Are Gifts and Donations to Charities Exempt from Sales Tax

10/14/20 • 12 min

Michael J. Fleming is the founder and president of Sales Tax and More, a full service consulting and solutions firm with a passion for state tax. He is one of the country's leading authorities on sales tax issues such as consulting and research, registrations, returns, nexus, dropshipping, e-commerce, and service providers.

Michael is a renowned writer and speaker, and he regularly presents on webinars. He is also the host of the Sales Tax and More podcast, where he shares his wisdom and learnings to his audience in order to help them navigate the tricky world of taxes.

In this episode...

The last quarter of the year is often characterised as a time of giving, with many businesses sending gifts and donations to different charities. However, what companies may not be aware of is that these charitable actions can create tax consequences.

So, what do these companies need to pay attention to in order to determine whether these acts of charity are exempt or taxable? Michael J. Fleming of Sales Tax and More has a few insights.

In this episode of Sales Tax and More, Michael J. Fleming is interviewed by his co-host Ellie Moffat about the tax implications of gifts and donations to charities. Michael explains the two main factors that determine the taxation of these charitable acts, and what different states take into consideration when approaching use tax exemptions. Stay tuned.

In this episode...

So, what do these companies need to pay attention to in order to determine whether these acts of charity are exempt or taxable? Michael J. Fleming of Sales Tax and More has a few insights.

Previous Episode

Latest Updates on Sales Tax Problems in Illinois

In this episode...

Since January 1, 2020, Illinois has required marketplace facilitators who cross the state's economic nexus thresholds to collect retailers’ use tax. However, this has caused serious problems for online sellers, as Amazon has a number of warehouses in the state. With this change, marketplace sellers were expected to pay the retailers’ taxes out of pocket.

Luckily, Illinois is in the process of making some updates to solve these sales tax problems for Amazon sellers. As of January 1, 2021, marketplaces will be required to collect retailers’ occupation tax, rather than marketplace sellers. But what does this mean for remote sellers outside of Illinois?

In this episode of Sales Tax and More, Michael J. Fleming is interviewed by his co-host Ellie Moffat about the sales tax problems in Illinois regarding marketplaces and Amazon sellers. Michael explains the cause of these problems, the current updates, and what the state has been doing to resolve the issues. Stay tuned.

Next Episode

What Happens If You've Never Paid Sales Tax?

In this episode...

When it comes to taxes, states have more power than most people realize. They can track down non-taxpayers and enforce assessments, even if the company or business owner is in a different state. Because of this, failing to pay your sales tax can result in major consequences for your business.

According to Michael J. Fleming of Sales Tax and More, there are a number of ways states can find a person or company that has not been paying the required taxes. These include auditing their customers, using discovery units, and gathering information from third parties like broken partnerships, unhappy spouses, and disgruntled employees.

In this episode of Sales Tax and More, Michael J. Fleming is interviewed by his co-host Ellie Moffat about the consequences associated with people or businesses not paying sales tax. Michael explains what causes states to seek out non-taxpayers, how they find the information they need, and the actions they can take in response to non-compliance. Stay tuned.