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2018 Post-Filing Season UpdateCongress Approves Sweeping Tax OverhaulTax Cuts and Jobs Act2017 Year-End Tax Planning
IRS to Propose Rules on Transfers Made to Avoid New SALT Deduction Limit
The IRS has announced that it intends to issue proposed regulations regarding the federal tax treatment of payments made by individuals to funds controlled by state and local governments in exchange f...
The IRS has announced that it intends to issue proposed regulations regarding the federal tax treatment of payments made by individuals to funds controlled by state and local governments in exchange f...
Participation Dividends Received Deduction Clarified for Certain 1120 Filers
The IRS has published on its website specific details for reporting the participation dividends received deduction (DRD) under Code Sec. 245Afor certain Form 1120 series filers. The participation...
The IRS has published on its website specific details for reporting the participation dividends received deduction (DRD) under Code Sec. 245Afor certain Form 1120 series filers. The participation...
Change of Accounting Method Procedures Updated
The IRS has released the list of specific changes in accounting method to which the automatic change procedures in Rev. Proc. 2015-13, I.R.B. 2015-5, 419, apply. This guidance updates and superse...
The IRS has released the list of specific changes in accounting method to which the automatic change procedures in Rev. Proc. 2015-13, I.R.B. 2015-5, 419, apply. This guidance updates and superse...
Customer Contract Revenue Accounting Method Change Provided
The IRS has provided an automatic consent procedure for taxpayers to change to an accounting method that uses new standards issued by the Financial Accounting Standards Board (FASB) and the Internatio...
The IRS has provided an automatic consent procedure for taxpayers to change to an accounting method that uses new standards issued by the Financial Accounting Standards Board (FASB) and the Internatio...
Safe Harbors for Determining Built-In Gain, Loss for Corporate Ownership Changes Modified
The IRS modified the safe harbor approaches for determining recognized built-in gain (RBIG) and recognized built-in loss (RBIL) under Notice 2003-65, 2003-2 CB 747, for corporate reorganizations ...
The IRS modified the safe harbor approaches for determining recognized built-in gain (RBIG) and recognized built-in loss (RBIL) under Notice 2003-65, 2003-2 CB 747, for corporate reorganizations ...
2018 Inflation Limit for HDHP Family Coverage Changed Back
The IRS has modified the annual limit on deductions for contributions to Health Savings Accounts (HSAs) allowed for individuals with family coverage under a high deductible health plan (HDHP) for cale...
The IRS has modified the annual limit on deductions for contributions to Health Savings Accounts (HSAs) allowed for individuals with family coverage under a high deductible health plan (HDHP) for cale...
Exception to U.S. Property of CFCs Modified
The Treasury Department and the IRS intend to publish regulations that will provide an exception from the definition of U.S. property under Code Sec. 956 for certain obligations of a United ...
The Treasury Department and the IRS intend to publish regulations that will provide an exception from the definition of U.S. property under Code Sec. 956 for certain obligations of a United ...
Procedures on Charitable Deductions and Exempt Status Combined and Updated
The IRS has issued procedural guidance regarding charitable deductions and reliance on exempt status that simultaneously combines four existing procedural rulings and updates them for recent changes. ...
The IRS has issued procedural guidance regarding charitable deductions and reliance on exempt status that simultaneously combines four existing procedural rulings and updates them for recent changes. ...
AL - Updated chart shows local participation in 2018 “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 tax holiday is being held from July 20 thr...
The chart listing the counties and municipalities that will participate in Alabama’s "back-to-school" sales tax holiday has been updated. The tax holiday is being held from July 20 thr...
AK - Bill that would limit federal credits passes house
Corporate income tax legislation that has passed the House of Representatives would, if enacted:limit federal credits to the portion earned by Alaskan operations;disallow the exclusion of foreign roya...
Corporate income tax legislation that has passed the House of Representatives would, if enacted:limit federal credits to the portion earned by Alaskan operations;disallow the exclusion of foreign roya...
AZ - Sale of truck exempt as it was used directly in mining process
The Arizona Court of Appeals held that an equipment retailer’s (taxpayer’s) sale of a truck was properly exempt from transaction privilege tax because the truck was used by its customer di...
The Arizona Court of Appeals held that an equipment retailer’s (taxpayer’s) sale of a truck was properly exempt from transaction privilege tax because the truck was used by its customer di...
AR - Sale of hearing aid exempt
The Arkansas Department of Finance and Administration has issued a Revenue Legal Counsel Opinion determining that a taxpayer’s sale of a hearing aid was exempt from Arkansas gross receipts (sale...
