Nexus And State Tax Due Diligence


Table of Contents

I. Introduction...1

II. General Nexus Standards ... 2

A. Registration To Do Business...2

B. Nexus For State Tax Purposes ... 3

1. Nexus for Texas Franchise Tax Purposes... 3

2. Leniency for Texas Trade Shows... 4

3. Nexus For State Income Taxes and The Impact of Public Law 86-272 ... 4

4. Nexus for State Sales and Use Tax Purposes... 5

III. Nexus Due Diligence For Acquisition of a Business... 6

A. Due Diligence Checklist ... 6

B. Successor Liability Statutes ... 6

C. Tax Clearance Certificate Practice in Texas ... 7

Appendix 1 FASB Summary of Interpretation No. 48 Accounting for Uncertainty in Income Taxes-an Interpretation of FASB Statement No. 109 (Issued 6/06)

Appendix 2 Determining Whether Foreign Entity Must Register with the Texas Secretary ofState to Transact Business in Texas

Appendix 3 Nexus for Texas Franchise Tax Purposes

Appendix 4 SAMPLE - State Tax Due Diligence Checklist forAcquisition Target

Please see full publication below for more information.

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