As our nation continues to respond to the threat of COVID-19, business operations have been disrupted and lives unsettled. Navigating state and local tax compliance and planning for the future always has been challenging. Now, businesses must take what was put into place post-federal tax reform and post-Wayfair and adapt it to a rapidly changing situation. Meeting this challenge will require a new vision of how we work and what we are trying to accomplish.
This Insight is intended to provide a framework for approaching these issues; we plan to follow up with additional tools and issue-specific Insights in the weeks ahead. For more information on responding to the impact of COVID-19, see COVID-19: What US business leaders should know.
State tax departments are being challenged by a simultaneous dramatic shift in operations and the economic impact of COVID-19. The investments made in technology and processes after federal tax reform and the Wayfair decision will help state tax departments meet these challenges and prepare for potential significant state tax policy changes to fill future budget gaps. Businesses should continue to monitor legislative and regulatory developments in the states, as well as at the federal and global levels, impacting state tax compliance and opportunities.