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Tax Alerts
January 22, 2021
Tax Briefing(s)
2020 Tax Year-In-ReviewConsolidated Appropriations Act, 2021 (revised)2020 Post-Election Tax Policy Update2020 Year-End Tax Planning2020 Payroll Tax Deferral Order
Notices Delayed Due to COVID-19
The IRS continues to experience delays mailing backlogged notices due to the volume and restart of issuing notices during the pandemic. The delay impacts some, but not all, IRS notices dated from Nove...
The IRS continues to experience delays mailing backlogged notices due to the volume and restart of issuing notices during the pandemic. The delay impacts some, but not all, IRS notices dated from Nove...
IRS Reminds Employers of Filing Deadline for Form W-2, Wage Statements
The IRS has reminded employers of filing file Form W-2, Wage and Tax Statement, and other wage statements by Monday, February 1, 2021, to avoid penalties and help the IRS prevent fraud. Due to the us...
The IRS has reminded employers of filing file Form W-2, Wage and Tax Statement, and other wage statements by Monday, February 1, 2021, to avoid penalties and help the IRS prevent fraud. Due to the us...
Deadline to Certify Certain Employees for WOTC Extended
Employers that hired a designated community resident or a qualified summer youth employee under Code Sec. 51(d)(5) or (d)(7) who began work on or after January 1, 2018, and before January 1, 2021,...
Employers that hired a designated community resident or a qualified summer youth employee under Code Sec. 51(d)(5) or (d)(7) who began work on or after January 1, 2018, and before January 1, 2021,...
Adjusted Applicable Dollar Amount for Fee Imposed on Health Insurance Plans Announced
The IRS has announced that the applicable dollar amount used to calculate the fees imposed by Code Secs. 4375 and 4376 for policy and plan years that end on or after October 1, 2020, and before Oc...
The IRS has announced that the applicable dollar amount used to calculate the fees imposed by Code Secs. 4375 and 4376 for policy and plan years that end on or after October 1, 2020, and before Oc...
Form 1024-A Revised for Electronic Submission
The IRS has announced that it is revising Form 1024-A, Application for Recognition of Exemption Under Section 501(c)(4) of the Internal Revenue Code, to allow electronic filing for the first time, as...
The IRS has announced that it is revising Form 1024-A, Application for Recognition of Exemption Under Section 501(c)(4) of the Internal Revenue Code, to allow electronic filing for the first time, as...
AL - Application for deduction properly denied
A taxpayer’s application for rehearing was overruled as the taxpayer failed to substantiate the claimed deductions concerning Alabama sales and use tax assessment. In this matter, the taxpayer claim...
A taxpayer’s application for rehearing was overruled as the taxpayer failed to substantiate the claimed deductions concerning Alabama sales and use tax assessment. In this matter, the taxpayer claim...
AK - Interest rate announced for Q4 of 2020
The Alaska interest rate for delinquent taxes and overpayment of taxes is set at 5.50%, compounded quarterly, for the period April 1, 2020, through December 31, 2020. The Department of Revenue posting...
The Alaska interest rate for delinquent taxes and overpayment of taxes is set at 5.50%, compounded quarterly, for the period April 1, 2020, through December 31, 2020. The Department of Revenue posting...
AZ - Arizona electronic filing options discussed
The Arizona Department of Revenue has informed taxpayers about the steps to be taken for submitting Arizona Forms A1-R, or A1-APR, and federal Forms W-2, W-2c, W-2G and 1099. All withholding returns a...
The Arizona Department of Revenue has informed taxpayers about the steps to be taken for submitting Arizona Forms A1-R, or A1-APR, and federal Forms W-2, W-2c, W-2G and 1099. All withholding returns a...
AR - Changes to withholding tax tables announced
The Arkansas Department of Finance and Administration has announced that the state’s personal income tax withholding tables will change effective January 1, 2021. As a result, Arkansas personal inco...
The Arkansas Department of Finance and Administration has announced that the state’s personal income tax withholding tables will change effective January 1, 2021. As a result, Arkansas personal inco...
CA - Guidance provided on approval of proposition 19
California provides property tax guidance regarding the approval by voters of Proposition 19 at the November 3, 2020, general election.New Sections Added to Article XIII A of California ConstitutionPr...
California provides property tax guidance regarding the approval by voters of Proposition 19 at the November 3, 2020, general election.New Sections Added to Article XIII A of California ConstitutionPr...
CO - State and local sales and use tax rate changes announced
The Colorado Department of Revenue has announced state and local sales and use tax rate changes that are effective January 1, 2021.State-Collected City Sales and Use Tax ChangesThe following state-col...
