operate. We have found that most businesses undertake some action that falls outside of Public Law 86-272’s protection and therefore cannot rely on it. For example, California recently issued guidance which states that “regularly providing post-sale assistance to California customers via either electronic chat or email” constitutes an activity that exceeds the protection of Public Law 86-272. A business that undertakes this activity would thus not qualify for Public Law 86-272 protection, at least according to the state of California. When Does Nexus Come Up? We most often see nexus issues arise in two ways. First, a company receives correspondence from a state that tries to initiate a nexus audit or asserts tax is due without an audit. Because the statute of limitations does not start in most states until a tax return is filed, we’ve seen states go back a number of years in these letters and assert significant amounts of tax owed. Second, buyers of a business often review potential state tax obligations when they purchase that business, as part of their due diligence. Many buyers will require businesses go back and pay state income taxes that may be due from past transactions, so they would not have to worry about past liabilities. We work closely with CPAs in both these situations to help evaluate potential tax liabilities and advise clients on the best ways to handle nexus issues. Nick Niemann and Matt Ottemann are partners with McGrath North Law Firm. As state and local tax and incentives attorneys, they collaborate with CPAs to help clients and companies evaluate, defend, and resolve tax matters and obtain various business expansion incentives See their websites at www.NebraskaStateTax.com and www.NebraskaIncentives.com for more information. For a copy of their full publication, The Anatomy of Resolving State Tax Matters, or their Nebraska Business Expansion Decision Guide, please visit their websites or contact Niemann or Ottemann at (402) 341-3070 or at nniemann@mcgrathnorth.com or mottemann@mcgrathnorth.com. Our experienced estate planning pros are here to help you and your clients navigate the legal ins and outs of wealth transfer taxes. Wills,Trusts and Estates endacotttimmer.com 402-817-1000 Your wealth transfer tax professionals. I S S U E 5 , 2 0 2 2 20 nebraska cpas
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