My dad's company files an income tax return in every state he sells to, but I don't think he's required to by PL 86-272. Is there a way I can figure out what makes a company have sufficient nexus in a state to be required to file an income tax return?
2007-03-30 05:22:55 · 2 answers · asked by texascajun82 2 in Business & Finance ➔ Taxes ➔ United States
You probably could go to the Multistate Tax Commission web site but they are so pro tax they make the IRS look good.
It really is a state by state interpretation of 86-272. There has been much litigation in the area and unless the cases make it to the Supreme Court, there is no uniformity as a result.
I would study 86-272 in detail and then review your dad's company practices. Is all they are doing is selling or are they installing or doing maintenance. If they are doing more than just a strict sales pitch then his companies probably have nexus. And if they have nexus for income taxes, they probably have nexus for sales taxes too.
If you want to study up on the issue I would find a law library and start with the Warren Gorham & Lamont treaties or see if you can get use of Commerce Clearing House or RIA tax services.
2007-03-30 09:29:47 · answer #1 · answered by zudmelrose 4 · 0⤊ 0⤋
Each state has different rules.
As far as I know, no one has ever compiled this data and put it in to one easy to use location.
2007-03-30 07:06:56 · answer #2 · answered by Wayne Z 7 · 0⤊ 0⤋