TAX 9866 Lecture Notes - Lecture 22: Mail Order, Due Process, Antonin Scalia
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May not be clear to ppl b/c diff factors enter into it. Ultimately yes or no/ nothing in the middle. Either have it or don"t have nexus. That"s how court will determine issue (binary: yes, no) Up till quill, a law was a little uncertain. Ppl thought it was due process clause alone. After quill, court came up w/ new standard, two nexus clauses both have to be satisfied in order for corp to be subject to taxes in particular state. Due process: not a very heavy burden. Commerce clause nexus: much tougher standard for states to gain over people. Hey, did this company file tax returns they should have. If filed and made a mistake, it still is a problem but of limited duration. B/c govt has normally 3 years sol (which can be extended) to look @ problem (lesser concern). Only exposed for last 3 years of filing, beyond that govt cannot open it up.