Nexus-The Moving Target

November 2007
Journal of State Taxation;Nov/Dec2007, Vol. 26 Issue 1, p17
Academic Journal
The article focuses on the principal considerations that determine the potential of U.S. corporations to pay income tax nexus. An issue for any American corporation operating in more than one state is to identify the states it must file returns and pay income tax. The physical presence of a company's property, employees or other agents is considered an important prerequisite for establishing constitutional nexus in a state for income tax purposes. The company must limit its employee's in-state activities to the solicitation of orders to qualify for the safe harbor offered by Public Law 86-272. The decision in Wisconsin Department of Revenue v. William Wrigley, Jr. shows that there is a de minimis exception to the activities that are not secured by the Public Law 86-272.


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