STATE AND LOCAL TAX RESOURCES
TAX DEADLINES
The IRS extension of federal tax filings and payments until July 15, 2020, only applies to federal tax returns. Many states have provided, their own relief, with the majority adopting the new federal extension to July 15, 2020.
For more information about how your state or locality has reacted to the federal extension, check out the regularly updated Bloomberg Tax - State Tax Coronavirus Roadmap.
Additional information is available from each state taxing authority here.
CALIFORNIA - COVID-19 Coronavirus special tax relief and assistance updates
NEW YORK - Tax Department response to novel coronavirus (COVID-19)
NEW JERSEY - COCVID-19 Related Tax Information
PENNSYLVANIA - COVID-19 Information
PHILADELPHIA - Tax guidance in response to COVID-19
NEXUS ISSUES
Taxpayers will need to analyze the impact remote employees may have on state and local tax nexus. This includes the need to review existing state nexus rules regarding telecommuting as well as specific COVID-19 guidance as it is released. Several taxing jurisdictions have begun providing guidance on how temporarily remote employees will affect corporate income tax nexus and apportionment. We expect more guidance will be forthcoming from many more states and localities, once they begin to reopen their offices.
If you need assistance determining the impact of telecommuting employees on your state and local tax nexus, call on us.
EMPLOYMENT AND WITHHOLDING TAX ISSUES
Taxpayers will need to analyze the impact remote employees may have on employment and withholding taxes. This includes the need to review existing withholding rules regarding telecommuting employees as well as specific COVID-19 guidance as it is released. Several taxing jurisdictions have begun providing guidance on how temporarily remote employees will affect employment and withholding tax obligations. These issues are pressing as employers need to know how to handle payroll taxes for their remote employees during stay-at-home orders.
If you need assistance determining the impact of telecommuting employees on your state and local withholding tax obligations, call on us.
THIRD PARTY RESOURCES
April 7, 2020 -Telework Due to COVID-19 Spawns Employer Nexus Worries
April 1, 2020 (Updated) - Here's What We Know About Closings, Extensions, Other Tax Relief Due to Coronavirus Concerns (Kelly Erb, Forbes)
March 23, 2020 - States Worry Tax Extensions Will Have Dire Fiscal Results (Maria Koklanaris, Law360)
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