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Tax Briefing(s)
2018 Inflation-Adjusted Amounts Modified
The IRS has modified certain previously released inflation-adjusted amounts. Generally, these new inflation-adjusted figures apply to tax years beginning in 2018 or transactions or events occurring in...
The IRS has modified certain previously released inflation-adjusted amounts. Generally, these new inflation-adjusted figures apply to tax years beginning in 2018 or transactions or events occurring in...
Virtual Currency Transactions: They Are Reportable
The IRS has reminded taxpayers that income from virtual currency transactions is reportable on their returns and that these transactions are taxable just like those involving any other property.Virtua...
The IRS has reminded taxpayers that income from virtual currency transactions is reportable on their returns and that these transactions are taxable just like those involving any other property.Virtua...
New Carried Interest Holding Period to Apply to S Corps
The IRS plans to issue regulations clarifying the new three-year holding period for certain carried interests. The new regulations will provide that partnership interests held by S corporations are su...
The IRS plans to issue regulations clarifying the new three-year holding period for certain carried interests. The new regulations will provide that partnership interests held by S corporations are su...
Proposed Regs Would Expand ACA-Exempt Short-Term Insurance
In response to President Trump’s Executive Order 13813, the Departments Health and Human Services, Labor and the Treasury (the Departments) are proposing regulations to expand the availability o...
In response to President Trump’s Executive Order 13813, the Departments Health and Human Services, Labor and the Treasury (the Departments) are proposing regulations to expand the availability o...
IRS Ending Offshore Voluntary Disclosure Program
The IRS has announced it will begin to shut down the 2014 Offshore Voluntary Disclosure Program (OVDP). The program will close on September 28, 2018. Therefore, U.S. taxpayers with undisclosed foreign...
The IRS has announced it will begin to shut down the 2014 Offshore Voluntary Disclosure Program (OVDP). The program will close on September 28, 2018. Therefore, U.S. taxpayers with undisclosed foreign...
OPR Highlights Important Process Change
The IRS Office of Professional Responsibility (OPR) on March 6 issued an alert highlighting an important process change. The OPR has modified its investigation procedures to give practitioners an oppo...
The IRS Office of Professional Responsibility (OPR) on March 6 issued an alert highlighting an important process change. The OPR has modified its investigation procedures to give practitioners an oppo...
New Withholding Calculator, W-4 Released
The IRS has released a new withholding calculator, as well as a new version of Form W-4, Employee’s Withholding Allowance Certificate. The new withholding calculator will let employees check tha...
The IRS has released a new withholding calculator, as well as a new version of Form W-4, Employee’s Withholding Allowance Certificate. The new withholding calculator will let employees check tha...
AL - Filing threshold changed
New Alabama personal income tax return filing thresholds apply for tax years beginning after 2017. Taxpayers will have to file returns if their gross income before deductions exceeds, for their filing...
New Alabama personal income tax return filing thresholds apply for tax years beginning after 2017. Taxpayers will have to file returns if their gross income before deductions exceeds, for their filing...
AK - Interest rates announced for Q2 of 2018
The Alaska interest rate for delinquent taxes and overpayment of taxes is set at 7.50%, compounded quarterly, for the period April 1, 2018, through June 30, 2018. The Department of Revenue posting can...
The Alaska interest rate for delinquent taxes and overpayment of taxes is set at 7.50%, compounded quarterly, for the period April 1, 2018, through June 30, 2018. The Department of Revenue posting can...
AZ - Multistate service provider apportionment determination changed in Arizona
Arizona has changed the rules for determining whether a taxpayer is a multistate service provider eligible to use a special apportionment formula. When making the determination, taxpayers may include ...
Arizona has changed the rules for determining whether a taxpayer is a multistate service provider eligible to use a special apportionment formula. When making the determination, taxpayers may include ...
AR - Transfer of investArk credits to successor entity approved
The Arkansas Department of Finance and Administration approved the transfer of a taxpayer’s InvestArk gross receipts and use tax credits to its successor entity pursuant to a merger of two lumbe...
The Arkansas Department of Finance and Administration approved the transfer of a taxpayer’s InvestArk gross receipts and use tax credits to its successor entity pursuant to a merger of two lumbe...
CA - Compliance information letters, updated withholding calculator, and more discussed
In the April 2018 issue of Tax News, the California Franchise Tax Board (FTB) provides information on a variety of corporation franchise and income and personal income tax issues, including the follow...
