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:

Illinois offers $250 million in grants for COVID-19 recovery

Illinois offers $250 million in grants for COVID-19 recovery

Small businesses that experienced losses in 2020 due to COVID-19 are eligible for grants ranging up to $250,000.

  • August 18, 2021
Wayfair nexus turns three by celebrating near universal adoption

Wayfair nexus turns three by celebrating near universal adoption

Three years after the Wayfair decision, economic sales tax nexus has become the norm, but unanswered questions and numerous issues remain.

  • August 10, 2021
Paid leave for employees impacted by COVID-19 in 2021

Paid leave for employees impacted by COVID-19 in 2021

Some employers can give paid leave to employees impacted by COVID in 2021 and claim a payroll tax credit per the American Rescue Plan Act.

  • July 20, 2021
California amends remote worker nexus guidance

California amends remote worker nexus guidance

California FTB amends remote worker nexus guidance, teleworking employees will create nexus and exceed P.L. 86-272 protections.

  • July 09, 2021
When the office can be anywhere, where are taxes paid?

When the office can be anywhere, where are taxes paid?

Virtual workforce opportunities have allowed employees to become transient, potentially increasing or reducing your state tax obligations.

  • June 03, 2021
PPP forgiveness and expenses: State tax implications

PPP forgiveness and expenses: State tax implications

States may not allow the gross income tax exclusion provided by the federal program, resulting in taxable discharge of indebtedness income.

  • May 18, 2021
Paid leave for employees impacted by COVID-19 in 2021

Paid leave for employees impacted by COVID-19 in 2021

Some employers can give paid leave to employees impacted by COVID in 2021 and claim a payroll tax credit per the American Rescue Plan Act.

  • April 22, 2021
New York to increase income tax rates; enact SALT workaround

New York to increase income tax rates; enact SALT workaround

Budget bill increases personal and corporate tax rates, enacts a SALT deduction workaround and makes other changes to the tax code.

  • April 14, 2021
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

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