Portfolio Shows How States Are Applying Sales Tax to Cloud Computing Transactions

Grazed from CPAPracticeAdvisor. Author: Isaac M. O'Bannon

New guidance is available for state and local tax professionals that examines how cloud computing is increasingly affected by state sales taxes. Titled, Sales and Use Taxes: Cloud Computing, it is the latest Tax Management Portfolio from Bloomberg BNA, which provides expert analysis on evolving state tax challenges associated with cloud computing. This Portfolio has been made available to all subscribers to the Bloomberg BNA Premier State Tax Library, Bloomberg Law, and other Bloomberg BNA state tax services. It was authored by two leading tax industry experts, Stephen Kranz, Partner at McDermott Will & Emery LLP, and Mark Nebergall, President of the Software Finance and Tax Executives Council.

“The rules governing cloud computing taxation are developing rapidly in state legislatures and administrative agencies across the country,” said the authors. “Unfortunately much of the administrative guidance is questionable at best. Disparate and changing interpretations by state tax administrators makes taxation of cloud computing transactions even more challenging for both sellers and customers...

Our analysis will help practitioners effectively navigate tricky sales and use tax aspects. Practitioners and companies should compute tax with caution and pay close attention to the issues we identified in the Portfolio.”...

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