Income Tax Apportionment Issues for Multistate Businesses

This program will identify key income tax concepts and considerations for multistate businesses. In this time of internet sales and remote work, businesses rarely operate within a single state. Their customers and their employees are frequently scattered across state lines, raising concerns about a business's income tax obligations in those states. Whether a business is required to file an income tax return in a particular state depends on whether it has nexus in that state, but nexus can rest on physical or economic presence. How much income tax a business much pay depends on its entity type and the state's apportionment rules. This course, presented by Elizabeth Pascal, Partner at Hodgson Russ LLP, will provide an overview of nexus and apportionment concepts, and then look at some of the different state income apportionment regimes that determine the amount of tax a business will pay in a particular state. Additionally, it will identify some of the factors that can affect apportionments, such as entity type or specialized industry.

Learning Objectives:

1. Define income tax nexus and explain how it impacts state tax obligations
2. Analyze the concept of income tax apportionment
3. Compare different state apportionment methodologies
4. Identify some of the factors that determine how a state apportions the income of various business types