Nexus Study

Definition

A formal written analysis conducted by a CPA or tax advisor to determine whether a business has established sufficient connection (nexus) with one or more states to trigger tax filing, registration, or collection obligations. The study reviews factors such as economic nexus thresholds, physical presence, and applicable protections like Public Law 86-272 across multiple jurisdictions. A properly documented nexus study creates a defensible record that can withstand audit scrutiny.