More agile tax models are needed in the face of global uncertainties to allow the tax function to effectively provide critical inputs in business decisions. Companies should consider:
Navigating state and local tax compliance and planning for the future has always 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.
Equally important, companies will need to uncover cash and increase liquidity to meet demand and stay afloat.
Please visit us often for updates and resources as we navigate these uncertain times together.
Several states and localities are providing relief to taxpayers with tax payments due over the next several months. Some jurisdictions will follow the 90-day postponement guidance recently issued by the IRS. Other jurisdictions are applying independent extensions for their various taxes.
Accordingly, PwC has created a matrix that summarizes select state and local tax relief relating to COVID-19. The matrix will be updated on a regular basis as this continues to be a quickly developing issue for taxpayers. You will be able to access subsequent updates at the below link, so please bookmark and check the link often for the most current information.
As companies need to navigate the state tax implications of federal tax reform and Wayfair, the tax department continues to be redefined and is increasingly becoming a strategic business enabler. As a result, state and local tax professionals need a strategy to stay ahead of and manage state and local tax burdens and to identify opportunities that result from evolving changes in legislation and administrative policy changes.
PwC’s State and Local Tax (SALT) practice can help you with strategies to manage your state and local tax issues by recommending solutions that are consistent with your company’s overall business objectives. We can also identify appropriate tax treatment that is consistent with good business practices and states’ applicable tax laws and rules.