Economic Nexus Rules and New Tax Challenges for Multistate Businesses

Sales Taxation Post-Wayfair for Remote Sellers of Goods and Services; Key Tax Planning Considerations

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


Conducted on Tuesday, April 28, 2020

Recorded event now available

or call 1-800-926-7926
Program Materials

This webinar will guide tax professionals and advisers on the state tax issues facing remote sellers of taxable goods and services since the U.S. Supreme Court's decision in South Dakota v. Wayfair. The panel features attorneys who represented Wayfair in the case who will discuss the ramifications of the Court's overturning of the physical presence rule, potential expanded tax obligations for multistate businesses, standards under the economic nexus law, sourcing of sales for sales and use tax purposes and critical considerations for companies in light of the Court's decision.

Description

On June 21, 2018, the U.S. Supreme Court issued its landmark decision in South Dakota v. Wayfair, overturning Quill Corp. v. North Dakota, which required businesses to have a physical presence in a state to create nexus for sales and use tax purposes. Since this decision, nearly every state has adopted economic nexus thresholds, over which remote sellers of taxable goods and services are obligated to collect and remit sales tax, despite lacking a physical presence in the state.

In eliminating the physical presence rule, but not establishing a specific standard for substantial nexus, the Court explained that the Commerce Clause doctrine applies to address taxpayer concerns regarding undue burdens under state tax laws. Since the Court did not address retroactivity and other related challenges, states are enforcing existing laws and adopting new economic nexus provisions with varying thresholds to increase tax revenue. State and local governments are also expanding their definition of physical presence and their economic nexus thresholds to other state taxes.

Tax professionals and advisers must be aware of the myriad challenges facing multistate businesses and methods available to minimize state tax liability. There is also a possible spillover effect of the decision on other state taxes.

Listen as our panel, counsel for Wayfair, provides an analysis of economic nexus in various states and offers critical tax planning considerations for remote sellers of taxable goods and services.

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Outline

  1. Detailed analysis of South Dakota's economic nexus law and other states' laws
  2. Impact on various sellers of products and services, including providers of IT products and services
  3. The Wayfair decision's implications for other state taxes, including gross receipts taxes and income taxes
  4. Considerations and planning strategies to minimize state tax risks

Benefits

The panel will review these and other relevant topics:

  • State economic nexus regulations and legislation after Wayfair
  • Impact on remote sellers of goods and services
  • Complexity created due to non-uniform approaches and definitions amongst the states
  • Wayfair decision effect on other state taxes
  • Key tax planning considerations to minimize state tax liability

Faculty

Dillon, Michael
Michael T. Dillon

President
Dillon Tax Consulting

Mr. Dillon is an attorney specializing in multistate sales and use tax matters for multistate and multinational...  |  Read More

Dion, Sylvia
Sylvia F. Dion, CPA

Founder & Managing Member
PrietoDion Consulting Partners

Ms. Dion's firm specializes in providing SALT consulting and compliance Services to companies throughout the U.S....  |  Read More

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