Nexus – SALT Savvy

The City of Chicago Issues Nexus Guidance and Safe Harbor In Light of Wayfair and Illinois State Level “Economic Nexus” Standards

May 10, 2021 By Ted Bots and Drew Hemmings 3 Mins Read

The City of Chicago recently issued nexus guidance and a limited safe harbor for City tax purposes in light of the U.S. Supreme Court’s pivotal South Dakota v. Wayfair ruling and the State of Illinois’ statutory economic nexus standards. True to form, the City implemented its new nexus standards by executive action via publication of a “nexus and safe harbor” “information bulletin” on its website (available on the City’s website, here), as opposed to the Chicago City Council more formally (and more appropriately) adopting a new ordinance.

State and Local Tax Responses to COVID-19: Nexus and Apportionment Relief for Employers With Telecommuting Employees [Updated April 22, 2020]

April 22, 2020 By Bobby Albaral, Ted Bots, Scott Brandman, Maria Eberle, Lindsay LaCava, Stephen Long, David Pope, Mike Shaikh, Mark Yopp, Nicole Ford, Dmitrii Gabrielov, Rob Galloway, Drew Hemmings, Jimmy Lucas, Trevor Mauck, Kelsey Muraoka, Roman Patzner and Michael Tedesco 5 Mins Read

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).

State and Local Tax Responses to COVID-19: Relief for Employers With Telecommuting Employees

April 10, 2020 By Bobby Albaral, Ted Bots, Scott Brandman, Maria Eberle, Lindsay LaCava, Stephen Long, David Pope, Mike Shaikh, Mark Yopp, Nicole Ford, Dmitrii Gabrielov, Rob Galloway, Drew Hemmings, Jimmy Lucas, Trevor Mauck, Kelsey Muraoka, Roman Patzner and Michael Tedesco 3 Mins Read

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.

COVID-19: The Anticipated State and Local Tax Impacts of Coronavirus

March 12, 2020 By Bobby Albaral, Ted Bots, Scott Brandman, Maria Eberle, Lindsay LaCava, Stephen Long, David Pope, Mike Shaikh, Mark Yopp, Nicole Ford, Rob Galloway, Drew Hemmings, Jimmy Lucas, Trevor Mauck, Kelsey Muraoka, Roman Patzner and Michael Tedesco 5 Mins Read

The World Health Organization has officially declared the coronavirus outbreak to be a pandemic. In addition to the cost on human life, the rapid spread of COVID-19 has left a trail of economic damage affecting business revenues. COVID-19 has caused complete or partial shutdown of factories, supply chain disruptions, and labor shortages, and has impacted demand in certain industries. This impact will also be felt by U.S. state, and local governments.