job offer revoked because of taxes

[swalsh411]

Revenue generation is irrelevant. The payroll alone would necessitate the income tax requirement depending on the work. In many states (not IL) the type of work is ALSO irrelevant for business tax purposes where the tax is an excise or capital based tax. By the way, the exemption for soliciting sales only applies to tangible personal property and not intangible property or services.

The exemption for soliciting tangible sales only applies to income and not franchise/capital taxes. For instance, in MA the OP's prospective employer would be obligated to file a corporate return regardless as corporate excise tax is based on the greater of apportioned income, excise on tangible property in the state, or apportioned net worth.

I disagree. An employee in a non-revenue generating position (for example, if they were hired to review internal control documents for SOX compliance) would not require the employer file an income tax return.

 

[davew128]

I disagree. An employee in a non-revenue generating position (for example, if they were hired to review internal control documents for SOX compliance) would not require the employer file an income tax return.

Then you would be free to argue your incorrect position with the 47 states that impose a corporate income tax. The fact is, physical presence establishes nexus for income tax purposes unless otherwise protected by PL 86-272. I don't need to review the law to know that clerical work is NOT protected.