Nexus Studies

The threshold issue for most, if not all, state and local tax matters is that of nexus.

“Nexus” is just a term for describing when a business’s contacts with a state are sufficient to create a filing obligation.  Unfortunately, nexus is one of the more misunderstood concepts in state taxation, largely because it is constantly evolving, and every state has its own provisions for what creates nexus.  The activities that create nexus can differ not just from state to state, but from tax to tax, and business to business to business. Being unaware of where you have a filing responsibility can lead to large assessments when state auditors come calling.  Thus, it is crucial for businesses to know where they need to file returns.

We don’t believe in cookie-cutter, one-size fits all solutions.  In order to address the varied state tax issues businesses face, our nexus studies take a holistic approach, covering not just where a company has nexus, but the taxability of its revenue streams, how to remediate exposure due to historical noncompliance, and proper set up for prospective compliance.  Our multi-phased process gives us the flexibility to customize our procedures to fit our clients’ needs – both technical and budgetary.