Enrolled Agent's Accounting Services Taxable in West Virginia

Thursday, September 11th, 2014

 
 
A CPA doing taxes.
Share
Link
West Virginia
General

The West Virginia Office of Tax Appeals recently released a decision that an enrolled agent's accounting services were not exempt professional services.

An enrolled agent performed accounting services for a company. An enrolled agent is a person who is accredited to represent taxpayers before the Internal Revenue Service (IRS). The services this enrolled agent provided included reviewing monthly bookkeeping entries, reconciling company bank statements, preparing and submitting monthly balance sheets and profit/loss statements, preparing required reports for federal and state taxes, providing tax and accounting advice to management and bookkeepers, maintaining employee records in payroll software, and representing the company at West Virginia audits. They did not include representing the company before the IRS.

West Virginia exempts sales of professional services. A "professional service" is an activity that is (1) recognized as professional under common law or (2) determined by the state Tax Department or the legislature to be professional. In a regulation, the Tax Department included enrolled agents in a list of groups that provide professional services. When a professional performs non-professional services, the non-professional services are still taxable.

The Office of Tax Appeals determined that the enrolled agent's services were taxable. Accounting services were not professional services when performed by the enrolled agent rather than a certified professional accountant. The enrolled agent's professional services consisted of representing taxpayers before the IRS, not accounting. The enrolled agent therefore did not perform professional services when performing accounting services. Because the enrolled agent only provided accounting services here, the services were taxable.

http://www.wvota.gov/docs/reddac/12-456%20CU%20Redacted%20enrolled%20agent%20consumers%20sale%20and%20use%20tax%20-%20i%20dATE%2001%2028%2014.pdf


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Data Survey Services Not Taxable in South Carolina

Monday, June 24th, 2019 -The South Carolina Department of Revenue recently ruled that business data survey services were non-taxable pr...

Senior Center Cafeterias are Taxable in Missouri

Friday, June 21st, 2019 -Missouri's Director of Revenue recently issued a letter ruling taxing the sale of cafeteria food by a 501(c)(3...

Hot-Air Balloon Rides in Missouri are Taxable When...

Wednesday, June 19th, 2019 -Missouri recently released a letter ruling addressing the taxation of hot-air balloon rides. The taxpayer was ...

Nevada Exempts Certain Medical Equipment

Monday, June 17th, 2019 -Effective July 1, 2019, Nevada will exempt durable medical equipment, oxygen delivery equipment, and mobility ...

Participatory Sports are Taxable in New York

Friday, June 14th, 2019 -The New York Division of Tax Appeals recently denied a refund claim made by an instructor-led indoor spin clas...

Marketplace Facilitators to Collect Tax in Vermont

Thursday, June 13th, 2019 -Vermont recently passed a bill requiring marketplace facilitators to collect and remit sales tax on retail sal...