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

Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Corporate Tax
- event Date
Tuesday, June 2, 2020
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
110 minutes
-
BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
This course 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.
Faculty

Mr. Smith is national technical leader of BDO’s State & Local Tax (SALT) practice. He sets BDO's policies and positions on technical SALT issues, as well as thought leadership, brand visibility, training and risk management. Mr. Smith's SALT practice is the result of over 25 years of experience and is national in scope and focused on multistate tax consulting, representing clients in multistate SALT controversies, and advising clients with respect to their multistate tax planning. The main concentration of Mr. Smith's SALT practice is on corporate income and franchise taxes, but he has also advised and represented clients with respect to their sales and transactions tax needs as well. A significant amount of his representation focuses on helping clients on the state tax consequences of mergers and acquisitions, intra-group reorganizations, special purpose entities, and business planning.

Mr. Sori is a partner in BDO’s State & Local Tax services practice and National Leader for State Income & Franchise Tax services. He has more than 30 years of state tax consulting experience within a public accounting environment and concentrates on income and franchise tax issues such as nexus, state tax base modifications, apportionment of income, business/non-business income, unitary taxation, gross receipt taxes, allocation of partnership items, and state filing options.
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.
Outline
- Major tax provisions included in the CARES Act
- State conformity methods to the Internal Revenue Code
- State implications of the CARES Act
- Nexus and apportionment developments related due to COVID-19
- State and local taxable wage and payroll withholding developments for telecommuters
- 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
NASBA Details
Learning Objectives
After completing this course, you will be able to:
- Understand significant tax provisions contained in the CARES Act
- Identify different state conformity methods to the IRC
- Recognize potential state implications of the CARES Act
- Comprehend numerous state nexus, apportionment, and withholding tax developments related to COVID-19
- Become familiar with state filing and payment relief developments due to COVID-19
- Field of Study: Taxes
- Level of Knowledge: Intermediate
- Advance Preparation: None
- Teaching Method: Seminar/Lecture
- Delivery Method: Group-Internet (via computer)
- Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
- Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of pass-through taxation, including taxation of partnerships, S corporations and sole proprietorships, qualified business income, net operating losses and loss limitations; familiarity with net operating loss carry-backs, carry-forwards and carried interests.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.
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