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Unemployment Compensation Refunds Continue
The IRS announced that another 1.5 million taxpayers would receive refunds averaging more than $1,600 as it continues to adjust unemployment compensation from previously filed income tax returns. The ...
The IRS announced that another 1.5 million taxpayers would receive refunds averaging more than $1,600 as it continues to adjust unemployment compensation from previously filed income tax returns. The ...
IRS Updates Accounting Methods for Credit Card Fees
The IRS updated Rev. Proc. 2013-26, 2013-22 I.R.B. 1160, to reflect amendments to Code Sec. 451(b) made by the Tax Cuts and Jobs Act (TCJA) ( P.L. 115-97) and related Reg. §§1.451-3 and 1.127...
The IRS updated Rev. Proc. 2013-26, 2013-22 I.R.B. 1160, to reflect amendments to Code Sec. 451(b) made by the Tax Cuts and Jobs Act (TCJA) ( P.L. 115-97) and related Reg. §§1.451-3 and 1.127...
Security Summit Highlights Identity Theft Risk Related to Unemployment
The IRS Security Summit partners outlined how tax professionals can assist clients who were victims of unemployment compensation fraud schemes that targeted state workforce agencies in 2020 and 2021. ...
The IRS Security Summit partners outlined how tax professionals can assist clients who were victims of unemployment compensation fraud schemes that targeted state workforce agencies in 2020 and 2021. ...
Entities Must Update EIN Information Within 60 Days of Change
The IRS urged entities with Employer Identification Numbers (EINs) to update their applications if there has been a change in the responsible party or contact information. The Service called this a ke...
The IRS urged entities with Employer Identification Numbers (EINs) to update their applications if there has been a change in the responsible party or contact information. The Service called this a ke...
Accounting Method Change Consent Procedures for Code Sec. 451 Amendments
The IRS updated automatic consent procedures for taxpayers to change their method of accounting to comply with final regulations under Reg. §§1.451-3, 1.451-8, and 1.1275-2(l); and for certain in...
The IRS updated automatic consent procedures for taxpayers to change their method of accounting to comply with final regulations under Reg. §§1.451-3, 1.451-8, and 1.1275-2(l); and for certain in...
Individual Entitled to Exclude Wages as Foreign Earned Income; Additions to Tax Not Imposed
An individual, who was employed as a contractor on a US military base in Afghanistan, was entitled to exclude wages from gross income which she earned as "foreign earned income" under Code Sec. 911...
An individual, who was employed as a contractor on a US military base in Afghanistan, was entitled to exclude wages from gross income which she earned as "foreign earned income" under Code Sec. 911...
AL - Updated chart shows local participation in 2021 back-to-school tax holiday
The chart listing the counties and municipalities that will participate in Alabama’s back-to-school sales tax holiday has been updated. The holiday is being held from July 16 through July 18, 2021.L...
The chart listing the counties and municipalities that will participate in Alabama’s back-to-school sales tax holiday has been updated. The holiday is being held from July 16 through July 18, 2021.L...
AK - Alaska landing tax constitutional
The Supreme Court of Alaska held that the state landing tax does not violate the Import-Export and Tonnage Clauses of the United States Constitution or 33 U.S.C. §5(b).BackgroundIn this case, two com...
The Supreme Court of Alaska held that the state landing tax does not violate the Import-Export and Tonnage Clauses of the United States Constitution or 33 U.S.C. §5(b).BackgroundIn this case, two com...
AZ - No local rate changes effective September 1
There are no local Arizona transaction privilege tax (TPT) changes effective September 1, 2021. The TPT rate chart can be viewed at: https://azdor.gov/sites/default/files/media/TPT_RATETABLE_09012021...
There are no local Arizona transaction privilege tax (TPT) changes effective September 1, 2021. The TPT rate chart can be viewed at: https://azdor.gov/sites/default/files/media/TPT_RATETABLE_09012021...
AR - Non-taxable income must be included while calculating net operating losses
A taxpayer was properly subject to Arkansas corporate income tax assessment as the Department of Finance and Administration (department) correctly included the taxpayer’s non-taxable income with gro...
A taxpayer was properly subject to Arkansas corporate income tax assessment as the Department of Finance and Administration (department) correctly included the taxpayer’s non-taxable income with gro...
CA - Lumber products assessments adjusted to reflect nontaxable sales
For California sales and use tax purposes, a taxpayer’s protest against California lumber products assessments (LPA) was sustained as the taxpayer established that it did not underreport its sales d...
For California sales and use tax purposes, a taxpayer’s protest against California lumber products assessments (LPA) was sustained as the taxpayer established that it did not underreport its sales d...
