Paxel Consulting LLC

Tax Alerts

Tax Briefing(s)

2020 Post-Filing Season Update CARES Act Coronavirus Tax Relief

2020 Luxury Auto Depreciation Caps and Lease Inclusion Amounts Issued
The IRS has issued the luxury car depreciation limits for business vehicles placed in service in 2020, and the lease inclusion amounts for business vehicles first leased in 2020. The limits and amount...

IRS Addresses Common Tax Refund Myths
The IRS has addressed various myths regarding tax refunds, and reminded taxpayers that there is no secret way to find out when a refund will be issued. The IRS also commented on processing delays for ...

Treasury, SBA Announce Release of PPP Loan Data
Treasury and the Small Business Administration (SBA) announced on July 6 the public release of data regarding specific loans issued under the Paycheck Protection Program (PPP)."The PPP is providing mu...

CARES Act Waives RMDs for IRAs and Retirement Plans
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) ( P.L. 116-136) waives required minimum distributions (RMDs) during 2020 for IRAs and retirement plans, including beneficiaries ...

Taxpayers Getting Letters on Employer Credit Advance Payment Processing Delays
The IRS has started sending letters to taxpayers who have experienced delays in the processing of their Form 7200, Advance Payment of Employer Credits Due To COVID-19.If the IRS rejected Form 720...

IRS Postpones Deadline for CHNA Requirements
The IRS has further postponed, until December 31, 2020, the deadline for performing any community health needs assessment (CHNA) requirements due to be completed on or after April 1, 2020, and before ...

More Retail Partners Accepting Cash Federal Tax Payments
The IRS announced that additional retail partners are accepting cash payments for federal taxes. This option may be used by individuals and business taxpayers. The IRS’s continuing partnership w...

GAO: Tax Compliance Challenges Confront Platform Workers
According to a report released by the Government Accountability Office (GAO), various tax compliance challenges confront "platform workers" who often lack access to information about their e...

NTA Releases 2021 Objectives Report
National Taxpayer Advocate (NTA) Erin M. Collins released an objectives report to Congress on June 29. The report identifies taxpayer challenges arising from the COVID-19 pandemic, the Coron...

AL - Assessment upheld because department properly applied fraud penalty
For Alabama sales and use tax purposes, a taxpayer was properly subject to fraud penalty because it failed to maintain adequate books and records and consistently underreported the taxable sales. Gene...

AZ - Abatement of penalties for TPT due to covid-19 approved
Arizona taxpayers have reasonable cause for not timely filing or paying applicable transaction privilege taxes (TPT) to the Department of Revenue due to COVID-19. The Department has determined that CO...

AR - Taxpayers maintained Arkansas homestead; properly assessed income tax as residents
Personal income taxpayers were properly subject to Arkansas income tax during the tax year at issue because the taxpayers failed to establish that they had abandoned Arkansas domicile with no intentio...

CA - Taxpayer's protest denied for failure to establish basis for relief
A taxpayer’s protest against a California sales and use tax assessment was denied because it failed to establish a basis for relief of taxes, interest, and penalties. In this matter, the Califor...

CO - County lodging tax rate's restored
The restoration of a 2% county lodging tax rate for certain Colorado counties has been adopted.County Lodging Tax Rate of 2%A county’s lodging tax rate will be restored to 2% if:the county had i...

DC - Income tax due July 15
The District of Columbia Office of Tax and Revenue (OTR) reminds corporate and personal income taxpayers that income returns are due July 15, 2020. No late charges will apply to filings and payments t...

FL - Liens related to unpaid utility-service charges and limitation period applicable to enforcement discussed
For Florida property tax purposes, the attorney general has issued an opinion on the payment of delinquent utility-service charges incurred by former owners of the property by the new owners. The atto...

GA - Disregarded entity's eligibility to claim additional quality jobs tax credit following transfer of employees discussed
In a corporate income tax ruling, the Georgia Department of Revenue (department) discussed a disregarded entity’s eligibility to claim additional jobs tax credits following a transfer of employe...

ID - First-time home buyers may claim income tax deduction
Idaho personal income taxpayers who set up a First-Time Home Buyer Savings Account at an Idaho financial institution can claim an income tax deduction on their account contributions and interest earne...

IL - Rates of reimbursement for physician services increased; provisions relating to annual assessments on hospitals changed
An amendment to Illinois sales and use tax legislation discusses that (1) the Department of Public Health (department) is increasing rates of reimbursement for physician services to as close to 60% of...

IN - California residents properly assessed Indian use tax on their trailer purchase
California residents were required to pay Indiana use tax for a trailer purchased in Indiana as California does not have sales tax reciprocity with Indiana for trailer purchases. In this matter, altho...

KS - Q4 local rate changes announced
The Kansas DOR announces the local sales and use tax rate changes below for the quarter beginning October 1, 2020.County Rate ChangesCounty rate changes and developments are as follows:Ellis County in...