The Colorado Department of Revenue has announced state and local sales and use tax rate changes that are effective January 1, 2021.State-Collected City Sales and Use Tax ChangesThe following state-col...
CT - Governor modifies tax deadlines for those affected by covid-19
Under an executive order issued by Connecticut Gov. Ned Lamont, the deferment program and the low interest rate program, which apply to all taxes imposed by municipalities and quasi-municipalities and...
Under an executive order issued by Connecticut Gov. Ned Lamont, the deferment program and the low interest rate program, which apply to all taxes imposed by municipalities and quasi-municipalities and...
DE - Mandatory electronic filing for many business tax returns announced
The Delaware Division of Revenue (division) issued a memorandum notifying taxpayers that most gross receipts tax, excise tax, and withholding tax returns and payments will be required to be filed elec...
The Delaware Division of Revenue (division) issued a memorandum notifying taxpayers that most gross receipts tax, excise tax, and withholding tax returns and payments will be required to be filed elec...
DC - Addition of property tax suite to online portal discussed
The District of Columbia Office of Tax and Revenue (OTR) has issued a press release informing taxpayers that the real property tax suite has been added to the OTR’s online tax portal, MyTax.DC.gov....
The District of Columbia Office of Tax and Revenue (OTR) has issued a press release informing taxpayers that the real property tax suite has been added to the OTR’s online tax portal, MyTax.DC.gov....
FL - Holmes County adds 0.5% indigent care surtax
The combined state and local Florida sales and use tax rate for Holmes County will be 7.5% effective January 1, 2021. The combined rate is composed of the 6% state sales tax, the 1% small county surta...
The combined state and local Florida sales and use tax rate for Holmes County will be 7.5% effective January 1, 2021. The combined rate is composed of the 6% state sales tax, the 1% small county surta...
GA - 2020 asset expense limitation guidance updated
Georgia has updated its instructions on how to compute and report federal tax differences on 2020 Georgia personal and corporate income tax returns. For tax years beginning in 2020, the IRC §179 expe...
Georgia has updated its instructions on how to compute and report federal tax differences on 2020 Georgia personal and corporate income tax returns. For tax years beginning in 2020, the IRC §179 expe...
HI - Honolulu completes 2021 assessments
The city and county of Honolulu, Hawaii has announced that real property assessments for 2021 are completed, and the total gross assessed valuation of all taxable real property on Oahu has decreased f...
The city and county of Honolulu, Hawaii has announced that real property assessments for 2021 are completed, and the total gross assessed valuation of all taxable real property on Oahu has decreased f...
ID - Tax treatment of covid-19 related money received from state discussed
For corporate and personal income tax purposes, taxpayers who received money from the state due to the COVID-19 pandemic may have received taxable income, for 2020 tax year for which Idaho tax was not...
For corporate and personal income tax purposes, taxpayers who received money from the state due to the COVID-19 pandemic may have received taxable income, for 2020 tax year for which Idaho tax was not...
IL - Tentative DuPage county multiplier announced for 2020
The tentative DuPage County equalization factor (multiplier) for Illinois property tax purposes has been set for 2020 at 1.0000. The final 2019 multiplier was 1.0000.The full text of the release is av...
The tentative DuPage County equalization factor (multiplier) for Illinois property tax purposes has been set for 2020 at 1.0000. The final 2019 multiplier was 1.0000.The full text of the release is av...
IN - County income rates updated
Indiana has announced county income tax rates that are effective January 1, 2021.Which Counties are Increasing Rates?The counties increasing their rate include:Martin County: 0.025 (increased from 0.0...
Indiana has announced county income tax rates that are effective January 1, 2021.Which Counties are Increasing Rates?The counties increasing their rate include:Martin County: 0.025 (increased from 0.0...
IA - Adoption tax credit regulations updated
Iowa is updating its personal income tax adoption redit regulation to conform to statutory changes made during 2019.Claiming ExpensesAfter 2018, taxpayers must claim qualified adoption expenses paid o...
Iowa is updating its personal income tax adoption redit regulation to conform to statutory changes made during 2019.Claiming ExpensesAfter 2018, taxpayers must claim qualified adoption expenses paid o...
KS - Property acquired by land banks are exempt
Property acquired by a land bank is exempt from Kansas ad valorem property taxes levied by the state or any other political subdivision. Under the applicable statute, the county treasurer has no discr...
Property acquired by a land bank is exempt from Kansas ad valorem property taxes levied by the state or any other political subdivision. Under the applicable statute, the county treasurer has no discr...
