US ERP compliance FAQ

It is the idea that a seller with no physical presence in a state can still be required to collect that state's sales or use tax once its sales or transactions pass the state's threshold. The Streamlined Sales Tax Governing Board describes it that way.

No. Some states count sales or transactions, some count both, and the base can be gross sales, retail sales or taxable sales. Texas, for example, publishes a revenue safe harbor. Check the state revenue department for current numbers.

According to the official guidance, a seller with physical presence is not a remote seller and registers regardless of sales volume. The Wayfair decision did not change that, so check with the state.

No. The Streamlined registration system has no fee and covers Streamlined member states only. A seller files returns in each state where it is registered, so the ERP needs a filing calendar per state.

A person paid at least $2,000 for services in the course of business by someone who is not an employee, including attorney fees, for tax years beginning after 2025. The IRS says the level may be inflation-adjusted from 2027.

On or before January 31, on paper or electronically, according to the IRS instructions for Forms 1099-MISC and 1099-NEC. Check the IRS page each year for current dates.

A payee uses Form W-9 to give the correct taxpayer identification number to the person who must file an information return, for example to report income paid to the payee.

Amounts on a US tax return must be in US dollars, so foreign currency items are translated at the rate when received, paid or accrued, as the IRS describes. Your adviser confirms how this applies to your entities.