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Tax Alerts

Tax Briefing(s)

2018 Year-End Tax Planning Tax Reform 2.0 2018 Post-Filing Season Update Congress Approves Sweeping Tax Overhaul

IRS Updates 2018 Schedule D Instructions to Correct Worksheet Error
The IRS posted updated instructions for 2018 Schedule D (Form 1040), Capital Gains and Losses, that include a corrected worksheet. The revised worksheet corrects a rate error that may have calculated ...

IRS Finalizes Rules Increasing Enrolled Agent Application and Renewal Fees
The IRS has finalized regulations that increase both the enrollment and renewal user fee for enrolled agents from $30 to $67. The rules also increase the renewal user fee for enrolled retirement plan ...

Indian Tribal Casino Distributions Taxable to Members
A married couple had unreported taxable income in the form of distributions received from casino revenue. However, the IRS did not obtain written supervisory approval before the first formal communica...

IRS Allowed to Treat Partnership as Aggregate of its Partners
The IRS was allowed to assert its authority under the abuse of entity rule of Reg. §1.701-2(e) to treat a partnership as an aggregate of its partners. Treating the partnership as an agg...

IRS Issues Nonconventional Source Fuel Reference Price for 2018
The IRS has published the reference price under Code Sec. 45K(d)(2)(C). The credit period for the nonconventional source production credit under Code Sec. 45K ended on December 31, 2013...

Comments Sought on Carbon Oxide Sequestration Credit
The Treasury Department and the IRS have requested general comments on issues arising from the Bipartisan Budget Act of 2018 (BBA) ( P.L. 115-123) amendments to the Code Sec. 45Q credit...

IRS Clarifies Treatment of Refunds with New SALT Limits
The IRS has provided four examples of the interaction of the new limit on the deduction on state and local taxes (SALT) under Code Sec. 164(b)(6) with the tax benefit rule for refunds under&...

Plug-In Electric Vehicle Credit to Phase Out for GM Vehicles
The tax credit for new qualified plug-in electric drive motor vehicles sold by General Motors, LLC, will begin to phase out April 1, 2019. The credit begins to phase out in the second calendar quarter...

2019 Foreign Housing Expense Limitations Released
The IRS has provided the adjustments to the limitation on foreign housing expenses for specific locations for tax year 2019. Generally, a qualified individual whose entire tax year is within the appli...

2018 Waivers of 911 Eligibility Requirements Due to Adverse Conditions
The IRS has provided a waiver for any individual who, for the 2018 tax year, failed to meet the eligibility requirements of Code Sec. 911(d)(1) due to war, civil unrest, or similar adverse c...

IRS Revises EIN Application Process
As part of its ongoing security review, the IRS is revising the application process for obtaining an employer identification number (EIN). Starting May 13, 2019, only individuals with social security ...

IRS Issues 2018 Nonconventional Source Fuel Reference Price
The IRS has published the nonconventional source fuel reference price for calendar year 2018. The credit period for the nonconventional source production credit under Code Sec. 45K ended on ...

AL - Sale of computer software taxable in Alabama even if customized
The Alabama Supreme Court held that the taxpayers’ sale of computer software is subject to Alabama sales or use tax, even if the software is customized in whole or in part for a particular user....

AZ - Market-based sourcing election available to more service providers
Arizona will allow more businesses to elect to use market-based sourcing for their sales from services. The state permits certain multistate service providers to make the election for corporate income...

AR - Protest denied for failure to show workers were subcontractors and not employees
For Arkansas corporate and personal income tax purposes, a plumbing business operator’s (taxpayer’s) protest against assessments stemming from its failure to withhold tax from its workers&...

CA - Dividends company received after mergers qualify for elimination from income
The dividends a company received after a series of mergers qualify for elimination from income for California tax purposes. The Franchise Tax Board (FTB) has ruled on the application of the intercompa...

CO - Colorado modifies innovative vehicle, truck credits
Colorado legislation extends the credits for innovative motor vehicles and trucks through tax year 2025. The credits, which are available for the purchase or lease of alternative fuel motor vehicles, ...

DC - October 1st rate changes announced
The District of Columbia Office of Revenue Analysis has announced that effective October 1, 2019, the surtax on cigarettes will increase $0.04 to $0.48 per pack of 20 cigarettes. Also, the calculated ...

FL - Gross receipts tax index prices for July 1, 2019 through June 30, 2020 issued
Florida has issued the gross receipts tax natural or manufactured gas index prices for July 1, 2019 through June 30, 2020.Natural or Manufactured Gas Index PricesEvery year on July 1, the index prices...

GA - Two exemptions for nonprofit volunteer heath organizations extended
Enacted Georgia legislation extends by five years two sales and use tax exemptions for nonprofit volunteer health organizations.Exemptions ExtendedThe legislation extends by five years (to June 30, 20...

ID - Tax calculator available
The Idaho State Tax Commission offers a property tax calculator for residents in 24 Idaho counties. The Properly Tax Estimator is available on tax.idaho.gov through the "Quick...

