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4/30/2020 DISCUSSION WITH DISCUSSION WITH CT DRS:HO CT DRS:HOW IS CT IS CT DRS AND IRS DRS AND IRS RESPONDING TO RESPONDING TO COVID COVID-19? 19? Apri April 30, 2020 30, 2020 Presented by: Eric L. Green, Esq., Green & Sklarz
Presented by:
Eric L. Green, Esq., Green & Sklarz LLC (203) 285-8545 egreen@gs-lawfirm.com Noelle Geiger, Esq., Green & Sklarz LLC (203) 836-9312 ngeiger@gs-lawfirm.com Erica C. McKenzie, Esq., Connecticut Department of Revenue Services (Litigation & Collections Enforcement Unit)
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Individual Income Tax Return & Payment Form CT-1040, CT-1040-NR/PY Individual Income Tax Estimates Form CT-1040 ES (for 1st and 2nd quarter payments) Trust & Estate Tax Return & Payment Form CT-1041 (for returns due between April 1, 2020, and July 15, 2020) Trust & Estate Tax Return Estimates Form CT-1041 ES (for any estimated payments due between April 1, 2020,and July 15, 2020) Pass-through Entity Return & Payment Form CT-1065/1120SI (for returns due between March 15, 2020,and July 15, 2020) Pass-through Entity Tax Estimated Payments Form CT-1065/1120SI ES (for any estimated payments due between March 15, 2020,and July 15, 2020) Corporation Tax Return & Payment Form CT-1120, CT-1120CU (for returns due between March 15, 2020,and July 15, 2020) Corporation Tax Estimated Payments Form CT-1120 ES (for any estimated payments due between March 15, 2020,and July 15, 2020) Estate Tax Return & Payment Form CT-706/709 (for returns due between April 1, 2020,and July 15, 2020) Gift Tax Return & Payment Form CT-706/709 (for returns due between April 1, 2020,and July 15, 2020) Unrelated Business Income Tax Return & Payment Form CT-990T (for returns due between March 15, 2020,and July 15, 2020) Unrelated Business Income Tax Estimated Payments Form CT-990T ES (for returns due between March 15, 2020,and July 15, 2020)
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time to file and pay. (No Extension for annual Sales Tax liability greater than $150,000).
extension of time to file and pay. (No Extension for annual Room Occupancy Tax liability greater than $150,000).
2019
are extended to May 31, 2020.
May, 31, 2020.
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the Commissioner stating your specific objections. Your right to protest this assessment expires [ON A CERTAIN DATE!] after which the assessment becomes
www.ct.gov/Appeal.
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New Jersey “As a result of COVID-19 causing people to work from home as a matter of public health, safety, and welfare, the Division will temporarily waive the impact of the legal threshold within N.J.S.A. 54:10A-2 and N.J.A.C. 18:7-1.9(a) which treats the presence of employees working from their homes in New Jersey as sufficient nexus for out-of-state corporations. In the event that employees are working from home solely as a result of closures due to the coronavirus outbreak and/or the employer’s social distancing policy, no threshold will be considered to have been met.” Mississippi During the period of national emergency, Mississippi will not change withholding requirements for businesses based on the employee’s temporary telework location. Mississippi residents are taxable
withholding requirements on the employer. Mississippi will not use any changes in the employees temporary work locations due to the pandemic to impose nexus or alter apportionment of income for any business while temporary telework requirements are in place. Pennsylvania “At this point, we are not taking into consideration for purposes of nexus those individuals that are required to telework due to COVID,” Thomas J. Gohsler (Chief Counsel) Washington DC The Office of Tax and Revenue will not seek to impose corporation franchise tax or unincorporated business franchise tax nexus solely on the basis of employees or property used to allow employees to work from home (e.g., computers, computer equipment, or similar property) temporarily located in the District during the period of the declared public emergency and public health emergency, including any further extensions by the Mayor.
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It is not going to be the flip of a switch…all off or all on.
As governments relax and lift restrictions, employers might require employees to continue to work from home or give employees the option. Have clients save employer’s correspondence as it is relevant to the convenience of the employer test if employees are required to work from home and are not working from home for their own convenience.
https://portal.ct.gov/DRS/Individuals/Individual- Tax-Page/Nonresident-Working-in-Connecticut
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Domicile: (1) all individuals domiciled in Connecticut, subject to the exceptions set forth in subsection (b) of this section; and Statutory Residency: (2) any individual … who is not domiciled in Connecticut but who maintains a permanent place of abode in Connecticut, and spends in the aggregate more than 183 days of the taxable year in Connecticut.
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and car registration
professionals
which unemployment compensation benefits are received
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If a Connecticut domiciliary satisfies these three requirements then they will taxed as a Connecticut nonresident: 1. Individual maintains no PPA inside of CT during such year; 2. Individual maintains a PPA outside of CT during such entire year; and 3. Individual spends in the aggregate not more than 30 days of the taxable year in CT CT Sec. 12-701(a)(1)-1(b) If one of these requirements is not met, then an individual is subject to CT income tax as a resident for that year on their worldwide income.
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Domicile is the place which an individual intends to be his or her permanent home and to which such individual intends to return whenever absent. In determining an individual’s intention, CT DRS assesses the conduct of the taxpayer.
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A "permanent place of abode" is: a dwelling place permanently maintained by an individual, whether or not owned by or leased to such individual, and generally includes a dwelling place
Not permanent if maintained only during a temporary stay for the accomplishment of a particular purpose.
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Temporary Stay Particular Purpose exception
Indefinite work assignment – not an exception
another state may be assigned to his employer’s Connecticut office for a fixed and limited period, after which he is to return to his permanent
apartment in Connecticut during this period, he is not deemed a resident, even though he spends more than 183 days of the taxable year in Connecticut, because his place of abode is not permanent. He shall be taxable as a nonresident on his income from Connecticut sources, including his salary or other compensation for services performed in Connecticut.
employer’s Connecticut office is for an indefinite period, his Connecticut apartment shall be deemed a permanent place of abode and he shall be deemed a resident for Connecticut income tax purposes if he spends more than 183 days of the year in Connecticut.
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Revenue Procedure 2020-20
to 60 consecutive calendar days
presumed to arise from travel disruptions caused by the COVID- 19 emergency will not be counted for purposes of determining U.S. tax residency and for purposes of determining whether an individual qualifies for tax treaty benefits for income from personal services performed in the United States
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Frequently Asked Questions
https://www.irs.gov/newsroom/information
businesses-impacted-by-covid-19-travel- disruptions
certain U.S. business activities conducted by a nonresident alien
counted for up to 60 consecutive calendar days in determining whether the individual or entity is engaged in a U.S. trade or business or has a U.S. permanent establishment, but only if those activities would not have been conducted in the United States but for travel disruptions arising from the COVID-19 emergency.
documentation to establish the Covid 19 Emergency Period and that the relevant business activities would not have been undertaken in the United States but for COVID-19 Emergency Travel Disruptions
filing even if not required to file to get start SOL, claim tax treaty relief and deductions
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First and second quarter estimated taxes are also deferred to July 15,
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