Since late 2008, the New York State Department of Taxation and Finance has routinely taken the position that charges for application service provider services, software as a service, or other online services may be subject to New York sales tax as licenses of software. Some sellers began collecting sales tax on this basis, and the Department has audited and assessed many sellers who did not.
In their article for State Tax Notes, part one of a two-part series, Sutherland attorneys Leah Robinson and Evan M. Hamme provide a roadmap for challenging a “remote access” audit. While the article focuses on a New York audit, the approach should be considered in other states as well.
View the full article, reprinted from the July 27, 2015, issue of State Tax Notes.