KY - Homestead exemption increased for 2021 and 2022
The Kentucky Department of Revenue has notified taxpayers that the maximum homestead exemption from property tax applicable to real estate owned by qualified taxpayers is increased by $1,200, from $39...
The Kentucky Department of Revenue has notified taxpayers that the maximum homestead exemption from property tax applicable to real estate owned by qualified taxpayers is increased by $1,200, from $39...
LA - Hospital operator denied refund of taxes paid on purchase of prescription drugs administered to medicare patients
A hospital operator (taxpayer) was not entitled to a Louisiana local sales tax exclusion, exemption, or refund for prescription drugs, implants, and medical supplies purchased from a wholesaler and ad...
A hospital operator (taxpayer) was not entitled to a Louisiana local sales tax exclusion, exemption, or refund for prescription drugs, implants, and medical supplies purchased from a wholesaler and ad...
ME - proposed changes to Maine's educational opportunity credit rule discussed
Maine Revenue Services has issued a Tax Alert to address proposed changes to the corporate and personal income tax rule on the educational opportunity credit.Proposed ChangesThe proposed changes would...
Maine Revenue Services has issued a Tax Alert to address proposed changes to the corporate and personal income tax rule on the educational opportunity credit.Proposed ChangesThe proposed changes would...
MD - Maryland addresses impact of unemployment insurance payments on EITC
The Comptroller of Maryland is advising personal income taxpayers that the collection of unemployment insurance may result in the potential loss of Earned Income Tax Credits that they would normally r...
The Comptroller of Maryland is advising personal income taxpayers that the collection of unemployment insurance may result in the potential loss of Earned Income Tax Credits that they would normally r...
MA - Deadline for operators to file claim for abatement of tax January 15, 2021
The Massachusetts Department of Revenue (department) has released a technical information release (TIR) informing taxpayers that the Cape Cod and Islands Water Protection Fund Excise (fund excise) aba...
The Massachusetts Department of Revenue (department) has released a technical information release (TIR) informing taxpayers that the Cape Cod and Islands Water Protection Fund Excise (fund excise) aba...
MI - Reminder issued on electronic filing and payment options
The Michigan Department of Treasury has reminded personal income tax filers that they have the option of e-filing their state tax returns and making payments electronically via the department’s e-Pa...
The Michigan Department of Treasury has reminded personal income tax filers that they have the option of e-filing their state tax returns and making payments electronically via the department’s e-Pa...
MN - Taxpayer's petition dismissed for failure to meet mandatory disclosure requirements
A Minnesota county’s motion to dismiss a taxpayer’s property tax petition was granted because the taxpayer failed to timely disclose income and expense information pursuant to the mandatory disclo...
A Minnesota county’s motion to dismiss a taxpayer’s property tax petition was granted because the taxpayer failed to timely disclose income and expense information pursuant to the mandatory disclo...
MS - Updates to children's promise act and allocation guidelines for 2021 discussed
The Mississippi Department of Revenue has issued a notice discussing the Children’s Promise Act, which provides for a corporate income or insurance premium tax credit for businesses that donate to a...
The Mississippi Department of Revenue has issued a notice discussing the Children’s Promise Act, which provides for a corporate income or insurance premium tax credit for businesses that donate to a...
MO - Funeral home's purchase of burial vaults subject to tax
A funeral home’s (taxpayer’s) purchase of burial vaults was subject to Missouri sales and use tax because the taxpayer was the end-user of the vaults. Generally, a contractor is the final user and...
A funeral home’s (taxpayer’s) purchase of burial vaults was subject to Missouri sales and use tax because the taxpayer was the end-user of the vaults. Generally, a contractor is the final user and...
MT - Non-resident s corporation owners' not allowed to carry forward losses to offset income
Non resident taxpayers with Montana source losses, but no federal net operating loss (NOL), were not allowed to carry forward the losses to offset Montana source income in subsequent years for persona...
Non resident taxpayers with Montana source losses, but no federal net operating loss (NOL), were not allowed to carry forward the losses to offset Montana source income in subsequent years for persona...
NE - Local rate changes and municipal boundary changes announced
Several local sales and use tax rate changes and municipal boundary changes take effect in Nebraska on April 1, 2021.Local Rate ChangesGibbon, Guide Rock, and Hartington increase their rates from 1% t...
Several local sales and use tax rate changes and municipal boundary changes take effect in Nebraska on April 1, 2021.Local Rate ChangesGibbon, Guide Rock, and Hartington increase their rates from 1% t...
