54 episodes

A podcast about state and local tax.

SALTovation: Making Sense of State and Local Tax SALTovation

    • Business
    • 5.0 • 7 Ratings

A podcast about state and local tax.

    Shifting Trends in the Field of Accounting with Daniel DeLau

    Shifting Trends in the Field of Accounting with Daniel DeLau

    In this episode of the SALTovation podcast, Meredith Smith, and Tram Le talk with Dan DeLau, a founding partner of TaxOps, and Professor at the School of Business at Colorado Christian University, with decades of domestic and international experience in accounting. DeLau and the team discuss why the number of students enrolling in accounting is down, what that means for businesses, and the future of the accounting profession.



    They also talk about how globalization has created complexities in accounting and tax laws, and the additional requirements it places on smaller organizations.



    Topics discussed in this episode:

    How globalization and the internet have changed tax laws

    The decline in accounting enrollment over the past 30 years

    Present-day hurdles to excelling in accounting and tax law




    What You Will Learn:

    [01:44] Daniel DeLau on globalization

    [07:35] Complexities in the accounting profession

    [13:10] State-by-state requirements for obtaining an accounting degree




    Quotables:

    “There are a majority of reasons we have seen a decline in the profession over the last twenty to thirty years. One of them is if you look at the traits of a good accountant they have good time management skills, pay attention to detail, and have good organizational skills. Those are the same traits that are important for someone who wants to focus in computer information systems.” - Daniel DeLau [09:13]

    “In finance and data analytics students don’t need that extra year of education. In Texas, we require one hundred and fifty hours, but in most states candidates need one hundred and twenty hours to sit and take the accounting exam. It is another big hurdle.” - Tram Le [12:38]

    “I have to put on my sales hat and entice students to pull the trigger on an accounting major today. I talk to them about the benefits associated with the profession but many of them ultimately have those critical thinking skills you need and they just get it. It is like a puzzle to them and they enjoy solving it.” - Daniel DeLau [14:19]

    “I think when you are younger people talk about different careers. But in terms of becoming an accountant, I feel I was recruited by my advisor in undergrad who was an accounting professor. He encouraged me to take this path and I’m not sure I would be in this field if it wasn’t for career mentorship.” - Tram Le [15:48]

    • 18 min
    Internal Communications and Tax

    Internal Communications and Tax

    In this episode of the SALTovation podcast, Alex Korzhen, Tram Le, Meredith Smith and Stacey Roberts discuss how companies are increasingly agnostic about hiring as they gain trust and confidence in their remote workforces. This is giving employees more freedom to move about and creating some interesting tax ramifications when either employees fail to tell their employers they are on the move or interdepartmental communications fail. The employer may not even hear about an employee move until tax issues arise.

    Learn what happens when employee and internal communications fail to account for employees on the move, and what it looks like when they do.

     

     

    Topics discussed in this episode:

    Navigating the internal communications ecosystem 
    The differences between a VDA and VCA
    State-by-state income tax ramifications

     

    What You Will Learn:

    [01:44] Client story: Voluntary Compliance Program
    [06:49] Sales tax by state 
    [10:01] Data mining within departments 

     

    Quotables:

    “Recruiting, HR, IT, Finance, and Tax all have regular business activities as part of their daily function and they make decisions that affect state tax obligations. If those decisions are made without the proper steps being taken to get some sort of governmental or departmental licensure, then one department will begin to data mine another.” - Alex Korzhen [09:17]
    “As we have come out of covid, companies are still barely agnostic about where they hire and allow employees to move around, whether they know it or not. That is where issues arise. Payroll is maybe not getting notified about it until that person goes to file their return. Unfortunately, some companies are behind the eight ball on that. - Stacey Roberts [04:40]
    “The sales department does a disservice to the finance and accounting department because they either don’t get the right information to charge the right tax in the right jurisdiction, or the right tax at all. It screws up the sourcing for many things.” - Tram Le [08:00]
    “It is not just payroll we have to worry about. We have to worry about the income tax and the sales tax. Payroll can be messy but finance needs to work with us to make sure all the accounts and files are set up properly. It is a domino affect.” - Meredith Smith [08:40]

    • 11 min
    Voluntary Disclosure Agreements 101

    Voluntary Disclosure Agreements 101

    In this episode of the SALTovation podcast, we talk about voluntary disclosure agreements and why you would want to recommend them to a client. Alex Korzhen, Tram Le, and Meredith Smith discuss how a VDA can be an efficient self-audit that is cost-effective. They also discuss how to evaluate the pricing of the VDA process and consult with your clients, if it is determined a voluntary disclosure agreement is necessary.





    Topics discussed in this episode:

    The VDA process and determining the value of them for clients
    How VDA’s are priced state to state





    What You Will Learn:

    [00:49] Defining a VDA
    [05:54] How to advise clients
    [09:40] Working on a state-by-state basis

     

    Quotables:

     

    “A VDA is a legal agreement that provides documentation that says I took my taxes seriously so I can provide this in due diligence in funding, in acquisition activity. So we do a lot of clean up and remediation as a result of due diligence.” - Meredith Smith [02:47]
    “States are much easier to deal with under a VDA scenario than if they caught you if you received a nexus questionnaire or if you are being audited. It is not hostile but there is this undertone of “Gotcha!”. So you either approach on your terms or you are reviewed on their terms. ” - Alex Korzhen [04:06]
    “The cost of a VDA, to negotiate that agreement as well as provide that self-audit to a state, pretty much pays for itself. I think that is a great reason for a client to do it.” - Tram Le [04:50]
    “Determining if a VDA is worth it depends on the process at the state level or local jurisdictions. I think it really depends on what that process entails. Are we having to fill out a ton of forms or provide a narrative? The timing factor plays a big role as well. If we are dealing with bad data we can’t do the self-audit efficiently. ” - Tram Le [06:00]

    • 10 min
    Reporting in State and Local Tax with Paul Williams (Part 2)

    Reporting in State and Local Tax with Paul Williams (Part 2)

    In the second episode of a two-part series, we continue our conversation with Paul Williams, Senior Tax Correspondent at Law 360, and our own Judy Vorndran. Paul discusses boomerang issues, which are when old concepts get new life in the court system, and trending issues across the nation.

