How Teleworking Can Impact Your Taxes

    Many companies are concerned about their employees stranded or sheltered in places they do not normally work. By working in states or countries where the company does not already do business, there could be unexpected tax bills in the near future. The Internal Revenue Service (IRS) has already extended some tax relief for foreign travelers stranded in the US. However, this is limited and there is a similar concern for domestic businesses as well.

     Very few states have volunteered how they will view remote workers stranded and forced to work in different areas. Some countries are creating tax treaties to help off-set the liabilities that may be created by COVID-19 related travel restrictions. There is nothing like that being discussed at the Federal level. While many are concerned, it is not considered a priority yet. Mostly because the time requirements have not been met for triggering a tax liability. In many cases that would be 180 days of work. But that time may come for some if sheltering orders stay in place.

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