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Kelsey Muraoka

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Many employees are now telecommuting due to the COVID-19 outbreak.  In our previous blog post, we discussed employers’ potential withholding issues as a result of employees working remotely.  In this blog post, we will discuss potential nexus and apportionment issues due to employees working remotely.

With many employees now telecommuting due to the COVID-19 outbreak, employers could face additional state income tax withholding requirements if their employees telecommute from a different state than the one in which they typically work.  However, a few states are starting to announce temporary withholding relief in response to the COVID-19 outbreak.

States and local jurisdictions continue to grapple with novel tax issues in response to the COVID-19 outbreak.  On Friday, March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), a $2 trillion federal stimulus package to provide fiscal relief in response to the COVID-19 outbreak.  The CARES Act includes numerous tax relief provisions.  States will need to consider whether, and how, they will conform to the federal provisions.

States continue to provide relief in response to the spread of the COVID-19 virus.  This week, numerous states responded to the federal income tax filing extension, and we expect additional states to respond in the coming days.  Some states are also offering relief for non-income business taxes, and much of the relief is limited to small- to mid-size businesses.  Furthermore, COVID-19 is causing complications in property tax assessments, payments, and appeals.