Question

1) The principles of the Commerce Clause are:

a. Separation of Powers

b. Rule of Law

c. Individual rights

d. All of the above

(2) The Unitary principle is

a. When a group of commonly owned companies file separate returns

b. When a group of commonly owned companies files one return

c. When a group of companies which are not related files one return

d. When a single entity files a separate return

(3) The throwback rule requires that:

a. All income is apportioned to Connecticut

b. Sales of services are attributed to the state of commercial domicile

c. Sales of tangible personal property are attributed to the state where they originated,

if the taxpayer is not taxable in the state of destination.

d. All of the above

(4) Mobil Oil Corporation is a:

a. Unitary business case

b. A sales and use tax case about nexus

c. A personal jurisdiction case

d. A case related to the import export clause

(5) Which case involves the commerce clause and recently overruled a bellwether sales and use tax case (Quill).

a. Wayfair

b. National Bellas Hess

c. IBM

d. JC Penney

(6) In which of the following would the company potentially have a filing obligation in a state?

a. Home office employee

b. Manufacturing and distribution facility

c. Sells over $100,000 into a state via the internet

d. All of the above

(7) Which of these would you see in state and local tax practice?

a. Silent Commerce Clause

b. Quiet Commerce Clause

c. Dormant Commerce Clause

d. False Commerce Clause

(8) The requirement of notice or fair warning (minimum connection) is found in what clause?

a. Equal Protection

b. Due Process

c. Commerce

d. None of the above

(9) What is PL 86-272?

a. Was enacted in 1989

b. Allows a business to have representatives in a state solicit sales of goods without being subject to an

income tax

c. Creates nexus for a company when salespeople enter a state or attend a tradeshow

d. Inhibits interstate commerce

(10) Which is not a nexus standard?

a. Economic

b. Physical Presence

c. City level

d. Agency

(11) Complete Auto has 4 prongs. Which of the following is not a prong of the test?

a. Nexus

b. Fair apportionment

c. Discrimination

d.Unitary

(12) What concept in the first few modules would you like to hear more about or get a better explanation about ________________? (Please fill in the blank)

Answer 1

1. The answer is Option D. The principles of commerce law are Separation of powers Rule of law, Individual rights, Fedaralism and Republicanism.

2. The answer is Option B. When a group of commonly owned people files a single return. The concept of unitary principle comes from the concept of unitary business group where the businesses are vertically or horizontally intergrated to each other. If a corporation has its divisions both within and ouside the state , then the state can ask corporation to compute combined income of its operations based on the formula of apportionment.

3. The answer is Option B. Throwback rule came into picure to eliminate no where sales and assign them to originating state, there by reducing tax avasaion.

4. The answer is Option B. The case i sabout sales and use tax case.

5. The answer is Option A. Wayfair. The case discusses on the question whether slaes retailers have to collect sales tax on online Purchases or not.  

7. The answer is Option C. The state and local tax practice uses Dormant commerce clause.

8. The answer is B. It is found in due process clause.