This two-hour CPE focuses on the special state tax issues encountered by service businesses and suggests compliance and planning strategies for dealing with various service-related situations.
In recent years, the growth of the service sector in our economy, combined with the expansion of both sales tax and income tax bases, has imposed an increasing burden on businesses providing services. In a straightforward and easy-to-understand manner, highly regarded state tax practitioner Timothy P. Noonan will help you navigate the key state tax issues and challenges faced by this huge business sector. Mr. Noonan, author of the "Noonan's Notes" in Tax Analysts’ Tax Notes State and a frequent contributor to CCH Webinars, will help you understand the pitfalls and opportunities that businesses face when selling and providing services in a multistate environment.
Publication Date: August 2020
Designed For
Service business tax and accounting staff responsible for state tax compliance and planning; public practice CPAs, EAs, tax attorneys and other business and financial advisors working with business clients on state tax compliance and planning
Topics Covered
- Nexus Issues
- Wayfair for sales tax
- Economic nexus for income tax
- Income Tax Stuff
- Apportionment issues and Market Sourcing
- Personal income tax issues on owners and employees
- Payroll withholding
- Sales tax issues and taxable services
- COVID”19 Impact on SALT Issues
Learning Objectives
- Recognize how to gain a practical understanding of the key unique state tax issues for service businesses
- Identify which activities create nexus for service businesses
- Identify steps to take and opportunities to pursue to reduce state tax liabilities for service businesses
- Recognize reasons for driving the move to market-based sourcing
- Differentiate which state's sourcing method is considered to be where the benefit is received
- Identify a general rule regarding sales tax imposition
- Differentiate apportionment methods
- Recognize which type of services is typically subject to tax
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
Basic understanding of state business taxes
Advance Preparation
None
Instructor
Timothy Noonan
Tim focuses his practice in the state and local tax area. His work primarily involves New York State and New York City tax litigation and controversy. Over the past 20 years, he has handled more than 1,500 personal income tax, sales tax, corporate tax, or other New York tax audits. Tim also has handled about 100 cases in New York’s Division of Tax Appeals.
Tim leads the firm’s Tax Residency Practice and he is one of the leading practitioners in this area of the law. He has handled some of the most high-profile residency cases in New York over the past decade, including a 2014 win in the Gaied case, one of the first New York residency cases to ever reach New York’s highest court. Tim also co-authored the 2018 edition of the CCH Residency and Allocation Audit Handbook and Contesting New York State Tax Assessments (Fourth Edition), published by the New York State Bar Association, and he authored the New York Tax Litigation chapter in Thomson Reuters’ Commercial Litigation in New York State Courts treatise. He is often quoted by media outlets, including The Wall Street Journal, The New York Times and Forbes, on residency and other state tax issues.
Tim also has handled a significant number of residency and sales tax issues in other states, including work with many national and international clients on multistate compliance or voluntary disclosures. He has also appeared before the Connecticut Supreme Court and the Michigan Court of Appeals in litigated matters and is admitted to practice law in Connecticut.