Tax News

Top Story

Sales Tax Update - January 2026

1/8/2026

2026 - THE YEAR OF THE SALES TAX AUDIT

As we predicted at the beginning of last year, 2025 brought heightened enforcement and increased sales tax audit activity for remote sellers and all sellers, particularly in e-commerce, SAAS and digital service industries.  In 2025, Dillon Tax Consulting represented taxpayers in more sales tax audits that in any of our previous years (30+) in multistate sales tax.  Furthermore, the states were far more aggressive in their pursuit of additional revenues than in previous experiences.  So what are some of the reasons for this, and why do we predict that it will continue ...

read more

data processing

Sales Tax Update - April 2025

by Michael T. Dillon, Esq., Dillon Tax Consulting LLC
4/26/2025

Texas Comptroller Adopts Changes to Data Processing Services

Effective April 2, 2025, the Texas Comptroller effected changes to Texas Administrative Code Rule 3.330, addressing the definition and sales tax treatment of data processing services, most specifically (1) refining what constitutes and does not constitute data processing services, and (2) adopting an exclusion for data ...

read more

Texas Court says the “Essence of Transaction” involving a Provider’s technology platform is not “Data Processing”

Dillon Tax Consulting
5/10/2016

In a decision involving the true object, or “essence of the transaction” test, the Texas court of appeals upheld the trial court’s decision in favor of the taxpayer refund claim for sales tax assessed on the provision of bill pay services. In Hegar v. CheckFree Services Corporation, NO. 14-15-00027-CV (Tex. Ct. App., April 19 ...

read more