{"id":3936,"date":"2019-12-04T18:36:56","date_gmt":"2019-12-04T18:36:56","guid":{"rendered":"https:\/\/sarahf10.sg-host.com\/?p=3936"},"modified":"2021-02-23T16:04:46","modified_gmt":"2021-02-23T16:04:46","slug":"the-interplay-of-pl-86-272-and-economic-nexus","status":"publish","type":"post","link":"https:\/\/taxops.com\/the-interplay-of-pl-86-272-and-economic-nexus\/","title":{"rendered":"The Interplay of PL 86-272 and Economic Nexus"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Navigating Conflicting State Nexus Regulations, Reconciling the Two for Taxpayer Benefit<\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignright\"><img decoding=\"async\" width=\"300\" height=\"219\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/taxops.com\/wp-content\/uploads\/2019\/12\/PL-86-262-webinar-300x219.png\" alt=\"\" class=\"wp-image-3937 lazyload\"\/><noscript><img decoding=\"async\" width=\"300\" height=\"219\" src=\"https:\/\/taxops.com\/wp-content\/uploads\/2019\/12\/PL-86-262-webinar-300x219.png\" alt=\"\" class=\"wp-image-3937 lazyload\"\/><\/noscript><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">A live 110-minute CPE&nbsp;<a href=\"https:\/\/www.straffordpub.com\/products\/the-interplay-of-pl-86-272-and-economic-nexus-2020-01-23#webinar-info\">webinar<\/a>&nbsp;with interactive Q&amp;A<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p class=\"wp-block-paragraph\">Thursday, January 23, 2020<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">1:00pm-2:50pm EST,&nbsp;<em>10:00am-11:50am PST<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Early Registration Discount Deadline, Friday, January 10, 2020<\/p>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.straffordpub.com\/products\/the-interplay-of-pl-86-272-and-economic-nexus-2020-01-23#webinar-info\">Register Now<\/a><\/div>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p class=\"wp-block-paragraph\">This webinar will explain nexus as outlined in PL 86-272, the sometimes conflicting nexus regulations established by individual states, and how to reconcile the two for the benefit of the taxpayer.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Description<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">PL 86-272 is still alive and well; for sellers of tangible personal property post-<em>Wayfair<\/em>, more-so than ever.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Most states have or are in the process of&nbsp;<strong>adopting bright-line tests for sales tax nexus<\/strong>. The effects of&nbsp;<em>Wayfair<\/em>&nbsp;are seeping into the determination of state income tax nexus as well. In response, businesses are increasingly relying on the protection of PL 86-272 to circumvent the broadening reach of economic nexus and avoid out-of-state taxation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">PL 86-272 prohibits a state from taxing net income of an out-of-state company if its only activity is the solicitation of orders for the sale of tangible personal property within the state.&nbsp;<strong><em>Wayfair<\/em>&nbsp;clearly states that physical presence is not necessary to establish nexus<\/strong>; having &#8220;substantial economic nexus&#8221; is sufficient. Additionally, the SCOTUS did not hear challenges from companies required to remit tax in states that, before&nbsp;<em>Wayfair<\/em>, had implemented non-physical presence nexus standards.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Many states are taxing entities based on a gross-receipts or similar threshold. Most recently, Oregon joined as many as eight other states in taxing gross receipts with its Commercial Activity Tax effective in 2020. Reassessing tax liability impacts more than tax liability: Companies must update financial statement provisions, including current and deferred taxes, uncertain tax benefits, and related disclosures. SALT advisers and companies must&nbsp;<strong>reevaluate prior nexus determinations<\/strong>&nbsp;for both sales and state income tax liability.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Listen as our panel of experts explains which companies come under the umbrella of PL 86-272, which states are narrowly interpreting PL 86-272, and how to assess potential liability in states in this continually changing post-<em>Wayfair<\/em>&nbsp;environment.