In the April 2018 issue of Tax News, the California Franchise Tax Board (FTB) provides information on a variety of corporation franchise and income and personal income tax issues, including the follow...
CO - Taxpayers can take advantage of automatic six-month filing extension
The Colorado Department of Revenue issued a news release reminding personal income taxpayers who cannot file their 2017 Colorado income tax return by the April 17 deadline to take advantage of the sta...
The Colorado Department of Revenue issued a news release reminding personal income taxpayers who cannot file their 2017 Colorado income tax return by the April 17 deadline to take advantage of the sta...
CT - Changes to capital stock tax, federal tax benefits proposed
Connecticut legislation proposes to:reduce and then eliminate the capital stock tax on corporation business taxpayers;require an addition adjustment by corporate business and personal income taxpayers...
Connecticut legislation proposes to:reduce and then eliminate the capital stock tax on corporation business taxpayers;require an addition adjustment by corporate business and personal income taxpayers...
DE - Taxpayers alerted to new refund scam
// // The Delaware Division of Revenue (division) issued a press release alerting personal and corporate income taxpayers to a new scam involving fraudulent tax refunds being deposited into genuine ta...
// // The Delaware Division of Revenue (division) issued a press release alerting personal and corporate income taxpayers to a new scam involving fraudulent tax refunds being deposited into genuine ta...
DC - Special property tax enacted
The District of Columbia may impose a special property tax to fund capital projects in the District. The tax will pay for additional bonds issued by the District. Also, the law does not set a limit fo...
The District of Columbia may impose a special property tax to fund capital projects in the District. The tax will pay for additional bonds issued by the District. Also, the law does not set a limit fo...
FL - Florida increases statewide credit caps
Florida enacted legislation that changes statewide caps for certain credits that may be claimed against:corporate income tax liability; andinsurance premiums tax liability.Community Contributions Cred...
Florida enacted legislation that changes statewide caps for certain credits that may be claimed against:corporate income tax liability; andinsurance premiums tax liability.Community Contributions Cred...
GA - Global intangible low-taxed income subtraction enacted
Georgia enacted a corporate income tax subtraction from dividends received for global intangible low-taxed income. The enacted law brings Georgia into conformity with Internal Revenue Code (IRC) §...
Georgia enacted a corporate income tax subtraction from dividends received for global intangible low-taxed income. The enacted law brings Georgia into conformity with Internal Revenue Code (IRC) §...
HI - Tax information for nonresident military servicemembers updated
The Hawaii Department of Taxation has updated its publication that provides personal income tax information for non-resident military servicemembers. The updated publication notes that a taxpayer&rsqu...
The Hawaii Department of Taxation has updated its publication that provides personal income tax information for non-resident military servicemembers. The updated publication notes that a taxpayer&rsqu...
ID - Child tax credit increased
For personal income tax purposes, Idaho has increased the nonrefundable child tax credit created earlier this year from $130 to $205. (H.B. 675), Laws 2018, effective March 28, 2018, and retroactively...
For personal income tax purposes, Idaho has increased the nonrefundable child tax credit created earlier this year from $130 to $205. (H.B. 675), Laws 2018, effective March 28, 2018, and retroactively...
IL - Legislation proposes addition adjustment for FDII and GILTI
Illinois legislation proposes an addition adjustment by taxpayers computing corporate and fiduciary income tax liability for the federal deduction allowed under IRC Sec. 250(a)(1). The federal deducti...
Illinois legislation proposes an addition adjustment by taxpayers computing corporate and fiduciary income tax liability for the federal deduction allowed under IRC Sec. 250(a)(1). The federal deducti...
IN - Information bulletin on hospital property tax credit updated
For corporate income tax purposes, the Indiana Department of Revenue has updated an information bulletin that provides information on the hospital property tax credit. The updated bulletin states that...
For corporate income tax purposes, the Indiana Department of Revenue has updated an information bulletin that provides information on the hospital property tax credit. The updated bulletin states that...
IA - Federal conformity bill introduced, decouples from bonus depreciation
A bill introduced in the Iowa Senate would adopt the IRC in effect on January 1, 2018 for the:franchise tax;corporate income tax; andpersonal income tax.The current IRC conformity date is January 1, 2...
A bill introduced in the Iowa Senate would adopt the IRC in effect on January 1, 2018 for the:franchise tax;corporate income tax; andpersonal income tax.The current IRC conformity date is January 1, 2...
