May a taxpayer have substantial nexus in the state if it does not meet the bright–line presence standards?

Yes, a taxpayer that does not meet the bright-line presence standards may have substantial nexus in the state if its contact with the state is sufficient. It is the intent of the law to require businesses with a direct or indirect connection to the state to be subject to the franchise and excise tax to the extent allowed under the Constitution of the United States. For example, a business engaged in systematic and continuous business activity in the state that has produced receipts attributable to Tennessee customers will have substantial nexus with the state.

See related articles:

What legislation was passed in 2015 that affects franchise & excise tax?

Is physical presence required to establish nexus for franchise and excise taxes?

When does the ownership of a general partnership create franchise and excise tax nexus for its owner?

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