- North Carolina-based online retailer, Eden Brothers, has filed a complaint against their tax advisory firm, Johnson Price Sprinkle PA, DMJPS PLLC, for alleged professional negligence.
- Eden Brothers claims damages due to the firm’s failure to provide guidance on sales tax filing obligations after the 2018 Wayfair vs. South Dakota Supreme Court decision.
- The company hired an external CFO who advised them of unpaid sales tax liabilities, leading them to apply for voluntary disclosure agreements and pay $2 million in unpaid tax liabilities to 39 states.
- The complaint includes claims of breach of contract, violations of professional standards, professional negligence, and breach of fiduciary duty.
- The defendant argues that the engagement letters stated that evaluation of additional filing requirements would be provided upon request and that the taxpayer has an obligation to comply with state tax laws.
- Compliance with sales tax laws can be complex, especially for online retailers, and keeping up with the constantly changing landscape is challenging for accountants and advisory firms.
- Defining the obligations of advisors and taxpayers is crucial in providing accurate advice on state and local taxes.
Source: salestaxinstitute.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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