Could New MTC Draft Guidance Mean The End Of P.L. 86-272 Immunity?

The Interstate Income Act of 1959, a.k.a. Public Law 86-272, allows a business to enter a state (or send representatives to that state) to solicit orders for goods without being subject to a net income tax. As you might imagine, the advent of the internet created some interesting questions regarding application. The Multistate Tax Commission (MTC) is updating its Public Law 86-272 guidance to address internet activities. Given this guidance was last updated in 2001, few would argue an update isn't overdue, but those same people might find the potential scope of the new draft guidance...