The Arkansas Department of Finance and Administration has issued a Revenue Legal Counsel Opinion determining that a taxpayer’s sale of a hearing aid was exempt from Arkansas gross receipts (sale...
CA - 10-day notice and agenda provided for FTB’s June public meeting
The California Franchise Tax Board (FTB) will hold its next public meeting on Tuesday, June 5, 2018, 1:30 PM, to review current corporation franchise and income tax and personal income tax issues. The...
The California Franchise Tax Board (FTB) will hold its next public meeting on Tuesday, June 5, 2018, 1:30 PM, to review current corporation franchise and income tax and personal income tax issues. The...
CO - Colorado enacts military retirement deduction
For tax years 2019-2023, Colorado legislation creates a personal income tax deduction for military retirement benefits for taxpayers under the age of 55. Under the legislation, "military retireme...
For tax years 2019-2023, Colorado legislation creates a personal income tax deduction for military retirement benefits for taxpayers under the age of 55. Under the legislation, "military retireme...
CT - Connecticut enacts pass-through entity tax, depreciation adjustments
Connecticut Gov. Dannel Malloy signed legislation that:imposes a 6.99% tax on pass-through entities;creates adjustments for corporate business and personal income taxpayers who claim a federal asset e...
Connecticut Gov. Dannel Malloy signed legislation that:imposes a 6.99% tax on pass-through entities;creates adjustments for corporate business and personal income taxpayers who claim a federal asset e...
DE - Delaware creates angel investor credit
The Angel Investor Job Creation and Innovation Act creates a personal income tax credit for qualified angel investments in certain Delaware small businesses. Qualified investors and investment funds m...
The Angel Investor Job Creation and Innovation Act creates a personal income tax credit for qualified angel investments in certain Delaware small businesses. Qualified investors and investment funds m...
DC - Payment plan agreement discussed
The District of Columbia Office of Tax and Revenue (OTR) issued a press release reminding corporate and personal income taxpayers who have an outstanding District tax balance that they may be eligible...
The District of Columbia Office of Tax and Revenue (OTR) issued a press release reminding corporate and personal income taxpayers who have an outstanding District tax balance that they may be eligible...
FL - Payments to a county relating to visitation services are not subject to tax
Payments to the county relating to telephone and video visitation services provided within the county’s jail are not subject to Florida sales and use tax.Telephone and Video Visitation Services ...
Payments to the county relating to telephone and video visitation services provided within the county’s jail are not subject to Florida sales and use tax.Telephone and Video Visitation Services ...
GA - Additional high-technology exemption created
Georgia legislation adds a temporary state sales and use tax exemption for high-technology data centers. The exemption applies to transactions occurring on or after July 1, 2018, and through December ...
Georgia legislation adds a temporary state sales and use tax exemption for high-technology data centers. The exemption applies to transactions occurring on or after July 1, 2018, and through December ...
HI - Tax relief for properties used for low-income rental housing established
An ordinance approved by the City and County of Honolulu, Hawaii, provides for a real property tax relief for certain properties that are used as low-income rental housing. The ordinance will be appli...
An ordinance approved by the City and County of Honolulu, Hawaii, provides for a real property tax relief for certain properties that are used as low-income rental housing. The ordinance will be appli...
ID - Idaho releases 2018 tax rate schedule
The Idaho rate schedule for computing personal income tax liability has been released for tax year 2018. The rate schedule reflects the personal income tax rate reduction enacted during the 2018 legis...
The Idaho rate schedule for computing personal income tax liability has been released for tax year 2018. The rate schedule reflects the personal income tax rate reduction enacted during the 2018 legis...
IL - Sales thresholds trigger sales tax nexus in Illinois
Illinois will require remote retailers to collect use and service use tax when they meet certain sales thresholds in Illinois. This collection requirement begins October 1, 2018.Sales or Economic Thre...
Illinois will require remote retailers to collect use and service use tax when they meet certain sales thresholds in Illinois. This collection requirement begins October 1, 2018.Sales or Economic Thre...
IN - Gasoline and special fuel license tax guidance updated
The Indiana gasoline license tax is 29 cents per gallon and the special fuel license tax is 48 cents per gallon from July 1, 2018, to June 30, 2019. The Department of Revenue announces adjustments to ...
The Indiana gasoline license tax is 29 cents per gallon and the special fuel license tax is 48 cents per gallon from July 1, 2018, to June 30, 2019. The Department of Revenue announces adjustments to ...
IA - Iowa enacts major tax reform
Iowa has enacted major tax reform legislation. The legislation is unchanged from the version that was passed in May. Some of the corporate and personal income tax changes discussed in the previous sto...
