Assessing Sales, Income and Other Tax Exposure

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A


Conducted on Tuesday, August 6, 2019

Recorded event now available

or call 1-800-926-7926
Program Materials

This webinar will outline the steps to assess a business' filing obligations in other states. Our experts will explain the process of determining whether an entity has a reporting and payment obligation for income, sales and other taxes outside its home state.

Description

Where businesses collect, how they collect, and what they collect among the more than 10,000 taxing jurisdictions in the U.S. can be simply mindboggling. Calculating how much a business owes at any given time can be equally daunting when a practitioner doesn’t know the steps to assess a business’ filing obligations in other states. Our experts will explain the process of determining whether an entity has a reporting and payment obligation for income, sales, and other taxes outside its home state.

Doing business in a new state brings new opportunities and typically, tax compliance burdens. Practitioners are often asked to weigh the filing burden and associated costs against the potential risks of noncompliance when a business enters a new state. Other times you may not be asked, but work with a company that you know has multistate connections to address.

You may be required to assess an entity's exposure to state tax liability to determine whether prior year filings are in order or whether to file going forward quietly. Knowing that there is not only state income tax but also sales, and other local taxes to consider, you appreciate how complex SALT is.

Nexus is the threshold of business activity that creates an obligation to collect, report and remit tax in a state. Determining whether a taxpayer or entity is "doing business in" a state to meet the threshold can be difficult. Some businesses erroneously believe that even after Wayfair they are protected by Public Law 86-272 because the business’ presence in a state is minimal. However, this protection is limited to the selling of tangible personal property. Entities may have economic nexus without facilities, employees or tangible property in a state that triggers tax obligations, and noncompliance can be costly. Technology makes it simple for businesses to reach out-of-state customers, making SALT expertise a necessity for tax practitioners.

Listen as our panel of experts explains the steps they use to perform out-of-state nexus reviews for clients, including identifying clients with state tax exposure, typical state nexus thresholds, and handling missed reporting and tax liability obligations when found.

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Outline

  1. Laying the groundwork
    1. State sales tax nexus
    2. State income tax nexus
    3. Other state tax nexus
  2. Identifying potential exposure
  3. Managing exposure
  4. Best practices when entering new states

Benefits

The panel will review these and other issues:

  • Establishing best practices for performing an out-of-state nexus review
  • Determining whether other state filing and reporting obligations may exist
  • How is nexus determined in most states for state taxes, including income and sales taxes?
  • How should prior unpaid liabilities and reporting obligations be handled?

Faculty

Le, Tram
Tram Le, CPA

Tax Manager
TaxOps

Ms. Le is a CPA and licensed attorney specializing in tax strategies for growing businesses. She works closely with...  |  Read More

Vorndran, Judith
Judith B. Vorndran, JD, CPA, MSBA

Partner
TaxOps

Ms. Vorndran helps clients and tax professionals navigate the morass of state and local tax issues with the goal of...  |  Read More

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