Overview
Senate Votes to Disapprove Changes to Donor Disclosures for Exempt Organizations: The Senate passed S.J. Res. 64 on a 50-49 vote, with Sen. Collins (R-ME) joining Democratic senators. The joint resolution, if also passed by the House, would nullify Revenue Procedure 2018-38, which provides that the IRS will no longer require organizations exempt from tax under section 501(a), other than section 501(c)(3) organizations, to report information about their contributors on Schedule B of their Forms 990 or 990-EZ. For prior coverage of Rev. Proc. 2018-38, click here.
California Announces New Use Tax Collection Requirements for Out-of-State Retailers: The California Department of Tax and Fee Administration released a special notice providing that, beginning April 1, 2019, a retailer located outside of California is required to collect use tax if, during the preceding or current calendar year:
- The retailer’s sales into California exceed $100,000, or
- The retailer made sales into California in two hundred (200) or more separate transactions.
The notice states that an out-of-state retailer reaching either of the above sales thresholds is engaged in business in California pursuant to California law and the US Supreme Court’s decision in South Dakota v. Wayfair, Inc. For prior coverage of the Supreme Court's decision, click here.