Iowa has enacted major tax reform legislation. The legislation is unchanged from the version that was passed in May. Some of the corporate and personal income tax changes discussed in the previous sto...
KS - BTA relied on taxpayer’s appraisal evidence
The Kansas Board of Tax Appeal (BTA) determined the appraised values for retail stores because the county’s property tax valuation was not reliable. Both the parties relied on the income approac...
The Kansas Board of Tax Appeal (BTA) determined the appraised values for retail stores because the county’s property tax valuation was not reliable. Both the parties relied on the income approac...
KY - 2018 legislative developments discussed
The latest issue of Kentucky Sales Tax Facts discusses 2018 legislative developments affecting retailers. Unless otherwise noted, these changes become effective July 1, 2018. Kentucky Sales Tax F...
The latest issue of Kentucky Sales Tax Facts discusses 2018 legislative developments affecting retailers. Unless otherwise noted, these changes become effective July 1, 2018. Kentucky Sales Tax F...
LA - Lafourche parish may increase lodging tax
The Lafourche Parish, Louisiana, Tourist Commission may increase the tax upon the occupancy of hotel rooms, motel rooms, and overnight camping facilities from 3% to 4%. Act 477 (S.B. 552), Laws 2018, ...
The Lafourche Parish, Louisiana, Tourist Commission may increase the tax upon the occupancy of hotel rooms, motel rooms, and overnight camping facilities from 3% to 4%. Act 477 (S.B. 552), Laws 2018, ...
ME - Electricity, gas, water sales discussed
The application of Maine sales and use tax to electricity, gas, and water is explained in an instructional bulletin that was published in 1952 and has been revised for the first time since then. Taxab...
The application of Maine sales and use tax to electricity, gas, and water is explained in an instructional bulletin that was published in 1952 and has been revised for the first time since then. Taxab...
MD - Wynne Reimbursement Period Changed
The period for local jurisdictions to reimburse the local income tax reserve account for specified refunds resulting from Maryland State Comptroller of the Treasury v. Brian Wynne, et ux., 431 Md...
The period for local jurisdictions to reimburse the local income tax reserve account for specified refunds resulting from Maryland State Comptroller of the Treasury v. Brian Wynne, et ux., 431 Md...
MA - Corporate excise treatment of motor vehicle inventory discussed
For Massachusetts corporate income tax purposes, a dealer’s (a qualified subchapter S subsidiary’s) motor vehicles held in inventory were not "subject to local taxation" and, the...
For Massachusetts corporate income tax purposes, a dealer’s (a qualified subchapter S subsidiary’s) motor vehicles held in inventory were not "subject to local taxation" and, the...
MI - Treasury Still Evaluating Impact of Federal Tax Reform
The Tax Cuts and Jobs Act (TCJA) brought forth sweeping changes to federal tax law. Along with it came many questions about its impact on Michigan income taxes. Technical implementation of many of the...
The Tax Cuts and Jobs Act (TCJA) brought forth sweeping changes to federal tax law. Along with it came many questions about its impact on Michigan income taxes. Technical implementation of many of the...
MN - Fact sheet regarding taxability of admissions, fees, and amusement devices updated
The Minnesota Department of Revenue has updated a sales tax fact sheet that provides guidance regarding the taxability of admissions, fees, and amusement devices to include information on ticket sales...
The Minnesota Department of Revenue has updated a sales tax fact sheet that provides guidance regarding the taxability of admissions, fees, and amusement devices to include information on ticket sales...
MS - Sales tax holiday for clothing set for July 27-28
The 2018 Mississippi sales tax holiday for clothing and footwear will take place between 12:01 a.m., Friday, July 27, 2018, and 12:00 midnight, Saturday, July 28, 2018. During the two-day period, cons...
The 2018 Mississippi sales tax holiday for clothing and footwear will take place between 12:01 a.m., Friday, July 27, 2018, and 12:00 midnight, Saturday, July 28, 2018. During the two-day period, cons...
MO - Missouri enacts corporate tax rate cut and apportionment changes
The Missouri corporate tax rate will decrease from 6.25% to 4.0% beginning in 2020. On his last day in office, Missouri Gov. Eric Greitens signed legislation containing the tax cut.The legislation als...
The Missouri corporate tax rate will decrease from 6.25% to 4.0% beginning in 2020. On his last day in office, Missouri Gov. Eric Greitens signed legislation containing the tax cut.The legislation als...
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 - Local rate and municipal boundary changes announced
Nebraska local sales and use tax rate changes and municipal boundary changes have been announced.Local Rate ChangesThe following municipalities and villages will impose the following local rate change...