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Outline<\/h3>\n\n\n\n<ol class=\"wp-block-list\"><li>Nexus before&nbsp;<em>Wayfair<\/em><\/li><li>Falling under PL 86-272<\/li><li>States responses<\/li><li>Reevaluating nexus for state sales and income tax<\/li><li>Financial statement adjustments<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\">Benefits<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The panel will review these and other critical issues:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>When can a business rely on PL 86-272?<\/li><li>What conflicts exist between PL 86-272 and economic nexus?<\/li><li>How are states interpreting PL 86-272 in light of&nbsp;<em>Wayfair<\/em>?<\/li><li>What steps should be taken when determining state nexus considering&nbsp;<em>Wayfair<\/em>&nbsp;and PL 86-272?<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">FACULTY<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/taxops.com\/team\/judy-vorndran\" target=\"_blank\" rel=\"noreferrer noopener\"><br><strong>Judith B. Vorndran, JD, CPA, MSBA<\/strong><\/a><br>Partner<br>TaxOps<br><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ms. Vorndran helps clients and tax professionals navigate the morass of state and local tax issues with the goal of&#8230; &nbsp;|&nbsp;&nbsp;<a>READ&nbsp;MORE<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><a href=\"https:\/\/taxops.com\/team\/stacey-roberts\/\">Stacey L. Roberts, CPA<\/a><\/strong><br>State and Local Tax Director<br>TaxOps<br><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ms. Roberts finds the singular state and local tax (SALT) area fascinating and is energized by the daily challenges to&#8230; &nbsp;|&nbsp;&nbsp;<a>READ&nbsp;MORE<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"> <strong>More Tax News<\/strong> <\/h3>\n\n\n<ul class=\"wp-block-latest-posts__list wp-block-latest-posts\"><li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/auditor-independence-in-the-age-of-private-equity\/\">Auditor Independence in the Age of Private Equity: What CFOs Need to Know<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/r-d-credits-for-software-companies\/\">R&amp;D Credits for Software Companies: Scrum Teams, Qualifiers, and Section 174 After OBBBA<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/section-174-decoupling-what-tax-pros-need-to-know-state-by-state\/\">Section 174 Decoupling: What Tax Pros Need To Know State By State<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/sean-espy-new-partner\/\">TaxOps Welcomes Sean Espy as Partner, Tax Minimization<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/state-nexus-demystified-navigating-tax-compliance-after-wayfair-episode-1-2\/\">Your Tax Footprint Is Probably Bigger Than You Think: What Finance Leaders Need to Know About State Nexus<\/a><\/li>\n<\/ul>\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.linkedin.com\/company\/taxops-llc\/\">Follow us on LinkedIn<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Navigating Conflicting State Nexus Regulations, Reconciling the Two for Taxpayer Benefit A live 110-minute CPE&nbsp;webinar&nbsp;with interactive Q&amp;A Thursday, January 23, 2020 1:00pm-2:50pm EST,&nbsp;10:00am-11:50am PST Early Registration Discount Deadline, Friday, January 10, 2020 This webinar will explain nexus as outlined in PL 86-272, the sometimes conflicting nexus regulations established by individual states, and how to reconcile [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":5567,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","spt_transcript":"","footnotes":""},"categories":[225,229,226],"tags":[32,34,379,41,536,19,30,90],"class_list":["post-3936","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-events","category-state-and-local","category-tax-news","tag-business-tax","tag-economic-nexus","tag-multistate-tax","tag-nexus","tag-pl-86-272","tag-sales-tax","tag-state-and-local-tax","tag-taxpayer"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/taxops.com\/wp-content\/uploads\/2021\/01\/The-Interplay-of-P.L.-86-272-and-Economic-Nexus.png","_links":{"self":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/3936","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/comments?post=3936"}],"version-history":[{"count":1,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/3936\/revisions"}],"predecessor-version":[{"id":6639,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/3936\/revisions\/6639"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media\/5567"}],"wp:attachment":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media?parent=3936"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/categories?post=3936"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/tags?post=3936"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}