Archives for September 2024

What’s the Connection? The Far-Reaching Implications of Tax Nexus by Robert L. Rojas and J. Michael Pusey Reprinted from  Tax Notes State, April 15, 2024, p.  207 General Nexus at Its Root The term “nexus” basically deals with connections and when a taxpayer or the taxpayer’s entities have tax paying or reporting responsibilities. With the sales tax, the business is not the taxpayer but the collector and remitter of the tax. These nexus responsibilities usually focus on paying or collecting tax, but the concept can also address when reporting or filing is necessary. One dictionary source defines nexus as “a bond, link, or junction; a means of connection between things or parts; (also) the state of being connected or linked.”1 In our context, nexus is basically the point at which you (or yours) and taxes get connected. The term might be seen as the “tie that binds” the taxpayer to the tax collector. Arizona, for example, defines the term as “the connection required to … [Read more...] about Tax Nexus