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2018 Year-End Tax PlanningTax Reform 2.02018 Post-Filing Season UpdateCongress Approves Sweeping Tax Overhaul
IRS Lists Population Census Tracts Designated as Qualified Opportunity Zones
The IRS has provided an official list of population census tracts designated as Qualified Opportunity Zones (QOZs), that now includes two additional census tracts in Puerto Rico. The chief executive o...
The IRS has provided an official list of population census tracts designated as Qualified Opportunity Zones (QOZs), that now includes two additional census tracts in Puerto Rico. The chief executive o...
Inflation Adjustment and Credit for Renewable Energy Production Credit Provided
The IRS has published inflation adjustment factor and reference prices for determining the availability of the credit for renewable electricity production and refined coal production for calendar year...
The IRS has published inflation adjustment factor and reference prices for determining the availability of the credit for renewable electricity production and refined coal production for calendar year...
Veterans Urged to Claim Refund for Tax Overpayments on Disability Severance
The IRS has urged veterans who received disability severance payments after January 17, 1991, and reported it as taxable income, to file Form 1040X, Amended U.S. Individual Income Tax Return, to ...
The IRS has urged veterans who received disability severance payments after January 17, 1991, and reported it as taxable income, to file Form 1040X, Amended U.S. Individual Income Tax Return, to ...
Obsolete Advance Payment Regulations Removed
The IRS has removed existing regulations regarding advance payments for goods and long-term contracts. These final regulations affect accrual method taxpayers who receive advance payments for goods, i...
The IRS has removed existing regulations regarding advance payments for goods and long-term contracts. These final regulations affect accrual method taxpayers who receive advance payments for goods, i...
Additional Information on Transition Tax for Untaxed Foreign Earnings Provided
The IRS provided additional information for taxpayers seeking guidance on the Code Sec. 965transition tax on untaxed foreign earnings. The Tax Cuts and Jobs Act ( P.L. 115-97) (TCJA) require...
The IRS provided additional information for taxpayers seeking guidance on the Code Sec. 965transition tax on untaxed foreign earnings. The Tax Cuts and Jobs Act ( P.L. 115-97) (TCJA) require...
Nina Olson Releases Report Intended to Improve EITC Administration
National Taxpayer Advocate Nina E. Olson has released a special report on the earned income tax credit (EITC), with recommendations designed to increase the participation rate of eligible taxpayers an...
National Taxpayer Advocate Nina E. Olson has released a special report on the earned income tax credit (EITC), with recommendations designed to increase the participation rate of eligible taxpayers an...
AL - Blount County imposes lodgings tax
Blount County imposes a 4% local Alabama lodgings tax, effective September 1, 2019, with a due date of October 20, 2019. Local Tax Notice, Alabama Department of Revenue, July 29, 2019...
Blount County imposes a 4% local Alabama lodgings tax, effective September 1, 2019, with a due date of October 20, 2019. Local Tax Notice, Alabama Department of Revenue, July 29, 2019...
AK - Governor calls for constitutional amendments in sos address
In his first State of the State (SOS) address, Alaska Gov. Michael J. Dunleavy announced three constitutional amendments he plans to introduce. The amendments, which will be what he called "the f...
In his first State of the State (SOS) address, Alaska Gov. Michael J. Dunleavy announced three constitutional amendments he plans to introduce. The amendments, which will be what he called "the f...
AZ - Qualified business income not deductible on state return
Individuals cannot deduct qualified business income (QBI) (IRC Sec. 199A) on their Arizona individual income tax returns. The starting point for determining Arizona taxable income is federal adjusted ...
Individuals cannot deduct qualified business income (QBI) (IRC Sec. 199A) on their Arizona individual income tax returns. The starting point for determining Arizona taxable income is federal adjusted ...
AR - SST taxability matrix and certificate of compliance updated
Arkansas updated its Streamlined Sales and Use Tax (SST) Agreement taxability matrix and certificate of compliance. The changes are effective August 1, 2019. Taxability Matrix, Arkansas Departmen...
Arkansas updated its Streamlined Sales and Use Tax (SST) Agreement taxability matrix and certificate of compliance. The changes are effective August 1, 2019. Taxability Matrix, Arkansas Departmen...
CA - Pre-installation component parts are subject to tax
Cables, conduit, and poles purchased as pre-installation component parts by the telecommunications services provider taxpayer were subject to California sales and use tax. Those items fall within the ...
