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The Wall Street Journal is reporting today that Amazon.com (NASDAQ: AMZN) is likely facing additional sales tax challenges in eight states besides New York. The New York issue has been well-publicized, with the state imposing new rules that would make Amazon subject to sales tax there because of the presence of affiliates.

Normally, sales tax must be collected by a retailer only if that retailer has nexus (usually a physical presence) in a state in which an item is sold. In the past, nexus generally meant that the company had physical operations there, so the change in New York law, which now includes the presence of affiliates, is a big change. But courts also have ruled that the physical presence test is not the only way to create nexus.

The new wrinkle in the sales tax issue has to do with the distributions centers Amazon has around the country. The WSJ says [subscription required] that there are eight states with Amazon warehouses or distribution centers, but that Amazon has avoided collecting sales tax in those states by operating the facilities as subsidiaries of the parent company. Sales tax laws have permitted this exception when a facility is part of a separate legal entity.

Last week, Amazon.com (NASDAQ: AMZN) filed a lawsuit in New York over the state's new law, which requires online retailers to collect sales tax from New York customers if the company has affiliates in the state soliciting sales for them.

Most state laws only require sales tax to be collected in a state if a company has a nexus, or physical presence there. Most states require purchasers of products who haven't paid sales tax on the items to voluntarily report the purchases to the state and pay use tax on them (the equivalent of sales tax). As you can imagine, in the government's eyes, this leaves plenty of tax money on the table as consumers rarely report these purchases to their home states and therefore avoid sales and use tax altogether.

New York's new law is a move to collect taxes on these sales, but it has angered Amazon.com and other companies. Affiliate programs are important to increase sales, as the "affiliates" are basically people and businesses who refer others to Amazon.com to make purchases. Amazon.com fought back, and now perpetual money-loser Overstock.com (NASDAQ: OSTK) is fighting back in its own way. Overstock is canceling its agreements with all of their affiliates in New York. If New York is going to use that affiliate relationship in order to impose sales tax on internet sales going to New York, then darn it, Overstock.com is going to show them!

The New York Times reports that eBay is considering making PayPal the only form of payment allowed on eBay auctions. The company is test marketing this concept in Australia starting next month, and loyal eBay buyers and sellers there are furious.

eBay's stranglehold on internet auction enthusiasts is already clear. It is the most popular auction site, and if you're a seller, you have few other choices that get you as much exposure. But that's not enough for eBay. In addition to all the fees generated from auction listings and sales, they apparently want to ensure that they'll get extra fees from the payments if they require everyone to pay with PayPal.

Company officials say this move is an effort to cut down on fraud. They say that by requiring the use of PayPal, they are able to see buyers and sellers through the payment process, rather than them risking fraud through the use of outside payment services.

This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.

Tylenol is probably the most recognizable brand name for the pain reliever acetaminophen. In addition to being a pain reliever, Tylenol also reduces fevers. It was created in 1955 as Tylenol Elixir for children, and was the first aspirin-free pain reliever. It was initially available only by prescription, but became available without a prescription in 1960.

The product is made and marketed by McNeil Consumer Healthcare, a brand owned by Johnson & Johnson (NYSE: JNJ). Tylenol falls within the Consumer segment of J&J, which had sales of $14.5 billion in 2007. Over-the-counter pharmaceuticals represented $5.1 billion in sales, or 35% of the segment's sales.

Excedrin is a pain reliever that combines acetaminophen, aspirin, and caffeine. (Caffeine is known to enhance the effectiveness of aspirin and acetaminophen.) It's a product of Novartis (NYSE: NVS), a Switzerland-based company that bought the Bristol-Myers Squibb (NYSE: BMY) consumer medicine business in 2005. Novartis produces a variety of consumer health care products, with 2007 revenue of $39.8 billion.

This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.

Ahhhh... Kentucky Fried Chicken from the Colonel. Then it became KFC. Now it's Kentucky Fried Chicken again. Any way you slice it, they have some awfully good chicken and the most delicious gravy ever. Please don't tell me how many calories I'm eating or whether I'm next on the heart attack list thanks to all the fat.

Kentucky Fried Chicken is one of multiple restaurants under the Yum! Brands (NYSE: YUM) umbrella, which also includes Pizza Hut, Taco Bell, and Long John Silver's. The menu has changed a bit over the years, but the mainstay of KFC will always be the chicken dinners. You can currently get your chicken in original or extra crispy. Or you can choose the more modern chicken strips or popcorn chicken.

Popeye's Chicken, owned by AFC Enterprises (NASDAQ: AFCE), refers to itself as "New Orleans Chicken." With over 1,900 stores open at the end of 2007, Popeye's provides a little more variety in addition to the standard chicken meals. Of particular interest are the "Louisiana Legends," which include Creole, Jambalaya, Etoufee, and Smothered Chicken.

