Nexus and Apportionment Issues: State and Local Taxes, State Law Exceptions, Market-Based Sourcing of Receipts

Note: CLE credit is not offered on this program

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


Conducted on Thursday, June 10, 2021

Recorded event now available

or call 1-800-926-7926
Program Materials

This webinar will guide tax professionals on evolving state tax nexus and apportionment issues for multistate companies with remote workforce, including new complexities caused by guidance issued as a response to COVID-19 pandemic. The panel will provide insight into multiple compliance issues such as allocating income between home states and states where remote employees provide services, navigating contradictory rules and potential double taxation of the same income, COVID-19 exceptions to nexus, recent updates relating to sourcing of receipts from services, and other key state tax compliance issues.

Description

The most challenging development in state taxation post-Wayfair is keeping up with each state's modification of state tax nexus laws as part of the response to COVID-19. Majority of states adopted economic nexus laws for income tax and sales tax nexus to tax out-of-state sales while shifting towards market-based sourcing. Even prior to COVID-19, the telecommuting of employees from their home state has caused nexus and income apportionment issues for multistate companies. Now businesses have to consider if the presence of an employee working from home, even if temporarily due to stay at home restrictions, create taxable nexus for the employer in that state? How will telecommuting impact income sourcing? Tax professionals must understand applicable state tax laws and identify key issues such as allocating income, contradicting state rules, and other key items to implement strategies to minimize state taxes.

Listen as our expert panel provides a practical guide to key nexus and apportionment issues during COVID-19, allocating income between the home state and states where remote employees provide services, sourcing rules and related issues, and the current state of nexus standards and key nexus developments in state taxation.

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Outline

  1. Nexus standards and implications
  2. Economic presence as a strategy for states to extend tax reach
  3. Nexus developments impacting remote sellers and services
  4. State COVID nexus relief
  5. Navigating apportionment and sourcing issues and ensuring compliance
  6. Planning strategies to minimize state tax risks based on nexus

Benefits

The panel will discuss these and other key issues:

  • What are the recent state developments on nexus standards?
  • How have nexus standards changed in some states due to COVID-19?
  • What are the various nexus methods and the risks arising from each?
  • What are the key apportionment and sourcing issues and methods to avoid them?
  • What are the issues unique to service providers?
  • What multistate planning strategies are available in light of the shift in nexus standards?

Faculty

Howe, Timothy
Timothy R.J. Howe, CPA

Partner
Smith & Howard

Mr. Howe leads the firm’s sales and use tax practice. He has over a decade of tax, technology, and business...  |  Read More

Lipin, Ilya
Ilya A. Lipin

Managing Director, State & Local Tax
BDO USA

Mr. Lipin provides clients with state tax advice in the area of multistate income taxes, sales and use taxes, tax...  |  Read More

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