By James O’Rilley, CPA, MST, Tax Shareholder

The verdict on the South Dakota vs. Wayfair case changed the nature of how states will treat sales activity moving forward, presenting businesses with a new challenge – how to remain in compliance with economic nexus legislation in each state.

With nearly all 50 states adopting economic nexus policies prior to the Wayfair ruling, sellers can only expect to see tax rules and regulations continue to evolve across each state throughout the rest of 2019 and beyond. This ruling may also trigger other broad interpretations of the tax code, and states may soon begin to explore other tax-collecting opportunities for their states from remote sellers. As a result, businesses should begin to closely monitor their cross-state sales activity and follow the related rules and regulations to ensure they remain in compliance and are prepared to cooperate.

Economic Nexus Guide

Understanding economic nexus for each state can be complex, as economic (and qualifying activities) and transaction thresholds vary by each state. The Economic Nexus Guide provides a high-level overview of each state’s current legislation on economic nexus (where applicable). Click here to download the guide now.

What’s Next?

These new nexus standards are being continually updated and adopted based on the Wayfair decision, and businesses with out-of-state activity should exercise care to ensure the most current rule is being reviewed.

Doeren Mayhew continues to monitor the moving patterns of economic nexus and understand its impact on clients. While our tax advisors can help you identify whether your business may have economic nexus, preparing and filing these returns is beyond our scope of services. Rest assured, we have access to several resources and third-party advisors across the nation to help you develop a cross-state nexus strategy and ensure compliance. To learn more or obtain assistance, contact us today.