2025 Multi-State Taxation: Navigating Nexus, Apportionment, and Compliance

Credit(s)

IRS CPE Credits: 1 Tax hour

Unlocking Tax-Saving Opportunities Across State Lines

As businesses expand their footprints across state lines—whether through remote employees, online sales, or physical operations—the complexity of complying with state tax laws increases exponentially. Every state has its own rules for determining nexus, taxing income, and enforcing sales and use tax compliance. For tax professionals, staying ahead of these evolving requirements is critical to managing risk and identifying tax-saving opportunities.

This session by tax attorney, Nicholas Preusch, CPA, JD, LLM, provides a detailed overview of the state and local tax (SALT) landscape. Participants will explore key topics such as economic and physical nexus, apportionment and allocation of income, and the impact of landmark cases like Wayfair on sales tax compliance. The course will also cover strategies to reduce state tax liabilities, including credit utilization and voluntary disclosure agreements.

With an emphasis on practical application and real-world case studies, the course equips professionals to better advise clients or their businesses on multi-jurisdictional tax issues.

Webinar Objectives

By the end of the course, participants will be able to:

• Determine nexus and understand how it affects tax obligations across various states.
• Apply state income tax apportionment and allocation rules to multi-state business activities.
• Navigate the complexities of sales and use tax compliance in the post-Wayfair environment.
• Identify strategies to reduce tax exposure, including use of credits, exemptions, and planning tools.
• Keep pace with recent and upcoming changes in state tax laws and their potential impact.

Webinar Agenda

• Introduction to Multi-State Taxation
  • Overview of the state and local tax (SALT) landscape
  • The growing complexity of state tax compliance with business expansion
• Understanding Nexus: The Foundation of State Tax Obligations
  • Defining economic and physical nexus
  • How nexus impacts tax obligations across multiple states
  • Landmark cases, including the Wayfair decision, and their impact on nexus
• Apportionment and Allocation of Income in Multi-State Operations
  • Key principles of apportionment and allocation
  • Applying state income tax apportionment rules to business activities across states
• Sales and Use Tax Compliance Post-Wayfair
  • Navigating the complexities of sales tax compliance in the new environment
  • Key challenges and opportunities for businesses with multi-state sales
• Strategies for Reducing State Tax Liabilities
  • Credit utilization and exemptions to minimize tax exposure
  • Voluntary disclosure agreements and their role in reducing penalties
• Recent Changes and Upcoming Developments in State Tax Laws
  • Keeping up with evolving state tax regulations
  • Anticipating future trends in state tax compliance
• Practical Applications and Case Studies
  • Real-world case studies of multi-state tax challenges and solutions
  • How to apply session content to advising clients or managing business tax issues
• Q&A and Wrap-up
  • Addressing participant questions and providing additional resources

Webinar Highlights

• Comprehensive Overview: Gain an in-depth understanding of the SALT landscape and how business expansion impacts tax obligations.
• Nexus and Apportionment: Learn how nexus affects state tax responsibilities and how to apply income apportionment rules to multi-state activities.
• Wayfair and Sales Tax: Understand how the Wayfair decision reshapes sales and use tax compliance and what this means for businesses with online sales.
• Tax Saving Strategies: Discover practical strategies for reducing state tax liabilities, including using credits, exemptions, and voluntary disclosure agreements.
• Real-World Case Studies: Explore real-world examples of multi-state tax challenges, with practical solutions that you can apply to your clients or business.
• Up-to-Date Information: Stay informed about the latest state tax law changes and how they impact compliance and planning.

Who Should Attend

It is ideal for CPAs, tax consultants, corporate finance teams, and anyone involved in state tax planning or compliance.