Bass, Berry & Sims attorneys Mike Sontag, Steve Jasper and Michael Cottone authored an article for State Tax Notes examining the current state of due process nexus for taxation and proposing a standard that prevents a state from imposing tax compliance burdens that significantly outweigh the benefits a taxpayer receives from the state. Though due process nexus has taken a back seat to commerce clause nexus following the Supreme Court’s 1992 decision in Quill, this may change dramatically once the Court issues its decision in Wayfair this term. As the authors point out, though, “taxpayers should remain aware that the due process clause may provide a new path forward” to challenge increasingly broad economic nexus laws and reporting requirements regardless of how Wayfair is decided.

The full article, “New Horizons in Due Process Nexus,” was published by State Tax Notes on June 18, 2018, and is available online (subscription required).