35. Kashi Corporation is the U.S. distributor of fencing (sword fighting)

equipment imported from Europe. It is incorporated in Virginia and headquartered in Arlington, Virginia; it ships goods to all 50 states.

Kashi’s employees attend regional and national fencing competitions where they maintain temporary booths to market their goods. Determine whether Kashi has income tax nexus in the following situations:

a. Kashi is incorporated and headquartered in Virginia. It also has property, employees, salespeople, and intangibles in Virginia.

Determine whether Kashi has income tax nexus in Virginia.

b. Kashi has employees who live in Washington, D.C., and Maryland but they perform all their employment-related activities in Virginia. Does Kashi have income tax nexus in Washington, D.C., and Maryland?

c. Kashi has two customers in North Dakota. It receives their orders over the phone and ships goods to them using FedEx. Determine whether Kashi has income tax nexus in North Dakota.

d. Kashi has independent sales representatives in Illinois who distribute fencing and other sports-related items for many companies. Does Kashi have income tax nexus in Illinois?

e. Kashi has salespeople who visit South Carolina for a regional fencing competition for a total of three days during the year. They send all orders to Virginia for credit approval and acceptance, and Kashi ships the goods into South Carolina by FedEx. Determine whether Kashi has income tax nexus in South Carolina.

f. Kashi has sales reps who visit California for a national fencing competition and several regional competitions for a total of 17 days during the year. They send all orders to Virginia for credit approval and acceptance. The goods are shipped by FedEx into California.

Does Kashi have income tax nexus in California?

g. Kashi receives online orders from its Pennsylvania client. Because the orders are so large, the goods are delivered weekly on Kashi’s trucks.

Does Kashi have income tax nexus in Pennsylvania?

h. In addition to shipping goods, Kashi provides fencing lessons in Virginia and Maryland locations. Determine whether Kashi has income tax nexus in Virginia and Maryland.

i. Given that Kashi ships to all 50 states, are there locations that would decrease Kashi’s overall state income tax burden if income tax nexus were created there?