     

    Topics discussed in this episode:

    Halstead Bead’s case in Louisiana and other cases related to home rule cities
    Wayfair’s lawsuit against Lakewood for a $600K sales tax bill

     

    What You Will Learn:

    [00:26] Halstead Bead’s case in Louisiana and home rule jurisdictions
    [07:27] Wayfair’s lawsuit against Lakewood
    [11:02] Trends from a litigation perspective

     

    Quotables:

     

    “There’s a push and pull there is to how much power the local governments wanted to retain for the local tax collection versus what the sponsors thought that the state may need to do is what some would argue to comply with Wayfair.” - Paul Williams [02:53]
    “It’s very interesting how we’ve given this authority to the locals, which I appreciate why they need it. I appreciate why our states need authority, because the federal government doesn't give them enough money, but it does create a lot of complexity in tax compliance.” - Judy Vorndran [06:04]
    “When you look at both Wayfair’s case now and the Halstead Bead case, it does bring up the question of to what extent, if any, do home rule jurisdictions… what are limitations to their authorities potentially or what burdens can varying local rules create for companies that just want to comply with the Wayfair decision?” - Paul Williams [07:34]
    “Since Wayfair came down, and different practitioners we’ve talked to and different tax conferences we’ve reported on, practitioners have raised the question as to whether or not Wayfair gave local governments the authority to also impose economic nexus for sales and use tax.” - Paul Williams [08:17]

     

    Relevant Links:

    Paul Williams on Law360: law360.com/tax-authority/search?q=reporter:%22Paul+Williams%22

    Paul Williams on LinkedIn: linkedin.com/in/paul-williams-56183567

    • 13 min
    Reporting in State and Local Tax with Paul Williams (Part 1)

    Reporting in State and Local Tax with Paul Williams (Part 1)

    In the first episode of a two-part series, we talk with Paul Williams, Senior Tax Correspondent at Law 360, and our own Judy Vorndran. Paul talks about how he selects which newsworthy topics to cover in the state and local tax universe. He also discusses boomerang issues, which are when old concepts get new life in the court system, and trending issues across the nation.

     

    Topics discussed in this episode:

    How Paul determines what to report for Law360
    Zilka v. Tax Review Board City of Philadelphia and why Paul felt this case was worth following

     

    What You Will Learn:

    [00:44] Paul’s initial thoughts on covering SALT
    [02:16] The hardest concept to grasp
    [04:59] How Paul determines what to report on
    [11:35] Zilka v. City of Philadelphia’s Tax Review Board

     

    Quotables:

    “I learned very quickly that there’s a lot here in the state and local tax world, and I had to hit the ground running and get up to speed as quickly as I could.” - Paul Williams [01:59]
    “At the end of the day, it just comes down to news judgment as well.” - Paul Williams [06:20]
    “There’s a large volume out there, but we do spend a good amount of time trying to track those to the extent we can, just to see as soon as something moves again. Maybe it’s picked up interest in the legislature.” - Paul Williams [08:41]
    “It had a lot of elements there that just seem really newsworthy, and certainly we’re dealing with a lot of complex multistate issues that the other taxpayers or tax practitioners are following.” - Paul Williams [14:32]

     

    Relevant Links:

    Paul Williams on Law360: law360.com/tax-authority/search?q=reporter:%22Paul+Williams%22

    Paul Williams on LinkedIn: linkedin.com/in/paul-williams-56183567

    • 20 min
    Insights on California Tax Issues with Michael Cataldo (Part 2)

    Insights on California Tax Issues with Michael Cataldo (Part 2)

    In the second episode of a two-part series, Meredith Smith and Stacey Roberts, from TaxOps’ SALTovation Team, continue their conversation with Michael Cataldo, of Cataldo Tax Law in California. Michael continues to share his insight on the publications released by the Franchise Tax Board, that discuss sales of services and market-based sourcing in California. He also talks about some of his favorite cases outside the state.

     

    Topics discussed in this episode:

    Recent ruling regarding California’s sales of services and market-based sourcing
    California’s most recent ruling on sales of service

     

    What You Will Learn:

    [00:28] California’s policy on alternative proportment
    [01:51] Sales of services in California
    [09:51] Michael’s favorite cases outside of California
    [15:05] Retroactive tax laws
    [19:05] What creates nexus
    [21:06] Regulations on market-based sourcing

     

    Quotables:

     

    “It’s very hard to articulate exactly what was going on, what they’re doing. You have to do a lot of reading between the lines, see what they’re trying to do.” - Michael Cataldo [02:21]
    “The things I get interested in is where’s this going from here? And it takes a long time for things to develop in the state and local tax world to where this is going.” - Michael Cataldo [11:29]
    “Technology is moving so fast and what’s not going online. There’s going to be some challenges for them to figure out how to comply.” - Michael Cataldo [14:27]
    “But the constitution applies to all the states, so these constitutional arguments apply to all of them.” - Michael Cataldo [20:11]

     

    Relevant Links:

    Cataldo Tax Law: cataldotaxlaw.com

    Michael Cataldo on LinkedIn: linkedin.com/in/michael-cataldo-aaa9205/

    • 24 min

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One of the best SALT podcast I’ve listened to in a while!!!

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