Shrinking Public Law 86-272 Protections
Author: Hodgson Russ LLP, Joseph N. Endres, Ariele R. Doolittle, Joseph T Tantillo
| CPE Credit: |
2 hours for CPAs |
Public Law 86-272 limits a state's ability to impose state-level income tax on out-of-state businesses that merely solicit orders for tangible personal property within the state. This course, led by state and local tax attorneys Joseph Endres, Ariele Doolittle, and Joseph Tantillo from Hodgson Russ, will explore the recent trends and developments in the interpretation and application of Public Law 86-272, focusing on various states’ efforts to shrink the protections offered to out-of-state businesses in an increasingly digital economy.
Publication Date: January 2025
Topics Covered
- Historical context of Public Law 86-272
- Recent state interpretations narrowing the law's scope
- Taxpayer-initiated litigation challenging aggressive state interpretations of the law
- Impact of e-commerce and digital transactions on nexus determinations
- Strategies for businesses navigating the changing Public Law 86-272 landscape
Learning Objectives
- Identify the original intent and limitations of Public Law 86-272
- Identify recent state actions that have narrowed the law's protections
- Identify strategies to manage tax risk in light of shrinking Public Law 86-272 protections
- Idenfity future trends in state taxation of out-of-state businesses
- Identify the state that uses MTC factors as its threshold
Level
Overview
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
