue on that basis prior to that date.

To read the Department of Revenue’s Special Notice #18-11, please click here.

In the Notice #18-11, there is also an opportunity to sign up to receive notification when the Department does issue the effective date of the changes.

The State and Local Tax group at Crosslin stands ready to assist you in understanding the ramifications and putting into place a strategy to be in compliance with these potential changes for your business.     Please feel free SALT Director Mark Loftis at 615-320-5500 ext. 472 or mark.loftis@crosslinpc.com.  As always, we appreciate your business!

Tax Team VITA Presentation

The Crosslin tax team had a great time presenting recently at the United Way’s Volunteer Income Tax Assistance (VITA) site coordinators’ meeting.  Attendees came from all over the state to hear Jeff Smith and Dan Warren address some of the key changes in the Tax Cuts and Jobs Act, especially how VITA clients might be affected.  Great job, Jeff and Dan!  , including such issues as:

  • How VITA filing status and dependence will be impacted
  • How Earned Income Tax Credits and Child Tax Credits will be changed
  • Changes to the ACA (both related to the bill and not)

Last year, United Way and its partners offered Free Tax Prep at more than 25 locations across Middle Tennessee. The VITA program helped 15,000 individuals & families last year receive $19M in refunds and save $4M in filing fees.  We are proud to be part of the team!

Nonprofit Standard Summer/Fall 2018

Crosslin recently released Nonprofit Standards, its quarterly newsletter that addresses accounting issues that affect today’s nonprofits.  Topics in this issue include:

  • Six tax reform issues impacting nonprofit organizations
  • Is your nonprofit financially fit?
  • Survival tips for the new area of fundraising
  • The integration of data privacy into a data governance program

Click here to read this quarter’s issue today!

Crosslin Adds Two Principals

Crosslin has added two longtime Nashville business leaders as principals in fast-growing areas within the company.  Ward Chaffin joins as principal of the company’s accounting and business solutions (ABS) group and Jeff Smith joins Crosslin as a tax principal.

Chaffin brings more than 25 years of experience to the position, most recently working as director of finance at Education Networks of America.  He also served as corporate controller for Women’s Health Partners and in audit positions for Arthur Andersen.

He received his master of business administration degree from the Owen Graduate School of Management at Vanderbilt University and a bachelor in business administration degree from the University of Notre Dame.  Chaffin is a member of the American Institute of Certified Public Accountants.

Smith brings more than 20 years of tax experience to the company, most recently working as a tax partner for a regional accounting firm.  He has helped thousands of individuals and businesses with effectively consulting and planning their financial position.

Smith received his bachelor’s degree in business administration from Belmont University.  He also is a recent graduate of the Rainmaker Academy and a member of the American Institute of Certified Public Accountants, Tennessee Society of Certified Public Accountants, and the Belmont University Alumni Association.