Multistate Nexus; from Bright Lines to Blurred Lines to Undrawn Lines
Richard Jones presented "Multistate Nexus; from Bright Lines to Blurred Lines to Undrawn Lines" at a Massachusetts Association of Accountants' webinar on October 5, 2021.
The U.S. Constitution prevents states from imposing a tax on businesses or persons that lack sufficient contacts or connection (i.e., nexus) with the taxing state. The Supreme Court had long embraced a clear "bright line" approach for determining nexus thresholds. But in reality, the line for nexus is unclear and inconstant. This seminar helped practitioners and businesses understand when there is an obligation to file and pay tax in other states. With a focus on recent developments, the program addressed, among other things:
- Nexus in the Remote Working World
- Economic Nexus; Wayfair and the End of the Physical Presence Standard
- Nexus by Any Means Necessary; States' Attempts to Expand and Extend Jurisdiction (e.g., Cookie Nexus, Affiliate/Agency Nexus, Flash Nexus)
- Impact of Expanded Nexus on P.L. 86-272; Apportionment and "Throwback" Rule