Cables, conduit, and poles purchased as pre-installation component parts by the telecommunications services provider taxpayer were subject to California sales and use tax. Those items fall within the ...
CO - Contributions to club’s expansion project did not qualify for child care contribution credit
For corporate and personal income tax purposes, the Colorado Department of Revenue has issued a private letter ruling stating that a taxpayer’s contributions to a tax-exempt club’s expansi...
For corporate and personal income tax purposes, the Colorado Department of Revenue has issued a private letter ruling stating that a taxpayer’s contributions to a tax-exempt club’s expansi...
CT - Labor performed to install fuel cell facility was not subject to tax
For Connecticut sales and use tax purposes, labor performed to install a fuel cell facility (facility) was not taxable as a service to existing real property. In this matter, an electricity supplier (...
For Connecticut sales and use tax purposes, labor performed to install a fuel cell facility (facility) was not taxable as a service to existing real property. In this matter, an electricity supplier (...
DE - Town of Millville authorized to impose lodgings tax
The town of Millville is authorized to impose and collect a local Delaware lodgings tax of up to 3%. Ch. 145 (S.B. 162), Laws 2019, effective July 23, 2019...
The town of Millville is authorized to impose and collect a local Delaware lodgings tax of up to 3%. Ch. 145 (S.B. 162), Laws 2019, effective July 23, 2019...
DC - High technology company incentives, child care credit amended
The District of Columbia has enacted emergency and permanent budget legislation:amending incentives for Qualified High Technology Companies; andextending and amending the Child Care Credit.Qualified H...
The District of Columbia has enacted emergency and permanent budget legislation:amending incentives for Qualified High Technology Companies; andextending and amending the Child Care Credit.Qualified H...
FL - Managing member was personally liable for penalty
The managing member of a taxpayer company was personally liable for a penalty based on twice the total amount of Florida sales and use tax owed for the audit period.Managing Member’s Wilful Atte...
The managing member of a taxpayer company was personally liable for a penalty based on twice the total amount of Florida sales and use tax owed for the audit period.Managing Member’s Wilful Atte...
GA - Comments sought on proposed amendments to pollution machinery rule
The Georgia DOR proposes to amend sales and use tax rule 560-12-2-.87 ("Machinery, Air or Water Pollution") to conform to current law. The law at issue exempts the sale of machinery and equipment (and...
The Georgia DOR proposes to amend sales and use tax rule 560-12-2-.87 ("Machinery, Air or Water Pollution") to conform to current law. The law at issue exempts the sale of machinery and equipment (and...
HI - Delay in implementing law requiring partnerships, estates, and trusts to withhold nonresident partners’ income tax announced
For corporate income tax purposes, the Hawaii Department of Taxation (department) announced a delay in implementing a law regarding the withholding of taxes on income of nonresident partners and benef...
For corporate income tax purposes, the Hawaii Department of Taxation (department) announced a delay in implementing a law regarding the withholding of taxes on income of nonresident partners and benef...
ID - Tax rule temporarily amended for disabled veteran exemption changes
Idaho temporarily amends a property tax rule 717 (Procedure After Claim Approval ) to reflect changes enacted by H.B. 62, Laws 2019. The enacted bill applies existing circuit breaker and disabled...
Idaho temporarily amends a property tax rule 717 (Procedure After Claim Approval ) to reflect changes enacted by H.B. 62, Laws 2019. The enacted bill applies existing circuit breaker and disabled...
IL - DOR will address application of parking tax to local government-run parking
The Illinois DOR has responded to a taxpayer’s question asking whether local government-run parking will be exempt from the upcoming parking tax. The state parking excise tax takes effect Januar...
The Illinois DOR has responded to a taxpayer’s question asking whether local government-run parking will be exempt from the upcoming parking tax. The state parking excise tax takes effect Januar...
IN - Guidance issued on collection of innkeeper’s taxes by marketplace facilitators
Indiana has issued guidance regarding recently enacted legislation that requires the collection of Indiana sales tax by marketplace facilitators on behalf of sellers, including those that facilitate t...
Indiana has issued guidance regarding recently enacted legislation that requires the collection of Indiana sales tax by marketplace facilitators on behalf of sellers, including those that facilitate t...
IA - Taxpayer’s tax permit revoked because it was delinquent in payment of taxes
A taxpayer’s Iowa sales tax permit was revoked because it was established that the taxpayer was substantially delinquent in the payment of its taxes. According to the law, the Iowa Department of...
A taxpayer’s Iowa sales tax permit was revoked because it was established that the taxpayer was substantially delinquent in the payment of its taxes. According to the law, the Iowa Department of...
