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2018 Post-Filing Season UpdateCongress Approves Sweeping Tax OverhaulTax Cuts and Jobs Act2017 Year-End Tax Planning
Exempt Organizations May Not Need to Include Donor Information on Returns
Tax-exempt organizations, other than charities exempt under Code Sec. 501(c)(3), will soon be able to stop reporting the names and addresses of contributors on Schedule B when filing their inform...
Tax-exempt organizations, other than charities exempt under Code Sec. 501(c)(3), will soon be able to stop reporting the names and addresses of contributors on Schedule B when filing their inform...
IRS Unveils Draft Form 1040
Taxpayers will be able to file federal income taxes starting next filing season on a new postcard-sized Form 1040. The IRS officially released the draft 2018 Form 1040 on June 29.Draft Form 1040The ne...
Taxpayers will be able to file federal income taxes starting next filing season on a new postcard-sized Form 1040. The IRS officially released the draft 2018 Form 1040 on June 29.Draft Form 1040The ne...
Preparer Due Diligence Rules Include Head of Household Eligibility
The IRS has proposed amendments to the tax preparer due diligence regulations to reflect a recent law change. The Tax Cuts and Jobs Act ( P.L. 115-97) expanded the scope of the due diligence pena...
The IRS has proposed amendments to the tax preparer due diligence regulations to reflect a recent law change. The Tax Cuts and Jobs Act ( P.L. 115-97) expanded the scope of the due diligence pena...
IRS Clarifies Estate and Trust Expenses Not Subject to Miscellaneous Itemized Deduction Suspension
The Treasury Department and the IRS plan to issue regulations clarifying that certain estate and nongrantor trust expenses remain deductible and are not subject to the miscellaneous itemized deduction...
The Treasury Department and the IRS plan to issue regulations clarifying that certain estate and nongrantor trust expenses remain deductible and are not subject to the miscellaneous itemized deduction...
Veterans Urged to Claim Refund for Tax Overpayments on Disability Severance Payments
The IRS has urged certain veterans who received disability severance payments after January 17, 1991, and included that payment as income that they should file Form 1040X, Amended U.S. Individual Inco...
The IRS has urged certain veterans who received disability severance payments after January 17, 1991, and included that payment as income that they should file Form 1040X, Amended U.S. Individual Inco...
IRS Highlights “Security Six” Safeguards
The IRS, along with Security Summit partners, offered important tips dubbed "Security Six"protections to help tax professionals protect their computers and email as well as safeguard sensitive ta...
The IRS, along with Security Summit partners, offered important tips dubbed "Security Six"protections to help tax professionals protect their computers and email as well as safeguard sensitive ta...
AL - Taxpayers asked to substantiate claims for deduction on non-taxable income
Personal income taxpayers were directed to substantiate their claims for deduction on their Alabama tax liability, as per the applicable decided cases, because the payments at issue were a transfer of...
Personal income taxpayers were directed to substantiate their claims for deduction on their Alabama tax liability, as per the applicable decided cases, because the payments at issue were a transfer of...
AK - Exemption for interest in AIDEA property extended
A property tax exemption for interests in Alaska Industrial Development and Export Authority (AIDEA) property is extended.ExemptionAn interest created by a nonexclusive use agreement between the AIDEA...
A property tax exemption for interests in Alaska Industrial Development and Export Authority (AIDEA) property is extended.ExemptionAn interest created by a nonexclusive use agreement between the AIDEA...
AZ - Publication discussing nexus in Arizona updated
The Arizona Department of Revenue has updated its publication that discusses how nexus affects the imposition of corporate income tax and sales and use tax. The publication defines nexus and explains ...
The Arizona Department of Revenue has updated its publication that discusses how nexus affects the imposition of corporate income tax and sales and use tax. The publication defines nexus and explains ...
AR - Tax quarterly newsletter issued
An Arkansas Department of Finance and Administration (DFA) newsletter discusses changes in the Sales Tax Act, the Income Tax Rule, and the credit card payment information. Effective July 1, 2018, a ph...
An Arkansas Department of Finance and Administration (DFA) newsletter discusses changes in the Sales Tax Act, the Income Tax Rule, and the credit card payment information. Effective July 1, 2018, a ph...
CA - Class certification to LLCs seeking refund of unconstitutional levy granted
For corporate income tax purposes, the California Court of Appeal (court) reversed a trial court’s denial of limited liability companies’ (LLCs’) motion for class certification with ...
