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How to Handle Nexus Inquiries

 
Currently in 2014 State Income Tax Nexus has ruled that no physical presence is required. With the prevalence of Internet sales, a company may have locations in a limited number of states, even as they do business with customers from every state. It is up to each state to communicate their policy regarding how they intend to enforce the Nexus law. Amazon.com is the perfect online retailer to examine, due to their huge Internet presence. So far, the company is collecting sales tax in 21 different states under different interpretations of the Affiliate Nexus Law.