IL - Illinois franchise tax phase out and repeal enacted
Illinois enacted legislation that:phases out the franchise tax beginning after the 2019 tax year; andrepeals the tax after the 2023 tax year.What Is the Franchise Tax?Every corporation must pay the fr...

IN - Taxpayer erroneously subject to Indiana county tax
A married couple’s (taxpayers’) protest against an assessment of Indiana County tax for the 2015 tax year was sustained because the taxpayers established that they were not full-year resid...

KS - Governor vetoes another bill with economic nexus provisions, reduced food rate
Kansas Gov. Laura Kelly has vetoed a second bill this session containing economic nexus provisions and a reduced sales tax rate on grocery food. The governor vetoed a similar bill in March. Similarly,...

KY - Deductibility of trust and estate administration expenses discussed
The Kentucky Department of Revenue issued a technical advice memorandum clarifying for personal income taxpayers that certain trust and estate administration expenses, under IRC section 67 (e) are ded...

LA - Demonstrators will be exempt starting July 1
The following are exempt from Louisiana sales tax starting July 1, 2019, when used as demonstrators:new and used trucks and cars;new aircraft; andnew boats and other watercraft.Act 102 (H.B. 102), Law...

ME - IRC conformity date revised
Maine has updated its income tax Internal Revenue Code conformity date to December 31, 2018. Maine’s previous IRC conformity date was March 23, 2018. The change applies to tax years beginning on...

MD - Garrett County may increase hotel tax
Effective July 1, 2019, Garrett County, Maryland may impose an 8% hotel rental tax. The maximum rate is currently 6%. S.B. 216, Laws 2019, effective as noted above...

MA - Draft guidance on international TCJA provisions revised
Massachusetts revised draft guidance for corporate excise and personal income taxpayers on the treatment of selected international provisions in the Tax Cuts and Jobs Act (TCJA). The revised guidance ...

MI - Prepaid fuel rates announced
Beginning July 1, 2019, Michigan’s prepaid sales tax rate on fuel will change. From July 1, 2019 through July 31, 2019, the prepaid rate for gasoline increases from 14.7 cents per gallon to 14.8...

MN - Minnesota reminds taxpayers to claim military pension subtraction
Minnesota personal income taxpayers are reminded that a subtraction from your Minnesota taxable income and alternative minimum taxable income is available for certain military retirement pay.Taxpayer ...

MO - Local tax rate changes announced
The following local Missouri sales and use tax rate changes take effect July 1, 2019. Also, new rates are listed for each county, city, and special district affected by the rate changes.County Changes...

NJ - Assessments reduced based on income capitalization approach
For New Jersey property tax purposes, the assessments on a corporate office space were reduced using the income capitalization approach because the taxpayer produced sufficient evidence to overcome th...

NC - Budget adopts market-based sourcing rules, reduces franchise tax rates
The North Carolina legislature passed a budget bill that would:adopt market-based sourcing rules for determining corporate income tax liability and apportioning business income after the 2019 tax year...

ND - New military retirement tax exemption discussed
For personal income tax purposes, the North Dakota State Tax Commissioner (commissioner) informed resident taxpayers that they are exempt from paying tax on their military retirement. The commissioner...

OH - Estimated payment due dates for form it 1140 corrected
For corporate income tax purposes, the Ohio Department of Taxation (department) informs pass-through entities that the estimated payment chart listed in the 2018 Form IT 1140 instruction booklet is in...

OK - Fab lab exemption created
An Oklahoma sales tax exemption is enacted for sales of personal property to nonprofits associated with the MIT Fab Foundation.Qualifications for ExemptionThe exemption applies to an entity that:is ta...

PA - DOR reviews economic nexus changes, provides CSP information for remote sellers
The Pennsylvania DOR provides information on the upcoming sales tax economic nexus changes, and the use of CSPs by remote sellers.Economic Nexus RequirementsEffective July 1, 2019, remote sellers and ...

RI - Protest denied because taxpayer failed to refute assessment
A taxpayer was properly subject to minimum Rhode Island corporate income tax and late fee penalty for the calendar years 2000 through 2013 because the Division of Taxation established that the taxpaye...

WA - Timber products tax extended
The Washington business and occupation (B&O) tax and surcharge for timber products have been extended.Timber Products TaxThe reduced timber products B&O tax is extended to July 1, 2045. Furthe...

WV - Utility rate reduction credit expanded
West Virginia enacted legislation that expands eligibility for the utility rate reduction credit. Eligible utilities can claim the credit against West Virginia corporate income tax liability.What Util...

WI - Publication for sellers of antiques, crafts, and artwork updated
The Wisconsin Department of Revenue has updated a publication that provides sales and use tax guidance for sellers of antiques, crafts, and artwork to reflect the department’s interpretations of...

WY - Local rate change announced
Beginning October 1, 2019, Carbon County, Wyoming will impose a specific purpose county option tax at a rate of 1%, for a total sales tax rate of 6%. The notice can be viewed on the department’s...

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