For a true chicken experience, I think KFC is the way to go. But if you prefer to spice it up and get a little New Orleans style food with your chicken, Popeye's is your brand of choice!

Vote in our poll for KFC or Popeye's as your preferred brand, and let us know in the comments why you love it.

This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.

As far as toothpaste goes, I was raised on Crest. My entire childhood, it was always Crest. Except when I spent the night at Grandma's and Grandpa's. They had Colgate. What a treat! Here are some facts about both...

Colgate toothpaste is the flagship product of Colgate-Palmolive Co. (NYSE: CL), an international operation in more than 200 countries. Total sales were almost $13.8 billion in 2007, the highest ever for the company, and it's notable that 75% of the sales were made outside the United States. Net income was up 28% to $1.7 billion for the year. Toothpaste is one of many personal care products that the company makes, including toothbrushes, soaps, and deodorants. The oral care products accounted for 40% of Colgate's sales in 2007.

This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.

Drinkers of fine coffee may turn their noses up at Folgers or Maxwell House, but these two brands have been household names for decades. And they're not the just offering plain, old coffee for the commoners anymore. They've both added a variety of coffees to their product mixes in an effort to lure more upscale (picky? elitist?) coffee drinkers to their brands.

Folgers, one of the Procter & Gamble (NYSE: PG) family of products, has added roasts such as Black Silk, French Roast, Gourmet Supreme, and House Blend. They've also got a line of flavored coffees that include Crème Brulee, Vanilla Biscotti, and Caramel Drizzle. You will also find instant cappuccino in French Vanilla and Mocha Chocolate flavors, and the trusty old plain instant coffee is still available. I've had it, and it's not all that bad when you're in a pinch!

This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.

In the battle for "cool history," American Express (NYSE: AXP) wins this one hands down. The company was started in 1850 as an express delivery service. At the time, the U.S. Postal Service was slow and unreliable, and sending anything important or valuable was ill-advised. The American Express Company was known for its "expressmen," who delivered valuable packages all over the country, usually on horseback or with stagecoaches.

After establishing a strong reputation for delivery service, the company later decided to phase out deliveries and move into financial services. They had delivered countless documents for banks, and the money business was appealing. American Express first offered money orders in 1882, followed by travelers cheques in 1891. The travelers cheque business was the main focus of the company for many years.

In 1958, the company gave in to market pressures and issued its first charge card. For almost 30 years, though, the card was not to be used as a "credit" card. All balances were to be paid in full each month. In 1987, that changed as American Express finally issued a card that allowed revolving balances.

Chalk up another problem for Overstock.com (NASDAQ: OSTK), the failing online retailer run by the wacky CEO Patrick Byrne. Yet this law enforcement investigation doesn't appear to come with any "celebration" by Byrne.

Byrne is usually proud of the company's failures, but the announcement of the latest law enforcement investigation was buried deep in a press release about the latest set of quarterly losses: On April 15, 2008, we received a letter from the Office of the District Attorney of Marin County, California, stating that the District Attorneys of Marin and four other counties in California have begun an investigation into the way we advertise products for sale, together with an administrative subpoena seeking related information and documents. We follow industry advertising practices and we intend to respond fully to the subpoena and cooperate with the investigation.

This investigation is in addition to the ongoing investigation by the SEC, as well as the litigation between Overstock and Gradient Analytics. Gradient sharply criticized Overstock in its research reports and Byrne and company cried that the reports were not true. (Oddly enough, the company still has not turned a profit several years later, and is still a horrible investment.)

Note to Patrick Byrne: Those who have bad things to say about Overstock, its business model, its operations, and its never-ending financial losses aren't necessarily short sellers who are trying to profit off bad news. Many of them are realists who have figured out how awful your company is. Sorry, but sometimes the truth hurts.

Tracy L. Coenen, CPA, MBA, CFE, performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Harley-Davidson Inc. (NYSE: HOG) announced early Thursday morning that it would be cutting 730 jobs and temporarily halting production at some plants. Daily production rates will also be adjusted to account for lower demand of the motorcycles.

The company has definitely been affected by the slowed economy. Sales have been down, and losses in Harley's in-house consumer loan division have hit the company hard. The stock hit a 52-week low of $34.10 during Thursday's trading. It did rebound quickly in the morning, but things still aren't looking so hot.

Harley plans to cut shipments of motorcycles between 23,000 and 27,000 this year, which would mean total shipments for the year would be 7% or more below last year's total shipments of 330,619. The job cuts include 370 union positions (mostly in Pennsylvania) and 360 non-production jobs (mostly in Wisconsin), on a total current workforce of 5,600 production workers and 3,560 non-production employees. That makes for a total reduction of about 8%.

