B2B companies may unwittingly violate tax law simply because some manufacturers and distributors are unaware of how the South Dakota v. Wayfair ruling applies to them. Noncompliance can cost millions of dollars.

In addition to the ongoing implications of the Wayfair decision, recent changes in tax-reporting regulations related to ecommerce are creating new tax-reporting responsibilities this year.

In June 2018, The United States Supreme Court ruled 5-4 in South Dakota v. Wayfair that states can require businesses without a physical presence in their state to collect and remit sales taxes. Most states now require sales tax collection among businesses doing $100,000 or more in online sales in their state. In California, New York and Texas, the threshold is $500,000.