KS - Appraised values of property reduced
The Kansas Board of Tax Appeals’ (BOTA) reduced the property tax appraisal values of the taxpayer's senior assisted living and skilled nursing facility because the property’s significant p...
The Kansas Board of Tax Appeals’ (BOTA) reduced the property tax appraisal values of the taxpayer's senior assisted living and skilled nursing facility because the property’s significant p...
KY - Rent-to-own liability waivers not subject to tax
The Kentucky Court of Appeals held sales tax did not apply to optional liability waiver agreements rent-to-own companies offered customers.Tangible vs. Intangible PropertyThe optional written waiver a...
The Kentucky Court of Appeals held sales tax did not apply to optional liability waiver agreements rent-to-own companies offered customers.Tangible vs. Intangible PropertyThe optional written waiver a...
LA - Bulletin announces horizontal well exemption availability through June 2020
The Louisiana Department of Revenue has announced that for the fiscal year beginning July 1, 2019, and ending June 30, 2020, the prices applicable to the Louisiana horizontal severance tax exemption a...
The Louisiana Department of Revenue has announced that for the fiscal year beginning July 1, 2019, and ending June 30, 2020, the prices applicable to the Louisiana horizontal severance tax exemption a...
ME - Taxpayer service hours will change starting August 1, 2019
Maine Revenue Services (revenue) announced that beginning August 1, 2019, it is changing taxpayer service hours to better serve taxpayers and tax professionals for corporate income, personal income, s...
Maine Revenue Services (revenue) announced that beginning August 1, 2019, it is changing taxpayer service hours to better serve taxpayers and tax professionals for corporate income, personal income, s...
MD - Nexus properly established as subsidiary lacked economic substance
An intellectual holding company and wholly-owned subsidiary of a multi-national producer and marketer of processed foods was confirmed to have sufficient contacts with Maryland to establish the requir...
An intellectual holding company and wholly-owned subsidiary of a multi-national producer and marketer of processed foods was confirmed to have sufficient contacts with Maryland to establish the requir...
MA - Appeal of denial of business expense deduction partly dismissed
For Massachusetts personal income tax purposes, a taxpayer was not allowed a deduction for business expenses incurred with respect to his travel and stay in New York State, because New York was the ta...
For Massachusetts personal income tax purposes, a taxpayer was not allowed a deduction for business expenses incurred with respect to his travel and stay in New York State, because New York was the ta...
MI - Principal residence exemption properly denied
A denial of the principal residence property tax exemption for the 2013, 2014 and 2015 tax years was affirmed by the Michigan Court of Appeals because the taxpayer did not occupy the properties and co...
A denial of the principal residence property tax exemption for the 2013, 2014 and 2015 tax years was affirmed by the Michigan Court of Appeals because the taxpayer did not occupy the properties and co...
MN - Tax law change FAQs updated
Minnesota legislation passed in 2019 generally conformed state law to federal for purposes of determining 2018 taxable income. However, taxpayers must still make some adjustments to account for state ...
Minnesota legislation passed in 2019 generally conformed state law to federal for purposes of determining 2018 taxable income. However, taxpayers must still make some adjustments to account for state ...
MS - Taxpayer’s use of alternative apportionment method upheld
The Mississippi Supreme Court affirmed the Board of Tax Appeals’ (BTA’s) decision that a taxpayer’s use of an alternative apportionment method to compute its corporate income tax lia...
The Mississippi Supreme Court affirmed the Board of Tax Appeals’ (BTA’s) decision that a taxpayer’s use of an alternative apportionment method to compute its corporate income tax lia...
MO - Taxpayer’s purchase of water pump used in mining exempt from tax
A mining company’s (taxpayer’s) purchase of a pump for use in removing water from the area to be mined was exempt from Missouri sales and use tax because the taxpayer was using the pump di...
A mining company’s (taxpayer’s) purchase of a pump for use in removing water from the area to be mined was exempt from Missouri sales and use tax because the taxpayer was using the pump di...
MT - Full deduction allowed for dividends received from 80/20 companies
A taxpayer in a water’s edge combined group was entitled to a 100% exclusion under the Montana corporate income tax for dividends received from 80/20 companies.Law Does Not Address Actual Divide...
A taxpayer in a water’s edge combined group was entitled to a 100% exclusion under the Montana corporate income tax for dividends received from 80/20 companies.Law Does Not Address Actual Divide...
