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2018 Year-End Tax PlanningTax Reform 2.02018 Post-Filing Season UpdateCongress Approves Sweeping Tax Overhaul
Estimated Tax Penalty Waived for Farmer and Fisherman Returns Filed by April 15
The IRS will waive the estimated tax penalty for any qualifying farmer or fisherman who files their 2018 federal income tax return and pays any tax due by Monday, April 15, 2019. The deadline is Wedne...
The IRS will waive the estimated tax penalty for any qualifying farmer or fisherman who files their 2018 federal income tax return and pays any tax due by Monday, April 15, 2019. The deadline is Wedne...
JCT Issues Overview of Section 199A QBI Deduction
The nonpartisan Joint Committee on Taxation (JCT) on March 13 released a slideshow overview of the Code Sec. 199A deduction for qualified business income (QBI). The deduction was enacted und...
The nonpartisan Joint Committee on Taxation (JCT) on March 13 released a slideshow overview of the Code Sec. 199A deduction for qualified business income (QBI). The deduction was enacted und...
IRS Issues FAQs on FATCA Procedures
The IRS has updated its Frequently Asked Questions (FAQs) on FATCA (Foreign Account Tax Compliance Act) General Compliance.Updated Q/A #23 addresses whether a withholding agent can be subjec...
The IRS has updated its Frequently Asked Questions (FAQs) on FATCA (Foreign Account Tax Compliance Act) General Compliance.Updated Q/A #23 addresses whether a withholding agent can be subjec...
Acquiescence in Result Only in Meals as De Minimis Fringe Benefits Case
The IRS has acquiesced in result only in J.M Jacobs,148 TC No. 24, Dec. 60,947, relating to whether the taxpayer’s expenses for provision of pregame meals at away city hotels to profes...
The IRS has acquiesced in result only in J.M Jacobs,148 TC No. 24, Dec. 60,947, relating to whether the taxpayer’s expenses for provision of pregame meals at away city hotels to profes...
IRS Issues FAQ on Deduction of Attorney Fees
The IRS has issued a Frequently Asked Question (FAQ) on Code Sec. 162(q). The FAQ addressed whether taxpayers are not allowed to deduct their attorney’s fees related to the settlement of a ...
The IRS has issued a Frequently Asked Question (FAQ) on Code Sec. 162(q). The FAQ addressed whether taxpayers are not allowed to deduct their attorney’s fees related to the settlement of a ...
AL - Town of Goldville repeals local sales tax
Effective April 1, 2019, the town of Goldville repeals its local Alabama sales tax. Sales made in the town of Goldville on or after April 1, 2019, will continue to be subject to county and state sales...
Effective April 1, 2019, the town of Goldville repeals its local Alabama sales tax. Sales made in the town of Goldville on or after April 1, 2019, will continue to be subject to county and state sales...
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 - Local rate change announced
An upcoming change to a local transaction privilege tax (TPT) rate in Arizona has been announced.Flagstaff TPT RateEffective July 1, 2019, Flagstaff will increase its TPT rate to 2.281% for the follow...
An upcoming change to a local transaction privilege tax (TPT) rate in Arizona has been announced.Flagstaff TPT RateEffective July 1, 2019, Flagstaff will increase its TPT rate to 2.281% for the follow...
AR - IRC conformity bill introduced
The Arkansas House of Representatives has introduced a bill that would, if enacted, update Internal Revenue Code conformity for corporate and personal income tax purposes. The bill would adopt the fol...
The Arkansas House of Representatives has introduced a bill that would, if enacted, update Internal Revenue Code conformity for corporate and personal income tax purposes. The bill would adopt the fol...
CA - Taxpayers residence was eligible for transfer of base year value
For California property tax purposes, the taxpayers were entitled to transfer the property tax basis of their original home to a newly constructed replacement home because they owned the replacement h...
For California property tax purposes, the taxpayers were entitled to transfer the property tax basis of their original home to a newly constructed replacement home because they owned the replacement h...
CO - Colorado codifies evidence necessary for reacquisition of residency
Recently enacted legislation requires active duty military to provide evidence when attempting to reacquire legal residency in Colorado. In this situation, the individual would not pay Colorado person...
Recently enacted legislation requires active duty military to provide evidence when attempting to reacquire legal residency in Colorado. In this situation, the individual would not pay Colorado person...
CT - Tourism account surcharge discussed
A $1 per day Connecticut tourism account surcharge is imposed on every lessor for the rental or lease of a passenger motor vehicle. The surcharge is imposed provided the vehicle is delivered to a less...
