Description

In this episode, Stacey and Meredith explore the complex world of state and local taxation, focusing on one of the most misunderstood topics: nexus. Our team of tax professionals unpacks the common myths businesses often hold, especially around physical presence and economic nexus rules.

A key misconception we address is the belief that a company’s tax responsibilities stop at its state of incorporation. In reality, doing business and making sales across multiple states can create tax obligations in each of those jurisdictions. 

Key Takeaways:

• State and local tax compliance goes far beyond a company’s headquarters.
• Many businesses mistakenly assume that only physical presence determines their tax obligations.
• Because tax laws differ widely from state to state, compliance must be tailored to each jurisdiction.
• Nexus can be triggered in overlooked ways, including remote sales and employee activity.

Chapters

00:00 - Intro

03:06 - Nexus and State Tax Jurisdiction

13:00 - Tax Compliance in Multi-State Operations

16:36 - Drop Shipments and Sales Tax

24:45 - Software Limitations in Business Compliance

40:20 - Navigating State Tax Compliance

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