Discussion Board :

Overview

Not all tax research involves federal tax issues. More and more, companies are doing business in multiple states. This means that numerous state and local tax issues are brought up by taxpayers. In this assignment, you will use a different section of RIA Checkpoint - the state/local section - to determine the nexus rules for a common state and local issue--the taxation of software licenses.

Action Items

1. Read the following problem: Bulldog, Inc. is a property tax software vendor that provides customers with a license to download and use its software on their computers. Bulldog, Inc. retains ownership of the software. It has customers in New Jersey and West Virginia.
2. Post responses to the following on the discussion board (use RIA Checkpoint to guide you in your response):
   • For income tax purposes, does Bulldog, Inc. have economic nexus in the state of New Jersey and the state of West Virginia? Use RIA Checkpoint to research your answer.
   • Provide support, with proper citations, for your response.
   • HINT: You will need to be in a different section of RIA Checkpoint than you have been in the past--not the federal section! Look for case law that will provide guidance for your response. Citations for state cases are similar to those of federal cases.