CO - Correction of NOV voided due to failure to satisfy statutory criteria
A self-service car wash’s (taxpayer) petition voiding the corrected notice of valuation (NOV) for real property owned by taxpayer was affirmed by the Colorado Court Of Appeals as the Jefferson count...
A self-service car wash’s (taxpayer) petition voiding the corrected notice of valuation (NOV) for real property owned by taxpayer was affirmed by the Colorado Court Of Appeals as the Jefferson count...
CT - Municipalities can provide temporary tax relief
Municipalities and taxing districts can adopt programs for fiscal years ending June 30, 2022, and June 30, 2023, to provide temporary Connecticut property tax or municipal utility charge relief to tax...
Municipalities and taxing districts can adopt programs for fiscal years ending June 30, 2022, and June 30, 2023, to provide temporary Connecticut property tax or municipal utility charge relief to tax...
DE - Checkoff for taxpayers to donate to Delaware combined campaign for justice fund enacted
Legislation has been enacted adding the Delaware Combined Campaign for Justice Fund to the 21 charitable organizations listed on the Delaware personal income tax return.Individuals may designate $1.00...
Legislation has been enacted adding the Delaware Combined Campaign for Justice Fund to the 21 charitable organizations listed on the Delaware personal income tax return.Individuals may designate $1.00...
DC - Cigarette surtax increase announced
The surtax for cigarettes is increasing one cent in the District of Columbia.New Surtax RateEffective October 1, 2021, the surtax on a pack of cigarettes will increase to 51¢ (currently, 50¢). The s...
The surtax for cigarettes is increasing one cent in the District of Columbia.New Surtax RateEffective October 1, 2021, the surtax on a pack of cigarettes will increase to 51¢ (currently, 50¢). The s...
FL - Lease or rental of a car by a peer-to-peer car-sharing program is subject to tax
The lease or rental of a motor vehicle by a peer-to-peer car-sharing program is subject to Florida sales and use tax. Moreover, a $1 per day rental car surcharge applies to a peer-to-peer car-sharing ...
The lease or rental of a motor vehicle by a peer-to-peer car-sharing program is subject to Florida sales and use tax. Moreover, a $1 per day rental car surcharge applies to a peer-to-peer car-sharing ...
GA - Sales and use tax treatment of fundraising activities conducted by organizations exempt from federal income discussed
For sales and use tax purposes, Georgia issued a policy bulletin providing guidance to organizations exempt from federal income tax under Internal Revenue Code (IRC) 501(c)(3) ("501(c)(3) organization...
For sales and use tax purposes, Georgia issued a policy bulletin providing guidance to organizations exempt from federal income tax under Internal Revenue Code (IRC) 501(c)(3) ("501(c)(3) organization...
HI - Guidance regarding general excise tax treatment of software released
The Hawaii Department of Taxation has released guidance on the general excise tax (GET) treatment of sales of software.Types of SoftwareThe Department considers the sale of prewritten or canned softwa...
The Hawaii Department of Taxation has released guidance on the general excise tax (GET) treatment of sales of software.Types of SoftwareThe Department considers the sale of prewritten or canned softwa...
ID - Calculation of estimated tax payments using commission's website discussed
The Idaho State Tax Commission has issued a release discussing the calculation of estimated property tax payments using a calculator on the commission’s website. Taxpayers in 30 Idaho counties can e...
The Idaho State Tax Commission has issued a release discussing the calculation of estimated property tax payments using a calculator on the commission’s website. Taxpayers in 30 Idaho counties can e...
IL - Tentative white county multiplier announced for 2020
The tentative White County equalization factor (multiplier) for Illinois property tax purposes has been set for 2020 at 1.0000. The final 2019 multiplier was 1.0000. Release, Illinois Department of R...
The tentative White County equalization factor (multiplier) for Illinois property tax purposes has been set for 2020 at 1.0000. The final 2019 multiplier was 1.0000. Release, Illinois Department of R...
IN - Gasoline use tax rate for August 2021 announced
The Indiana gasoline use tax rate for the month of August 2021 is $0.175 per gallon. Departmental Notice #2, Indiana Department of Revenue, August 1, 2021...
The Indiana gasoline use tax rate for the month of August 2021 is $0.175 per gallon. Departmental Notice #2, Indiana Department of Revenue, August 1, 2021...
IA - Updated sales and use tax guidance issued
The Iowa Department of Revenue has issued updated general guidance on sales and use tax in the state. The guidance contains information such as permit requirements, tax rates, filing requirements, ref...
