Nexus and Apportionment Issues: State and Local Taxes, Sales and Use Taxes, Market-Based Sourcing of Receipts

BarbriSFCourseDetails

Course Details

Course Information

smart_display Format
On-Demand
signal_cellular_alt Difficulty Level
Intermediate
work Practice Area
Corporate Tax

Date & Time

event Date
Thursday, November 10, 2022
schedule Time
1:00 p.m. ET./10:00 a.m. PT
timer Program Length
110 minutes

Credit Information

BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$247.00

This course will guide tax professionals on evolving state tax nexus and apportionment issues for multistate companies with a remote workforce, including new complexities caused by guidance issued in response to COVID-19 pandemic and thereafter. The panel will provide insight into multiple compliance issues such as apportioning income between states where remote employees provide services, navigating contradictory rules and potential double taxation of the same income, COVID-19 exceptions to nexus, recent updates relating to the sourcing of receipts from services, and other key state tax compliance issues.

Faculty

Ilya A. Lipin

Tax Principal, Mid-Atlantic Region State and Local Tax Practice Leader

BDO USA

Mr. Lipin provides clients with state tax advice in the area of multistate income taxes, sales and use taxes, tax controversy, compliance, and various SALT aspects that arise from M&A transactions.

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Timothy R.J. Howe

Partner

Smith & Howard

Mr. Howe leads the firm’s sales and use tax practice. He has over a decade of tax, technology, and business advisory experience, most recently as the Director of Operational Tax for a large franchise restaurant company in Atlanta. In this position, Mr. Howe was responsible for $30+ million in tax remittances each month, improving tax processes, and assisting in research and audit defense activities for sales and use tax, property tax, business license and 1099 compliance activities. He also spent several years at a Big 4 firm, providing IT project delivery and project and program management expertise with software implementations, risk management, and internal audit projects. Mr. Howe has provided tax advisory services to a wide range of clients in the manufacturing, power and utilities, software, and financial services areas and has an in-depth knowledge of SOX 404 compliance.

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Description

Application of state tax nexus rules to out-of-state businesses continue to evolve. Most states adopted economic nexus laws for income tax while shifting towards market-based sourcing, while all states that impose sales tax now have Wayfair-based economic nexus provisions. Even before COVID-19, the telecommuting of employees from their home state has caused nexus and income apportionment issues for multistate companies.

Now businesses must consider whether the presence of an employee working from home, even if temporarily, creates taxable nexus for the employer in that state. How will telecommuting impact income sourcing? Tax professionals must understand applicable state tax laws and identify critical issues such as apportioning income, contradicting state rules, and other vital items to implement strategies to minimize state taxes.

Listen as our expert panel provides a practical guide to crucial nexus and apportionment issues, allocating income between the home state and states where remote employees provide services, sourcing rules, and related topics, and the current state of nexus standards and key nexus developments in state taxation.

Outline

Nexus standards and implications during and post COVID
Nexus developments impacting remote sellers
Economic presence as a strategy for states to extend tax reach
Navigating apportionment and sourcing issues and ensuring compliance
Planning strategies to minimize state tax risks based on nexus

Benefits

The panel will discuss these and other key issues:

What are the recent state developments on nexus standards?
How have nexus standards changed in some states due to COVID-19?
What are the critical apportionment and sourcing issues and methods to avoid them?
What are the issues unique to service providers?
What multistate planning strategies and technology solutions are available in light of the shift in nexus standards?

NASBA Details

Learning Objectives

After completing this course, you will be able to:

Ascertain how various states are interpreting and regulating nexus post-Wayfair.
Determine when a business can rely on PL 86-272.
Understand how various states are now interpreting PL 86-272.
Ascertain key apportionment issues.
Identify critical sourcing issues.
Discern the impact of recent states cases on nexus and sales and use tax liability.

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 attendance verification prompts displayed throughout the program
Prerequisite:
Three years + business or public firm experience at mid-level within the organization, preparing complex tax forms and schedules, supervising other preparers/accountants. Specific knowledge and understanding of nexus regulations governing the state and local tax liabilities of out-of-state businesses selling tangible personal property in foreign states, providing services to customers in foreign states and apportionment; familiarity with PL 86-272 protections for out-of-state sellers of tangible personal property, the Wayfair decision, the Multistate Tax Commission (MTC), and sourcing.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.