The 9th Annual New England State & Local Tax Forum took place online and ran through November 17-19, 2020. Due to the unprecedented year we are having due to COVID-19, the Forum’s Joint Boards made the decision to convert the 2020 live conference in Newton to a virtual conference. This year the Forum was held over three consecutive afternoons for 2 hours each day. Each year, the Forum provides the opportunity to learn about new developments in the area of tax law.
Topics: State tax, Sales Tax, sales and use tax, state and local tax (SALT), new england state and local tax, Ann Brown, New England SALT Forum
The state and local tax implications for your business will require careful attention in the COVID-19 pandemic environment. Remote work during shutdown orders led to many workers finding themselves working for an organization from a different state. Some may even opt to change locations now that working virtually has become a more permanent option.
Topics: Tarra Curran, state and local tax (SALT), new england state and local tax, Ann Brown, COVID19, Coronavirus, COVID-19, remote work
When the Coronavirus Aid, Relief, and Economic Security (CARES) Act was first passed in late March to help alleviate financial strains from the Coronavirus pandemic, a lot of the media coverage focused on stimulus checks and business loans. The CARES Act also changed many tax laws to be responsive to taxpayer needs, and reversed some of the more onerous provisions that went into effect in 2017 and 2018 as part of the tax reform law more commonly known as the Tax Cuts and Jobs Act (TCJA).
Topics: State tax, Sales Tax, sales and use tax, state and local tax (SALT), new england state and local tax, SALT cap tax, Ann Brown, Coronavirus, COVID-19
Remote work arrangements during the COVID-19 pandemic have presented several challenges for operational continuity, particularly for the tax department function. Even in normal operating environments, tax departments often operate somewhat autonomously from the rest of the business. Tax departments respond to internal-facing demands that require gathering information from their company; as well as external-facing demands, such as submitting necessary information to state and local tax authorities. This dynamic has become more difficult during the pandemic, and it is worthwhile for companies to check in with their tax departments to see how things are progressing, particularly with state and local tax reporting.
Topics: State tax, Sales Tax, sales and use tax, state and local tax (SALT), new england state and local tax, SALT cap tax, Ann Brown, Coronavirus, COVID-19, remote work
As more states are extending their COVID-19 shelter-at-home orders into the summer months, businesses may be operating remotely longer. The logistics of allowing employees to work from home can be difficult, given the increased demand on IT infrastructures alone, but complying with state and local tax laws will also be a challenge.
Topics: state and local tax (SALT), new england state and local tax, Ann Brown, COVID19, Coronavirus, COVID-19, remote work
On April 3, the Massachusetts Department of Revenue (“DOR”) released a Technical Information Release (“TIR”) that announced tax filing and payment relief for personal income tax and payment relief for corporate excise tax, in response to the COVID-19 pandemic.
Topics: state and local tax (SALT), new england state and local tax, SALT cap tax, Ann Brown, COVID19, Coronavirus, COVID-19
It is a well-known fact that states and local governments have been grappling with falling sales tax revenues in recent years. The decline in sales tax revenue is a result of a shift in consumer habits trending towards more frequent online shopping and purchases of personal services. These shifts in purchasing habits directly affect sales tax collections because historically online vendors lacking physical presence were not subject to state sales tax requirements. Furthermore, services are typically not subject to sales tax.
Topics: Tarra Curran, State tax, Sales Tax, sales and use tax, state and local tax (SALT), new england state and local tax, SALT cap tax, Ann Brown
A New York U.S. District Court recently dismissed a case that challenged federal limits on state and local tax deductions. Certain high tax states have long taken issue with the tax reform change that placed a $10,000 “cap” on individual taxpayer deductions for state property taxes and state and local income taxes. The opinion issued in late September deals another hit to the effort to overturn the provision. In June, the IRS put an end to state attempts to bypass the cap through workarounds such as state tax credits. It appears that for the time being, the state and local tax (SALT) cap is here to stay.
Topics: State tax, Sales Tax, sales and use tax, state and local tax (SALT), new england state and local tax, SALT cap tax, Ann Brown
On June 21, 2018, the U.S. Supreme Court ruled in favor of South Dakota in the widely-watched South Dakota v. Wayfair case. This ruling overturned the long-held precedent of Quill Corp. v. North Dakota, which stood for the proposition that a state could not impose a collection requirement on a retailer unless that retailer had a physical presence in the state.
Topics: Tarra Curran, economic nexus, Sales Tax, The Massachusetts Department of Revenue, sales and use tax, tax nexus, new england state and local tax, Wayfair, South Dakota vs Wayfair, Rhode Island Department of Revenue
In June, the Supreme Court ruled that a taxpayer’s economic activity could be used as the standard for whether a taxpayer owes state and local taxes. The decision in Wayfair v. South Dakota opened the door for states to collect sales taxes on remote retailers with substantial in-state activity. Prior to the decision, states followed the physical presence standard to determine whether a taxpayer would be subject to state and local taxes.
Topics: Tarra Curran, economic nexus, Sales Tax, The Massachusetts Department of Revenue, sales and use tax, tax nexus, new england state and local tax, Wayfair, South Dakota vs Wayfair, Rhode Island Department of Revenue