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Scott Brandman

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On Tuesday, the New York Supreme Court granted Baker McKenzie’s motion to dismiss the New York Attorney General’s (“AG”) complaint against B&H Foto and Electronics Corp. regarding a purported False Claims Act (“FCA”) violation. The AG incorrectly alleged that B&H made a false claim on its tax return when they did not collect sales tax on “instant savings,” a type of vendor funding where a manufacturer reduces B&H’s purchase price of a particular item based…

Numerous states have provided tax relief in response to the COVID-19 outbreak, often in the form of tax filing and payment deadline extensions.  At this time, 41 states and Washington, D.C. have provided a corporate income tax filing and/or payment deadline extension.  Most recently, Florida extended its May 1, 2020 corporate income tax deadlines to August 3, 2020 for filing and June 1, 2020 for payment.  Since the payment deadline is sooner than the filing deadline, the Florida Department of Revenue advised corporate taxpayers to submit payments based on their best estimate of the tax that would be due with the return.  Some states have also extended income tax deadlines for partnerships and other business entities and many states have extended individual income tax deadlines.

Many employees continue to telecommute due to the COVID-19 outbreak.  As discussed in our previous blog post on state tax nexus and apportionment issues, out-of-state employers may need to consider whether a telecommuting employee’s activities could create nexus, exceed Public Law 86-272 protections, or impact the employer’s state income tax apportionment factor (particularly in states with a payroll factor or a sales factor where receipts are sourced based on cost of performance).

Numerous states have provided tax relief in response to the COVID-19 outbreak, often in the form of tax filing and payment deadline extensions.  At this time, 40 states and Washington, D.C. have provided a corporate income tax filing and/or payment deadline extension.  Some of these states have conformed to the July 15 federal corporate income tax extension date, while others have extended to an earlier or later date.  Some states have also extended income tax…