Due to limited resources and manpower, state taxing authorities approach audits and tax collection more aggressively than their federal counterparts.
Proper planning can uncover tax-saving opportunities and minimize potential liabilities.
If a business operates in more than one state or the business sells to customers in multiple states, the business is a multi-state business. Simply put, nexus is the degree of presence or activity required by a business within a state before the state has the legal authority to impose a tax on the business. Nexus or no nexus, that is the question. State and local taxing agencies are seeking to collect more revenue and are aggressively trying to expand what constitutes nexus within their jurisdiction. However, nexus for one state may not be nexus in another.