Recordkeeping is the best defense against interstate tax rules

Public Law 86-272 — a 1959 federal law that limits states’ ability to impose income taxes on interstate commerce — is set to present new challenges to taxpayers in the age of online commerce. As the existing law comes under increased examination, businesses need to understand several proposed changes and should take steps to protect themselves against new tax obligations arising from recent guidance and associated state laws.

Additionally, companies should be aware that a handful of states have already modified their interpretation of protected and unprotected activities in response to guidance from the Multistate Tax Commission.

Read more at Bloomberg Tax.