Fillable Form Nexus - Nexus Questionnaire (Page 9 of 9) in pdf

Form NEXUS

What is the purpose of this form? This form is

Instructions

designed to assist the department in determining

If you answer “Yes” to any question on this form, you

whether your entity’s Montana activities are sufficient

will have to include a brief explanation and any other

to require the payment of Montana income tax. Please

applicable information in the space provided on the

do not simply assert the lack of nexus under Public

last page. Number each explanation to agree with the

Law 86-272 when completing the questionnaire.

part and number of the question answered. Please

We ask that those who are most familiar with the

include additional pages if needed.

activities associated with each question complete

Part I. General Questions

and sign the questionnaire. The questions regarding

employees refer only to those employees, sales

If you have communicated with a representative

representatives, and/or independent contractors

from the Department of Revenue, enter the

who perform activities within Montana, regardless

representative’s name on line 1.

of each employee’s domicile or office location. Our

You will need to answer all of the questions.

questions pertain to the employee’s physical presence

in Montana; they do not pertain to activities performed

Part II. Sales

outside the state.

Answer all the following questions as they relate to

What is Public Law 86-272? For a state to tax

the corporation’s sales in Montana during the past ten

income earned in interstate commerce, it must be

years.

able to show a connection – or nexus – between

Part III. Property

the state and the activities from which the income is

derived. The federal Interstate Income Act of 1959,

Answer all the following questions as they relate to

also known as Public Law 86-272, prevents a state

the corporation’s property in Montana during the past

from imposing an income tax on income derived

ten years.

within the state from interstate commerce if the only

business activity within the state is the solicitation of

Part IV. Payroll

orders for tangible personal property, provided that

Answer all the following questions as they relate to

the orders are approved and filled outside the state.

the corporation’s payroll in Montana during the past

To be exempt from taxation under the protection

ten years.

of Public Law 86-272, the activities of a foreign

Part V. Other

corporation within the state of Montana must be

limited to the solicitation of orders within the state, the

Answer all the following questions as they relate to

orders must be sent outside Montana for approval

the corporation’s activities in Montana during the past

or rejection, and approved orders must be filled by

ten years.

shipment or delivery from a point outside Montana.

Mail this form to:

Please note that any sales that are made into

Montana Department of Revenue

Montana that are under the protection of Public Law

Business Tax & Valuation

86-272 remain subject to throwback rules to the

P.O. Box 5805

appropriate state that does have jurisdiction to impose

Helena, MT 59604-5805

its net income tax upon the income derived from those

sales.

Questions? Please e-mail us at DORNexus@mt.gov

For additional information regarding Public Law 86-

or call us toll free at (866) 859-2254 (in Helena,

272, please refer to Administrative Rules of Montana

444-6900).

42.26.501 through 42.26.511.

Please note: If your activities in the state are not

the sale of tangible personal property, you are not

protected under the provisions of Public Law 86-272.

Form Nexus - Nexus Questionnaire Page 9

Related Articles

Related forms

Related Categories