What criteria determines if a client is doing business in a state for income tax or sales tax purposes? We’ll answer your questions, beginning with a discussion on statutory thresholds for income/sales tax reporting requirements and how they apply. Then delve into the concept of “economic nexus”, and how its been interpreted in various cases. An examination of the differences between sales tax and income tax nexus and the impact on your client will also be presented. Finally, we’ll analyze how these concepts apply to flow through entities and sole proprietors.
Identify transactions that could cause your client to have nexus with a state.
Determine what the nexus thresholds are in California and other major states.
Recognize differences between income tax and sales tax nexus requirements.
Sales Tax Nexus requirements
Income Tax Nexus requirements
Nexus for flow-through entities and their owners
CPAs, Attorneys, and other tax practitioners with multistate client.