A $1 per day Connecticut tourism account surcharge is imposed on every lessor for the rental or lease of a passenger motor vehicle. The surcharge is imposed provided the vehicle is delivered to a less...
DE - Taxpayers advised against overstating withholding amount
The Delaware Division of Revenue officials are noting an uptick in Delaware returns reporting overstated income tax withholding. Taxpayers must note that the appropriate amount to report is limited to...
The Delaware Division of Revenue officials are noting an uptick in Delaware returns reporting overstated income tax withholding. Taxpayers must note that the appropriate amount to report is limited to...
DC - Special enrollment opportunity for uninsured taxpayers discussed
The District of Columbia Office of Tax and Revenue issued a press release informing personal income taxpayers who are still uninsured that even though the open enrollment for 2019 plans ended, taxpaye...
The District of Columbia Office of Tax and Revenue issued a press release informing personal income taxpayers who are still uninsured that even though the open enrollment for 2019 plans ended, taxpaye...
FL - Assessment for back taxes on taxpayer’s property was erroneous
For Florida property tax purposes, the assessment of the taxpayer’s property for back taxes was erroneous because the property did not escape taxation. The taxpayer contended that the trial cour...
For Florida property tax purposes, the assessment of the taxpayer’s property for back taxes was erroneous because the property did not escape taxation. The taxpayer contended that the trial cour...
GA - Senate passes IRC conformity bill
The Georgia Senate passed a bill that updates the IRC conformity date for computing corporate and personal income tax.Bill StatusThe bill previously passed the Georgia House and is now eligible for th...
The Georgia Senate passed a bill that updates the IRC conformity date for computing corporate and personal income tax.Bill StatusThe bill previously passed the Georgia House and is now eligible for th...
HI - Hawaii county surcharge did not violate law
The Hawaii Supreme Court held that a county surcharge did not violate the law. The Tax Foundation of Hawaii had challenged a statute which authorizes the state’s reimbursement for its costs in a...
The Hawaii Supreme Court held that a county surcharge did not violate the law. The Tax Foundation of Hawaii had challenged a statute which authorizes the state’s reimbursement for its costs in a...
ID - Bill conforming Idaho to federal foreign source income provisions awaits governor
The Idaho legislature has passed legislation that would conform Idaho corporate income tax law to several federal foreign source income provisions amended by the Tax Cuts and Jobs Act of 2017 (P.L. 11...
The Idaho legislature has passed legislation that would conform Idaho corporate income tax law to several federal foreign source income provisions amended by the Tax Cuts and Jobs Act of 2017 (P.L. 11...
IL - Purchase of aircraft not exempt because it was not used in agricultural production
A taxpayer’s purchase of an aircraft did not qualify for the farm machinery and equipment exemption from Illinois use tax because the taxpayer failed to show that the aircraft was used primarily...
A taxpayer’s purchase of an aircraft did not qualify for the farm machinery and equipment exemption from Illinois use tax because the taxpayer failed to show that the aircraft was used primarily...
IN - Cargo trailer sales did not qualify for interstate commerce exemption
A recreational vehicle dealer (taxpayer) was required to collect and remit Indiana sales tax on its sales of cargo trailers to out-of-state customers because the taxpayer failed to provide sufficient ...
A recreational vehicle dealer (taxpayer) was required to collect and remit Indiana sales tax on its sales of cargo trailers to out-of-state customers because the taxpayer failed to provide sufficient ...
IA - Taxpayers' failed to materially participate in business; deduction denied
Taxpayers’ farmland rental income was subject to Iowa personal income tax because the taxpayers failed to show they materially participated in the farm business for at least 10 years. Generally,...
Taxpayers’ farmland rental income was subject to Iowa personal income tax because the taxpayers failed to show they materially participated in the farm business for at least 10 years. Generally,...
KS - Governor supports food tax reduction
Kansas Gov. Laura Kelly has issued a statement supporting a reduced sales and use tax rate for grocery food. As previously reported, the governor recently vetoed S.B. 22, which contained provisio...
Kansas Gov. Laura Kelly has issued a statement supporting a reduced sales and use tax rate for grocery food. As previously reported, the governor recently vetoed S.B. 22, which contained provisio...
KY - Kentucky enacts marketplace economic nexus provisions
Kentucky Gov. Matt Bevin has signed legislation containing sales tax economic nexus provisions concerning marketplaces. Developing details of the bill were previously reported. Details of other sales ...
