For Immediate Release
February 24, 2003
ILLINOIS AMENDS ITS NEXUS RULES FOR CORPORATE INCOME TAX COMPLIANCE
Effective November 18, 2002, a nonresident taxpayer that participates in “unprotected activities”, as defined in P.L. 86-272 and enumerated in the Illinois regulation, will be subject to Illinois income tax if one or more of the activities are conducted within Illinois.
Formerly, the regulation read “if one or more of the
activities are to the solicitation of orders conducted in Illinois.”
Some of the unprotected activities are:
- Making
repairs or providing maintenance or services to TPP sold;
- Installation
or supervision thereof at or after shipment or delivery;
-
Approving or accepting orders;
Picking up or replacing damaged or returned property;
- Hiring,
training, or supervising personnel other than personnel involved only
in solicitation;
- Consigning
a stock of goods for sale to any person, including independent contractors;
- Conducting
training courses or seminars for personnel other than personnel involved
only in solicitation of sales of TPP;
- Investigating
credit worthiness, collecting current or delinquent accounts;
- Providing any kind of technical assistance or services, such as engineering or design service.
For a complete list of unprotected
activities, see 86 Ill. Adm. Code 100.9720.
If you would like additional information on this topic or have any questions,
please contact J. Lynne Fontana, Regional Vice
President - Sales & Use Tax Group at (281) 578-3700. E-mail lfontana@thesaltgroup.com
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