Bass, Berry & Sims attorney Steve Jasper spoke at the Paul J. Hartman State and Local Tax Forum on October 28 as part of a panel focused on state tax nexus and the new guidance recently released by the Multistate Tax Commission (MTC) related to “whether internet business activities exceed federal protections against state income tax centers on whether the activities are truly taking place within the taxing state.” A recap of the panel was published by Law360 and State Tax Notes.
The controversy in the new guidance centers around whether an internet cookie – the identifying piece of data used to identify the computer when using a computer network – can be considered as business conducted in the state.
“Whether that cookie creates a connection to the state is highly debatable,” Steve told Law360. “The MTC is now acting like a cookie is a miniature employee of a company.”
During the discussion, Steve also cautioned that “the false simplicity” of bright-line factor presence thresholds could still create compliance and filing problems for businesses.
The full articles are linked below:
- “Online Biz Tax Shield May Have New Weak Spots, Pros Say,” Law360 (October 28, 2021)
- “Practitioner Sees States Moving Toward Bright-Line Nexus Thresholds,” State Tax Notes (subscription required) (October 29, 2021).