MULTI-STATE TAX NEXUS QUESTIONNAIRE

COMPREHENSIVE STATE TAX NEXUS ANALYSIS

COMPANY INFORMATION

Legal Entity Name: [FULL LEGAL NAME]

DBA (if any): [DBA NAME]

Federal EIN: [EIN]

State of Incorporation/Formation: [STATE]

Principal Place of Business:
[STREET ADDRESS]
[CITY, STATE ZIP]

Fiscal Year End: [DATE]

Entity Type:
☐ C Corporation
☐ S Corporation
☐ Partnership/LLC (partnership taxation)
☐ LLC (disregarded entity)
☐ Sole Proprietorship
☐ Other: [DESCRIBE]

NAICS Code: [CODE]

Primary Business Activity: [DESCRIPTION]

Analysis Period: [FROM DATE] to [TO DATE]

SECTION 1: CORPORATE STRUCTURE

1.1 Parent Company (if applicable):
- Name: [NAME]
- State of Incorporation: [STATE]
- Ownership Percentage: [%]

1.2 Subsidiaries and Affiliates:

1.3 Is the company part of a combined/consolidated reporting group?
☐ Yes - List states: [STATES]
☐ No

SECTION 2: PHYSICAL PRESENCE NEXUS

Complete for each state where activities occur:

2.1 Real Property Owned or Leased:

2.2 Tangible Personal Property:

2.3 Inventory in State:

SECTION 3: EMPLOYEE AND CONTRACTOR PRESENCE

3.1 Employees by State:

3.2 Remote/Telecommuting Employees:

3.3 Independent Contractors:

3.4 Traveling Employees:

SECTION 4: SALES AND USE TAX - ECONOMIC NEXUS

4.1 Sales by State (Tangible Personal Property):

4.2 Economic Nexus Thresholds (2026):

Note: Economic nexus thresholds vary by state and may change. Verify current thresholds for each state.

4.3 Marketplace Sales:

☐ Company sells through marketplace facilitators (Amazon, eBay, etc.)
- Marketplaces used: [LIST]
- States where marketplace collects tax: [LIST]

☐ Company is a marketplace facilitator

SECTION 5: INCOME TAX NEXUS - FACTOR PRESENCE

5.1 State Income/Franchise Tax Nexus Triggers:

Physical Presence:
| State | Property | Payroll | Sales | Other Presence |
|-------|----------|---------|-------|----------------|
| [STATE] | $[AMOUNT] | $[AMOUNT] | $[AMOUNT] | [DESCRIBE] |
| [STATE] | $[AMOUNT] | $[AMOUNT] | $[AMOUNT] | [DESCRIBE] |

Economic/Factor Presence Thresholds:

5.2 P.L. 86-272 Protection Analysis:

For states where only solicitation of orders for tangible personal property occurs:

☐ Activities are limited to solicitation of orders for tangible personal property
☐ Orders are sent outside the state for approval
☐ Orders are filled from outside the state

Activities that exceed P.L. 86-272 protection:
☐ Approval or acceptance of orders in state
☐ Collection on accounts in state
☐ Installation or repair services
☐ Technical assistance or training
☐ Property stored in state (beyond samples)
☐ Credit investigations
☐ Maintenance of office or place of business
☐ Website interactivity exceeding solicitation (varies by state)
☐ Other: [DESCRIBE]

SECTION 6: SERVICE ACTIVITIES

6.1 Services Performed:

6.2 Digital Products and Services:

☐ Company sells digital products (software, downloads, streaming)
☐ Company provides SaaS or cloud-based services
☐ Company provides digital advertising services
☐ Company provides data processing services

Digital Revenue by Customer Location:

SECTION 7: AFFILIATE/ATTRIBUTIONAL NEXUS

7.1 Related Entities in State:

7.2 Agreements with In-State Entities:

☐ Licensing agreements with entities in state
☐ Franchise agreements
☐ Distribution agreements
☐ Referral/affiliate agreements
☐ Shared services agreements

Details:
[DESCRIBE ANY AGREEMENTS THAT MAY CREATE ATTRIBUTIONAL NEXUS]

SECTION 8: SPECIFIC STATE CONSIDERATIONS

8.1 California:
- Sales into California: $[AMOUNT]
- Property in California: $[VALUE]
- Payroll in California: $[AMOUNT]
- Doing business test: ☐ Met ☐ Not Met
- Sales factor threshold ($500,000+): ☐ Yes ☐ No

8.2 New York:
- Sales into New York: $[AMOUNT]
- Number of transactions: [#]
- Economic nexus (sales $500K+ AND 100+ transactions): ☐ Yes ☐ No
- Physical presence: ☐ Yes ☐ No

8.3 Texas:
- Taxable entity (gross revenue > $2.47M): ☐ Yes ☐ No
- Texas franchise tax margin: $[AMOUNT]
- Sales tax nexus: ☐ Yes ☐ No

8.4 Other Key States:
[ADD ANALYSIS FOR OTHER RELEVANT STATES]

SECTION 9: PAYROLL TAX NEXUS

States where employees work:

Remote Worker Considerations:
- States where employees work remotely: [LIST]
- Employer convenience vs. necessity rules: [ANALYSIS]

SECTION 10: VOLUNTARY DISCLOSURE CONSIDERATION

States where nexus may have existed without compliance:

Voluntary Disclosure Agreements (VDA):
☐ Company is considering VDA for past non-compliance
☐ Company needs to prospectively register only

SECTION 11: NEXUS SUMMARY AND RECOMMENDATIONS

States Where Nexus Exists:

Recommended Actions:

1. [RECOMMENDATION 1]
2. [RECOMMENDATION 2]
3. [RECOMMENDATION 3]

SECTION 12: CERTIFICATION

I certify that the information provided in this questionnaire is accurate and complete to the best of my knowledge. I understand that this questionnaire is for nexus analysis purposes and does not constitute tax advice or a final determination of state tax obligations.

Completed By: ___________________________________

Title: [TITLE]

Date: [DATE]

Company: [COMPANY NAME]

IMPORTANT NOTES

1. Consult Tax Advisor: This questionnaire is for informational purposes. Consult a qualified tax professional for nexus determinations and compliance advice.

2. Threshold Changes: Economic nexus thresholds change frequently. Verify current thresholds before relying on this analysis.

3. State-Specific Rules: Each state has unique nexus rules. This questionnaire provides general guidance but does not cover all state-specific requirements.

4. Wayfair Impact: Since South Dakota v. Wayfair (2018), all states with sales tax have adopted economic nexus standards for sales tax.

5. P.L. 86-272 Changes: Several states have issued guidance expanding activities that exceed P.L. 86-272 protection, particularly for digital activities.

6. Record Retention: Maintain records supporting nexus positions for at least 7 years.

This template is provided for informational purposes and should be reviewed by qualified tax counsel.