NV - Request for conciliation conference properly denied as untimely
The New York Tax Appeals Tribunal (TAT) affirmed the determination of an administrative law judge (ALJ) that a personal income taxpayer’s request for conciliation conference was untimely filed. The ...
The New York Tax Appeals Tribunal (TAT) affirmed the determination of an administrative law judge (ALJ) that a personal income taxpayer’s request for conciliation conference was untimely filed. The ...
NH - Market based sourcing rules proposed
New Hampshire has released proposed business profits tax (BPT) and business enterprise tax (BET) regulations to adopt the market-based sourcing method of apportioning sales of services and intangibles...
New Hampshire has released proposed business profits tax (BPT) and business enterprise tax (BET) regulations to adopt the market-based sourcing method of apportioning sales of services and intangibles...
NJ - Department guidance regarding recent legislation released
New Jersey has released corporation business tax guidance regarding recently enacted legislation that made a series of technical corrections, clarifications and changes regarding combined groups.Topic...
New Jersey has released corporation business tax guidance regarding recently enacted legislation that made a series of technical corrections, clarifications and changes regarding combined groups.Topic...
NM - Interest rate remains the same for first quarter of 2021
The interest rate charged on an underpayment or paid on an overpayment of New Mexico tax will remain at 3% for the first quarter of 2021. The rates can be viewed on the New Mexico Department of Revenu...
The interest rate charged on an underpayment or paid on an overpayment of New Mexico tax will remain at 3% for the first quarter of 2021. The rates can be viewed on the New Mexico Department of Revenu...
NY - MTA surcharge rate increased for 2021, deriving receipts thresholds unchanged
The New York corporate franchise tax MTA surcharge rate will increase from 29.4% to 30% for tax year 2021. The rate will remain the same in later tax years, unless the Commissioner of Taxation and Fin...
The New York corporate franchise tax MTA surcharge rate will increase from 29.4% to 30% for tax year 2021. The rate will remain the same in later tax years, unless the Commissioner of Taxation and Fin...
NC - SST boundary database updated
North Carolina has updated the boundary database under the Streamlined Sales and Use Tax (SST) Agreement.Effective Date of Boundary DatabaseThe database is updated to include changes effective January...
North Carolina has updated the boundary database under the Streamlined Sales and Use Tax (SST) Agreement.Effective Date of Boundary DatabaseThe database is updated to include changes effective January...
ND - 2021 withholding rates and instructions released
North Dakota has released its 2021 personal income tax withholding rates and instructions booklet. The booklet notes that the IRS made significant changes to the federal withholding methods, including...
North Dakota has released its 2021 personal income tax withholding rates and instructions booklet. The booklet notes that the IRS made significant changes to the federal withholding methods, including...
OH - Information regarding new "W-2/1099-R upload" released
The Ohio Department of Taxation (department) has announced that starting January 2021, corporate and personal income taxpayers will be able to upload Form 1099-R, in addition with the W-2 information ...
The Ohio Department of Taxation (department) has announced that starting January 2021, corporate and personal income taxpayers will be able to upload Form 1099-R, in addition with the W-2 information ...
OK - Local rates announced
Oklahoma local sales and use tax rate changes have been announced effective January 1, 2021.City Rate ChangesKingfisher decreases its sales and use tax rate from 3.335% to 3%.Manchester imposes a new ...
Oklahoma local sales and use tax rate changes have been announced effective January 1, 2021.City Rate ChangesKingfisher decreases its sales and use tax rate from 3.335% to 3%.Manchester imposes a new ...
OR - Apportionment of interstate broadcaster dividends and gain determined
Following a decision by the Oregon Supreme Court requiring a broadcaster to apportion all of its revenue stream receipts according to the Oregon corporate (excise) income tax broadcaster apportionment...
Following a decision by the Oregon Supreme Court requiring a broadcaster to apportion all of its revenue stream receipts according to the Oregon corporate (excise) income tax broadcaster apportionment...
PA - Rebuttable presumption set for 2021
Beginning January 1, 2021, the Pennsylvania State Veterans' Commission will apply a rebuttable presumption that an applicant for the Disabled Veterans Real Estate Tax Exemption program with an annual ...
Beginning January 1, 2021, the Pennsylvania State Veterans' Commission will apply a rebuttable presumption that an applicant for the Disabled Veterans Real Estate Tax Exemption program with an annual ...
RI - Qualified jobs credit certification period temporarily suspended
Due to the COVID-19 pandemic, Rhode Island Gov. Gina M. Raimondo has issued an executive order that temporarily suspends the certification for the qualified jobs incentive tax credit. The running of t...
