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:

2020 year end tax considerations for businesses

2020 year end tax considerations for businesses

Tax planning opportunities for consideration in light of COVID-19, the resulting economic crisis, and evolving tax laws and regulations.

  • October 15, 2020
2020 Elections: State and local tax ballot measures to know

2020 Elections: State and local tax ballot measures to know

Looming budget shortfalls coupled with tax-related ballot measures in many states could significantly affect 2021.

  • October 14, 2020
New Jersey fiscal year 2021 budget enacted with tax increases

New Jersey fiscal year 2021 budget enacted with tax increases

Extension of corporate surtax and expanded millionaire’s tax assists New Jersey with significant budget deficit caused by the coronavirus.

  • September 30, 2020
Revised Form 941-X

Revised Form 941-X

The final version of Form 941-X Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund has been released by the IRS.

  • September 22, 2020
Tennessee Department of Revenue provides section 163(j) guidance

Tennessee Department of Revenue provides section 163(j) guidance

The Tennessee Department of Revenue issued guidance on the state’s conformity to section 163(j) of the Internal Revenue Code.

  • August 18, 2020
Incentives for remote employment: What the states can and should do

Incentives for remote employment: What the states can and should do

The future of state and local incentives in a post-pandemic economy will be highly influenced by remote workforces – states may act soon.

  • August 11, 2020
Executive order directs the deferral of certain payroll tax payments

Executive order directs the deferral of certain payroll tax payments

An executive order was issued directing the deferral of payroll tax payments. Follow up guidance from the Treasury Department is expected.

  • August 10, 2020
North Carolina Job Retention Grant program applications due Sept. 1

North Carolina Job Retention Grant program applications due Sept. 1

Eligible businesses that did not receive certain other COVID-19 relief may qualify for grants up to $250,000.

  • August 07, 2020
Unemployment reimbursement relief for nonprofit employers

Unemployment reimbursement relief for nonprofit employers

New legislation allows nonprofit employers to pay 50% of their unemployment reimbursing payment obligations to states.

  • August 06, 2020
Senate Republicans propose next round of stimulus legislation

Senate Republicans propose next round of stimulus legislation

Finalized legislation will evolve but the proposal is a starting point for bipartisan negotiations for a new round of economic relief.

  • July 29, 2020

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