Three recent cases serve as a tool for taxpayers seeking guidance on when an out-of-state corporation owning a passive ownership interest in a passthrough entity doing business in New Jersey might be found to have nexus.
This column discusses the definition of “benefits received” under the regulation for sourcing service receipts.
States are attempting to increase revenues by enacting laws that expand the definition of nexus-creating activities.
This column discusses compliance considerations, including nexus, taxability, and how to source the revenues from customers.
States have gotten creative and taken matters into their own hands in an attempt to collect lost tax revenue.
Non-U.S. taxpayers generally are surprised by the degree of complexity involved in complying with U.S. state and local taxes.
Foreign entities not engaged in a U.S. trade or business, not deemed to have a permanent establishment, or that have claimed a federal treaty exemption may still be subject to state and local income taxes.
This item discusses how foreign corporations that generate income from intangible assets are affected by the economic nexus rules as well as the water’s-edge rules.
Factor Presence Nexus Standards and Market-Based Sourcing: A Tough Combination for Service Businesses
The combination of factor presence nexus standards and market-based sourcing of services for sales factor purposes can have a particularly significant impact on multistate service providers.
New Jersey’s Sourcing Rule for Gain on Dispositions of Interests in Flowthrough Entities Can Be a Real Deal-Killer
Stress points that often produce significant difficulties include apportionment issues stemming from the mixed entity and aggregate treatment of flowthrough entities, the attribution of nexus up and down tiered flowthrough structures, and the impact on individual owners of residency rules and unusable credits for taxes paid to other states.
The court held that the law does not discriminate against out-of-state retailers.
State courts have supported the economic nexus theory, which does not require a business to actually conduct activities within the state to incur an income tax obligation.
California Appellate Court Rules on Nexus of Special-Purpose Entities, Tells Lower Court to Rule on Constitutionality of Filing Election
The court determined that two SPEs related to Harley-Davidson Inc., with no physical presence in California, established nexus under Due Process and Commerce Clauses of the U.S. Constitution.
Economic nexus provisions, which often target financial institutions, vary considerably from state to state, and they can trigger income or franchise tax filing responsibilities of which taxpayers are often unaware.
Many not-for-profits do not know that the states in which they conduct business have many rules that may apply to them.
The court found Cleveland incorrectly imposed its 2% local income tax on nonresident athletes’ exterritorial income in two separate cases.
Reversing the Tenth Circuit, the Supreme Court held that the Tax Injunction Act did not bar a suit that sought to enjoin the state of Colorado from enforcing a law requiring out-of-state sellers to notify Colorado customers of their use tax liability for purchases and report tax-related information about the purchases to the customers and the Colorado Department of Revenue.
The federal Tax Injunction Act does not prevent the Direct Marketing Association from challenging a Colorado law imposing notification and reporting requirements on out-of-state retailers the U.S. Supreme Court held on Tuesday.
Several important developments have occurred in the area of state taxation so far in 2014.
New York tax law changes affect almost every aspect of corporate franchise and bank taxes.