Understand emerging trends in this area and why merely having customers in states with new economic nexus statutes could subject you to new business tax liabilities.
Do you or your clients sell online? Then it is imperative that you understand new business tax liabilities in terms of nexus. A state’s ability to impose taxes on a multistate business has historically been limited by nexus standards rooted in the U.S. Constitution.
In 2018, the U.S. Supreme Court, in South Dakota v. Wayfair, overturned its long-standing rule in Quill Corp. v. North Dakota, that nexus, for state use tax collection purposes, requires some form of physical presence in the taxing state.
In today’s economy, states are continuing to push nexus limits farther than ever before and are now clearly reaching beyond traditional notions of nexus by relying on economic connections to create nexus. Is merely having customers in a state or generating income from a state enough to create tax obligations?
Explore the concept of economic nexus and update of recent judicial and legislative developments. Understand emerging trends in this area and why merely having customers in states with new economic nexus statutes could subject you to new business tax liabilities.
Learn how to handle nexus inquiries and which states to look out for in terms of nexus planning. This is a must for any business that sells to or generates receipts from customers in states where they otherwise have no other connections.
Learning Objectives:
- You will be able to define substantial nexus.
- You will be able to identify how nexus affects your business model.
- You will be able to review current economic nexus statutes.
- You will be able to discuss recent and pending cases impacting out-of-state vendors.
Overview
• Due Process and Commerce Clause Nexus - the General Rule
• U.S. Supreme Court Authority - What Is Substantial Nexus?
• Impact of South Dakota v. Wayfair
• Impact of Elimination of Quill's Physical Presence Test
• Different Standard Based on Type of Tax? (Sales Tax, Franchise Tax, Gross Receipts Taxes, Income-Based Taxes)
• P.L. 86-272 Imposes Additional Restrictions in Addition to Commerce Clause Issue
• Does Merely Having Customers in a State or Generating Income From a State Create Tax Nexus?
• Impact of Wayfair on International Transactions
Discussion of Recent and Pending Cases Impacting Out-Of-State Vendors
Case Law Update - Commerce Clause
• Nexus Litigation in U.S. Supreme Court
• Nexus Litigation in the State Courts
• Intangible Holding Company Cases
• Credit Card Cases
• Economic Substance and Business Purpose Cases
Case Law Update - Due Process Clause, Scioto and Conagra Cases
Legislative Update - Post-Wayfair State Tax Economic Nexus Legislation
• What (and Where) Is Economic Nexus?
• The Pairing of Economic Nexus and Gross Receipts
• Relevance of Click-Through Nexus Statutes
• Market Place Providers – Reporting Obligations
• Overview of Cloud Computing Issues
• Multistate Tax Commission - Factor Nexus Proposals
• Federal Legislative Efforts - Business Activity Tax Simplification Act and Market Place Fairness Act
Nexus Enforcement Activity - How Does Nexus Affect Your Business Model?
• Multistate Businesses and Internet Marketing
• Financial Institutions and Credit Card Companies
• Intangible Licensing Activities
• Gift Card Income, Other Special Purpose Entities
• International Transactions
• How to Handle Nexus Assertions
• Voluntary Disclosure Programs
Credit Information (Sponsored by Lorman Education Services):
- CLE
- CPE
- AIPB
- IAPP
- NASBA
For Detailed Credit Information page
click here
Only registered attendee will receive continuing education credit.
Faculty
John P. Barrie, Bryan Cave Leighton Paisner LLP
- Partner in the Washington and New York offices of Bryan Cave Leighton Paisner LLP
- Practice focuses solely in the areas of federal and state tax controversy and transactional matters
- Regularly represents taxpayers in state sales/use tax and state income tax controversy matters
- Transactional practice includes providing tax advice to public and private businesses in taxable and tax-free mergers, acquisitions, reorganizations, spin-offs, divestitures and restructurings
- Past member of the New York University SALT Study Group and the Partnership for New York City
- Adjunct professor in the graduate tax program at Georgetown University Law Center, where he has taught courses in reorganizations and corporate tax planning and at New York Law School where he has taught courses in corporate tax planning, S-corporations and tax court litigation
- Past chair, DC Bar Tax Section; past chair, National Associations of State Bar Tax Sections; past vice-chair, ABA Tax Section
- Fellow of the American College of Tax Counsel
- Listed in Best Lawyers of America and Super Lawyers
- Former attorney-advisor to Judge Leo Irwin, United States Tax Court
- J.D. degree, University of California-Hastings; LL.M. degree (tax), New York University; B.A. degree, University of California-Los Angeles
(Not available outside the US)