The following article, State tax considerations for financial institutions, originally appeared in the May 2023 issue of The Tax Adviser.
Financial institutions are often subject to unique state and local taxes based on income, net worth or gross receipts due to the regulated nature of their business. This creates complexities with multistate compliance, as most states have varying definitions of “financial institution,” nexus standards, industry-specific apportionment rules and filing methodologies.
This article identifies key state and local tax considerations financial institutions should timely review to be compliant and avoid traps for the unwary.
BDO’s Ilya Lipin and John Damin provide details in their full article in The Tax Adviser.