Nexus Limitations and Protections for Service Providers Post-Wayfair

P.L. 86-272 and Interstate Taxation, Nexus Standard Under the Due Process and Commerce Clauses, Undue Burden

Note: CLE credit is not offered on this program

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


Conducted on Tuesday, February 19, 2019

Recorded event now available

or call 1-800-926-7926
Program Materials

This webinar will guide tax professionals and advisers on nexus limitations and protections for service providers in light of the Wayfair decision. The panel will discuss key challenges stemming from the economic presence test, nexus standards under the due process clause and commerce clauses, interstate income taxation, P.L. 86-272, and nexus protections available to service providers.

Description

In South Dakota v. Wayfair, the United States Supreme Court abrogated the physical presence substantial nexus standard, leading more and more states to enact statutes providing for economic nexus sales tax thresholds similar to South Dakota’s.

Sellers of intangible property and online services must consider the impact of such laws on their operations, as they may easily exceed the thresholds in many states. Consideration should include the taxability of what they sell and constitutional defenses available under Public Law 86-272, Commerce Clause, and Due Process Clause.

Our panel will guide tax professionals and advisers on nexus limitations and protections for service providers in light of the Wayfair decision. The panel will discuss key challenges stemming from the economic presence test, nexus standards, taxability considerations, and potential defenses available to service providers.

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Outline

  1. Overview of the economic nexus test in Wayfair
  2. Recent state tax law developments; economic nexus for sales tax, gross receipts taxes, and income tax
  3. P.L. 86-272 protection for service providers
  4. Challenging state sales, income, and gross receipts taxation
    1. Commerce clause
    2. Due Process Clause
  5. Best practices in limiting state sales and income tax liability for service providers

Benefits

The panel will discuss these and other key issues:

  • The impact of Wayfair on state sales tax regulations and key takeaways for tax professionals
  • Impact on service providers, including providers of IT products and services
  • Recent state tax law developments on economic nexus
  • Challenging state sales and income taxation
  • Available protections under Public Law 86-272, Commerce Clause, and Due Process Clause
  • The argument for the undue burden on service providers in complying with tax laws of a variety of states
  • Key considerations and planning strategies to minimize state tax risks

Faculty

Eisenstein, Martin
Martin Eisenstein

Managing Partner
Brann & Isaacson

Mr. Eisenstein is one of the nation’s leading experts in state and local taxation of information...  |  Read More

Fix, Yoni
Yoni Fix

Atty
Reed Smith

Mr. Fix specializes in multistate tax litigation matters, with a particular focus on California, Pennsylvania and New...  |  Read More

Reed, Jeffrey
Jeffrey S. Reed

Partner
Kilpatrick Townsend & Stockton

Mr. Reed is the Chair of the State and Local Tax Practice. He represents businesses and individuals in state tax...  |  Read More

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$247