Financial services businesses and professionals face unique state and local tax issues. From industry-specific income and receipt apportionment and allocation rules; to mobile workforces and nationally dispersed customers who can create nexus in numerous jurisdictions; to significant spends on expenses that often create unexpected sales and use tax exposure (or refund opportunities), such as software and information services. Financial services businesses are also often early investors in asset categories that remain poorly defined in state tax statutes, such as cryptocurrency and non-fungible tokens (NFTs).
During this two-hour CPE course, New York-based tax attorney, K. Craig Reilly, Esq., from Hodgson Russ LLP, will outline the potential state and local tax pitfalls and opportunities to consider when engaging in a multistate financial services business. A working knowledge of industry-specific nexus, income apportionment and allocation, self-trading exemption, and tax computation rules is absolutely critical for tax practitioners, business owners, executives, fund managers, and other professionals that assist financial service businesses with state and local tax compliance.
Publication Date: October 2022
Designed For
All CPAs, enrolled agents, tax return preparers, tax attorneys, corporate attorneys, and other practitioners who advise on multistate tax issues will benefit from this insightful webinar.
Topics Covered
- Industry Overview
- Unique SALT Considerations
- Nexus
- Nexus Exemptions / Exceptions
- Income Allocation and Apportionment
- Choice of Entity — Wall Street Apportionment Examples
- Sales and Use Tax Considerations
- Pass Through Entity Taxes
- Voluntary Disclosure Programs
Learning Objectives
- Recognize how to describe economic nexus rules
- Identify and advise on industry-specific receipt and income apportionment and allocation rules
- Recognize how to assist financial services businesses in general sales and use tax compliance
- Identify a fancy word for "connection"
- Identify the approximate number of individual states moving to an "economic nexus" approach
- Identify the state that uses a factor presence of $500,000 of receipts
- Identify the Public Law passed by the federal government to minimize the potential income tax burden of operating in numerous states
- Identify the state that provides specific sourcing provisions for other receipts from broker or dealer activities and receipts from investment companies
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructors
K. Craig Reilly
Craig is a partner in the firm’s State & Local Tax Practice. Craig counsels businesses and individuals in a range of state and local tax issues, with a focus on New York State, New York City, New Jersey, and multistate tax issues.
Prior to joining Hodgson Russ, Craig was a judicial intern for the Honorable Jane A. Resanti of the U.S. Court of International Trade and an investigative analyst at the New York County District Attorney's Office.
Craig advises clients on all aspects of state and local tax from planning and compliance to controversy and litigation. He represents clients in disputes with the New York State Department of Taxation and Finance, New York City Department of Finance, and New Jersey Division of Taxation and is experienced in handling sales tax, corporate franchise tax, personal income tax, and residency audits.
Craig works closely with remote retailers and cloud-based software vendors on a variety of multistate tax compliance issues, including filing requirements, sales and use tax collection obligations, income allocation and apportionment, tax registrations, and applications for voluntary disclosure and other amnesty programs.
Hodgson Russ LLP
Hodgson Russ has approximately 200 attorneys in offices in Albany, Buffalo, New York City, Rochester and Saratoga Springs, New York; Hackensack, New Jersey; Palm Beach, Florida, and Toronto, Canada.
We serve a wide range of clients, from multinational and privately held corporations to nonprofit organizations, governmental entities, and individuals. Our attorneys practice in every major area of law and use multidisciplinary work teams to serve the specific, often complex, needs of our clients.