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hb_71
New Member

My e commerce education services business is registered in WY with services provided nationwide. I reside in CA. Where do i enter this info?thanks

 
2 Replies
Mike9241
Level 15

My e commerce education services business is registered in WY with services provided nationwide. I reside in CA. Where do i enter this info?thanks

how are the services provided? do you have a physical presence in the state where and when providing these services?  if the answer to the second question is yes, I suggest you not even try to use Turbotax. it's not designed to handle your multistate taxation issue. seek the help of a tax pro. your presence in a state when providing services probably subjects you to that state's income tax laws (just like ballplayers who have to file income tax returns in every state they play a game in that has a personal income tax - that's right some have to file state income tax returns in 20 or more states) 

 

Rick19744
Level 12

My e commerce education services business is registered in WY with services provided nationwide. I reside in CA. Where do i enter this info?thanks

While physical presence is still a significant determining factor for nexus, as commerce has evolved with the internet, states are also focusing on economic nexus.

Economic nexus is way beyond the scope of this forum as it varies by state.

As a result of the above, I would also recommend a one on one with a tax professional proficient with multi-state tax understanding.  Not all tax professional are proficient in this area, as some may only have exposure to one or two states in the area of their practice.  So make sure you specifically ask the question.

This is a significant issue and not one to be penny wise pound foolish. 

Failure to file a tax return in a state means that the statute of limitations never begins.  This means the usual 3 or 4 year statute of limitations does not apply.  So if you have had economic nexus in a state for 5, 7, 10 years and have not filed a return, the state can require you to go back to the first year that the business has economic nexus and file returns for all open years.

 

*A reminder that posts in a forum such as this do not constitute tax advice.*

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