• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Pridgeon & Zoss, PLLC

Just another WordPress site

  • Home
  • Firm Overview
    • Review Us
  • Meet Our Attorneys
  • Tax Law Services
    • CP504 Notice in MN
  • Professional Referrals
  • Our Required Retainer Deposit & Fees
  • Blog
  • Contact Us
Home / IRS / Target applauds the SCOTUS decision allowing online tax
  • Home
  • Firm Overview
    • Review Us
  • Meet Our Attorneys
  • Tax Law Services
    • CP504 Notice in MN
  • Professional Referrals
  • Our Required Retainer Deposit & Fees
  • Blog
  • Contact Us
Call
Contact
Blog

Target applauds the SCOTUS decision allowing online tax

Brick-and-mortar retail giant Target has publicly applauded the Supreme Court of the United States’ (SCOTUS) decision to allow states to apply a sales tax to online retail purchases. The lack of the state sales tax has hurt business for these corporations and led to lost revenue for states.

What was the ruling? The case, Quill Corp. v. North Dakota, questioned a previous SCOTUS decision from 1992. In that previous case, SCOTUS essentially stated a business had to have a physical presence within a state for a state to charge a sales tax. At the time, online transactions were minimal. This is no longer the case.

As such, South Dakota decided to move forward with a challenge to the decision by taxing Quill Corp. Quill did not have a sufficient physical presence within South Dakota to justify the tax. Ultimately, SCOTUS agreed with South Dakota and now allows states to require online sellers to pay a tax.

There are some rules. For example, in order to apply a tax, the state must establish the retailer conducts at least $100,000 in online sales and has more than 200 transactions annually.

What does this mean for Minnesota businesses? Depending on the details of the business strategy, it could mean additional tax obligations.

The Minnesota Department of Revenue has stated that it will provide further guidance within the next month. However, the change could lead to an increase in audit rates as businesses attempt to navigate the impact of the ruling. Businesses that believe they may be impacted by the ruling are wise to seek legal counsel. An experienced attorney can review your situation and help reduce the risk of an audit. 

On Behalf of Pridgeon & Zoss, PLLC Jul 03 2018 IRS

Primary Sidebar

Do Not Delay Responding to a Tax Notice

Name(Required)

Practice Areas

Tax Disputes

  • Tax Litigation
  • Audits
  • Tax Appeals
    • Appealing a Levy Action

Business & Payroll Taxes

  • Trust Fund Assessments
  • Complying with Sales and Use Tax Laws

Self-Employed

  • No Taxes Withheld

Outstanding Balances

  • IRS Collections and Currently Not Collectible Status
  • Settlement Options
    • Offers in Compromise
    • Installment Agreements

Latest Blogs

What is a Trust Fund Recovery Penalty?

January 31, 2023

A Guide to the Minnesota Tax Appeal Process

January 27, 2023

The Secret to Successful Self-Employment

October 19, 2022

Things You Should Expect Being Self-Employed in Minnesota

October 13, 2022

The Importance of Source Documents

July 7, 2022

Footer

Edina Tax Law Office

7301 Ohms Lane, Suite 420
Edina, MN 55439

Telephone: 952-835-8320

Fax: 952-835-0201

St. Anthony Tax Law Office:

2812 Anthony Lane S, Suite 200
St. Anthony, Minnesota 55418

Telephone: 612-455-8948

Pridgeon & Zoss, PLLC provides legal counsel for clients in Minnesota and Western Wisconsin

© 2023 Pridgeon & Zoss, PLLC. All Rights Reserved.

Disclaimer | Site Map | Privacy Policy