Basics of Nexus: Understanding State Tax Issues (Currently Unavailable)

Author: Annette Nellen

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 course 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 2018

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: US Constitutional Constraints, State and Local Tax Statues, and Course Cases & Rulings
• Sales and Use Tax Nexus and Quill
• States Challenging Quill: Waiting on USSC Decision
• Nexus for Other Types of Taxes
• 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 and apply 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
• Differentiate true statements with respect to Nexus
• Describe Due Process Clause
• Differentiate important sales tax cases and how they apply to your clients

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None