Due to the COVID-19 pandemic, Rhode Island Gov. Gina M. Raimondo has issued an executive order that temporarily suspends the certification for the qualified jobs incentive tax credit. The running of t...
SC - Special 2020 federal deduction for charitable donations discussed
Because South Carolina has not yet conformed to the CARES Act, the state does not follow the federal deduction of up to $300 allowed for certain charitable donations made in 2020 for individuals who c...
Because South Carolina has not yet conformed to the CARES Act, the state does not follow the federal deduction of up to $300 allowed for certain charitable donations made in 2020 for individuals who c...
SD - Local sales and use tax rates unchanged
South Dakota has announced that there are no local sales and use tax rate changes that will take effect January 1, 2021. Release, South Dakota Department of Revenue, December 4, 2020...
South Dakota has announced that there are no local sales and use tax rate changes that will take effect January 1, 2021. Release, South Dakota Department of Revenue, December 4, 2020...
TN - Guidance provided on taxability of hemp, e-cigarettes, and vape devices
Tennessee provides guidance on the application of cigarette and tobacco products tax to:tobacco substitutes;hemp and herbal cigarettes;e-cigarettes;vape devices; andother nicotine products.Important N...
Tennessee provides guidance on the application of cigarette and tobacco products tax to:tobacco substitutes;hemp and herbal cigarettes;e-cigarettes;vape devices; andother nicotine products.Important N...
TX - Dismissal of taxpayer's appeal for failure to pay under protest reversed
A Texas district court erred in dismissing the taxpayer’s appeal for lack of jurisdiction because the taxpayer could seek judicial review of its tax assessment without full prepayment of taxes. The ...
A Texas district court erred in dismissing the taxpayer’s appeal for lack of jurisdiction because the taxpayer could seek judicial review of its tax assessment without full prepayment of taxes. The ...
UT - Commission has started sending corrected billing notice
The Utah State Tax Commission (commission) has found a number of erroneous penalty and interest assessments sent for the 2019 tax year. An estimated 13,000 out of 1.5 million tax returns has received ...
The Utah State Tax Commission (commission) has found a number of erroneous penalty and interest assessments sent for the 2019 tax year. An estimated 13,000 out of 1.5 million tax returns has received ...
VT - Denial of motion to intervene affirmed
The Vermont Supreme Court rejected the taxpayer’s son’s assertion that the trial court erred in denying his request to intervene in his mother’s (taxpayer’s) 2016 property tax appeal because t...
The Vermont Supreme Court rejected the taxpayer’s son’s assertion that the trial court erred in denying his request to intervene in his mother’s (taxpayer’s) 2016 property tax appeal because t...
VA - Land preservation tax credit amended
Under the Virginia corporate and personal income taxes, for tax years after 2016 and before 2023 (previously, before 2020), the land preservation tax credit amount that may be claimed by each taxpayer...
Under the Virginia corporate and personal income taxes, for tax years after 2016 and before 2023 (previously, before 2020), the land preservation tax credit amount that may be claimed by each taxpayer...
WA - Petition for cancellation of assessment based on market-value assessment denied
A Washington taxpayer’s request for cancellation of an assessment of real estate excise tax (REET) imposed as the result of its sale of a business was denied because the asset allocation did not rea...
A Washington taxpayer’s request for cancellation of an assessment of real estate excise tax (REET) imposed as the result of its sale of a business was denied because the asset allocation did not rea...
WV - Median wage threshold for tourism development act credit announced
For West Virginia corporate income tax purposes, the required minimum median wage of new jobs at qualified professional services destination facilities for the purposes of the Tourism Development Tax ...
For West Virginia corporate income tax purposes, the required minimum median wage of new jobs at qualified professional services destination facilities for the purposes of the Tourism Development Tax ...
WI - Updated withholding tax guide issued
The Wisconsin Department of Revenue (department) announced that current withholding tax rate will continue for 2021 tax year for corporate and personal income tax purposes.Beginning with tax year 2020...
The Wisconsin Department of Revenue (department) announced that current withholding tax rate will continue for 2021 tax year for corporate and personal income tax purposes.Beginning with tax year 2020...
WY - Local lodging rate changes announced
Local lodging rate changes in Wyoming have been announced effective January 1, 2021.County Rate ChangesBig Horn county imposes a lodging tax at a rate of 2%.Lincoln county imposes a lodging tax at 2%....
Local lodging rate changes in Wyoming have been announced effective January 1, 2021.County Rate ChangesBig Horn county imposes a lodging tax at a rate of 2%.Lincoln county imposes a lodging tax at 2%....
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