Performing Multistate Nexus Reviews CPE

by | Jan 15, 2025 | Events, State and Local, Tax News | 0 comments

Join Judy Vorndran and Stacey Roberts at TaxOps for upcoming CPE on assessing business filing obligations in other states.

Performing Multistate Nexus Reviews: Assessing Sales, Income, and Other Tax Exposure

Tuesday, January 21, 2025 | 11:00 – 12:50 MT

Register

Stacey Roberts and Judy Vorndran, partners at TaxOps, will outline the process of determining whether an entity has a reporting and payment obligation for income, sales, and other taxes outside its home state.

Description

Where businesses collect, how they collect, and what they collect among the more than 10,000 taxing jurisdictions in the U.S. can be simply mindboggling. Calculating how much a business owes at any given time can be equally daunting when a practitioner doesn’t know the steps to assess business filing obligations in other states. Our experts will explain the process of determining whether an entity has a reporting and payment obligation for income, sales, and other taxes outside its home state.

Doing business in a new state brings new opportunities and, typically, tax compliance burdens. Practitioners are often asked to weigh the filing burden and associated costs against the potential risks of noncompliance when a business enters a new state.

Tax advisers may assess an entity’s exposure to state tax liability to determine whether prior-year filings are in order or whether to file going forward quietly. Considering state income tax and sales and other local taxes, the complexity of SALT can be daunting.

Nexus is the threshold of business activity that creates an obligation to collect, report, and remit tax in a state. Determining whether a taxpayer or entity is “doing business in” a state to meet the threshold can be difficult. Some businesses erroneously believe that even after Wayfair, they are protected by Public Law 86-272 because the business’ presence in a state is minimal.

However, this protection is limited to the selling of tangible personal property. Entities may have economic nexus without facilities, employees, or tangible property in a state that triggers tax obligations, and noncompliance can be costly. Technology makes it simple for businesses to reach out-of-state customers, making SALT expertise necessary for tax practitioners.

Listen as our panel of experts explains the steps they use to perform out-of-state nexus reviews for clients, including identifying clients with state tax exposure, typical state nexus thresholds, and handling missed reporting and tax liability obligations when found.

Outline

  1. Laying the groundwork
    1. State sales tax nexus
    2. State income tax nexus
    3. Other state tax nexus
  2. Identifying potential exposure
  3. Managing exposure
  4. Best practices when entering new states

Benefits

  • The panel will review these and other issues:
  • How should prior unpaid liabilities and reporting obligations be handled?
  • Establishing best practices for performing an out-of-state nexus review
  • Determining whether other state filing and reporting obligations may exist
  • How is nexus determined in most states for state taxes, including income and sales taxes?

Instructor:

Judith B. Vorndran, JD, CPA, MSBA
Partner

Judy helps clients and tax professionals navigate the morass of state and local tax issues with the goal of making it less “taxing!” She is a nationally recognized thought leader and award-winning instructor with a steady focus on finding ways to simplify complex state and local tax issues and resolve areas of state tax controversy.

Stacey Roberts, CPA
Partner, State and Local Tax

Stacey is State and Local Tax Director at TaxOps in Denver. She works closely with business clients managing all compliance issues related to state income/franchise and sales and use tax for flow through entities and C corporations across various industries; identifying planning opportunities and state and local credits and incentives; and mitigating state and local tax controversy issues with auditors and taxing jurisdictions. Her 25 years of experience in state and local tax also includes three of the Big Four accounting firms and a Fortune 500 company. She is a member of the Colorado Legislative Tax Policy Task Force through 2026 and a frequent speaker and author on SALT issues including the Journal of State Taxation, Strafford Publishing, and more.

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