Arkansas tax assessment shows how easy it is to create nexus
Reminder: The location of your independent contractors or remote employees can create nexus for you in various states. One taxpayer learned this the hard way after being assessed for sales tax in Arkansas, according to Allyn Tax News.
Although an employer claimed it didn’t have nexus in the state since it had no physical presence in Arkansas, the Dept. of Revenue said otherwise.
Because the employer worked with both employees and independent contractors headquartered in Arkansas, that was enough to establish nexus, per the department. So the employer had to pay use tax owed for each month it worked with those contractors and employees.
It’s key that you’re aware of the physical location of all your employees and contractors so you’ll know if you’re creating nexus and have sales and use tax – or other tax obligations – in these states.
- Share on
Free Training & Resources
Further Reading
No matter where entrepreneurs decide to start a business, they face a variety of taxes and regulations that cut into the bottom line from t...
After the flood of new e-commerce sales tax rules in the five years since the South Dakota v. Wayfair Supreme Court decision, this may be t...
The provision in the 2017 Tax Cuts & Jobs Act calling for a one-time tax on foreign investments survived an appeal to the Supreme Court...
Another April 15 came and went, leaving many of us poorer and grumbling about government spending. For business owners and the CFOs and con...
The U.S. Supreme Court (SCOTUS) handed down enough precedent-breaking decisions this spring to make anyone’s head spin. The upshot: B...
The IRS is extending an olive branch to businesses that received tax credits related to COVID-19 in error. The tax cops are launching a ...
