New York’s Draft Nexus Regs Leave Constitutional Issues Unresolved, Practitioners Say

Overview


Peter Faber said draft New York economic nexus regulations mean a corporation without actual New York receipts could be deemed to have New York receipts in excess of $1 million and therefore have nexus with the state, which he added “cannot possibly be constitutional.” In addition, Mr. Faber called it “problematic” that the draft regs attribute all of a partnership’s income to a corporation-partner when determining whether it has economic nexus.