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:

Being deemed essential doesn't preclude ERTC eligibility

Being deemed essential doesn't preclude ERTC eligibility

Construction firms forced to reduce or cancel operations by jurisdictional order may meet employee retention credit eligibility requirements

  • April 12, 2021
Ohio bill addresses conformity to federal changes and other tax issues

Ohio bill addresses conformity to federal changes and other tax issues

Comprehensive legislation addresses conformity, Paycheck Protection Program expense deduction, CAT exclusions and pass-through withholding.

  • April 01, 2021
IRS expands filing and payment deadline extension

IRS expands filing and payment deadline extension

This Alert describes and explains the postponement of certain federal tax filing and payment deadlines in IRS Notice 2021-21.

  • March 30, 2021
Kentucky makes moves to attract cryptocurrency miners

Kentucky makes moves to attract cryptocurrency miners

Kentucky passes a series of tax bills intended to attract cryptocurrency miners with new exemptions and credits.

  • March 29, 2021
Pennsylvania issues COVID home-office expense deduction guidance

Pennsylvania issues COVID home-office expense deduction guidance

The Pennsylvania Department of Revenue has issued complex guidance for employees claiming home office expense during the pandemic.

  • March 11, 2021
Connecticut provides retroactive 2020 COVID relief

Connecticut provides retroactive 2020 COVID relief

Governor Ned Lamont has signed legislation retroactively providing COVID-related business nexus and personal income tax relief for 2020.

  • March 10, 2021
Wisconsin addresses PPP treatment, amends SALT deduction workaround

Wisconsin addresses PPP treatment, amends SALT deduction workaround

Tax bills provide Paycheck Protection Program conformity and revise pass-through entity election for s corporations.

  • February 23, 2021
Colorado restores certain business deductions related to the CARES Act

Colorado restores certain business deductions related to the CARES Act

Colorado enacts law restoring certain deductions related the to the CARES Act for both business and individual taxpayers.

  • February 23, 2021
Alabama enacts significant corporate tax and COVID-19 relief

Alabama enacts significant corporate tax and COVID-19 relief

The legislation significantly changes the corporate tax system and exempts certain COVID-19 relief from taxation.

  • February 16, 2021
Missouri temporary location withholding requires notice by January 31

Missouri temporary location withholding requires notice by January 31

Electing employers may withhold income tax from employee wages as if the wages were earned from work performed at a primary work location.

  • January 25, 2021

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