Economic Nexus and State Income Taxes: The Growing Threat

Description

State governments, under economic pressure to squeeze every possible dollar from corporate taxpayers, are becoming bolder in creating and enforcing nexus standards for their corporate income taxes. Standards are more often based on abstract concepts of market creation than on physical activity.

States jumping on the "economic nexus" bandwagon recently include California, Michigan and Wisconsin. High profile cases in states like Ohio, Massachusetts and New Jersey also demand attention. Nexus can be triggered in those states with only a minimal level of activity.

You must understand the regulatory subtleties, state law variations, and the impact of case law to ensure full, accurate compliance. Multistate corporate taxpayers must be proactive in identifying where and how state nexus is triggered to avoid penalties and unexpected tax burdens.

Listen as our panel of state corporate income tax experts thoroughly examines the most recent developments in state economic nexus standards and explains how those changes impact corporate income tax compliance.

Outline

1. Corporate income tax nexus regs, laws in key states
   1. Michigan’s MBT nexus standard
      1. Separate standard for two tax bases
      2. PL 86-272 protections
   2. Ohio’s CAT nexus standard, “bright line test”
   3. Latest developments in California, Wisconsin, other states
2. Recent and historical cases with impact on economic nexus
   1. Overstock.com v. Levin
   2. MBNA v. W.Va. Tax Commissioner
   3. Lanco v. Director, Division of Taxation
   4. Other cases
   5. Impact of U.S. Supreme Court’s denials
3. Economic nexus and FIN 48
   1. How to apply the more likely than not standard?
   2. Using legal decisions, rulings as a guide
4. Actions needed from corporate tax department
   1. Nexus reviews
   2. Voluntary disclosure agreements
   3. Amnesty program participation
5. Developments on the horizon in courts, legislatures, Congress

Benefits

The panel will give you the tools you need to stay on top of your potential nexus exposure, including:

• In-depth analysis of the most recent state and federal court decisions that impact economic nexus.
• Updates on state regulations and legislation that define definitions of nexus for key states' corporate income taxes.
• Strategies to determine whether voluntary disclosure or amnesty programs offer opportunities to mitigate penalties.
• Analysis of the likelihood of progress with federal Business Activity Tax legislation.

Upon completing this course, a participant will know the key terms of economic nexus policies both in force and under serious consideration, understand the implications of recent court decisions on economic nexus, and become familiar with specific state regulations and guidance on the topic. A participant also will become familiar with several options (e.g. nexus reviews, VDAs) for adjusting tax compliance activities in response to a given state's nexus environment.

Webinar/Teleconference

Strafford webinars/teleconferences offer several options for participation: online viewing of speaker-controlled PowerPoint presentations with audio via computer speakers or via phone; or audio only via telephone (download speaker handouts prior to the program).  Please note that our webinars do not feature videos of the presenters.

NASBA CPE Sponsor

Strafford is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417 or by visiting www.nasba.org.

CPE Credit

Strafford is a NASBA CPE sponsor and our live seminars qualify for CPE credits. They offer you a high quality, cost effective, and convenient CPE option, with no lost travel time or expenses.

CLE Credit

Strafford's live seminars qualify for CLE in every state that accredits webinars. They offer you a high quality, cost effective, and convenient CLE option, with no lost travel time or expenses.

More Details>