Kentucky Gov. Matt Bevin has signed legislation containing sales tax economic nexus provisions concerning marketplaces. Developing details of the bill were previously reported. Details of other sales ...
LA - Constitutional challenge to cap on solar tax credits rendered moot
The Louisiana Supreme Court held that a constitutional challenge to a cap on available solar electric system income tax credits was moot because the challenged statute was subsequently amended, and th...
The Louisiana Supreme Court held that a constitutional challenge to a cap on available solar electric system income tax credits was moot because the challenged statute was subsequently amended, and th...
ME - House introduces legislation to lower tax rates
The Maine House of Representatives has introduced a bill that would lower personal income tax rates beginning in tax year 2020, with a second reduction beginning in tax year 2022. The reductions would...
The Maine House of Representatives has introduced a bill that would lower personal income tax rates beginning in tax year 2020, with a second reduction beginning in tax year 2022. The reductions would...
MD - Appeal dismissed for failure to exhaust administrative remedies
Maryland personal income taxpayers who contested the interest rate reduction on refunds received pursuant to the decision in Comptroller of the Treasury of Maryland v. Wynne, U.S. Supreme Court, ...
Maryland personal income taxpayers who contested the interest rate reduction on refunds received pursuant to the decision in Comptroller of the Treasury of Maryland v. Wynne, U.S. Supreme Court, ...
MA - IRC Sec. 965 income reporting rules enacted
Massachusetts supplemental budget legislation includes reporting rules for personal income taxpayers who have IRC Sec. 965 income.What Is IRC Sec. 965 Income?IRC Sec. 965 requires a one-time federal i...
Massachusetts supplemental budget legislation includes reporting rules for personal income taxpayers who have IRC Sec. 965 income.What Is IRC Sec. 965 Income?IRC Sec. 965 requires a one-time federal i...
MI - Prepaid fuel rates announced
Beginning May 1, 2019, Michigan’s prepaid sales tax rate for gasoline will change.Prepaid Fuel RatesFrom May 1, 2019 through May 31, 2019, the prepaid rate for gasoline increases from 11.7 cents...
Beginning May 1, 2019, Michigan’s prepaid sales tax rate for gasoline will change.Prepaid Fuel RatesFrom May 1, 2019 through May 31, 2019, the prepaid rate for gasoline increases from 11.7 cents...
MN - Tips to prevent data breach issued to tax professionals
For corporate and personal income tax purposes, the Minnesota Department of Revenue (department) provided tips to tax professionals as part of efforts to combat the increasing number of data breaches ...
For corporate and personal income tax purposes, the Minnesota Department of Revenue (department) provided tips to tax professionals as part of efforts to combat the increasing number of data breaches ...
MS - Credit enacted for charitable gifts to endowed funds held by community foundations
Mississippi has enacted a nonrefundable credit against corporate and personal income taxes for qualified contributions to certain endowed funds held by community foundations.Definitions"Qualified cont...
Mississippi has enacted a nonrefundable credit against corporate and personal income taxes for qualified contributions to certain endowed funds held by community foundations.Definitions"Qualified cont...
MO - Taxpayer required to collect tax from proceeds received for casualty loss of leased equipment
An equipment leasing company (taxpayer) was required to collect and remit Missouri sales and use tax from proceeds it received from a lessee who had a casualty loss of leased equipment, because the ti...
An equipment leasing company (taxpayer) was required to collect and remit Missouri sales and use tax from proceeds it received from a lessee who had a casualty loss of leased equipment, because the ti...
MT - Retail transaction evidence can establish agricultural use of special fuel
For Montana motor fuel tax purposes, a taxpayer whose use of special fuel qualifies as agricultural use may apply for a refund using evidence of retail purchases as an estimate of off-highway fuel use...
For Montana motor fuel tax purposes, a taxpayer whose use of special fuel qualifies as agricultural use may apply for a refund using evidence of retail purchases as an estimate of off-highway fuel use...
NE - Victims of severe winter storm, straight-line winds, and flooding granted tax relief
The Nebraska Department of Revenue (department) has announced that it will grant tax relief to corporate and personal income taxpayers impacted by the severe winter storm, straight-line winds, and flo...
The Nebraska Department of Revenue (department) has announced that it will grant tax relief to corporate and personal income taxpayers impacted by the severe winter storm, straight-line winds, and flo...
NV - Regulation establishing standards to determine whether overpayment of taxes was made intentionally or by reason of carelessness
The Nevada Tax Commission has issued a sales tax regulation establishing the standards to be used by the Department of Taxation to determine whether an overpayment of certain taxes was made intentiona...
