Stacey Roberts discusses how the Wayfair decision has blurred the lines between sales tax and income tax nexus in this edition of the Journal of State Taxation.
By Stacey Roberts, as featured in the Journal of State Taxation
The line where income tax and sales tax obligations meet became more
blurred by Wayfair. As nexus around these two tax regimes gets redefined
and redeployed state-by-state, determining whether P.L. 86-272 protections
apply is both confusing and complex. Adding to the confusion are a host of
additional factors that influence whether P.L. 86-272 applies, requiring businesses and tax preparers to dig in, understand the history, and consider evolving rules state-by-state before relying on P.L. 86-272 protections. Sales tax registration can beget income tax filing, and as time goes on, these two concepts are becoming more closely related. How we’ve gotten to this point in state and local tax is both interesting and fluid, and necessary to understand before a taxpayer or preparer can determine whether and where P.L. 86-272 protections apply.
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