Archive: Nexus

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“Kill Quill” Effort Moves Forward at U.S. Supreme Court

It took 26 years, but on January 12, 2018 the U.S. Supreme Court agreed to consider overturning the long-standing “physical presence” nexus standard that applies for sales and use tax. If the Court sanctions the South Dakota law that is the subject of the appeal, it will pave the way for states to require out-of-state […]

Nexus—The Unseen Cause of State Tax Headaches

Recently, one of our medical practice clients received a notice from the Minnesota Department of Revenue notifying them of the requirement to file corporation tax return. But their medical practice is located in Washington D.C.—how could this happen? Was Minnesota dazed and confused? Actually, no—activity at a conference in Minneapolis triggered the notice. It’s a […]

Tennessee Sales Tax Rule Continues Economic Nexus Trend

This article was co-authored by Paul A. Zee-Cheng. On October 3, 2016, Tennessee issued a proposed rule making it the third state to impose a sales tax collection obligation on certain out-of-state sellers with no physical presence in a State (Rule 1320-05-01-.129). Under the new rules, out-of-state sellers who make over $500,000 in sales to consumers […]

Alabama Sales Tax Regulation Ignores U.S. Supreme Court

A new sales tax regulation in Alabama directly contradicts the bright-line physical presence nexus standard created by the U.S. Supreme Court in Quill Corp. v. North Dakota.  While Congress has debated (and been unable to enact) multiple versions of federal legislation that would limit the application of the physical presence nexus standard for certain retailers, […]

The Sourcing Tail Wagging the Nexus Dog

There is a growing list of states that have adopted a more aggressive income tax nexus standard.  On August 11, 2015, Alabama added itself to the group of states that impose their income tax on out-of-state businesses solely based those businesses a certain level of sales to customers in the state.  The trend is a […]

New York Jumps on the Economic Nexus Bandwagon

The recently enacted budget bill in New York (S. 6359) makes numerous tax law changes, but the most significant of those changes is, without a doubt, the adoption of a bright-line economic nexus standard for its corporate income tax (i.e., Corporate Franchise Tax).  Coming in a very close second place finish in terms of significance […]

Build Your Toolkit – Fulfilling State Tax Obligations

As service providers have been developing a customer base across state lines, states have been developing more aggressive approaches to imposing its income tax and sales tax on those multistate businesses.  Businesses, particularly small to mid-size businesses, often overlook their state and local tax compliance obligations.  An out-of-state business can be taxable in a state […]