Learn about practical strategies to manage tax nexus exposure, economic presence standards, and evolving state tax laws impacting your business.
With the adoption by states of an economic presence standard for determining sufficient tax nexus to establish liability exposure in states your company does business, you need to keep abreast of this expanding area of the state tax law both from a sales and use tax perspective but also from an income tax perspective. You need to understand your options in not only dealing with nexus exposure but also determinations of what is taxable or tax exempt in a particular state and how to continue to be on top of these issues on a proactive basis.
In addition, in the state income tax context, you need to understand not only the scope of Public Law 86-272 protection, but also its limitations in today’s tax cloud business environment. You also need to understand the impact of the Multistate Tax Guidelines that many states - whether members or non-members - follow in determining whether a taxpayer may be subject to tax without a physical presence in a state, This workshop is designed to provide you with practical approaches to stay proactively ahead of this expanding area of state tax exposure where your business does not have a physical presence in a particular state.
Learning Objectives
- You will be able to define the definition of Nexus and its impact on sales tax reporting obligations.
- You will be able to identify and apply the factors in determining whether an economic presence exists.
- You will be able to review the possible exposure issues and options on how to address.
- You will be able to discuss the impact of Nexus on state income tax reporting obligations.
Agenda
Definition of Nexus
- Tax Nexus - Why Important
- Implications to Taxpayers
- Ignorance of Nexus - Asking for a Disaster
Pre- and Post-Wayfair
- Elimination of Physical Presence Requirement
- Supreme Court Decision in Wayfair
- Scope and Meaning of Wayfair
- Possible Legislative Changes
- Impact of Current US Supreme Court
Sales and Use Tax Nexus
- Economic Presence
- State by State Analysis Required
- Objective vs. Subjective Standards
- Personal Exposure Issues
Income Tax Nexus
- Public Law 86-272 Limitations/Protection
- State by State Analysis Required
- Multistate Tax Commission (MTC)
- Impact of MTC Guidance
Tax Examination Exposure
- Sales/Use Tax Examinations
- Income Tax Examinations
- Exposure to Multi-State Examinations
- Voluntary Disclosure Options - MTC vs. State by State
- Amnesty Programs
- Statute of Limitations
- Penalty Exposure
- Litigation of Nexus Determinations
Addressing State Tax Compliance Issues
- Differences in Approach for Income Tax and Sales Tax
- Risk of Taking No Action
- Financial Reporting Risks
- Need for Regular Nexus Studies
- Mitigation of Exposure
Questions and Answers
Speakers
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
Who Should Attend
This live webinar is designed for accountants, CPAs, controllers, attorneys, CFOs, tax managers, presidents, vice presidents, finance directors, bookkeepers, business owners and managers, and tax preparers.
