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Drop shipment: simple yet complex for sales tax

TaxConnex

The South Carolina retailer purchases the baseball cap from a distributor located in Arkansas and instructs the distributor to ship the baseball cap directly to the customer in Illinois. Let’s say a retailer based in South Carolina sells a baseball hat through its website to a customer in Illinois.

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Marketplace facilitators, holiday sales and tricky nexus

TaxConnex

States with an economic nexus threshold that exclude gross sales from nexus have lately included Alabama, Arkansas, Colorado, Minnesota and Oklahoma.) Most states determine their threshold numbers by gross taxable sales.

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Arkansas Inflation Relief Drops Top State Individual Income Tax Rate to 4.9%, Lowest in State History 

Patriot Software

Arkansas residents, this one’s for you. Read on about this recent Arkansas inflation relief. Governor Hutchinson recently signed legislation to immediately lower the state’s top individual tax rate and provide tax credits to low- and middle-income taxpayers. What is the […] READ MORE.

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Multi-channel selling sales tax: Wholesalers and Drop Shipping

TaxConnex

As an example, a distributor/wholesaler in Arkansas sells to a retailer in South Carolina and drop ships to the retailer’s customer in Illinois. The Arkansas distributor/wholesaler has nexus in Illinois and is registered for sales and use tax purposes in Illinois.

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Arkansas Storm Victims Get Tax Deadline Extension to July 31

CPA Practice

Individuals and households that reside or have a business in Cross, Lonoke and Pulaski counties in Arkansas now have until July 31, 2023, to file various federal individual and business tax returns and make tax payments, the Internal Revenue Service has announced.

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IRS Pushes Back Tax Filing Deadline For All Arkansas Residents

CPA Practice

The same early April severe storm that caused the IRS to extend the federal tax filing deadline for the entire state of Tennessee on Monday will also give all of Arkansas a Tax Day reprieve.

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The Enigma of Drop Shipments for Sales Tax Purposes

TaxConnex

Looking at each of the two transactions individually helps to make the answer clear: Let’s look at a distributor in Arkansas who sells to a retailer in South Carolina (at that retailer’s request) and drop ships the product to the retailer’s customer in Illinois. Who is ultimately responsible for the sales tax in this three-party transaction?