Nebraska local sales and use tax rate changes and municipal boundary changes have been announced.Local Rate ChangesThe following municipalities and villages will impose the following local rate change...
NV - Additional credit amount authorized for scholarship organization donations
Recently enacted Nevada legislation authorizes the Department of Taxation to allow additional credit amounts to be claimed against the modified business tax and the financial institution modified busi...
Recently enacted Nevada legislation authorizes the Department of Taxation to allow additional credit amounts to be claimed against the modified business tax and the financial institution modified busi...
NH - Regenerative manufacturing exemption enacted
New Hampshire enacted a 10 year exemption from the business profits tax (BPT) and business enterprise tax (BET) for regenerative manufacturing businesses.The business must:file an election stating it ...
New Hampshire enacted a 10 year exemption from the business profits tax (BPT) and business enterprise tax (BET) for regenerative manufacturing businesses.The business must:file an election stating it ...
NJ - Mandatory health insurance tax enacted
New Jersey legislation enacts a "shared responsibility tax" that requires most individuals to obtain health insurance or pay a penalty.Amount of TaxThe tax is generally equal to the federal ...
New Jersey legislation enacts a "shared responsibility tax" that requires most individuals to obtain health insurance or pay a penalty.Amount of TaxThe tax is generally equal to the federal ...
NM - Decision holding taxpayer liable for unpaid taxes withdrawn
The New Mexico Administrative Hearings Office (office) withdrew a previous decision in which it upheld a personal income tax assessment against a taxpayer, and issued an amended decision stating that ...
The New Mexico Administrative Hearings Office (office) withdrew a previous decision in which it upheld a personal income tax assessment against a taxpayer, and issued an amended decision stating that ...
NY - Corporate income tax changes enacted in 2018-2019 budget bill discussed
For corporate income tax purposes, the New York Department of Taxation and Finance issued a technical memorandum summarizing the changes that were part of the 2018-19 New York State budget bill. The c...
For corporate income tax purposes, the New York Department of Taxation and Finance issued a technical memorandum summarizing the changes that were part of the 2018-19 New York State budget bill. The c...
NC - Directive on application of tax change to certain monthly or other periodic lease or rental billings issued
For sales and use tax purposes, the North Carolina Department of Revenue has issued a directive addressing the application of tax change to certain monthly or other periodic lease or rental billings w...
For sales and use tax purposes, the North Carolina Department of Revenue has issued a directive addressing the application of tax change to certain monthly or other periodic lease or rental billings w...
ND - Local tax changes announced
The following North Dakota local sales and use tax changes are effective July 1, 2018.KenmareThe city of Kenmare will continue its 2% local sales, use, and gross receipts tax. The city will also conti...
The following North Dakota local sales and use tax changes are effective July 1, 2018.KenmareThe city of Kenmare will continue its 2% local sales, use, and gross receipts tax. The city will also conti...
OH - Slag manufacturing operation began prior to transport to plant
For Ohio use tax exemption purposes, a pelletized-slag manufacturer’s manufacturing operation began when it broke the slag into smaller pieces from the "slag mountain." Consequently, t...
For Ohio use tax exemption purposes, a pelletized-slag manufacturer’s manufacturing operation began when it broke the slag into smaller pieces from the "slag mountain." Consequently, t...
OK - Oklahoma modifies entities who may become domestic insurers
Recent Oklahoma legislation amends the entities who may become domestic insurers to include foreign or alien insurers organized under the laws of jurisdictions other than Oklahoma. The legislation als...
Recent Oklahoma legislation amends the entities who may become domestic insurers to include foreign or alien insurers organized under the laws of jurisdictions other than Oklahoma. The legislation als...
OR - Taxpayers entitled to certain business expense deductions
For Oregon personal income tax purposes, taxpayers were entitled to certain business expense deductions related to their daycare business, including expenses for union dues and utility. However, no de...
For Oregon personal income tax purposes, taxpayers were entitled to certain business expense deductions related to their daycare business, including expenses for union dues and utility. However, no de...
PA - Lottery annuity properly considered as taxable disposition of property
A taxpayer’s protest of Pennsylvania income tax assessments was properly dismissed because the taxpayer failed to timely file his reassessment petitions and his sales of lottery annuity represen...
A taxpayer’s protest of Pennsylvania income tax assessments was properly dismissed because the taxpayer failed to timely file his reassessment petitions and his sales of lottery annuity represen...
