2021 Hodgson Russ Fall Webinar Series (Currently Unavailable)

As a result of the SALT deduction limitation imposed as part of the Tax Cuts and Jobs Act, a number of states have enacted Pass-Through Entity (PTE) taxes, joining a handful of other jurisdictions that impose tax on flow-through entities rather than their owners.

Sales and use tax compliance has changed considerably since the Wayfair decision three years ago. This presentation will review these changes, with a particular focus on businesses selling digital goods and services (SaaS, IaaS, information services, IT services, etc.). We will provide an overview of nexus rules, including physical nexus and Wayfair thresholds, as well as a review of recent guidance impacting sellers of digital products and services. The webinar will also address how taxing authorities identify businesses to audit, as well as tips and traps in a sales tax audit.

As a result of COVID, employees have fled their traditional workplaces, individuals are rethinking where they want to live, and employers have started rethinking their office-based workplace models. All of these changes impact a state’s authority to impose tax on an individual’s income.

Due to the COVID-19 pandemic, millions of people have been telecommuting from their home state or another location. Allowing employees to telecommute from states in which they do not normally work can create a host of issues for companies, but the two biggest tax issues relate to nexus and income apportionment. Will the presence of an employee working from home create income tax nexus for the employer in that state? What if the business relied on the protection of P.L. 86-272 prior to the pandemic? How should a business apportion and allocate income among multiple states?