Sales and Use Tax Issues of Internet Transactions

Are you up to speed on the current internet transaction tax law? Gain a better understanding of your sales and use obligations.

With growing budget deficits, many states are taking increasingly aggressive positions in an attempt to impose sales and use tax obligations on internet transactions. Internet sellers face a murky and sometimes ill-defined landscape with respect to sales and use taxes that are impacted by both state law and federal constitutional principles.

By exploring the growing body of judicial decisions, this topic will help you better understand your sales and use tax obligations and ensure compliance. It will explain the constitutional requirements that must be satisfied in order for a state to impose sales or use tax obligations.

We will examine the critical substantial nexus requirement and clarify the contours of that requirement through a discussion of existing and developing case law. This topic will explore how you can, without careful planning and analysis, establish nexus through either related or unrelated third parties.

Learning Objectives:

This Live Webinar Covers These Hot Issues:

Overview of Nexus: The Threshold Requirement for State Taxation of Internet Businesses

Constitutional Limitations on States' Power to Tax Interstate Commerce, i.e., Internet Transactions

• The Due Process Clause Requires a Definite Link or Minimum Connection, Physical
• Presence Not Needed
  
• The Modern Commerce Clause's Four-Pronged Test and the Substantial Nexus
• Requirement, Physical Presence Required

Substantial Nexus and the Commerce Clause

• Physical Presence Is Constitutionally Required
  
• How Much Physical Presence? The Cutting-Edge Issue
  
• The Relationship Between the Physical Presence and the Activity Being Taxed
  
• Nexus, Establishing Presence for Internet Vendors

The Next Layer - Establishing Nexus Through Others and the Developing Case Law

• Affiliate Nexus
  
• Agency Nexus

Emerging State Approaches to Taxing Internet Vendors

• Amazon® Laws, Affiliate Nexus and Increased Reporting Requirements
  
• Federal Legislation Affecting Internet Sales Tax Collection and Nexus

Credit Information (Sponsored by Lorman Education Services):

• CLE
• CPE
• AIPB
• NASBA

For Detailed Credit Information page click here

Only registered attendee will receive continuing education credit.

Faculty:

Pat Derdenger, Steptoe & Johnson LLP

• Partner in the Phoenix office of Steptoe & Johnson LLP, head of the firm’s SALT practice
• Emphasizes his practice on federal, state, and local taxation law and is certified as a tax law specialist by the Arizona State Bar
• On June 15, 2017, he received the State Bar of Arizona’s Top Tax Attorney award
• Has been listed in The Best Lawyers in America since 1995 and has been listed in Southwest Super Lawyers for state, local, and federal taxation since 2007
• In his extensive state and local tax practice, he advises and represents his business clients on corporate and individual income, sales, use, and property tax matters, including litigation of those matters at all levels—audits and appeals through various administrative stages, the tax court, court of appeals and supreme court
• Represents clients in tax litigation as well as counsels them on the state and local tax implications of their business transactions
• Frequent lecturer on state and local tax subjects to a wide variety of professional audiences
• J.D. degree, University of Southern California Law School; LL.M. degree in taxation, George Washington University School of Law; M.B.A. degree, University of Southern California Marshall School of Business; B.A. degree, Loyola University of Los Angeles

Karen Jurichko Lowell, Steptoe & Johnson LLP

• Associate in Steptoe & Johnson LLP’s Phoenix office
• Focuses practice on sales, use, and property tax matters, including tax audits and appeals through various administrative stages, the tax court, and the court of appeals
• Advises manufacturers, high tech companies, construction contractors and developers, electric utilities, solar energy companies, and other clients on various multistate sales and use tax issues, including advising e-commerce businesses on their multistate sales and use tax nexus and collection obligations
• Experienced with property tax valuation appeals for various types of industrial and commercial properties, corporate transactions, and health care taxes
• J.D. degree and Certificate of Tax Law and Policy, magna cum laude, University of Arizona James E. Rogers College of Law; B.S. degree, University of Southern California