The Iowa Department of Revenue has issued updated general guidance on sales and use tax in the state. The guidance contains information such as permit requirements, tax rates, filing requirements, ref...
KS - Disabled access credit limit increased
For personal income tax purposes, the Kansas Department of Revenue (department) has issued a notice discussing recent amendments to the disabled access credit. The credit applies to Kansas residents w...
For personal income tax purposes, the Kansas Department of Revenue (department) has issued a notice discussing recent amendments to the disabled access credit. The credit applies to Kansas residents w...
KY - 2021 property tax rate announced
For 2021, the Kentucky state real property tax rate is 11.9¢ per $100 of assessed value. The rate was 12.2¢ in 2020. This is the first time the rate has decreased since 2008. Release, Kentucky Depa...
For 2021, the Kentucky state real property tax rate is 11.9¢ per $100 of assessed value. The rate was 12.2¢ in 2020. This is the first time the rate has decreased since 2008. Release, Kentucky Depa...
LA - Board of tax appeals has jurisdiction over state or local taxes or fees; taxpayer’s petition denied prematurely
For corporate income tax purposes, the Lousiana Board of Tax Appeals (BTA), in an appeal, determined that BTA has jurisdiction on all subject matter relating to state or local taxes or fees and the ta...
For corporate income tax purposes, the Lousiana Board of Tax Appeals (BTA), in an appeal, determined that BTA has jurisdiction on all subject matter relating to state or local taxes or fees and the ta...
ME - Paper manufacturing investment credit clarified
The Maine Paper Manufacturer Investment Tax Credit is amended to clarify that a "qualified investment" does not include an investment made prior to January 1, 2019, or after December 31, 2023. Addit...
The Maine Paper Manufacturer Investment Tax Credit is amended to clarify that a "qualified investment" does not include an investment made prior to January 1, 2019, or after December 31, 2023. Addit...
MD - Evidence for claiming refund under statute of limitation discussed
The Court of Special Appeals of Maryland (court), in a personal income tax matter, determined that in a situation where a taxpayer mails a claim for a refund, but the Comptroller of Maryland does not ...
The Court of Special Appeals of Maryland (court), in a personal income tax matter, determined that in a situation where a taxpayer mails a claim for a refund, but the Comptroller of Maryland does not ...
MA - Credit and deduction changes enacted
Massachusetts budget legislation contains numerous changes to corporate excise and personal income tax credits and deductions. The changes include:extension of the sunset date for the historic rehabi...
Massachusetts budget legislation contains numerous changes to corporate excise and personal income tax credits and deductions. The changes include:extension of the sunset date for the historic rehabi...
MI - Gain from sale of business excluded from sales factor denominator
Gain from the sale of a business was properly excluded from the denominator of the sales factor of the apportionment formula when computing a taxpayer’s Michigan business tax liability. The case inv...
Gain from the sale of a business was properly excluded from the denominator of the sales factor of the apportionment formula when computing a taxpayer’s Michigan business tax liability. The case inv...
MN - Fact sheets on local sales and use taxes and special local taxes revised
Minnesota revised its fact sheets regarding local sales and use taxes and special local taxes to reflect recent rate changes. The revised fact sheets reflect that effective October 1, 2021, Washington...
Minnesota revised its fact sheets regarding local sales and use taxes and special local taxes to reflect recent rate changes. The revised fact sheets reflect that effective October 1, 2021, Washington...
MS - City of Sardis repeals tourism tax
Effective July 1, 2021 the city of Sardis will repeal its tourism tax. The Sardis tourism tax is levied at the rate of 3% on the gross proceeds derived from sales of prepared foods at restaurants and ...
Effective July 1, 2021 the city of Sardis will repeal its tourism tax. The Sardis tourism tax is levied at the rate of 3% on the gross proceeds derived from sales of prepared foods at restaurants and ...
MO - Deduction for long-term care insurance premium amounts expanded
Missouri has expanded the definition of "qualified long-term care insurance" for purposes of the personal income tax deduction for nonreimbursed long-term care insurance premium amounts. "Qualified...
Missouri has expanded the definition of "qualified long-term care insurance" for purposes of the personal income tax deduction for nonreimbursed long-term care insurance premium amounts. "Qualified...
MT - Non resident’s capital gains from land sale properly subject tax
A non resident who sold a property in Montana but did not report the same in a Montana personal income tax return was properly subject to additional personal income tax assessment. In this matter, the...
A non resident who sold a property in Montana but did not report the same in a Montana personal income tax return was properly subject to additional personal income tax assessment. In this matter, the...
