Basics of Nexus: Understanding State Tax Issues
Author: Annette Nellen
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Determining if a business has "nexus" in a state is a significant tax question with answers that change regularly due to legislation, judicial decisions, and new ways of doing business. The ease of being a multistate company in today's e-commerce environment means more businesses face this question. As states search for tax revenues, state legislatures and tax agencies are earnestly looking for ways to find that a business has income and/or sales tax obligations in the state. This webinar explains the legal basics of income and sales tax nexus, state actions to broaden their nexus reach and the importance of the U.S. Supreme Court’s decision in the Wayfair case.
Publication Date: June 2021
Designed For
Practitioners seeking an understanding of income and sales tax nexus and the warning signs of when a business has tax obligations in a state.
Topics Covered
- Why nexus is important
- Defining nexus
- U.S. Constitutional constraints
- State and local tax statutes
- Many court cases and rulings
- Income tax nexus and Public Law 86”272
- Sales and use tax nexus and Wayfair
- How states have and are continuing to respond to the 2018 USSC Wayfair decision
- Nexus for other types of taxes
- Due Diligence: Being compliant and avoiding problems
- Looking forward
- State trends
- Possible federal actions to change/clarify nexus
Learning Objectives
- Define nexus for state and multistate tax purposes
- Recognize the judicial and constitutional construct of nexus
- Identify factors that likely cause a business to have income or sales tax nexus
- Describe actions by states, Congress and the U.S. Supreme Court that affect nexus
- Recognize which type of nexus must exist for a state or local government to impose tax obligations on a taxpayer
- Identify a solicitation that is protected as prescribed by the Blue Buffalo case
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
