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Coronavirus Tax Coverage

Several members of the California General Assembly wrote to leaders of the budget and administrative committees requesting that the legislature restore the net operating loss deduction and business incentive tax credits that were suspended and capped by legislation enacted in 2020, arguing that the state is “not even close” to experiencing a budget shortfall in 2021 as it recovers economically from COVID-19.
The Massachusetts Department of Revenue has adopted a regulation establishing the sourcing rules applicable to income earned by nonresident employees who are telecommuting on behalf of an in-state business from a location outside the state because of the COVID-19 state of emergency in Massachusetts, and also explaining the parallel treatment that will be granted to resident employees with income tax liabilities in other states that have adopted similar sourcing rules.
The Connecticut Department of Revenue Services commissioner has issued a bulletin providing guidance on H.B. 6516 — proposed legislation that would prevent the double taxation of individuals working remotely during the COVID-19 pandemic — explaining the potential effect of the bill on tax filing and payment obligations for the 2020 tax year, including individual income tax returns and any associated tax liabilities due by April 15, 2021.