State Income and Sales Taxation: Understanding Nexus and How to Maintain Compliance
1 hour 40 minutes
Learn the risks and costs associated with nexus noncompliance.
There have been many significant state tax law changes over the past couple of years, and many businesses continue to struggle with understanding when a state may impose a tax filing obligation. More often than not, many businesses may have been actively engaged in business – selling goods and/or services to customers throughout numerous states – without knowing that such activities may give rise to certain income tax and/or sales tax filing obligations, and that such obligations do not disappear with the passage of time, thereby creating a significant risk of exposure.
This topic will help to demystify the rules regarding nexus for both state income and sales taxes and explain the risks of operating out of tax compliance. We will also address the various administrative remedies that may be available to mitigate any such risk from historical tax exposures due to noncompliance, identify the benefits of pursuing voluntary compliance, as well as provide a summary overview of how to avail yourself of these administrative programs offered by most states.
• You will be able to define the general rules that create a taxable presence in a given state.
• You will be able to describe the various business activities that may give rise to nexus.
• You will be able to discuss the importance of knowing your state tax filing profile.
• You will be able to explain the risks of operating in a state without maintaining appropriate tax compliance procedures.