Factor Presence Nexus for State and Local Taxes: Meeting the Challenges of Developing State Standards

Navigating Economic Presence Tests and Other Emerging Nexus Trends in Gross Receipts, Income and Sales & Use Tax

A live 110-minute CPE webinar with interactive Q&A


Wednesday, September 27, 2017 (in 6 days)
1:00pm-2:50pm EDT, 10:00am-11:50am PDT


This webinar will provide corporate tax advisers with thorough and up-to-date guidance on various states’ attempts to enforce factor presence nexus on nonresident corporate taxpayers in the face of numerous judicial and administrative challenges. Multiple states have been aggressively pushing back against the nexus boundaries that the U.S. Supreme Court established in Quill, seeking to impose tax jurisdiction over activities that reach a certain statutorily-defined threshold or “factor presence.” The panel will discuss the current state of judicial actions interpreting factor presence, and provide updates on other key nexus developments.

Description

Perhaps the most troubling development in state taxation in recent years is the increase in the number of states using factor presence as a standard to impose taxing jurisdiction over nonresident corporate taxpayers. These economic presence justifications represent a direct legislative challenge to the longstanding Supreme Court holding in Quill v. North Dakota that a taxpayer must have a physical presence in a state to be subject to income tax.

These factor presence tests take numerous forms, such as sales tax, gross receipts and other income thresholds. The standards, adapted from a model statute put forward by the Multistate Tax Commission, serve to both remove planning options and increase the complexity and likelihood of tax payment and filing requirements.

A significant and growing number of states use the factor presence tests, with additional states considering imposing the standard as a means of increasing tax revenues. The standard is currently subject to significant litigation in a number of states. However, these court challenges have not impacted states’ plans to adopt some sort of economic presence nexus.

Listen as our experienced panel provides a practical guide to the current state of factor presence nexus standards, as well as other key nexus developments in state taxation of nonresident corporate taxpayers and remote business activity.

Outline

  1. Factor presence standards and implications
  2. Economic presence as a strategy for states to extend tax reach
  3. Status of challenges to factor presence laws
  4. Other nexus developments affecting remote sellers
  5. Planning strategies to minimize state tax risks of factor presence assessments
  6. Special nexus issues regarding services

Benefits

The panel will discuss these and other important topics:

  • States that are contemplating changing to factor presence nexus standards
  • Current status of factor presence/economic-presence litigation challenges
  • Various factor presence standards and the risks arising from factor presence nexus
  • Other key nexus developments

Learning Objectives

After completing this course, you will be able to:

  • Recognize the factor presence formulas in use in various states
  • Define the basis of taxpayer challenges to factor presence/economic presence nexus jurisdiction
  • Identify the states’ justifications for enacting legislative challenges to the physical presence standard enunciated in Quill
  • Determine planning options to reduce taxation risk on sales covered by states using factor presence nexus

Faculty

Edward J. Bernert, Partner
Baker & Hostetler, Columbus, Ohio

Mr. Bernert concentrates his practice in the area of state and local taxes with a particular emphasis on the major Ohio taxes affecting businesses and business owners-sales and use, financial institution, personal income, commercial activity, and real property taxes. He represents national companies concerning Ohio tax matters related to compliance, planning and tax legislation. He regularly deals with various tax department officials upon audit or administrative appeals.

Martin Eisenstein, Managing Partner
Brann & Isaacson, Lewiston, Maine

Mr. Eisenstein is one of the nation’s leading experts in state and local taxation of information technology. He has wide experience in state and local tax issues and has represented prominent providers in major litigations, including filing amicus briefs in the United States Supreme Court. He is a regular contributor to State Tax Notes, among other publications, writing on state tax developments. Mr. Eisenstein has been selected consistently by his peers as one of The Best Lawyers in America.

Matthew P. Schaefer, State and Local Tax Partner
Brann & Isaacson, Lewiston, Maine

Mr. Schaefer regularly advises clients on state sales and use tax issues, including those involving direct mail tax questions. He is co-author of a blog that reports on legal developments affecting direct marketers and online sellers. Overall, his practice focuses on state and local tax issues and general civil and commercial litigation, in both federal and state courts.


Registration per Person for Live Event

Live Webinar $247.00

Live Webinar & CPE Processing $282.00


CPE per Person on Live Event

Continuing Professional Education credit processing is available for an additional fee. CPE processing must be ordered prior to the event. To qualify for CPE you may not listen via the telephone.

This program is eligible for 2.0 CPE credits.

  • Field of Study: Taxes.
  • Level of Knowledge: Intermediate.
  • Advance Preparation: None.
  • Teaching Method: Seminar/Lecture.
  • Delivery Method: Group-Internet (via computer).
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of verification codes announced throughout the presentation.
  • Prerequisite: 

    Three years+ business or public firm experience at mid-level within the organization, dealing with complex multi-state sales and use tax collecting and reporting; supervisory authority over other preparers/accountants. Knowledge of the U.S. Supreme Court's ruling in Quill v. North Dakota, Multi State Tax Commission model nexus standards, and the primary nexus approaches used by most states.

NOTE: CPE credit processing for all attendees must be ordered by 2pm Eastern the day of the program to receive a Certificate of Attendance within 24 hours.


Recordings

Recorded Event

Includes full event recording plus handouts (available after live webinar).

Note: Self-study CPE and EA credits are not offered on recorded events.

Recorded Webinar Download $247.00
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Recorded Audio Download (MP3) $247.00
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DVD (Slide Presentation with Audio) $247.00 plus $9.45 S&H
Available ten business days after the live event

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Registration Plus Recorded Event

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Live Webinar & Webinar Download $344.00

Recorded Webinar Download Only $97.00 with Registration/Webinar Combo

Live Webinar & Audio Download $344.00

Recorded Audio Download (MP3) Only $97.00 with Registration/MP3 Combo

Live Webinar & DVD $344.00 plus $9.45 S&H

DVD (Slide Presentation with Audio) Only $97.00 with Registration/DVD Combo


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Customer Reviews

The program had excellent presenters that were extremely knowledgeable.

Lisa R. Volland

Legacy Professionals

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The webinar was fast paced and comprehensive.

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SAP

It was an excellent program!!

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Supervalue

Real life examples that we could relate to.  Keep up the great work.

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State Income Tax Advisory Board

David Adler

Director of Multistate Tax Services

Deloitte Tax

Elizabeth Bowman

Tax Research Analyst

ADP Tax Credit Services

Stephanie Anne Lipinski-Galland

Partner

Williams Mullen

Don Griswold

Executive Tax Counsel

Berkshire Hathaway Tax Group

Walter Pickhardt

Partner

Faegre Baker Daniels

Richard Pomp

Professor of Tax Law

University of Connecticut

Michael Press

President

Scout Economics

Tammy Propst

President

taxadvantagegroup

Richard Weiss

Tax Research Manager

ADP Tax Credit Services

Thomas Zaino

Managing Member

Zaino Hall & Farrin

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