Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2023 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
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
- COVID”19 Issues
- 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
Instructor
Annette Nellen
Annette Nellen, CPA, CGMA, Esq., is a professor in and director of San Jose State University's graduate tax program (MST), teaching courses in tax research, accounting methods, property transactions, advanced individual taxation, employment tax, ethics, leadership, and tax policy.
Annette chairs the AICPA Digital Assets Tax Task Force and serves on the AICPA Disaster Relief Tax Task Force. She formerly served on the AICPA Tax Executive Committee, including 2.5 years as chair. She was the lead author of the AICPA tax policy concept statement #1, Guiding Principles of Good Tax Policy: A Framework for Evaluating Tax Proposals (2001, updated 2017), still in use today. Annette is also active with the tax sections of the ABA, CalCPA and California Lawyers Association. Annette is the recipient of the 2013 Arthur J. Dixon Memorial Award given by the Tax Division of the AICPA, the highest award given by the accounting profession in the area of taxation. In 2019, Annette was the recipient of the CLA’s Benjamin F. Miller Award for outstanding achievement and contribution in the field of state and local taxation law. Annette was included in Accounting Today's 2024 List of the Most Influential People in Accounting.
Annette is a regular contributor to Tax Notes State, authoring a column called Moving Forward? She is the author of Bloomberg BNA Tax Portfolio #533, Amortization of Intangibles. She is co-author and co-editor of four tax textbooks from Cengage. Annette has testified before the House Ways & Means Committee, Senate Finance Committee, California Assembly Revenue & Taxation Committee, and tax reform commissions and committees on various aspects of federal and state tax reform. She maintains the 21st Century Taxation website and blog (www.21stcenturytaxation.com). Prior to joining SJSU in 1990, Annette was with Ernst & Young and the IRS.