Washington D.C. – The National Foreign Trade Council (NFTC) today joined leading industry associations calling for Congress to address tax issues arising from employees required to work remotely due to COVID-19.
In a letter addressed to Senate Majority Leader Mitch McConnell, Senate Minority Leader Chuck Schumer, House Speaker Nancy Pelosi and House Minority Leader Kevin McCarthy, 17 associations representing a broad cross-section of the U.S. economy urged Congress to “enact federal legislation that reduces uncertainty by allowing an employee’s wages to be treated as being earned at their normal work location.”
“Without changes to current tax laws, thousands of workers across the country could unknowingly be facing higher than expected tax bills for this year,” said Cathy Schultz, Vice President for Tax Policy at NFTC. “We strongly urge Congress to make this issue a priority in the next COVID-19 legislative package.”
The letter reads:
“Providing this certainty at an otherwise uncertain time is essential. Without Congressional action, employees may receive unexpected and unwelcomed tax surprises when they file their 2020 state and local income tax returns next year – and face penalties and interest charges (and even potential double taxation) through no fault of their own. A federal solution is needed because the states are taking different and conflicting positions on how the income of workers displaced by the pandemic should be taxed. Solving this problem will ensure employees who are working remotely during the pandemic are not penalized for doing so.”
In addition to the NFTC, the letter was signed by Business Roundtable, Computer Technology Industry Association (CompTIA), CTIA, Financial Executives International (FEI), Information Technology Industry Council (ITI), Motion Picture Association, National Association of Manufacturers, National Council of Chain Restaurants, National Retail Federation, NCTA – The Internet & Television Association, Securities Industry and Financial Markets Association (SIFMA), Silicon Valley Tax Directors Group, Software Finance and Tax Executives Council, United States Council for International Business, U.S. Chamber of Commerce, and USTelecom – The Broadband Association.
To read the full letter, click here.