NE - Social security income exemption initiated
Nebraska initiated plans to provide an exemption from personal income tax for all social security income.Current TreatmentIndividuals computing Nebraska personal income tax liability can subtract soci...
Nebraska initiated plans to provide an exemption from personal income tax for all social security income.Current TreatmentIndividuals computing Nebraska personal income tax liability can subtract soci...
NV - State high court upholds decision invalidating parts of 2019 MBT legislation
The Nevada Supreme Court affirmed a district court decision that invalidated portions of a 2019 law (S.B. 551) affecting the rates of the modified business tax. The law had resulted in Nevada continui...
The Nevada Supreme Court affirmed a district court decision that invalidated portions of a 2019 law (S.B. 551) affecting the rates of the modified business tax. The law had resulted in Nevada continui...
NH - Disaster-related nexus waiver provisions enacted
New Hampshire has enacted provisions stating that no out-of-state businesses or employees who are in the state to perform disaster-related or emergency-relate work will be deemed to have established s...
New Hampshire has enacted provisions stating that no out-of-state businesses or employees who are in the state to perform disaster-related or emergency-relate work will be deemed to have established s...
NJ - Economic recovery act and certain other economic development programs revised
Enacted New Jersey legislation revises various corporation business tax credits and incentives that were previously enacted as part of the (Act). The legislation also revises certain other economic de...
Enacted New Jersey legislation revises various corporation business tax credits and incentives that were previously enacted as part of the (Act). The legislation also revises certain other economic de...
NM - Guidance on gross receipts tax holiday revised
The New Mexico Taxation and Revenue Department has revised its publication providing information on the gross receipts tax holiday. The publication covers numerous topics, including a general summary ...
The New Mexico Taxation and Revenue Department has revised its publication providing information on the gross receipts tax holiday. The publication covers numerous topics, including a general summary ...
NY - Prepaid sales tax rate on cigarettes increased
For the period September 1, 2021, through August 31, 2022, the amount of prepaid New York State sales tax on cigarettes is:$0.94 on packs of 20 cigarettes.$1.17 on packs of 25 cigarettes.Release, New ...
For the period September 1, 2021, through August 31, 2022, the amount of prepaid New York State sales tax on cigarettes is:$0.94 on packs of 20 cigarettes.$1.17 on packs of 25 cigarettes.Release, New ...
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 October...
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 October...
ND - Tax incentives for businesses in 2021-22 discussed
An updated brochure was published by the North Dakota Office of Tax Commissioner describing various corporate income tax, property tax and sales and use tax incentives for businesses and notes that in...
An updated brochure was published by the North Dakota Office of Tax Commissioner describing various corporate income tax, property tax and sales and use tax incentives for businesses and notes that in...
OH - Summary judgment against taxpayers affirmed
Taxpayers were properly denied an appeal against a summary judgment, on unpaid municipal income tax, by the Ohio Court Of Appeals as there were no material facts in dispute and the record demonstrated...
Taxpayers were properly denied an appeal against a summary judgment, on unpaid municipal income tax, by the Ohio Court Of Appeals as there were no material facts in dispute and the record demonstrated...
OK - Employer blood donation credit enacted
Oklahoma has enacted a nonrefundable income tax credit for employers whose employees participate in a blood drive that is organized with a nonprofit blood donation organization. The blood drive may no...
Oklahoma has enacted a nonrefundable income tax credit for employers whose employees participate in a blood drive that is organized with a nonprofit blood donation organization. The blood drive may no...
OR - Fiscal year filing required for corporate activity tax
The Oregon corporate activity tax (CAT) is amended to:require taxpayers using a federal tax year other than the calendar year to register and file a short year tax return;exclude from commercial activ...
The Oregon corporate activity tax (CAT) is amended to:require taxpayers using a federal tax year other than the calendar year to register and file a short year tax return;exclude from commercial activ...
PA - Tax update July 2021
In its recent tax update, Pennsylvania Department of Revenue discusses:Assistance available to taxpayers at Revenue District offices, online and by phone;Upcoming PA Tax Webinars;A summary of relevant...
In its recent tax update, Pennsylvania Department of Revenue discusses:Assistance available to taxpayers at Revenue District offices, online and by phone;Upcoming PA Tax Webinars;A summary of relevant...
RI - Taxpayers informed of changes in certain income tax credits
Rhode Island issued a notice informing taxpayers of the changes made to certain Rhode Island corporate and personal income state tax credits because of the recently enacted legislation. The legislatio...
Rhode Island issued a notice informing taxpayers of the changes made to certain Rhode Island corporate and personal income state tax credits because of the recently enacted legislation. The legislatio...