NE - Pass-through entities required to file returns for tax years beginning on or after January 2019
For corporate income tax purposes, the Nebraska Department of Revenue (department) issued a bulletin informing all S corporations, limited liability companies and partnerships that have Nebraska-sourc...
For corporate income tax purposes, the Nebraska Department of Revenue (department) issued a bulletin informing all S corporations, limited liability companies and partnerships that have Nebraska-sourc...
NV - Legislation relating to transferable tax credits for affordable housing amended
The State of Nevada has amended its law to enact provisions authorizing the Housing Division of the Department of Business and Industry to issue transferable tax credits that are authorized to be take...
The State of Nevada has amended its law to enact provisions authorizing the Housing Division of the Department of Business and Industry to issue transferable tax credits that are authorized to be take...
NH - Remote seller protection provisions enacted
New Hampshire has enacted protection provisions for state businesses that are considered remote sellers in other jurisdictions and that may need to collect and remit sales and use taxes.Under the bill...
New Hampshire has enacted protection provisions for state businesses that are considered remote sellers in other jurisdictions and that may need to collect and remit sales and use taxes.Under the bill...
NJ - Combined reporting for banking corporations explained
New Jersey has provided guidance on the treatment of banking corporations that must file corporation business taxes as part of a combined group. Managerial members of combined groups can have either a...
New Jersey has provided guidance on the treatment of banking corporations that must file corporation business taxes as part of a combined group. Managerial members of combined groups can have either a...
NM - Refund denied for lack of sufficient documentation
A New Mexico corporate income taxpayer failed to provide sufficient documentation to establish that it was entitled to a refund arising out of the claimed net operation loss (NOL) carryover deduction....
A New Mexico corporate income taxpayer failed to provide sufficient documentation to establish that it was entitled to a refund arising out of the claimed net operation loss (NOL) carryover deduction....
NY - Division properly denied real property tax credit on personal income tax return
Sole shareholders of a real corporation were not entitled to claim their proportionate shares of a real property tax credit on their New York State personal income tax returns. The taxpayers were sole...
Sole shareholders of a real corporation were not entitled to claim their proportionate shares of a real property tax credit on their New York State personal income tax returns. The taxpayers were sole...
NC - Travel insurers must pay premiums tax
North Carolina enacted legislation that:allows the sale of travel insurance in the state; andimposes a 1.9% tax on travel insurance premiums paid.Ch. 2019-128 (H.B. 755), Laws 2019, effective January ...
North Carolina enacted legislation that:allows the sale of travel insurance in the state; andimposes a 1.9% tax on travel insurance premiums paid.Ch. 2019-128 (H.B. 755), Laws 2019, effective January ...
ND - “claimant agency” definition for the purpose income tax refund setoff amended
North Dakota amends its law, relating to corporate and personal income tax refund set off for debts owed to the state, to include state institutions of higher education and the North Dakota student lo...
North Dakota amends its law, relating to corporate and personal income tax refund set off for debts owed to the state, to include state institutions of higher education and the North Dakota student lo...
OH - Ohio partnership audit procedures adopted
Ohio has enacted legislation adopting partnership audit procedures to report changes in state income tax liability from federal audits. The new procedures are similar to the Multistate Tax Commission&...
Ohio has enacted legislation adopting partnership audit procedures to report changes in state income tax liability from federal audits. The new procedures are similar to the Multistate Tax Commission&...
OK - Compete with Canada film act amended
Oklahoma has amended the expenditure rebate under the Compete with Canada Film Act, an alternative to an industry sales tax exemption. The sales tax exemption applies to sales of to personal property ...
Oklahoma has amended the expenditure rebate under the Compete with Canada Film Act, an alternative to an industry sales tax exemption. The sales tax exemption applies to sales of to personal property ...
OR - Exception value upheld due to improvements on property
Oregon taxpayers’ property tax appeal to remove the exception value of its property for the tax year 2017-18 was denied because the taxpayers failed to meet their burden of proving that the impr...
Oregon taxpayers’ property tax appeal to remove the exception value of its property for the tax year 2017-18 was denied because the taxpayers failed to meet their burden of proving that the impr...
PA - Philadelphia guidance on net interest expense limitation clarified
Philadelphia has clarified its guidance to business income and receipts tax (BIRT) taxpayers regarding the federal interest expense deduction.Consolidated Return FilersPhiladelphia’s intent is t...
Philadelphia has clarified its guidance to business income and receipts tax (BIRT) taxpayers regarding the federal interest expense deduction.Consolidated Return FilersPhiladelphia’s intent is t...