For corporate income tax purposes, the California Court of Appeal (court) reversed a trial court’s denial of limited liability companies’ (LLCs’) motion for class certification with ...
CO - Day care center not entitled for exemption
The Colorado Court of Appeals (court) affirmed the Board of Assessment Appeals’ (Board) denial of a property tax exemption for a day care center because the center did not charge for its service...
The Colorado Court of Appeals (court) affirmed the Board of Assessment Appeals’ (Board) denial of a property tax exemption for a day care center because the center did not charge for its service...
CT - Connecticut issues GILTI guidance
Connecticut issued guidance on the treatment of global intangible low-taxed income (GILTI). The guidance applies to corporate business taxpayers for tax years beginning after 2017.How Does Federal Law...
Connecticut issued guidance on the treatment of global intangible low-taxed income (GILTI). The guidance applies to corporate business taxpayers for tax years beginning after 2017.How Does Federal Law...
DE - Delaware imposes tax on series LLCs
Delaware legislation authorizes the formation of series limited liability companies (LLCs). It also imposes an annual tax on registered Delaware series LLCs beginning August 1, 2019.How Much Is the Ta...
Delaware legislation authorizes the formation of series limited liability companies (LLCs). It also imposes an annual tax on registered Delaware series LLCs beginning August 1, 2019.How Much Is the Ta...
DC - Sales in federal buildings subject to tax
Sales at various establishments in federal buildings in the District of Columbia are subject to sales and use tax. In addition, sales by federal enterprises or organizations are subject to tax.Federal...
Sales at various establishments in federal buildings in the District of Columbia are subject to sales and use tax. In addition, sales by federal enterprises or organizations are subject to tax.Federal...
FL - Publication on internal revenue code and tax credit changes issued
The Florida Department of Revenue has issued a tax information publication discussing the corporate income tax adoption of the Internal Revenue Code (IRC) and tax credit changes. The publication discu...
The Florida Department of Revenue has issued a tax information publication discussing the corporate income tax adoption of the Internal Revenue Code (IRC) and tax credit changes. The publication discu...
GA - State tax on jet fuel suspended August 1
Georgia Gov. Nathan Deal signed an executive order impacting the collection of the state sales and use tax on jet fuel.State Tax on Jet FuelEffective August 1, 2018, the collection of the state’...
Georgia Gov. Nathan Deal signed an executive order impacting the collection of the state sales and use tax on jet fuel.State Tax on Jet FuelEffective August 1, 2018, the collection of the state’...
HI - 2018 standard mileage rates announced
The 2018 standard mileage rates for Hawaii income tax deductions for using vehicles for designated purposes are:business—54.5 cents per mile;medical or moving—18 cents per mile; andcharita...
The 2018 standard mileage rates for Hawaii income tax deductions for using vehicles for designated purposes are:business—54.5 cents per mile;medical or moving—18 cents per mile; andcharita...
ID - Taxpayers urged to check if correct amount of tax is withheld
The Idaho Tax Commission has issued a news release urging personal income taxpayers to review their federal Form W-4 to see if they have the right amount of federal and state income taxes withheld fro...
The Idaho Tax Commission has issued a news release urging personal income taxpayers to review their federal Form W-4 to see if they have the right amount of federal and state income taxes withheld fro...
IL - Business income tax forms and instructions for 2017 updated due to retroactive extension of hospital credit
The Illinois Department of Revenue has issued a press release informing corporate income taxpayers that, due to the retroactive extension of the Hospital Credit, the instructions for the 2017 Business...
The Illinois Department of Revenue has issued a press release informing corporate income taxpayers that, due to the retroactive extension of the Hospital Credit, the instructions for the 2017 Business...
IN - Amendments to law concerning taxability of remotely accessed software discussed
The Indiana Department of Revenue has issued a bulletin discussing the recent amendments to the law concerning the taxability of software as a service, cloud computing, and various other matters relat...
The Indiana Department of Revenue has issued a bulletin discussing the recent amendments to the law concerning the taxability of software as a service, cloud computing, and various other matters relat...
IA - DOR offers wayfair guidance
Iowa issued guidance regarding how the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc., Docket No. 17-494 affects Iowa and online retailers, remote sellers, and marketplace p...
Iowa issued guidance regarding how the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc., Docket No. 17-494 affects Iowa and online retailers, remote sellers, and marketplace p...
KS - Q3 local rate changes announced
The local sales and use tax rate changes and developments below are effective October 1, 2018.County Rate ChangesEllis County decreases its rate by 0.50% (from 0.50% to 0.00%), decreasing its total ta...
