Course

Nexus After Wayfair: Multi-State Sales & Income Taxation in Business

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Event Details

Tuesday, July 28, 2020

8:00am – 4:00pm
(Registration: 7:30am)

Location

Hilton Garden Inn

3720 N Reserve St

Missoula, MT 59808

406-532-5300

Field of Study

  • Taxes

CPE Credit

8 hours CPE credit

Course Code

MSTB-10

Instructor

Level of Knowledge

Intermediate

Vendor

Kaplan Financial Education Powered by Loscalzo

Prerequisites

General tax knowledge.

Description

Significant changes in how businesses operate and consumers shop has caused a desperate search for revenue by most states. Internet commerce defies taxation under traditional concepts of nexus and situs. States have been expanding their view of nexus, especially for sales taxes. On June 21, 2018, the U.S. Supreme Court decided in Wayfair that physical presence is not required for sales tax nexus by overruling the Quill and National Bellas Hess decisions. This comes on the heels of Colorado’s victory in the 10th Circuit to require interstate businesses who did not collect sales taxes to instead report to the state “to assist the state in collecting use tax from in-state purchasers.” These decisions, plus recent trends in state legislation and merging nexus standards for taxing sales and income, are blurring the landscape for many businesses. This change in fundamentals from a “presence-based” tax system to an “economic opportunity-based” tax structure requires CPAs to understand state and local tax issues. Businesses need to consider restructuring themselves to minimize the multi-state tax burden. This program explains and illustrates how to avoid becoming subject to excessive state taxation—and who knows, Congress might even pass legislation that has been proposed for almost 30 years!

Highlights

  • Nexus, situs, and internet commerce
  • Relationship to federal taxation
  • Tax treatment of mobile and remote employees
  • Common differences of federal versus state
  • Three factor formula, common variations, and emerging single-factor apportionment
  • Gross receipts and other unique but expanding tax systems
  • Tax issues involving intellectual property sales across state lines
  • Taxation of internet-based transactions
  • Sales and use taxes, including an update on changes in sales tax nexus
  • Information reporting requirements for out-of-state sales that have obtained court approval
  • Multi-state Tax Commission initiatives
  • Filing rules and audit procedures
  • Current developments in multi-state taxation

Objectives

Participants will be able to:

  • Understand key terms and concepts in multi-state tax planning and compliance
  • Recognize changes in nexus standards for sales and income taxes
  • Anticipate trends in changing tax standards in order to adjust business practices
  • Compute state income under a variety of taxing systems
  • Recognize the need for different planning approaches for different taxing systems
  • Properly apportion income when state tax systems are not the same—unitary versus single entity, “Commercial Nexus,” variants of three factor formula, and integrated business versus investment
  • Properly account for property, payroll, and sales
  • Restructure entities to reduce taxes
  • Comply with sales, and use tax rules without overpaying tax
  • Work with states’ administrative rules, audit procedures, and statutes of limitation

Designed For

CPAs, accountants, and financial professionals whose clients or employers do business or have employees in more than one state. The more states, the more this program will be beneficial.

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