COVID-19: State and Local Tax Implications – Parts 2 and 3: Nexus/Withholding and CARES Act Guidance
April 22, 2020
It has been almost a month since our original article on the SALT implications of COVID-19 was published on our Aprio’s COVID-19 Advisor site. That article addressed several high-level SALT considerations and how they may be impacted by the effects of COVID-19 on businesses and their operations. Those topics included state tax filing and payment relief as well as nexus, apportionment and payroll withholding issues.
Part 2 examines the issues of nexus and income tax withholding in more detail as several states have published guidance in this area.
Part 3 examines the potential state income tax implications of the CARES Act, which was signed into law after our original article was published.
As a quick reminder, if you are looking for a detailed, up-to-date resource containing announcements from each state as it pertains to specific tax filing/payment extensions as well as other tax-related information (including some counties and cities providing local tax relief), I recommend the AICPA’s “State Tax Filing Guidance for Coronavirus Pandemic.” This information is changing daily and this resource is updated almost as quickly.
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About the Author
Jeff Glickman is the partner-in-charge of Aprio, LLP’s State and Local Tax (SALT) practice. He has over 18 years of SALT consulting experience, advising domestic and international companies in all industries on minimizing their multistate liabilities and risks. He puts cash back into his clients’ businesses by identifying their eligibility for and assisting them in claiming various tax credits, including jobs/investment, retraining, and film/entertainment tax credits. Jeff also maintains a multistate administrative tax dispute and negotiations practice, including obtaining private letter rulings, preparing and negotiating voluntary disclosure agreements, pursuing refund claims, and assisting clients during audits.