Learn how evolving economic nexus rules impact sales, income, and franchise tax obligations - and how to ensure compliance.
In today’s increasingly borderless digital economy, state tax authorities are aggressively enforcing economic nexus standards that subject businesses to sales, income, and franchise tax obligations - even in states where they have no physical presence. Whether you’re advising a remote seller, managing payroll across jurisdictions, licensing digital goods, or running a service-based enterprise, understanding when and where nexus is triggered is critical to ensuring compliance and avoiding costly audits.This practical, case-informed webinar will walk attendees through the full spectrum of economic nexus rules, from the landmark South Dakota v. Wayfair decision to the evolving standards for service providers, licensors, and e-commerce businesses. Through a structured agenda that aligns with key continuing education questions, participants will learn how to identify nexus risks, apply sourcing rules, understand the protections and limitations of P.L. 86-272, and utilize compliance strategies like voluntary disclosure agreements. Designed for CPAs, attorneys, controllers, CFOs, and tax professionals, this 100-minute session will equip you with the tools to map nexus exposure, respond to multistate obligations, and confidently guide clients or your business in a complex and shifting tax landscape.
Learning Objectives
- You will be able to define key concepts such as economic nexus, physical presence nexus, and affiliate nexus, and explain how these impact state tax obligations.
- You will be able to discuss and apply state-specific sales tax thresholds and marketplace facilitator laws to determine registration and filing requirements for remote sellers.
- You will be able to describe the difference between market-based and cost-of-performance sourcing methods for income tax apportionment and service revenue attribution.
- You will be able to identify business activities that fall outside the protections of P.L. 86-272, including installations, repairs, and technical services.
Agenda
Introduction and Foundational Concepts
Economic Nexus for Sales Tax: Thresholds and Triggers
Income Tax Nexus and P.L. 86-272 Protections
Service Sourcing: Market-Based vs. Cost of Performance
People and Property: Agents, Contractors, and Remote Workers
Voluntary Disclosure Agreements (Vdas) and Risk Reduction
Digital Goods and E-Commerce Nexus
Apportionment and the Throwback Rule
Inventory, Fulfillment Centers, and Consignment
Protected vs. Unprotected Activities: Understanding Limits
Speaker(s)
Alex Oware, CPA, J.D.O & G Tax and Accounting Services, LLC
- Founder of O & G Tax and Accounting Services, LLC, providing superior financial counsel to individuals and businesses across the globe
- His specialization encompasses diverse areas such as sales/use tax audits, income tax audits, franchise and income tax nexus reviews, and cross-border taxation
- Certified Acceptance Agent working with U.S. resident and non-resident aliens, other foreign taxpayers, and diverse and global clientele
- Extends his expertise to a wide online audience through online consulting at Justanswer.com, where he has answered nearly 12,000 tax-related queries, cementing his role as a trusted and accessible tax advisor
- As an industry thought leader, his insightful perspectives have found their way to the pages of esteemed publications like The Denver Post, WTOP (Washington’s Top News), U.S News & World Report, Yahoo News, Real Simple Online Magazine, The Wall Street Journal, Bloomberg Businessweek, and Ladders News
- Author of several popular articles on complex tax and accounting subjects such as USA – INDIA F-1 & J-1 Tax Treaty, Foreign-Owned U.S. LLCs, and Amazon Foreign Sellers, US Taxation, and 1099-K Reporting
- J.D. Degree, Purdue Global Law School; M.B.A Degree in accounting and finance, Colorado Heights University; B.S. Degree in accounting and finance, Presbyterian University College of Ghana
