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State tax departments are being challenged by a simultaneous dramatic shift in operations and the economic impact of COVID-19. The investments made in technology and processes after federal tax reform and the Wayfair decision will help state tax departments meet these challenges and prepare for potential significant state tax policy changes to fill future budget gaps. Businesses should continue to monitor legislative and regulatory developments in the states, as well as at the federal and global levels, impacting state tax compliance and opportunities.

This Insight is intended to provide a framework for approaching these issues; we plan to follow up with additional tools and issue-specific Insights in the weeks ahead.