Nexus, apportionment and tax base: A state tax compliance trifecta
TAX BLOG |
Authored by RSM US LLP
This article was originally published March 27, 2017
The federal tax code is notoriously complex, but a multi-state and local tax professional may find managing 51 state-level taxing jurisdiction and countless locals a much more difficult task. In today’s increasingly mobile environment, understanding where your business activity creates nexus and whether, and to what extent that activity is taxable, makes accurately complying with state tax laws more than a full time job.
Getting it wrong means the potential for double or even triple taxation, missing out on beneficial tax planning and the always present risk of state audits. Tax revenues are declining in most states while operating costs increase. To bridge the gap, states are paying close attention to tax compliance and businesses must, too.
In the video below, our state and local tax professionals offer a quick recap of nexus, tax base and apportionment—the three components that make state tax compliance so complicated.
If their discussion gives you pause, it may be time to revisit your approach to state tax compliance. Make sure that you—or your tax provider—closely follows state tax developments throughout the United States, including locations where you do not currently have a presence. The states are adapting to new economies and trends in taxation, requiring a coast-to-coast review of your business operations, regardless of where you may be physically present.
Brian provides advanced technical analysis of state and local tax issues important to middle market businesses. Reach him at firstname.lastname@example.org.
Areas of focus: Washington National Tax, State and Local Tax, Online and Remote Seller Sales Tax
Call us at (800) 624-2400 or fill out the form below and we'll contact you to discuss your specific situation.
This article was written by RSM US LLP and originally appeared on 2021-09-20.
2021 RSM US LLP. All rights reserved.
The information contained herein is general in nature and based on authorities that are subject to change. RSM US LLP guarantees neither the accuracy nor completeness of any information and is not responsible for any errors or omissions, or for results obtained by others as a result of reliance upon such information. RSM US LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect information contained herein. This publication does not, and is not intended to, provide legal, tax or accounting advice, and readers should consult their tax advisors concerning the application of tax laws to their particular situations. This analysis is not tax advice and is not intended or written to be used, and cannot be used, for purposes of avoiding tax penalties that may be imposed on any taxpayer.
RSM US Alliance provides its members with access to resources of RSM US LLP. RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each is separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. Visit rsmus.com/about us for more information regarding RSM US LLP and RSM International. The RSM logo is used under license by RSM US LLP. RSM US Alliance products and services are proprietary to RSM US LLP.
Weinlander Fitzhugh is a proud member of the RSM US Alliance, a premier affiliation of independent accounting and consulting firms in the United States. RSM US Alliance provides our firm with access to resources of RSM US LLP, the leading provider of audit, tax and consulting services focused on the middle market. RSM US LLP is a licensed CPA firm and the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.
Our membership in RSM US Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise and technical resources.
For more information on how Weinlander Fitzhugh can assist you, please call (989) 893-5577.