State Tax Issues to Consider With ‘Groupons’ And Other Third-Party ‘Deal-of-the-Day’ Programs

Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...

How internet-based discount coupons should be treated for sales tax purposes has been the subject of formal guidance in only a few states, but many others are starting to take notice. In this article, state tax consultant Sylvia Dion discusses the business models and state tax implications associated with these internet transactions, commonly known as “deal-of-the-day” programs.