The local sales and use tax rate changes and developments below are effective October 1, 2018.County Rate ChangesEllis County decreases its rate by 0.50% (from 0.50% to 0.00%), decreasing its total ta...
KY - New sample client letter on combined reporting now available
Kentucky recently enacted legislation that requires combined reporting for members of a unitary business group. A sample client letter has been created that assists practitioners in informing clients ...
Kentucky recently enacted legislation that requires combined reporting for members of a unitary business group. A sample client letter has been created that assists practitioners in informing clients ...
LA - Assessor not authorized to impose handling fees
The Louisiana Attorney General has opined that a parish assessor is not authorized to include or impose a "handling fee" on behalf of a municipality when preparing the requested tax rolls du...
The Louisiana Attorney General has opined that a parish assessor is not authorized to include or impose a "handling fee" on behalf of a municipality when preparing the requested tax rolls du...
ME - Instructional bulletin for motor vehicle oil premiums updated
Maine Revenue Services has updated a sales and use tax instructional bulletin regarding motor vehicle oil premiums. The updated bulletin discusses, among other things, various statutory definitions; i...
Maine Revenue Services has updated a sales and use tax instructional bulletin regarding motor vehicle oil premiums. The updated bulletin discusses, among other things, various statutory definitions; i...
MD - Maryland issues wayfair guidance
Maryland issued guidance for online sellers after the recent decision in South Dakota v. Wayfair, Inc., U.S. Supreme Court, Dkt. No. 17-494, June 21, 2018. Wayfair struck down the requi...
Maryland issued guidance for online sellers after the recent decision in South Dakota v. Wayfair, Inc., U.S. Supreme Court, Dkt. No. 17-494, June 21, 2018. Wayfair struck down the requi...
MA - Abatement denied for failure to prove over-assessment
The Massachusetts Board of Assessors’ decision denying a taxpayer’s request to abate property taxes on certain real estate property consisting of a contemporary-style dwelling was upheld b...
The Massachusetts Board of Assessors’ decision denying a taxpayer’s request to abate property taxes on certain real estate property consisting of a contemporary-style dwelling was upheld b...
MI - Bad debt deduction eligible for deduction related to repossessed property
Two finance companies were entitled to Michigan sales tax refunds for debts associated with vehicles that were repossessed. However, they failed to support certain other claims for refunds pursuant to...
Two finance companies were entitled to Michigan sales tax refunds for debts associated with vehicles that were repossessed. However, they failed to support certain other claims for refunds pursuant to...
MN - Trusts were unconstitutionally taxed as resident trusts; refund claim upheld
For personal income tax purposes, the Minnesota Supreme Court (court) affirmed a Tax Court decision that certain trusts were unconstitutionally taxed as resident trusts, and therefore were eligible fo...
For personal income tax purposes, the Minnesota Supreme Court (court) affirmed a Tax Court decision that certain trusts were unconstitutionally taxed as resident trusts, and therefore were eligible fo...
MS - Various regulations amended
The Mississippi Department of Revenue has amended several sales and use regulations to provide clarification or to make technical or conforming changes, among other updates.Repealed RegulationsRegulat...
The Mississippi Department of Revenue has amended several sales and use regulations to provide clarification or to make technical or conforming changes, among other updates.Repealed RegulationsRegulat...
MO - Lease for security and alarm systems not subject to tax
A limited liability company’s (taxpayer’s) lease of security, fire, tornado, and ammonia alarm systems (systems) was not subject to Missouri sales and use tax because the systems were fixt...
A limited liability company’s (taxpayer’s) lease of security, fire, tornado, and ammonia alarm systems (systems) was not subject to Missouri sales and use tax because the systems were fixt...
MT - Pass-through entity apportionment rules adopted
Montana has adopted a new rule on apportionment and allocation of income for pass-through entities.Before, the apportionment rule for individuals, estates, and trusts also covered pass-through entitie...
Montana has adopted a new rule on apportionment and allocation of income for pass-through entities.Before, the apportionment rule for individuals, estates, and trusts also covered pass-through entitie...
NE - Nexus guidance issued for remote sellers
In light of the U.S. Supreme decision in South Dakota v. Wayfair, the Nebraska Department of Revenue has issued guidance on the collection of sales tax by certain remote sellers.Remote SellersRem...
In light of the U.S. Supreme decision in South Dakota v. Wayfair, the Nebraska Department of Revenue has issued guidance on the collection of sales tax by certain remote sellers.Remote SellersRem...
