Description
Learn the risks and costs associated with nexus noncompliance.There have been many significant state tax law changes over the past couple of years, and many businesses continue to struggle with understanding when a state may impose a tax filing obligation. More often than not, many businesses may have been actively engaged in business selling goods andor services to customers throughout numerous states without knowing that such activities may give rise to certain income tax andor sales tax filing obligations, and that such obligations do not disappear with the passage of time, thereby creating a significant risk of exposure.This topic will help to demystify the rules regarding nexus for both state income and sales taxes and explain the risks of operating out of tax compliance. We will also address the various administrative remedies that may be available to mitigate any such risk from historical tax exposures due to noncompliance, identify the benefits of pursuing voluntary compliance, as well as provide a summary overview of how to avail yourself of these administrative programs offered by most states.
Date: 2021-07-26 Start Time: End Time:
Learning Objectives
Triggering Nexus: Pre- and Post-Wayfair
• Understanding Nexus Rules for State Income/Franchise and Sales/Use Taxes
• Physical Presence vs. Economic Nexus
• Implications of the Wayfair Ruling
• Understanding the Risks of Having Nexus in Prior Tax Periods
• Statute of Limitations Issues
• Implications for Businesses and Business Owners
• Civil Penalties
• Criminal Penalties
• Recent Trends – Nexus Issues Arising From COVID-19
Administrative Remedies
• Voluntary Disclosure Programs
• Multistate Tax Commission (MTC) and/or Individual State Programs
• Amnesty
• Difference Between VDA
• Current Amnesty Programs
• Managed Audits
Practical Impact to Businesses
• Businesses Impacted
• Tax Types Impacted
• Impact on Financial Reporting
• Risks of Taking No Action
• Recommended Action Steps
Practical Approach to Addressing State Tax Compliance Issues
• Determining Nexus and Filing Obligations • the Continuing Importance of Nexus Studies
• Understanding Sourcing and Apportionment
• Determining Taxability of Products and Services (for Sales Taxes)
• Quantifying Potential State Tax Exposure
• Mitigation Strategies
• Prospective Compliance
AIPB ,CLE (Please check the Detailed Credit Information page for states that have already been approved) ,Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.
Christian J. Burgos, Esq.-Friedman LLP, Jeremy Katz, Esq. – Friedman LLP
