Bass, Berry & Sims attorneys Mike Sontag, Steve Jasper and Michael Cottone authored an article for Tax Notes State discussing the need for states and taxpayers to cooperate in implementing practical tax relief in response to the COVID-19 pandemic. The authors proposed several common-sense solutions that would provide needed relief to taxpayers while minimizing long-term reductions to state budgets, including:

  1. Changing apportionment formulas that rely heavily on payroll and property factors.
  2. Creating rules to address the recent dramatic increase in working from home.
  3. Postponing enforcement of marketplace facilitator rules or adopting clear safe harbors.
  4. Eliminating or suspending taxes on gross receipts or revenue rather than income.
  5. Allowing extended payment plans for taxpayers entering voluntary disclosure agreements.

The full article, “Common-Sense Solutions for COVID-19 State Tax Relief,” was published on May 18 by Tax Notes State and is available online (subscription required).