NV - Regulations adopted on credit for new or expanding businesses
Nevada adopted regulations on the transferable credit available to new or expanding businesses. Taxpayers can apply the credit against:the modified business tax;the financial institution modified busi...
Nevada adopted regulations on the transferable credit available to new or expanding businesses. Taxpayers can apply the credit against:the modified business tax;the financial institution modified busi...
NH - Individuals can now claim education tax credits
New Hampshire enacted a law allowing personal income taxpayers to claim the education tax credit. The credit was previously available to business profits and business enterprise taxpayers.Donation to ...
New Hampshire enacted a law allowing personal income taxpayers to claim the education tax credit. The credit was previously available to business profits and business enterprise taxpayers.Donation to ...
NJ - Division issued updated withholding instructions
For corporate and personal income tax purposes, the New Jersey Division of Taxation has issued an updated income tax withholding instructions containing withholding rate tables applicable to wages, sa...
For corporate and personal income tax purposes, the New Jersey Division of Taxation has issued an updated income tax withholding instructions containing withholding rate tables applicable to wages, sa...
NM - Coating service charges subject to tax due to failure to possess valid NTTCs
A taxpayer’s charges for providing coating services on behalf of an engineering equipment manufacturer (client) were subject to New Mexico gross receipts (sales) tax because the taxpayer did not...
A taxpayer’s charges for providing coating services on behalf of an engineering equipment manufacturer (client) were subject to New Mexico gross receipts (sales) tax because the taxpayer did not...
NY - Lessee’s payments to escrow account were eligible for credit
A lessee’s payments to an escrow account constituted eligible real property taxes under New York’s qualified empire zone enterprise credit.Direct Payment RequirementThe law provides that t...
A lessee’s payments to an escrow account constituted eligible real property taxes under New York’s qualified empire zone enterprise credit.Direct Payment RequirementThe law provides that t...
NC - North Carolina changes intangible property sourcing rules
North Carolina legislation changes the rules for sourcing a corporate income taxpayer’s receipts from intangible property.What Are the Sourcing Rules for Intangible Property?The legislation adop...
North Carolina legislation changes the rules for sourcing a corporate income taxpayer’s receipts from intangible property.What Are the Sourcing Rules for Intangible Property?The legislation adop...
ND - North Dakota in compliance with terms of streamlined sales and use tax agreement
The North Dakota Office of State Tax Commissioner has certified that North Dakota is in substantial compliance with the terms of the Streamlined Sales and Use Tax Agreement as of August 1, 2018. Furth...
The North Dakota Office of State Tax Commissioner has certified that North Dakota is in substantial compliance with the terms of the Streamlined Sales and Use Tax Agreement as of August 1, 2018. Furth...
OH - Manufacturer’s natural gas used for heating was taxable
An aluminum trailer manufacturer was not entitled to an Ohio use tax exemption on natural gas used to heat its buildings.Environmental Regulation ExceptionOhio law permits an exception to the taxation...
An aluminum trailer manufacturer was not entitled to an Ohio use tax exemption on natural gas used to heat its buildings.Environmental Regulation ExceptionOhio law permits an exception to the taxation...
OK - Additional Q3 local rate changes announced
The local sales and use tax rate changes below take effect in Oklahoma on October 1, 2018. Other local sales and use tax rate changes taking effect October 1 were previously reported.City Rate Changes...
The local sales and use tax rate changes below take effect in Oklahoma on October 1, 2018. Other local sales and use tax rate changes taking effect October 1 were previously reported.City Rate Changes...
OR - Online college opportunity grant tax credit auction announced
For corporate and personal income tax purposes, the Oregon Department of Revenue has issued a press release announcing that it will be holding an online College Opportunity Grant Tax Credit auction wi...
For corporate and personal income tax purposes, the Oregon Department of Revenue has issued a press release announcing that it will be holding an online College Opportunity Grant Tax Credit auction wi...
PA - Nun pro tunc appeal properly dismissed
A taxpayer’s request for a nunc pro tunc appeal of Pennsylvania property tax assessment was properly denied because the seller did not rely upon the county’s misclassification of the prope...
A taxpayer’s request for a nunc pro tunc appeal of Pennsylvania property tax assessment was properly denied because the seller did not rely upon the county’s misclassification of the prope...
RI - Wayfair has no effect on remote sellers
Rhode Island announced that tax collection obligations of remote sellers are not affected by the Wayfair decision. Rhode Island has issued more guidance for remote sellers on South Dako...