The Nevada Tax Commission has issued a sales tax regulation establishing the standards to be used by the Department of Taxation to determine whether an overpayment of certain taxes was made intentiona...
NH - Senate passes legislation postponing BPT and bet rate reductions
The New Hampshire Senate passed legislation that would postpone future business profits tax (BPT) and business enterprise tax (BET) rate reductions. The existing rate reductions were enacted in 2017.B...
The New Hampshire Senate passed legislation that would postpone future business profits tax (BPT) and business enterprise tax (BET) rate reductions. The existing rate reductions were enacted in 2017.B...
NJ - Summary judgment partly granted due to invalid added assessment
For New Jersey property tax purposes, the taxpayer’s motion for summary judgment was granted in part because the added assessment applied to the taxpayer's property for 2017 was invalid. The tax...
For New Jersey property tax purposes, the taxpayer’s motion for summary judgment was granted in part because the added assessment applied to the taxpayer's property for 2017 was invalid. The tax...
NM - Film production tax credit amended
Various changes have been enacted to the New Mexico Film Production Tax Credit, including the creation of a new film production credit for productions that begin on or after July 1, 2019, and expansio...
Various changes have been enacted to the New Mexico Film Production Tax Credit, including the creation of a new film production credit for productions that begin on or after July 1, 2019, and expansio...
NY - Taxpayers provided sufficient records for credits
For New York personal income tax purposes, the taxpayers successfully challenged the Division of Taxation's (division) disallowance of their claimed earned income credit and empire state child credit ...
For New York personal income tax purposes, the taxpayers successfully challenged the Division of Taxation's (division) disallowance of their claimed earned income credit and empire state child credit ...
NC - IRC conformity updated
North Carolina enacted legislation that updates the IRC conformity date for computing corporate and personal income tax liability.IRC Conformity DateThe legislation changes the IRC conformity date fro...
North Carolina enacted legislation that updates the IRC conformity date for computing corporate and personal income tax liability.IRC Conformity DateThe legislation changes the IRC conformity date fro...
ND - Marketplace facilitators must collect sales and use tax
Some marketplace facilitators are now subject to North Dakota sales and use tax.Marketplace Facilitators Who Must Collect Sales TaxMarketplace facilitators without a physical presence in North Dakota ...
Some marketplace facilitators are now subject to North Dakota sales and use tax.Marketplace Facilitators Who Must Collect Sales TaxMarketplace facilitators without a physical presence in North Dakota ...
OH - Taxpayer’s property qualified for religious exemption
The Ohio Board of Tax Appeals (BTA) granted a religious organization’s (taxpayer’s) request for a property tax exemption for tax years 2015 and 2016 because the taxpayer met its burden to ...
The Ohio Board of Tax Appeals (BTA) granted a religious organization’s (taxpayer’s) request for a property tax exemption for tax years 2015 and 2016 because the taxpayer met its burden to ...
OK - Q3 local rate changes announced
The local sales and use tax rate changes below take effect in Oklahoma on July 1, 2019. The changes can be viewed at ok.gov/tax/documents/copo3Q19.pdf.County Rate ChangesRogers County increases i...
The local sales and use tax rate changes below take effect in Oklahoma on July 1, 2019. The changes can be viewed at ok.gov/tax/documents/copo3Q19.pdf.County Rate ChangesRogers County increases i...
OR - Taxpayer lost nexus protection due to incentive program
A cigarette manufacturer’s wholesalers were acting as contractors, creating nexus for purposes of Oregon’s corporation excise tax.The Company’s Business StructureThe taxpayer sold ci...
A cigarette manufacturer’s wholesalers were acting as contractors, creating nexus for purposes of Oregon’s corporation excise tax.The Company’s Business StructureThe taxpayer sold ci...
PA - Tax deadline approaches for Philadelphians
Taxpayers in Philadelphia, Pennsylvania, are reminded of the upcoming deadline for property taxes.Payment Deadline2019 real estate taxes must be paid by March 31, 2019.Ways to PayThe taxes can be paid...
Taxpayers in Philadelphia, Pennsylvania, are reminded of the upcoming deadline for property taxes.Payment Deadline2019 real estate taxes must be paid by March 31, 2019.Ways to PayThe taxes can be paid...
RI - CCF deductions beginning with returns filed for 2019 tax year disallowed
The Rhode Island Tax Division (division) in a ruling request clarified that it will disallow the Federal Capital Construction Fund (CCF) on personal income tax returns for the tax year 2019 forward bu...