KS - Q2 transient guest tax rate change announced
As of April 1, 2018, the city of Kechi, Kansas, begins imposing a transient guest tax at a rate of 6%. Transient Guest Tax Rates, Effective Dates, and Number of Active Accounts, Kansas Department...
As of April 1, 2018, the city of Kechi, Kansas, begins imposing a transient guest tax at a rate of 6%. Transient Guest Tax Rates, Effective Dates, and Number of Active Accounts, Kansas Department...
KY - Motor boat registration/renewal notice cards contain errors
The Kentucky Department of Revenue alerts taxpayers to errors on the recently mailed motor boat tax registration/renewal notice cards. The amount stated as the "TOTAL DUE" is correct and mus...
The Kentucky Department of Revenue alerts taxpayers to errors on the recently mailed motor boat tax registration/renewal notice cards. The amount stated as the "TOTAL DUE" is correct and mus...
LA - Disaster loss addback enacted
Louisiana enacted a personal income tax addback equal to any federal tax decrease resulting from a deduction for certain net disaster losses. However, the addback only applies to the 2015 to 2017 tax ...
Louisiana enacted a personal income tax addback equal to any federal tax decrease resulting from a deduction for certain net disaster losses. However, the addback only applies to the 2015 to 2017 tax ...
ME - New markets capital investment credit amended
Maine excluded investments that are used to cover "one-day loan" payments from the new markets capital investment credit against income and insurance premium taxes. Specifically, the definit...
Maine excluded investments that are used to cover "one-day loan" payments from the new markets capital investment credit against income and insurance premium taxes. Specifically, the definit...
MD - Single-sales factor bill passed by senate
The Maryland Senate passed a bill that would change the state's standard corporate income tax apportionment formula to a single-sales factor formula. The current standard formula is a three-factor for...
The Maryland Senate passed a bill that would change the state's standard corporate income tax apportionment formula to a single-sales factor formula. The current standard formula is a three-factor for...
MA - Filing deadline for S corporation members of combined groups extended
Massachusetts adopted a regulation that clarifies the corporate excise tax return filing deadline for S corporation members of combined groups.Filing DeadlinesEffective beginning with 2017 tax returns...
Massachusetts adopted a regulation that clarifies the corporate excise tax return filing deadline for S corporation members of combined groups.Filing DeadlinesEffective beginning with 2017 tax returns...
MI - Federal extenders legislation may affect 2017 state returns
Some of the provisions in the federal Bipartisan Budget Act of 2018 may affect taxpayers' 2017 Michigan returns. The federal legislation retroactively extended and modified some tax provisions for tax...
Some of the provisions in the federal Bipartisan Budget Act of 2018 may affect taxpayers' 2017 Michigan returns. The federal legislation retroactively extended and modified some tax provisions for tax...
MN - Tips provided to tax professionals for protecting client data
For personal and corporate income tax purposes, the Minnesota Department of Revenue has issued a news release providing tips to tax professionals for safeguarding their clients from data breaches. Tax...
For personal and corporate income tax purposes, the Minnesota Department of Revenue has issued a news release providing tips to tax professionals for safeguarding their clients from data breaches. Tax...
MS - Local hotel and restaurant taxes authorized, amended, and extended
Several bills have been enacted that authorize certain Mississippi cities to impose local taxes on sales by hotels, motels, and restaurants or that extend the repeal date of existing local taxes.Grena...
Several bills have been enacted that authorize certain Mississippi cities to impose local taxes on sales by hotels, motels, and restaurants or that extend the repeal date of existing local taxes.Grena...
MO - Rate table issued for upcoming show-me green tax holiday
The Missouri Department of Revenue has issued rate tables for the Show-Me Green Sales Tax Holiday set for April 19 through April 25, 2018.The rate table can be found at http://dor.mo.gov/pdf/rate...
The Missouri Department of Revenue has issued rate tables for the Show-Me Green Sales Tax Holiday set for April 19 through April 25, 2018.The rate table can be found at http://dor.mo.gov/pdf/rate...
MT - 529 withdrawals for K-12 tuition may be taxable
A withdrawal from a Montana 529 plan to pay for K-12 tuition is a nonqualified withdrawal under Montana law. A recent federal change exempts up to $10,000 in 529 distributions for elementary or second...
A withdrawal from a Montana 529 plan to pay for K-12 tuition is a nonqualified withdrawal under Montana law. A recent federal change exempts up to $10,000 in 529 distributions for elementary or second...