RI - Combined reporting regulations revised
Rhode Island revised its income tax regulations on combined reporting to comply with new formatting requirements and remove the preamble.Current Regulation SupersededThe revised regulations supersede ...
Rhode Island revised its income tax regulations on combined reporting to comply with new formatting requirements and remove the preamble.Current Regulation SupersededThe revised regulations supersede ...
SC - Retaliatory tax computations for state insurance companies discussed
For corporate income tax purposes, the South Carolina General Assembly approved a bill relating to retaliatory taxes by other states against insurance companies chartered in the state. The bill states...
For corporate income tax purposes, the South Carolina General Assembly approved a bill relating to retaliatory taxes by other states against insurance companies chartered in the state. The bill states...
SD - New municipal tax rate changes announced
The South Dakota Department of Revenue has announced that effective July 1, 2018, the following municipal sales tax rate changes will be imposed:Rosholt is increasing its general sales and use tax rat...
The South Dakota Department of Revenue has announced that effective July 1, 2018, the following municipal sales tax rate changes will be imposed:Rosholt is increasing its general sales and use tax rat...
TN - E-filing perfection period enacted
Tennessee has enacted a 10-day perfection period that treats corrected returns as filed on the first electronic transmission date. Ch. 1048 (H.B. 2132), Laws 2018, effective October 1, 2018...
Tennessee has enacted a 10-day perfection period that treats corrected returns as filed on the first electronic transmission date. Ch. 1048 (H.B. 2132), Laws 2018, effective October 1, 2018...
TX - Guidance on tax credits for historic structure rehabilitation issued
For corporate income tax purposes, the Texas Comptroller of Public Accounts (comptroller) issued a private letter ruling providing guidance on the use of credits for the rehabilitation of certified hi...
For corporate income tax purposes, the Texas Comptroller of Public Accounts (comptroller) issued a private letter ruling providing guidance on the use of credits for the rehabilitation of certified hi...
UT - Manufacturing exemption to expand if remote seller taxation allowed
Utah has plans to expand its machinery and equipment exemption for sales tax if federal law gives states the ability to collect sales taxes from out-of-state online retailers. The federal law could co...
Utah has plans to expand its machinery and equipment exemption for sales tax if federal law gives states the ability to collect sales taxes from out-of-state online retailers. The federal law could co...
VT - Vehicle transfers to siblings exempt
Motor vehicles transferred to siblings are exempt from Vermont motor vehicle purchase and use tax.Exemption for Vehicle Transfers to Relatives ClarifiedThe purchase and use tax exemption for vehicles ...
Motor vehicles transferred to siblings are exempt from Vermont motor vehicle purchase and use tax.Exemption for Vehicle Transfers to Relatives ClarifiedThe purchase and use tax exemption for vehicles ...
VA - Virginia reinstates coalfield employment enhancement credit
Recently enacted Virginia legislation reinstates the coalfield employment enhancement credit for tax years 2018-2022. The reinstated credit allows taxpayers to claim the credit for:metallurgical coal ...
Recently enacted Virginia legislation reinstates the coalfield employment enhancement credit for tax years 2018-2022. The reinstated credit allows taxpayers to claim the credit for:metallurgical coal ...
WA - Taxability of special clean up jobs explained
While janitorial services are subject to Washington service and other activities business and occupation (B&O) tax, services for special clean up jobs are subject to wholesaling B&O tax or ret...
While janitorial services are subject to Washington service and other activities business and occupation (B&O) tax, services for special clean up jobs are subject to wholesaling B&O tax or ret...
WV - Tax sale notice requirements not satisfied
The West Virginia Supreme Court of Appeals reversed a circuit court’s decision which granted summary judgment to a tax sale purchaser of property in an action to set aside the tax deed, because ...
The West Virginia Supreme Court of Appeals reversed a circuit court’s decision which granted summary judgment to a tax sale purchaser of property in an action to set aside the tax deed, because ...
WI - Taxpayers required to update NAICS codes in my tax account
The Wisconsin Department of Revenue has issued a news release informing taxpayers to update the North American Industry Classification System (NAICS) code associated with a business. Startin...
The Wisconsin Department of Revenue has issued a news release informing taxpayers to update the North American Industry Classification System (NAICS) code associated with a business. Startin...
WY - Transfer of title not a taxable vehicle sale
When the taxpayer transferred title to his motor vehicle, no sale occurred for purposes of the Wyoming sales tax because there was no transfer of possession. The taxpayer transferred title to the moto...
When the taxpayer transferred title to his motor vehicle, no sale occurred for purposes of the Wyoming sales tax because there was no transfer of possession. The taxpayer transferred title to the moto...
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