Unlocking the Secrets of eCommerce and Tax Compliance: Expert Advice With Michael Fleming

What The Teck?

Michael J. Fleming, CMI, is the Founder and President of Sales Tax and More (STM), a consulting and solutions firm specializing in state and local taxes. Before STM, he was the Director at Peisner Johnson, where he became one of the country’s leading authorities on state tax issues, including nexus, drop-shipping, e-commerce, and business licensing. As an industry thought leader, Michael has spoken at national events and is frequently interviewed and quoted by major publications.

In this episode…

When it comes to tax payments, Amazon and other online sellers must navigate increasingly complex regulations that vary by state. In the South Dakota v. Wayfair case, the supreme court ruled that states may collect sales tax from sellers without a physical presence in the area. How can you comply with these regulations to avoid penalties?

Although Amazon sellers aren’t required to pay sales taxes, sellers on other platforms storing inventory in Amazon warehouses must comply. The Wayfair decision initiated discrepancies surrounding the sales tax nexus, which requires sellers to register with states to collect and remit sales tax. For instance, each sale processed and shipped in Texas requires a sales tax collection. According to state sales tax expert Michael Fleming, many retailers avoid these payments and face penalties plus interest. Decreasing risk requires registering with the state through VDAs (voluntary disclosure agreements) and conducting regular audits to ensure compliance.

In today’s episode of What The Teck?, Rolando Rosas and Dave Kelly welcome Michael Fleming, the Founder and President of Sales Tax and More, who shares insights about sales tax requirements for e-commerce businesses. Michael explains how to determine tax payments, why sellers should remain proactive when assessing and paying state sales tax, and the intricacies of sales tax nexus.