RI - Ten-year SOL enacted
Effective July 1, 2019, there is a 10-year statute of limitations on Rhode Island sales and use tax notices of deficiency and collection actions. However, the 10-year statute of limitation is tolled i...
Effective July 1, 2019, there is a 10-year statute of limitations on Rhode Island sales and use tax notices of deficiency and collection actions. However, the 10-year statute of limitation is tolled i...
SC - Department policy regarding residential electricity and fuel exemption changes
The application of the South Carolina sales tax exemption for electricity and fuel to residential purposes changes October 1, 2019.Residences Converted to Business UseThe sale of electricity or fuel f...
The application of the South Carolina sales tax exemption for electricity and fuel to residential purposes changes October 1, 2019.Residences Converted to Business UseThe sale of electricity or fuel f...
SD - Application of state and local taxes to motor vehicles lease and rentals discussed
The South Dakota Department of Revenue has updated a tax facts sheet discussing the application of state and local sales and use taxes to motor vehicles lease and rentals. Specifically, the fact sheet...
The South Dakota Department of Revenue has updated a tax facts sheet discussing the application of state and local sales and use taxes to motor vehicles lease and rentals. Specifically, the fact sheet...
TN - Purchaser reimbursed expenses incurred before order confirming tax sale
For Tennessee property tax purposes, a tax sale purchaser was entitled to recover expenses incurred to preserve property value despite occurring prior to the trial court’s entry of the order con...
For Tennessee property tax purposes, a tax sale purchaser was entitled to recover expenses incurred to preserve property value despite occurring prior to the trial court’s entry of the order con...
TX - Law concerning Texas emissions reduction plan fund and account discussed
The Texas Legislature has amended its laws relating to the Texas emissions reduction plan fund (fund) and account. The law provides a list of equipment that includes all off-road, heavy-duty diesel eq...
The Texas Legislature has amended its laws relating to the Texas emissions reduction plan fund (fund) and account. The law provides a list of equipment that includes all off-road, heavy-duty diesel eq...
UT - Amendment concerning unclaimed property provisions made
A Utah legislation has amended the property law concerning unclaimed property provisions. The amendment provides that an indication of apparent owner interest for determining whether property is presu...
A Utah legislation has amended the property law concerning unclaimed property provisions. The amendment provides that an indication of apparent owner interest for determining whether property is presu...
VT - Taxpayer’s charges for subscriptions to its computer software programs subject to tax
A taxpayer’s charges for subscriptions to its computer software programs of pre-recorded audio fitness instructions were subject to Vermont sales tax because the law provides for imposition of t...
A taxpayer’s charges for subscriptions to its computer software programs of pre-recorded audio fitness instructions were subject to Vermont sales tax because the law provides for imposition of t...
VA - Taxpayer was given time to submit documentation to support her argument
For Virginia sales and use tax purposes, a taxpayer was given 30 days to submit documentation to establish that she was not individually liable for taxes assessed against a corporation. In this matter...
For Virginia sales and use tax purposes, a taxpayer was given 30 days to submit documentation to establish that she was not individually liable for taxes assessed against a corporation. In this matter...
WA - Taxability of renewable natural gas explained
Beginning July 28, 2019, the production and sale of renewable natural gas is no longer subject to Washington’s public utility tax.Application of B&O TaxThe production and sale of renewable n...
Beginning July 28, 2019, the production and sale of renewable natural gas is no longer subject to Washington’s public utility tax.Application of B&O TaxThe production and sale of renewable n...
WV - Municipal rate changes announced
West Virginia has announced municipal sales and use tax rate changes:Buckhannon imposes a municipal sales and use tax at a 1% rate, which brings the combined rate to 7%, effective July 1, 2020;Hundred...
West Virginia has announced municipal sales and use tax rate changes:Buckhannon imposes a municipal sales and use tax at a 1% rate, which brings the combined rate to 7%, effective July 1, 2020;Hundred...
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, 2019. 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, 2019. Further, Wisconsin has...
WY - SST taxability matrix and certificate of compliance updated
Wyoming updated its Streamlined Sales and Use Tax (SST) Agreement taxability matrix and certificate of compliance. The changes are effective August 1, 2019. Taxability Matrix, Wyoming Department ...
Wyoming updated its Streamlined Sales and Use Tax (SST) Agreement taxability matrix and certificate of compliance. The changes are effective August 1, 2019. Taxability Matrix, Wyoming Department ...
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