The Rhode Island Tax Division (division) in a ruling request clarified that it will disallow the Federal Capital Construction Fund (CCF) on personal income tax returns for the tax year 2019 forward bu...
SC - State tax addback explained for individuals who itemize
South Carolina has explained how individuals calculate the state tax addback in light of the new federal limit on itemized deductions for state and local taxes.State Tax Addback CalculationFor a taxpa...
South Carolina has explained how individuals calculate the state tax addback in light of the new federal limit on itemized deductions for state and local taxes.State Tax Addback CalculationFor a taxpa...
SD - Maximum school district levies revised
For South Dakota property taxes payable in 2020 and each year thereafter, the maximum school district levies have been amended.Maximum Levy for General School District FundThe maximum levies for the g...
For South Dakota property taxes payable in 2020 and each year thereafter, the maximum school district levies have been amended.Maximum Levy for General School District FundThe maximum levies for the g...
TN - Classification of business as seller of glass affirmed
The trial court did not err in determining that the taxpayer should be classified under Classification 1(B) for Tennessee business tax purposes because the majority of gross sales for the taxpayer wer...
The trial court did not err in determining that the taxpayer should be classified under Classification 1(B) for Tennessee business tax purposes because the majority of gross sales for the taxpayer wer...
TX - Concrete manufacturer’s cogs deduction partially disallowed
A concrete manufacturing company was not entitled to all of the cost-of-goods-sold (COGS) deduction it claimed on its Texas return. The company calculated its franchise tax by deducting all of its cos...
A concrete manufacturing company was not entitled to all of the cost-of-goods-sold (COGS) deduction it claimed on its Texas return. The company calculated its franchise tax by deducting all of its cos...
UT - Utah amends rules for tax domicile and individual residency
Utah has changes its tax residency and domicile rules in new legislation. A person with a house in Utah may be a tax resident even if the person doesn’t reside in Utah at least 183 days of the y...
Utah has changes its tax residency and domicile rules in new legislation. A person with a house in Utah may be a tax resident even if the person doesn’t reside in Utah at least 183 days of the y...
VT - Fact sheet on real estate withholding issued
Vermont Department of taxes released a fact sheet explaining the correct procedures to use when taxpayers are required to pay real estate withholding tax on the sale of Vermont real property. Generall...
Vermont Department of taxes released a fact sheet explaining the correct procedures to use when taxpayers are required to pay real estate withholding tax on the sale of Vermont real property. Generall...
VA - Virginia enacts economic nexus standard
Virginia enacts an economic nexus standard requiring remote sellers and marketplace facilitators to collect retail sales and use tax if they meet certain economic thresholds. The provisions are effect...
Virginia enacts an economic nexus standard requiring remote sellers and marketplace facilitators to collect retail sales and use tax if they meet certain economic thresholds. The provisions are effect...
WA - Vehicle dealer’s purchase of car wash services and rental of cars to employees taxable
A seller and lessor of vehicles (taxpayer) was liable to pay Washington deferred sales tax on its purchase of car wash services for its inventory prior to sale, because the taxpayer was a consumer of ...
A seller and lessor of vehicles (taxpayer) was liable to pay Washington deferred sales tax on its purchase of car wash services for its inventory prior to sale, because the taxpayer was a consumer of ...
WV - West Virginia enacts federal adjustment and partnership audit rules
West Virginia enacted legislation on federal adjustment reporting requirements for corporate and personal income taxpayers. It also addresses new federal partnership audit rules. West Virginia reporti...
West Virginia enacted legislation on federal adjustment reporting requirements for corporate and personal income taxpayers. It also addresses new federal partnership audit rules. West Virginia reporti...
WI - Publication regarding nonresident entertainers updated
For corporate and personal income tax purposes, the Wisconsin Department of Revenue updated its publication on nonresident entertainers to reflect that beginning in 2019, Form WT11, Nonresident E...
For corporate and personal income tax purposes, the Wisconsin Department of Revenue updated its publication on nonresident entertainers to reflect that beginning in 2019, Form WT11, Nonresident E...
WY - Provisions relating to tax liens on mineral production revised
Provisions on tax liens relating to Wyoming property taxes imposed on mineral production have been amended.Mineral Production LiensFor any lien related to mineral production on or after January 1, 202...
Provisions on tax liens relating to Wyoming property taxes imposed on mineral production have been amended.Mineral Production LiensFor any lien related to mineral production on or after January 1, 202...
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