United States

State tax planning in response to economic distress

INSIGHT ARTICLE

Businesses experiencing economic distress as a result of the COVID-19 pandemic are facing difficult decisions. From reductions in capital spending and workforce needs, to inventory stress and shortages in supply chain, careful consideration should be given to how decisions affect your organization’s state tax position.

To better navigate uncertainty and distress at the state and local level, there are a number of questions that organizations should ask if in the midst of rapidly changing organizational norms.

  • How are my income, sales tax, and other state and local tax filings and payments affected?
  • Are my previously approved state tax incentives at risk?
  • Does my increasingly remote workforce affect my state tax obligations?
  • What relief are state and local governments offering to small and mid-sized businesses in the middle market?
  • How else can we increase my organization’s cash flow?

 


The state tax insights below aim to provide planning opportunities and guidance to organizations feeling the immediate effects of a distressed economy:

Georgia updates conformity following CARES Act

Georgia updates conformity following CARES Act

Revised conformity excludes certain net operating loss and excess business loss provisions effective for 2019 tax years.

  • July 02, 2020
North Carolina decouples from CARES Act provisions

North Carolina decouples from CARES Act provisions

The state will decouple from the taxpayer-friendly interest expense and net operating loss provisions of the federal CARES Act.

  • July 01, 2020
Iowa enacts broad-based tax bill with noteworthy changes

Iowa enacts broad-based tax bill with noteworthy changes

Expansive tax bill provides taxpayer-friendly changes while balancing reduced tax revenue in the COVID-19 economy.

  • June 30, 2020
California enacts net operating loss and credit limits due to COVID-19

California enacts net operating loss and credit limits due to COVID-19

Fiscal year 2021 budget includes temporary tax changes in order to generate much needed revenue in the COVID-19 economy.

  • June 30, 2020
New York City decouples from CARES Act provisions

New York City decouples from CARES Act provisions

New York enacts legislation further decoupling New York City corporate and UBT taxes from certain CARES Act provisions.

  • June 29, 2020
Delaware extends unclaimed property VDA response deadline

Delaware extends unclaimed property VDA response deadline

Delaware notices advise businesses to either participate in the state’s unclaimed property VDA Program or be subject to an audit.

  • June 24, 2020
Employers likely to see unemployment tax rate increases in 2021

Employers likely to see unemployment tax rate increases in 2021

Depleted trust fund balances due to COVID-19 may cause state legislatures to act now to prevent further reductions.

  • June 11, 2020
Remote workforces are complicating state tax nexus and withholding

Remote workforces are complicating state tax nexus and withholding

As businesses increase the use of remote workforces, nexus and withholding determinations can greatly complicate state tax compliance.

  • June 09, 2020
Navigating sales tax bad debt is more important than ever

Navigating sales tax bad debt is more important than ever

A sales tax bad debt analysis and review can provide necessary cash flow for many businesses in a distressed economy.

  • May 28, 2020
State tax exposure a concern for retooled PPE manufacturers

State tax exposure a concern for retooled PPE manufacturers

Manufacturers changing over operations in order to create personal protective equipment may be exposed to new state tax liabilities.

  • May 28, 2020

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