NE - Taxability of interest and dividend income from state, local, and U.S. government obligations discussed
The Nebraska Department of Revenue has updated a personal income tax information guide on the addition and subtraction adjustments to federal adjusted gross income (AGI) for interest and dividend inco...
The Nebraska Department of Revenue has updated a personal income tax information guide on the addition and subtraction adjustments to federal adjusted gross income (AGI) for interest and dividend inco...
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 - Internet sales tax fight announced
New Hampshire Governor Chris Sununu and Attorney General Gordon MacDonald have announced that New Hampshire is joining the fight against internet sales tax. The state will argue to the U.S. Supreme Co...
New Hampshire Governor Chris Sununu and Attorney General Gordon MacDonald have announced that New Hampshire is joining the fight against internet sales tax. The state will argue to the U.S. Supreme Co...
NJ - Credit for tax paid to other jurisdictions on business/nonwage income discussed
The New Jersey Division of Taxation has issued a personal income tax guidance on the gross income tax credit for taxes paid to other jurisdictions regarding business or nonwage income. The purpose of ...
The New Jersey Division of Taxation has issued a personal income tax guidance on the gross income tax credit for taxes paid to other jurisdictions regarding business or nonwage income. The purpose of ...
NM - Taxpayer entitled to high-wage jobs tax credits for certain employees
A corporate income taxpayer was entitled to claim the New Mexico high-wage jobs tax credits with respect to certain employees based on their residential status and promotion. In this matter, the Taxat...
A corporate income taxpayer was entitled to claim the New Mexico high-wage jobs tax credits with respect to certain employees based on their residential status and promotion. In this matter, the Taxat...
NY - Summary judgment denied due to existence of issues of material fact
A New York administrative law judge’s (ALJ’s) decision granting summary determination in favor of the Division of Taxation in a case concerning a taxpayer’s claim for a refund of sal...
A New York administrative law judge’s (ALJ’s) decision granting summary determination in favor of the Division of Taxation in a case concerning a taxpayer’s claim for a refund of sal...
NC - Form E-589CI, affidavit of capital improvement, is updated
North Carolina has updated Form E-589CI, Affidavit of Capital Improvement, for sales and use tax purposes. The form is updated to reflect legislative changes enacted by the 2017 Session of the General...
North Carolina has updated Form E-589CI, Affidavit of Capital Improvement, for sales and use tax purposes. The form is updated to reflect legislative changes enacted by the 2017 Session of the General...
ND - 2018 withholding tables released
North Dakota has released its 2018 withholding tables for employers. The tables are available at http://www.nd.gov/tax/withholding/pubs.Passage of the federal Tax Cuts and Jobs Act delayed the re...
North Dakota has released its 2018 withholding tables for employers. The tables are available at http://www.nd.gov/tax/withholding/pubs.Passage of the federal Tax Cuts and Jobs Act delayed the re...
OH - Certain health insurance premiums deductible
Ohio is retroactively allowing personal income taxpayers to deduct the cost of some subsidized health insurance premiums. The premiums are now classified as a deductible "medical care" expen...
Ohio is retroactively allowing personal income taxpayers to deduct the cost of some subsidized health insurance premiums. The premiums are now classified as a deductible "medical care" expen...
OK - Cap on itemized deductions enacted
For tax years beginning after 2017, the amount of itemized deductions permitted on an Oklahoma personal income tax return is capped at $17,000.The following items are not subject to the cap:charitable...
For tax years beginning after 2017, the amount of itemized deductions permitted on an Oklahoma personal income tax return is capped at $17,000.The following items are not subject to the cap:charitable...
OR - Charitable contributions deduction denied for lack of sufficient documentation
For Oregon personal income tax purposes, taxpayers' claim for charitable contributions deduction was denied for lack of sufficient documentation. Generally, no deduction may be taken for cash or nonca...
For Oregon personal income tax purposes, taxpayers' claim for charitable contributions deduction was denied for lack of sufficient documentation. Generally, no deduction may be taken for cash or nonca...
PA - Reimbursement for repairs denied for lack of sufficient evidence
For Pennsylvania property tax purposes, a trial court’s decision that denied the tax sale purchaser’s request for reimbursement of necessary repair costs that it paid during its possession...
For Pennsylvania property tax purposes, a trial court’s decision that denied the tax sale purchaser’s request for reimbursement of necessary repair costs that it paid during its possession...
RI - Assessment sustained as taxpayer had unreported wages
The Rhode Island Division of Taxation properly issued a personal income tax assessment because the taxpayer had unreported income in the form of unreported wages for the tax year at issue. In this mat...