Rhode Island announced that tax collection obligations of remote sellers are not affected by the Wayfair decision. Rhode Island has issued more guidance for remote sellers on South Dako...
SC - Tax sale void for failure to satisfy statutory notice requirements
A tax sale and resulting tax deed were invalid because a South Carolina county failed to strictly comply with statutory notice requirements leading up to the tax sale that was initiated when the prope...
A tax sale and resulting tax deed were invalid because a South Carolina county failed to strictly comply with statutory notice requirements leading up to the tax sale that was initiated when the prope...
SD - SST governing board meets to discuss wayfair
The Streamlined Sales Tax (SST) Governing Board held an open discussion of South Dakota v. Wayfair, Inc. on July 19, 2018. Wayfair struck down the requirement that a vendor must be physically present ...
The Streamlined Sales Tax (SST) Governing Board held an open discussion of South Dakota v. Wayfair, Inc. on July 19, 2018. Wayfair struck down the requirement that a vendor must be physically present ...
TN - Appeal dismissed for lack of jurisdiction
For Tennessee property tax purposes, the Court of Appeals dismissed the taxpayer's lienholders appeal from the trial court’s order for lack of jurisdiction because the trial court's order was no...
For Tennessee property tax purposes, the Court of Appeals dismissed the taxpayer's lienholders appeal from the trial court’s order for lack of jurisdiction because the trial court's order was no...
TX - Outsourced-IT related services taxable because they were part of in-state hardware/software sales
A taxpayer’s outsourced IT-related services were subject to Texas sales tax to the extent they were performed at its client locations in Texas, because the taxpayer provided these services in co...
A taxpayer’s outsourced IT-related services were subject to Texas sales tax to the extent they were performed at its client locations in Texas, because the taxpayer provided these services in co...
UT - Utah enacts economic nexus provisions
Enacted Utah legislation imposes economic nexus and expands certain sales and use tax exemptions.Economic NexusA seller not otherwise obligated to pay or collect and remit sales and use tax is so obli...
Enacted Utah legislation imposes economic nexus and expands certain sales and use tax exemptions.Economic NexusA seller not otherwise obligated to pay or collect and remit sales and use tax is so obli...
VT - Guidance for persons renting spare rooms updated
The Vermont Department of Taxes has updated its fact sheet that provides guidance on the applicability of meals and rooms tax to persons who rent their spare rooms or other types of lodging to visitor...
The Vermont Department of Taxes has updated its fact sheet that provides guidance on the applicability of meals and rooms tax to persons who rent their spare rooms or other types of lodging to visitor...
VA - Contractor’s purchase of communication equipment and materials to be transferred to government exempt
A government contractor’s (taxpayer’s) purchase of communications equipment and materials to be installed on a naval vessel under a federal government contract was exempt from Virginia sal...
A government contractor’s (taxpayer’s) purchase of communications equipment and materials to be installed on a naval vessel under a federal government contract was exempt from Virginia sal...
WA - Failure to register and file returns did not constitute circumstance beyond control to file annual reports
A Washington limited liability company’s (taxpayer’s) failure to file its annual reports because it did not register and file tax returns during the preferential aerospace business and occ...
A Washington limited liability company’s (taxpayer’s) failure to file its annual reports because it did not register and file tax returns during the preferential aerospace business and occ...
WV - Tax deed void, interests were never delinquent
A decision declaring the tax sale purchaser the owner of 80% of the mineral interests in the two parcels of property was reversed by the West Virginia Supreme Court of Appeals because the interests we...
A decision declaring the tax sale purchaser the owner of 80% of the mineral interests in the two parcels of property was reversed by the West Virginia Supreme Court of Appeals because the interests we...
WI - Wisconsin in compliance with terms of streamlined sales and use tax agreement
The Wisconsin Department of Revenue has certified that Wisconsin is in substantial compliance with the terms of the Streamlined Sales and Use Tax Agreement as of August 1, 2018. Further, Wisconsin has...
The Wisconsin Department of Revenue has certified that Wisconsin is in substantial compliance with the terms of the Streamlined Sales and Use Tax Agreement as of August 1, 2018. Further, Wisconsin has...
WY - Local rate changes announced
Local Wyoming sales and use tax changes have been amended. Beginning October 1, 2018, Carbon County will decrease its rate from 6% to 5%. The combined lodging and sales tax rate will be 7%. Taxin...
Local Wyoming sales and use tax changes have been amended. Beginning October 1, 2018, Carbon County will decrease its rate from 6% to 5%. The combined lodging and sales tax rate will be 7%. Taxin...
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