NEXUS: Avoiding the Long Arms of the States Self-Study Webinar

To equip tax and other financial professionals with methods for analyzing the threshold presence requiring compliance with state tax laws. The self-study webinar provides in-depth coverage of current tax nexus laws and jurisdictions. You’ll also receive practical guidance on nexus questionnaires, license and registration requirements and employee nexus status.

DETAILED LEARNING OBJECTIVES

• Identify the states’ typical level of activity in seeking out new sources of revenue

Identify the overriding limitation on a state’s ability to impose a tax on a business 

Identify the variables within a determination of nexus

Recognize the type of tax generally requiring the highest level of contact with the state in order to create nexus

Recognize the role of de minimis levels of activity and the creation of nexus

Identify federal laws constraining a state’s ability to determine nexus with a business

Identify the role of PL 86-272 in nexus determination

Recognize the most recent evolution in nexus/taxing authority via the Wayfair decision

Identify the statute of limitations regarding a nexus finding against a business that has not filed in a given state

Recognize the types of employment relationships that can create nexus for a business

Recognize the types of activities that generally would not meet the “substantial nexus” test

Identify the federal constitutional clause generally requiring a "minimal connection" between the company and the state in order to allow state taxation

Recognize the federal constitutional clause generally requiring “substantial presence” of a company within a state in order to allow state taxation

Identify the post-Wayfair significance of physical presence in determining nexus

Identify the court case that established the Commerce Clause requiring that the taxpayer have a “physical presence” in a state to meet the substantial nexus test

Recognize the trend among states regarding determining the existence of nexus prior to the Wayfair decision

Recognize the role of PL 86-272 in protecting business from state taxation activities 

Identify the types of state taxes that are protected under PL 86-272

Identify the significance of the Wrigley decision in the context of PL 86-272

Recognize the activities protected and not protected from state taxing activity under PL 86-272 within the member states of the MTC

Recognize activities that would create nexus for the Texas Margins Tax

Identify the characteristics of the Ohio Commercial Activity Tax (CAT)

Recognize the characteristics of a unitary business as defined in the Butler Brothers case

Recognize the role of the Mobile Oil case in unitary taxation 

Identify those states which still generally require separate filing

Identify the common ownership percentage triggering mandatory combined returns for unitary businesses in specified states

Recognize the lookback period for typical sales tax Voluntary Disclosure Agreements
 

• Cases establishing nexus concepts in sales, use and corporate income taxation
  – The Supreme Court’s decision in South Dakota v. Wayfair and its implications
  – Distinction between income tax nexus, sales tax nexus and franchise nexus
  – Evolving nexus standards, including agency nexus, “click-through” nexus, affiliate nexus, economic nexus and remote seller notice requirements
  – Federal nexus legislation and jurisprudence
  – Tax immunity under Public Law 86-272
  – Advising a client about nexus
• Current state nexus activities
  – Nexus implication of state registration requirements
  – Nexus questionnaires: when and how to answer
  – Nexus and the Internet
  – Disclosure programs: benefits and pitfalls
  – Recent state nexus decisions
  – Multistate Tax Commission position papers
• Nexus implications and planning opportunities for specific industries
  – Service industry issues
  – Licensing and other software issues
  – Telecommunications issues
  – Personal and corporate liability for failure to register, pay or collect taxes
• Emerging concepts and pending litigation
• Evolving nexus standards and federal legislative efforts