Tax Partner Geoff Polma Comments on Significance of South Dakota v. Wayfair Decision in Law360

Geoff Polma, a Tax Partner based in the Firm’s Dallas office, commented on the significance of the Supreme Court’s ruling in South Dakota v. Wayfair. Polma said, “Wayfair creates significant uncertainty because it left many questions unanswered. Although the court explained at length why it was overturning the physical presence rule, it didn’t provide alternative guidance limiting states’ ability to require sales tax collection by small internet vendors. Moreover, it didn’t resolve whether states could rely on Wayfair to pursue back taxes against internet retailers who entirely properly didn’t collect sales taxes because they complied with the physical presence test. Although the court remanded Wayfair to consider some of these issues, unless Congress takes action we expect substantial additional litigation to work out details of the new regime.”

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