Physical Presence No Longer Required!


In the recent U.S. Supreme Court case South Dakota v. Wayfair, the court determined that the mere “economic presence” in a state can be used to establish nexus for sales tax, even when the vendor has no physical presence. This decision overturned the long-standing law under the famous case of Quill Corp. v. North Dakota stating that “the physical presence rule of Quill is unsound and incorrect.” Economic presence can be met by surpassing an established threshold such as a certain number of transactions or an amount of sales in that state. Each state will have the ability to set their own thresholds and it may take some states longer to respond to this court ruling than others. Contact us to determine if your business will be impacted.

About Padgett Team

Our firm is a leader in outstanding accounting, tax payroll and business services. Our dedication to the 3 dominating business requirements of Professionalism, Timeliness and Excellence dictate the day-to day service we provide equally to each client. No small business is too small.

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