A nexus in general means a connection. The term nexus is used in tax law to describe a situation in which a business has a “nexus” or presence in a state and is thus subject to state income taxes and to sales taxes for sales within that state. Nexus describes the amount and degree of business activity that must be present before a state can tax an entity’s income. If a taxpayer has nexus in a particular state, the taxpayer must collect/remit taxes in that state.
For example, I live in Washington State, so if I sell something to someone in Washington State, then I have to collect and pay sales tax on that sale. But if I sell something to someone in Oregon, New York or any other state then I can basically ignore the sales tax.
That has always been the law until recently. States are cracking down and looking for ways to claim a nexus –a connection that they can use to make you collect and pay sales tax in their state. and they are getting quite clever about it. Diane Kennedy is a CPA and an expert on nexus issues.
If you sell products or services to anyone who lives outside your home state, then please make note of this date: Saturday, November 20, 2010.
On Saturday, November 20th, at 9 am Pacific, 1 pm Eastern, Diane will be joined by Megan Hughes for a FREE! teleseminar on “Nexus Strategies to Reduce Tax”
Here’s what they will cover in this NO HYPE 60 minute teleseminar.
Learn how to:
- Avoid nexus traps you into another state’s tax system
- Protect yourself from guerrilla nexus tactics by broke states
- Use 5 steps to protect yourself against double taxation due to nexus
- How to avoid thousands of dollars in penalties & fines, if you have a past problem
- Use nexus to REDUCE your current tax
Who should a ttend this FREE! teleseminar on Saturday, November 20th?
You may have a nexus issue if:
- You sell over the Internet
- You provide coaching, consulting or other services over the phone or Internet
- You give-away eBooks or audio recordings
- You present at trade shows
- You work in other states
- You have employees in other states
- You have catalog sales
- You speak at seminars
- You host your website in another state
- You are an affiliate marketer
- You sell digital downloads
Remember “Nexus Strategies to Reduce Tax” is FREE! and NO HYPE! Sign Up Now!
Here are some other examples of how nexus is affecting small online businesses:
- Rhode Island recently shut down hundreds of businesses who had failed to pay taxes, even though NONE was due! Why? And more importantly, how can you protect yourself against aggressive states reaching into your home state?
- California is aggressively pursuing businesses in other states and their bank accounts. Most states are letting them sweep out bank balances, with little or no notice.
- Nexus can be your tax friend, or your tax enemy. Learn more Saturday “Nexus Strategies to Pay Less Tax”