Course Information

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Multistate Corporate Taxation: Nexus
Author: John C. Healy, MST, CPA, Michael S. Schadewald, PhD, CPA

Description:
Whether a corporation is required to collect sales or use tax or pay state income tax hinges on whether it has nexus with the state. A state cannot impose a tax obligation on an out-of-state corporation unless the Due Process Clause minimal connection and Commerce Clause substantial nexus requirements are satisfied. Different taxes may have differing threshold standards for establishing nexus. Usually those standards are the outgrowth of judicial decisions that are accepted or modified as a result of legislative activity. This course explores the landmark judicial decisions and legislation that have attempted to define how nexus is established. Topics covered include:

  • Due Process and Commerce Clause restrictions
  • The physical presence requirement
  • Public Law 86-272 The de minimis exception
  • Protected and unprotected activities
  • Agency and affiliate nexus
  • Economic nexus

Course Details:
Price:  $48.00
Field of Study:  Taxes
Prerequisites:  None
Level:  Basic
Advanced Preparation:  None
CTEC course number:  1075-CE-5499
Course was last updated on:  01/30/09
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Library:
Sales and Use Taxation
State Taxation

Technical Requirements:
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Credit Available For: Units
CPE 3.0 CPE
QAS 3.0 CPE
Enrolled Agent (Accepted by the IRS) 3.0 CPE
CTEC California 3.0 CE

Note: Recommended CPE credit is based on a 50-minute hour. Participants earning credits for states that require self-study to be based on a 100-minute hour will receive half the recommended CPE credits for successful completion of this course.

Since Continuing Professional Education requirements vary from state to state and are subject to change without notice, please contact your state board of accountancy for information on your CPE requirements and the applicability of this course to meet those specifications.

CCH has been approved by the California Tax Education Council to offer courses that provide federal and state credit towards the annual "continuing education" requirement imposed by the State of California. A listing of additional requirements to register as a tax preparer may be obtained by contacting CTEC at P.O. Box 2890, Sacramento, CA, 95812-2890, toll-free by phone at (877) 850-2832, or on the Internet at www.ctec.org.

User Reviews
Reviewer: Linda T. submitted on 02/05/2010
Took as through the various reasonings
Reviewer: Jason G. submitted on 01/25/2010
Comprehensive review of different cases
Reviewer: Frank N. submitted on 01/20/2010
case citations, which point to inconsistencies in the area of state taxation, particularly as it relates to income versus sales/use tax, as well as tangible versus intangible property
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