KY - Answers to FAQs about the cares act and covid-19
Kentucky posted answers to frequently asked questions about:corporate and personal income tax conformity to selected provisions under the Coronavirus Aid, Relief, and Economic Security (CARES) Act;the...

LA - Bulletin announces horizontal well exemption availability through June 2021
The Louisiana Department of Revenue has announced that for the fiscal year beginning July 1, 2020, and ending June 30, 2021, the prices applicable to the horizontal severance tax exemption are $46.86 ...

ME - Guidance on sales, use, and service provider tax updated
Maine Revenue Services has updated its business guide regarding sales, use and service provider taxes, to reflect minor changes. The guide informs taxpayers that effective June 16, 2020, a pesticide c...

MD - Maryland treatment of federal cares act provisions explained
Maryland explained the income tax impact of various federal CARES Act provisions.Business Interest Expense DeductionThe CARES Act amended IRC Sec. 163 to increase the percentage of adjusted taxable in...

MA - Massachusetts covid-19 guidance on remote employees revised
Massachusetts reissued and revised guidance on the tax implications of employees working remotely during the COVID-19, or coronavirus, pandemic. The guidance clarifies and replaces rules explaining th...

MI - Guidance for taxpayers who missed filing deadline issued
Michigan taxpayers who missed the July 15 state personal income tax filing deadline may consider:Filing a return to claim an outstanding refund.Filing a return to avoid interest and penaltie...

MN - Taxpayer's protest against denial of income tax dependent exemptions partially denied
A personal income taxpayer was properly denied dependent exemptions and the Minnesota Working Family Credit for the 2015 tax year as the taxpayer failed to establish that one child was a relative or r...

MO - Taxpayer not entitled to casualty loss refund
A taxpayer was not entitled to a refund of Missouri motor vehicle sales tax paid on her purchase of a new motor vehicle because the purchase was not due to the casualty loss of her old vehicle. Genera...

NJ - GILTI guidance for s corporations updated
New Jersey has updated its global intangible low-taxed income (GILTI) guidance for S corporation taxpayers to reflect guidance issued by the Internal Revenue Service.IRS RegulationsIn accordance with ...

NC - Market-based sourcing rules summarized
Effective for tax years beginning after 2019, corporations must use market-based sourcing rules to:compute the sales factor of the North Carolina apportionment formula; anddetermine inc...

ND - Local tax change announced
North Dakota has announced an upcoming local sales and use tax rate change that is effective October 1, 2020.ThompsonThompson will impose a city sales, use, and alcohol gross receipts tax of 2%. ...

OH - Tax holiday dates announced
The 2020 Ohio sales tax holiday will take place from August 7, 2020 through August 9, 2020. The following items will be exempt:items of clothing priced at $75 or less; andschool supplies and school in...

OK - SST taxability matrix and certificate of compliance updated
Oklahoma updated its Streamlined Sales and Use Tax (SST) Agreement taxability matrix and certificate of compliance. The matrix adds the taxability of breast pumps, breast pump collection and storage s...

PA - Pennsylvania creates local resource manufacturing tax credit
Pennsylvania enacted a local resource manufacturing tax credit applicable to taxpayers who purchase of dry natural gas for use in the manufacturing of petrochemicals or fertilizers, job creation, and ...

RI - Lease of software taxable, “end user” defined
The license, lease, or rental of prewritten or vendor-hosted computer software is now subject to Rhode Island sales and use tax.In addition, for sales tax purposes, an "end user" of specifie...

WA - Department responds to court decision on attribution of referral service income
The Washington Department of Revenue has responded to the Court of Appeals’ decision in LendingTree LLC v. Department of Revenue, which concerned how to attribute, for business and occupati...

WV - Rules implement coal severance tax rebate
The West Virginia coal severance tax rebate is available to taxpayers that make a capital investment in new machinery and equipment that results in an increase in coal production. The rules sunset eff...

WI - Vapor product definition clarified
The Wisconsin Department of Revenue (DOR) has clarified the definition of "vapor product" in light of recent Wisconsin Supreme Court decision. In Bartlett v. Evers, the court concluded ...

WY - SST certificate of compliance updated
Wyoming has updated its Streamlined Sales and Use Tax (SST) Agreement certificate of compliance. The changes are effective August 1, 2020. SST Certificate of Compliance, Wyoming Department of Rev...

Paxel Consulting LLC is a regional bookkeeping & tax preparation firm with four offices in the Dallas/Fort Worth area since 1988. Servicing both businesses and individuals, we have a reputation for offering solid accounting solutions and for building long-lasting relationships with our clients. We believe the success of clients is the greatest measure of our own. The differentiating quality of Paxel is our commitment to assisting our clients in achieving goals and objectives in a professional and timely manner. Our strengths are in our people and our ability to provide both practical advice and innovative solutions to complex business and financial challenges.

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