The Rhode Island Division of Taxation properly issued a personal income tax assessment because the taxpayer had unreported income in the form of unreported wages for the tax year at issue. In this mat...
SC - Refund request granted due to retroactive application of amendment
The South Carolina Administrative Law Court’s (ALC’s) affirmation of the Department of Revenue’s denial of taxpayers’ (property owner and lessee’s) request for a refund o...
The South Carolina Administrative Law Court’s (ALC’s) affirmation of the Department of Revenue’s denial of taxpayers’ (property owner and lessee’s) request for a refund o...
SD - Educational scholarship credit expanded
The insurance premiums tax credit is expanded to include contributions to tribally controlled schools on a federal Indiana reservation. The contributions must be made to a scholarship granting organiz...
The insurance premiums tax credit is expanded to include contributions to tribally controlled schools on a federal Indiana reservation. The contributions must be made to a scholarship granting organiz...
TN - Proposed exemption for wooden barrels used to manufacture whiskey is not constitutional
Proposed legislation that would, if enacted, add a Tennessee property tax exemption for wooden barrels used in the process of manufacturing whiskey is not constitutional. Under article II, section 30,...
Proposed legislation that would, if enacted, add a Tennessee property tax exemption for wooden barrels used in the process of manufacturing whiskey is not constitutional. Under article II, section 30,...
TX - Internet-based subscription services taxable as both cable television and amusement services
The Texas Comptroller of Public Accounts has issued a private letter ruling stating that a taxpayer's internet-based subscription services were subject to sales and use tax as cable television service...
The Texas Comptroller of Public Accounts has issued a private letter ruling stating that a taxpayer's internet-based subscription services were subject to sales and use tax as cable television service...
UT - Solar energy system credits extended, phased out
The Utah tax credits for installations of residential energy systems that generate electricity from sunlight (photovoltaic systems) are extended through 2023. Previously, the personal income tax credi...
The Utah tax credits for installations of residential energy systems that generate electricity from sunlight (photovoltaic systems) are extended through 2023. Previously, the personal income tax credi...
VT - Guidance provided for automotive supply dealers, repair shops
A Vermont Department of Taxes publication provides guidance on the applicability of sales and use tax to auto supply dealers and auto repair shops. Both auto supply dealers and auto repair shops must ...
A Vermont Department of Taxes publication provides guidance on the applicability of sales and use tax to auto supply dealers and auto repair shops. Both auto supply dealers and auto repair shops must ...
VA - Virginia court reaches similar conclusion in “subject to tax” exception rehearing
In a revised opinion, the Virginia Supreme Court confirmed that the "subject to tax" exception to the state's intangible addback provision applies only to the extent that royalty payments ar...
In a revised opinion, the Virginia Supreme Court confirmed that the "subject to tax" exception to the state's intangible addback provision applies only to the extent that royalty payments ar...
WA - Deduction for delivery system reform incentive payments explained
As of March 15, 2018, a business can take a Washington business and occupation (B&O) tax deduction for delivery system reform incentive payments (DSRIPs) if these payments are sourced from the Med...
As of March 15, 2018, a business can take a Washington business and occupation (B&O) tax deduction for delivery system reform incentive payments (DSRIPs) if these payments are sourced from the Med...
WV - Farm-to-food bank credit regulation adopted
West Virginia adopted regulations that set forth the procedures and requirements for the farm-to-food bank credit. Farming taxpayers who donate edible agricultural products to nonprofit food programs ...
West Virginia adopted regulations that set forth the procedures and requirements for the farm-to-food bank credit. Farming taxpayers who donate edible agricultural products to nonprofit food programs ...
WI - Proposed remote seller notice requirements, sales tax holiday failed to pass
The Wisconsin Legislature did not pass two previously reported bills that would have:imposed certain notice requirements on remote sellers ; andcreated a sales tax holiday and a one-time sales and use...
The Wisconsin Legislature did not pass two previously reported bills that would have:imposed certain notice requirements on remote sellers ; andcreated a sales tax holiday and a one-time sales and use...
WY - Demurrage and labor charges discussed
Demurrage charges and labor charges are discussed in a Wyoming Department of Revenue sales tax newsletter.Demurrage chargesDemurrage charges are not treated the same as the rental of gas cylinders or ...
Demurrage charges and labor charges are discussed in a Wyoming Department of Revenue sales tax newsletter.Demurrage chargesDemurrage charges are not treated the same as the rental of gas cylinders or ...
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