Cynthia Cooper was a true corporate whistleblower. She became famous, not by choice, but because of the WorldCom financial statement fraud valued at $11 billion. She was the Vice President of Internal Audit at WorldCom, a position that was not easily obtained. She almost single-handedly created the internal audit department at WorldCom, and her book Extraordinary Circumstances: The Journey of a Corporate Whistleblower details the struggle to get management to take internal audit seriously.

Things started going wrong at WorldCom very early. The company went on an acquisition spree, and the merging of many small companies, managers, and accounting systems was a disaster waiting to happen. Cynthia says that WorldCom was much better at acquiring companies than integrating them, and that is clear.

From an accounting perspective, it was next to impossible to create a properly controlled system. There were too many small systems being pieced together, and it was easy for numbers and authorizations to get lost in the shuffle. This struggle is well-documented by Cynthia, who no doubt painstakingly researched the various acquisitions in order to give such a complete history.

At times the book seems to get a little off-topic as Cynthia goes through each player's background briefly. Honestly, that information isn't really relevant to the story and, while it was probably intended to make these characters relatable human beings, it really just serves to make the book longer than necessary. It prolongs the process of getting to the real heart of the story.

Wayne Watson, the man who ate at least two bags of microwave popcorn a day for years and developed "popcorn lung" is now suing The Kroger Co. (NYSE: KR) . Popcorn lung is the name given to the lung condition bronchiolitis obliterans, which is linked to the flavor chemical diacetyl. The lawsuit claims that Kroger "failed to warn that preparing microwave popcorn in a microwave oven as intended and smelling the buttery aroma could expose the consumer to an inhalation hazard and a risk of lung injury."

This isn't the only lawsuit over diacetyl flavoring. A lawsuit is currently pending on behalf of workers at a factory in Missouri who mixed large vats of flavors. They say hundreds of workers now have lung disease and respiratory illnesses from inhaling the flavoring. Interestingly enough, the chemical actually is a natural substance that gives butter its flavor. It is also found in some cheeses and wines. Microwave popcorn makers say their formulae are being changed to remove this flavoring from the product.

A Supreme Court ruling in StoneRidge v. Scientific-Atlanta essentially says that third parties involved in corporate wrongdoing are not liable to investors if they did not directly mislead investors. Simply put, if you partake in corporate fraud as a third party but don't lie to investors, they can't sue you. Investors now will only be able to sue those who directly mislead them.

Third parties might include lawyers or consultants who provide services (and possibly participate in the fraud). It's easy to see how this might be important in a case such as Enron. Banks may have known of fraud at Enron and may have even helped the fraud to continue, but as long as they weren't involved in misleading investors, they might be off the hook with this ruling.

The majority opinion, authored by Justice Anthony M. Kennedy, says that the SEC is responsible for going after those who participate in corporate fraud, and that private litigants should not be the ones pursuing them.

Analysts say this decision is anti-investor, while others contend that this decision was necessary to protect the many companies that may be doing business with those engaged in fraud. The line must be drawn somewhere in determining who is responsible for fraud and misleading investors, and this ruling does so quite clearly.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Forget about being in the beauty business. This overhaul at Avon Products, Inc. (NYSE: AVP) isn't going to be pretty in the least. As part of its previously announced restructuring plan, 2,400 jobs will be cut and the company plans to save about $430 million per year. The plan will cost $530 million, with $460 expensed through the end of 2007 and the remainder being charged between now and the end of 2009. Additionally, the company's going to write of $110 in inventory as it says it's simplifying product lines by getting rid of low selling products.

This turnaround plan for Avon was announced in November of 2005 and is focused on creating efficiencies in the operation, thereby cutting costs. They're also focusing on the "career opportunity" for representatives and they're trying to make it more attractive.

Avon is one of the oldest multi-level marketing (MLM) companies around. It was established in 1886, a time when door-to-door sales were a common way of purchasing items that were needed. Over time, the business model has evolved to more of home party model and one-on-one selling that doesn't necessarily involve knocking on stranger's doors.

NBC, a division of General Electric (NYSE: GE), is under fire from John Hockenberry, a former correspondent for the news magazine Dateline NBC. In his lengthy rant in MIT's Technology Review, Hockenberry talks about how the network declined to do some heavy-duty reporting on al Qaeda, and instead sent him off to do feel-good stories about firefighters, a pattern of ignoring real news that he claims was routine at NBC.

Hockenberry tells the story of a video montage from Baghdad, showing pictures of real people who had been affected by bombs and war. The story never made it to the air, and he wonders if it was because the footage may have promoted an idea (war is bad) that conflicted with the message NBC was sending at the time.

He details several disappointments with NBC. Hockenberry says he and others worked on finding ways to enhance journalism with the help of the internet. NBC did not really act on any of the ideas, instead focusing on programming that got high ratings, such as the To Catch a Predator shows in which pedophiles are caught trolling the internet for new victims and meeting up with them in secret.