Devoted to Corporate Attorneys, Corporate Lawyers, and Corporate Counsel

The following is not meant to be legal advice.
The U.S. Supreme Court in Quill v North Dakota held that a company must have a physical presence in a taxing state in order for the state to be able to impose sales tax obligations on the company. 

The U.S. Supreme Court in Quill said that perhaps Congress should resolve the matter on taxing based on economic activity with legislation.  The legislation could clarify the power of states to tax economic activity under the power of Congress to regulate interstate commerce.  There has been no actions from Congress yet.

Some states think the ruling in Quill does not apply to corporate income tax. The West Virginia Supreme Court, for instance, ruled in a case that economic presence in the state was enough for tax purposes. The U.S. Supreme Court declined recently to settle the matter on whether physical presence was really required.  In the meanwhile, companies without a physical presence in a state, will continue to be at risk to pay state income taxes in states where they have economic activity.