COVID-19 Relief and State Tax: NOL Adjustments, 163(j), Payroll and Sales Tax, State-Specific Relief

Recording of a 110-minute CPE webinar with Q&A


Conducted on Tuesday, June 2, 2020

Recorded event now available

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Program Materials

This webinar will address state responses to COVID-19 and discuss the potential state tax implications of the federal tax changes in the recently enacted Coronavirus Aid, Relief, and Economic Security (CARES) Act. In addition to state income tax, our SALT experts will outline state-specific assistance available for sales tax, payroll tax, and other obligations for multistate taxpayers and businesses.

Description

Just as we completed our understanding of the state tax implications of the Tax Cuts and Jobs Act (TCJA), the recently enacted Coronavirus Aid, Relief, and Economic Security (CARES) Act presents a new round of challenges for states, taxpayers, and practitioners. Specifically, the CARES Act makes certain adjustments to the TCJA provisions relating to the net operating losses (NOLs) under Section 172, interest expense limitation rules under Section 163(j), business losses under Section 461(l), and depreciation provisions under Section 168(k), among other changes. Similar to the TCJA, the state tax implications of the CARES Act will depend on the states’ conformity provisions to the Internal Revenue Code: (1) rolling, (2) fixed date, or (3) selective. This webinar will discuss how states conform or decouple from the IRC, which will assist to explain the implications of the CARES Act at the state level.

Other state developments related to COVID-19 will be discussed, including nexus and apportionment developments resulting from telecommuters and work-from-home orders as well as the implications to the state individual income tax and payroll withholding obligations. We will discuss which states have announced they will not seek to impose nexus due to employees temporarily working from home during the duration of the pandemic and states that have issued guidance on employee taxable wages and payroll withholding obligations for remote employees.

Lastly, our SALT experts will discuss the state and local responses to the COVID-19 pandemic as it relates to business and individual tax return filing extensions, payment extensions, and late filing/payment penalty waivers and relief. Most states have jumped on board, offering time extensions or penalty relief for income taxes as well as payroll, sales, franchise, B&O, and other taxes. This remains a fluid area as new guidelines are being issued by states and localities on a nearly daily basis.

Listen as our SALT veterans get you up to date on state and local tax developments related to COVID-19 and the CARES Act, allowing taxpayers and advisers to understand the state tax impact to their clients and businesses.

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Outline

  1. Major tax provisions included in the CARES Act
  2. State conformity methods to the Internal Revenue Code
  3. State implications of the CARES Act
  4. Nexus and apportionment developments related due to COVID-19
  5. State and local taxable wage and payroll withholding developments for telecommuters
  6. State filing and payment relief developments due to COVID-19

Benefits

The panel will review these and other critical issues:

  • Examine significant tax provisions contained in the CARES Act
  • Review different state conformity methods to the IRC
  • Consider potential state implications of the CARES Act
  • Discuss nexus and apportionment developments related to COVID-19
  • Review state and local tax developments related to taxable wages and withholding requirements for telecommuters
  • Discuss state filing and payment relief developments due to COVID-19

Faculty

Smith, Scott
Scott Smith

National Technical Practice Leader - State & Local Tax
BDO USA

Mr. Smith sets BDO's policies and positions on technical SALT issues, as well as thought leadership, brand...  |  Read More

Sori, Mariano
Mariano Sori, CPA, JD

Partner
BDO USA

Mr. Sori is a partner in BDO’s State & Local Tax services practice and National Leader for State Income &...  |  Read More

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