Martin Eisenstein and David Bertoni Author Law360 Article

Managing partner Martin Eisenstein and partner David Bertoni published an article in Law360 on January 28, 2020, entitled, “MTC Panel’s Draft Tax Protection Update Is Incomplete” (subscription required). In the piece, Eisenstein and Bertoni critique the latest draft of the Multistate Tax Commission’s working group revising the Multistate Tax Compact and describing states’ interpretation of Public Law 86-272. Public Law 86-272 prohibits a state from imposing net income tax on a company if the company’s only activities within that state consist of solicitation of the sale of tangible personal property.  Both Eisenstein and Bertoni believe that activities identified by the working group that occur outside the state—including an internet seller’s operation of a website—do not constitute conduct within the state and, therefore, should not invalidate the protections afforded by this federal statute.