McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 38

Crazy Eddie, Incorporated manufactures baseball caps and distributes them across the northeastern United States.Crazy Eddie is incorporated and headquartered in New York.It has product sales to customers in Connecticut, Delaware, Massachusetts, New Jersey, New York, Ohio, and Pennsylvania.It has sales personnel only where discussed in the scenarios below.Determine the states in which Crazy Eddie has sales and use tax nexus given the following information:
a) Crazy Eddie is incorporated and headquartered in New York.It also has property, employees, sales personnel, and intangibles in New York.b) Crazy Eddie has a warehouse in Connecticut.c) Crazy Eddie has two customers in Delaware.Crazy Eddie receives orders over the phone and ships goods to its customers using FedEx.d) Crazy Eddie has independent sales representatives in Massachusetts.The representatives distribute baseball related items for over a dozen companies.e) Crazy Eddie has sales personnel that visit New Jersey.These sales employees follow procedures that comply with Public Law 86-272.The orders are received and sent to New York for acceptance.The goods are shipped by FedEx into New Jersey.f) Crazy Eddie provides graphic design services to another manufacturer located in Ohio.While the services are performed in New York, Crazy Eddie's designers visit Ohio at least quarterly to deliver the new designs and receive feedback.g) Crazy Eddie receives online orders from its Pennsylvania client.Because the orders are so large, the goods are delivered weekly on Crazy Eddie's trucks.