SC - Taxpayer not a qualified surviving spouse of disabled veteran; property tax exemption denied
The spouse of a deceased military veteran (taxpayer) was denied South Carolina property tax exemption as the taxpayer was not a "qualified surviving spouse" of a disabled veteran. South Carolina all...
The spouse of a deceased military veteran (taxpayer) was denied South Carolina property tax exemption as the taxpayer was not a "qualified surviving spouse" of a disabled veteran. South Carolina all...
SD - Updated municipal tax guide released
The South Dakota Department of Revenue has issued a municipal tax guide that provides an introduction to municipal sales, use, and gross receipts taxes. The bulletin also discusses sales, use, and exc...
The South Dakota Department of Revenue has issued a municipal tax guide that provides an introduction to municipal sales, use, and gross receipts taxes. The bulletin also discusses sales, use, and exc...
TN - Tennessee enacts tax holiday for food, food ingredients, and prepared food
A Tennessee sales and use tax holiday is enacted for food, food ingredients, and prepared food sold from July 30, 2021 through August 5, 2021.Food and Food Ingredients Tax HolidayA sales and use tax e...
A Tennessee sales and use tax holiday is enacted for food, food ingredients, and prepared food sold from July 30, 2021 through August 5, 2021.Food and Food Ingredients Tax HolidayA sales and use tax e...
TX - Entities engaged in joint prosecution of a transaction; subject to franchise tax
Taxpayers were properly subject to Texas franchise tax as the taxpayers failed to prove that they were not a joint venture. In this matter the taxpayers entered into an agreement to provide radiology ...
Taxpayers were properly subject to Texas franchise tax as the taxpayers failed to prove that they were not a joint venture. In this matter the taxpayers entered into an agreement to provide radiology ...
UT - Taxpayer's financial hardship not reasonable cause of penalty waiver
A minority shareholder in a partnership (taxpayer) was denied a waiver of penalties, by the Utah Tax Commission (commission), on the taxpayer’s personal income tax return as the taxpayer failed to p...
A minority shareholder in a partnership (taxpayer) was denied a waiver of penalties, by the Utah Tax Commission (commission), on the taxpayer’s personal income tax return as the taxpayer failed to p...
VT - Comments sought on apportionment regulation amendments
Vermont has proposed various amendments to its corporate income tax allocation and apportionment regulations. Generally, the amendments would update the regulations to be consistent with legislative c...
Vermont has proposed various amendments to its corporate income tax allocation and apportionment regulations. Generally, the amendments would update the regulations to be consistent with legislative c...
VA - Guidelines issued on reporting federal adjustments
Virginia issued guidelines for reporting federal tax adjustments. The release of the guidelines follows the enactment in 2020 of legislation establishing updated procedures for reporting certain adjus...
Virginia issued guidelines for reporting federal tax adjustments. The release of the guidelines follows the enactment in 2020 of legislation establishing updated procedures for reporting certain adjus...
WA - Taxability of online classes explained
Live, online classes that permit interaction between the presenter and participants, are not subject to Washington sales tax. However, this activity is subject to business and occupation (B&O) tax...
Live, online classes that permit interaction between the presenter and participants, are not subject to Washington sales tax. However, this activity is subject to business and occupation (B&O) tax...
WV - Deadline for filing tax returns for oil-producing and natural gas-producing properties extended
West Virginia provides a 30-day extension for filing property tax returns for oil-producing property and natural gas-producing properties for the 2022 tax year. Therefore, the due date for filing prop...
West Virginia provides a 30-day extension for filing property tax returns for oil-producing property and natural gas-producing properties for the 2022 tax year. Therefore, the due date for filing prop...
WI - SST taxability matrix and certificate of compliance updated
Wisconsin updated its Streamlined Sales and Use Tax (SST) Agreement taxability matrix and certificate of compliance. The changes are effective August 1, 2021. Taxability Matrix, Wisconsin Department ...
Wisconsin updated its Streamlined Sales and Use Tax (SST) Agreement taxability matrix and certificate of compliance. The changes are effective August 1, 2021. Taxability Matrix, Wisconsin Department ...
WY - Guides and outfitters subject to lodging assessment
Beginning July 1, 2021 guides and outfitters must collect the Wyoming lodging assessment. They are still exempt from local lodging taxes. Lodging services provided by guides and outfitters include pla...
Beginning July 1, 2021 guides and outfitters must collect the Wyoming lodging assessment. They are still exempt from local lodging taxes. Lodging services provided by guides and outfitters include pla...
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