Rapid Fire FAQs: Round One
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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Mentioned in this episode:
United States
