Businesses: Beware of "Nexus"

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In a January article in the Portland Business Journal, Stoel Rives attorney Kim Risenmay discussed what businesses can do to protect themselves from unexpected tax liability. Under the legal concept of "nexus," which states that companies that do business in a state are subject to that state's tax laws, the State of Washington is investigating businesses that have not paid the required taxes. Recently, Portland retailer Mattress World closed its doors after receiving a $2 million tax bill from the State of Washington that the company incurred by making mattress deliveries in Washington.

Risenmay suggests businesses should anticipate they will have a tax obligation if they do business in another state. He added that although most nexus cases do not force a business to close, they can be costly.

Click here to read the article.

"Portland's Mattress World learned a tough lesson" was published by the Portland Business Journal on January 13, 2012.

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