Shifting State Policies Compel Diligence in Nexus Reviews


Mark Yopp told a recent webinar that a tax nexus review can help any company determine whether it has exposure in states where it is not currently filing sales tax returns, regardless of whether a particular state has initiated collection actions. “You’ll have a younger company moving past the start up phase, using up their losses, making a lot of sales, expanding so fast that it doesn’t really know some of the activities being conducted,” Mr. Yopp explained in one exposure example. He also suggested nexus reviews as part of structuring a joint venture or acquisition.