Facts: Lionel is in your office for his year-end interview for the 2022 tax year. Lionel works

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Question:

Facts: Lionel is in your office for his year-end interview for the 2022 tax year. Lionel works for a live weekly TV show produced and broadcast live from New York. It is a weekly political satire with skits by guest hosts and other forms of entertainment (music, dance and so forth dependent on the background of the guest host). It is called Live From New York, Inc.(LFNY) and is organized as an S Corporation in New York. Lionel's job is that of a scriptwriter and he is not an officer of the company.

Lionel has written for the show for 5 years (starting in 2018) and writes primarily skits used in the live performance. He lived in New York up until April 2020 when the pandemic "hit".

Although he had previously gone into the office every work day (to collaborate with other script writers and producers) he was forced to start working from home (under Gov. Cuomo's executive order which shut down most businesses in March 2020 to curtail the spread of COVID.). Now working from home, Lionel decided to move back to California where his parents lived (in a large home in Atherton, California which is in the Bay Area). With the approval of LFNY, Lionel moved to California in October, 2020. Since October, 2020 and through the present date (July, 2023) Lionel has worked for LFNY from his home in California. Here is his schedule in 2022:

Days worked in California 169 days

Days worked in New York at the LFNY studios 60 days

Days worked in Colorado 15 days

Days worked in Illinois 16 days

Total days 260 days

Lionel went to New York every month for 5 days to go over scripts submitted and talk about upcoming shows/guest hosts. Lionel develops and writes the scripts in his home office in California. He then sends the script to New York for review and editing. He typically goes to NY to go over the edits and to provide "finishing touches" to the script every month.

In 2022, Lionel was asked to meet with upcoming guest hosts before they came to New York, The purpose of the meeting was to go over the script, their lines, and the procedure for filming the show live. This has worked well and he will probably be doing more of this in 2023 and forward. These are the trips that he took to Colorado & Illinois. During 2022 he did meet with 2 guest hosts in his home office (in the apartment where he lives/works located above garage).

Lionel works/lives in an apartment that is over the garage at his parent's house. It is a large two bedroom/bath apartment and Lionel has converted one of the bedrooms into an office space. This space is used exclusively for work done for LFNY and has never been used for any other purpose. Lionel claims a deduction for home office expense on his federal tax return.

LFNY does have office space where Lionel could work when in NY. LFNY did not have this office space available during the period of time they were forced to close due to the pandemic. The "space" available is used by remote employees when they are in NY. Lionel can reserve this space in advance when he plans to be in the NY office.

LFNY paid for a scanner/fax machine and computer used by Lionel in his home office. Lionel's parents do not charge LFNY rent for use of the space over the garage by Lionel, but LFNY does pay for an allocated share of the utilities and insurance expense and all of Lionel's supplies (Paper, printer cartridges and so forth). LFNY does provide Lionel with a separate cell phone to use for business related calls.

LFNY pays Lionel $180,000 which you can assume is paid evenly over the year.

Required:

Which states will Lionel have to file and pay state tax in 2022?
Which states will LFNY have to withhold state income tax on Lionel's wage in 2022?
Will Lionel's work schedule create nexus for LFNY in any states other than New York? If so, which states? (You may assume that all of LFNY's revenue is sourced to New York).