Page 152 - TaxAdviser_2022

appears unlikely in time for the compli- appears the group’s efforts will focus Contributors
ance deadlines beginning with the first on sales and use taxes and an “analysis
estimated tax payment due April 15, of the ways that digital products might Bridget McCann, CPA, is managing
2022. While both suits raise constitu- be defined, categorized, exempted and director of State and Local Tax at Grant
tional issues, a core issue in the taxation sourced.” Thornton LLP in the Philadelphia area.
of “digital advertising” is whether target- However, states are not bound by Jennifer W. Jensen, CPA, is a partner
ing such activity discriminates against the MTC’s recommendations, and, in with PwC in Washington, D.C. Timothy
electronic commerce in violation of the any event, drafting legislative language G. Gorton, J.D., is a director with PwC in
federal Internet Tax Freedom Act, P.L. may not be imminent. In the meantime, Philadelphia. Ferdinand Hogroian, J.D.,
105-277. states are expected to continue to con- is a director with PwC in Albany, N.Y. Ms.
As the litigation continues, aca- sider and adopt legislation expanding McCann is the chair, Ms. Jensen is a past
demics, policymakers, and multistate their sales and use taxation of digi- chair, and Mr. Gorton and Mr. Hogroian
organizations are taking notice of tal products. are members of the AICPA State & Local
the new trends in state taxes and are It remains to be seen whether litiga- Tax Technical Resource Panel. For more
analyzing potential paths forward. The tion and international tax developments information about this column, contact
Multistate Tax Commission (MTC) has will affect state consideration of DSTs. thetaxadviser@aicpa.org.
established a work group “to advise on With 2021 as a guide, it appears likely
the drafting of a white paper” to address this trend will continue as well, at least
state taxation of digital products.14 It for legislative proposals. ■

14. See MTC, Sales Tax on Digital Products, for more information.

Welcome to

the age of

specialization.

When you become a member of an AICPA specialized section,
®
you’re joining an elite community of like-minded peers. You’re also giving
yourself high-quality, curated content, free CPE and webcasts on hot topics, delivered
by the sharpest minds in the profession. Most of all, you’ll get the needed support
to flourish and grow.
Learn more or join today: aicpa.org/sections

© 2021 Association of International Certified Professional Accountants. All rights reserved. 2103-62839

2103-62839 Section Ads_CMYK.indd 2 4/29/21 9:40 AM