Mazzeffi & Company

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...

AK - Interest rate announced for Q3 of 2020
The Alaska interest rate for delinquent taxes and overpayment of taxes is set at 5.50%, compounded quarterly, for the period April 1, 2020, through September 30, 2020. The Department of Revenue postin...

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 - Farmer's ATV purchase did not qualify for farm machinery and equipment exemption
A taxpayer’s protest against Arkansas sales tax assessment on its purchase of an ATV was denied because the taxpayer failed to prove entitlement to the farm machinery and equipment exemption by ...

CA - Fourth interested parties meeting set to discuss potential amendments to alternative apportionment method rules
The California Franchise Tax Board (FTB) will hold a fourth interested parties meeting on Tuesday, August 11, 2020, at 10:00 a.m., to discuss the proposed amendments to California’s rules pertai...

CO - Colorado rural jump-start zone incentive program extended, amended
The Colorado Rural Jump-Start Zone program, which provides corporate and personal income tax and sales and use tax incentives for new businesses in distressed counties, has been extended for five year...

CT - Personal income tax returns and payments due July 15
The Connecticut Department of Revenue Services (department) issued a press release reminding personal income taxpayers that the tax returns and payments for the 2019 tax year is due Wednesday, July 15...

DE - FAQs concerning 2019 personal income tax filing due July 15, 2020 issued
The Delaware Department of Revenue (department) released a list of Frequently Asked Questions (FAQs) pertaining to personal income tax filing for the 2019 tax year. The release provides the following ...

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 - Income tax filings and payments due July 15
The Georgia Department of Revenue (department) is reminding corporate and personal taxpayers of the upcoming income tax deadline on Wednesday, July 15, 2020.Tax Types Due July 152019 Income Tax Filing...

HI - Property tax credit reminder
Hawaii residents are reminded that the City & County of Honolulu offers a real property tax credit to property owners who meet certain eligibility requirements. Applicants who qualify, are entitle...

ID - Commission issues summer 2020 newsletter
The Idaho State Tax Commission has issued a summer newsletter with information concerning income, sales, and property taxes.Return to Work Bonuses for EmployeesThe Idaho State Tax Commission has start...

IL - Publication on prepaid wireless E911 surcharge revised
Illinois has revised a publication on the retailer’s overview of sales and use tax and the prepaid wireless E911 surcharge. The focus of the publication is for retailers who file Form ST-1, Sale...

IN - Income derived from Indiana sources properly subject to tax
A nonresident taxpayer was properly subject to Indiana personal income tax on wages paid by his employer as the income at issue was derived from sources within the state. In this matter, the taxpayer ...

IA - Iowa updates GILTI guidance
Iowa has updated its corporate income tax guidance regarding global intangible low tax income (GILTI) and foreign derived intangible income (FDII) to reflect recent legislative changes. The new law ex...

KS - Changes to transient guest tax rates announced
Changes to the Kansas transient guest tax rates have been announced effective July 1, 2020.The rate in Sherman County increases from 3% to 5%.The city of Waterville increases its rate from 2% to 5%. T...

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 - Louisiana enacts enterprise zone covid-19 hazard pay rebate
Louisiana has extended Enterprise Zone Program incentives by authorizing a hazard pay rebate to eligible essential critical infrastructure workers who provided services during the COVID-19 pandemic.Ha...

ME - Guidance issued on nonconformity with federal tax law changes for 2018 and 2019
A Maine Tax Alert provides income tax guidance on recent federal tax law changes under the Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security (CARES...

MD - Digital signatures temporarily accepted
The Comptroller of Maryland will temporarily accept scanned or photographed images of signatures and digital signatures on certain tax documents.Scope of Allowed Digital SignaturesThe scope is limited...

MA - Impact of cares act explained
Massachusetts issued guidance that explains the tax impact of selected provisions under the Coronavirus Aid, Relief and Economic Security (CARES) Act. The guidance applies to taxpayers computing Massa...

MI - Rules on marijuana licenses authorized
For sales tax and marijuana excise tax purposes, the Marijuana Regulatory Agency has issued rules for marijuana licensees under the Medical marihuana facilities licensing act and the Michigan regulati...

MN - Commissioner of revenue properly issued tax assessment against physician who did not file tax return
A physician (taxpayer) was properly subject to Minnesota personal income tax assessment as the taxpayer's gross income met the state income tax filing requirements. The taxpayer argued that he was not...

MS - Guide to 2020 second amendment sales tax holiday issued
Mississippi has issued the 2020 official guide to the second amendment sales tax holiday.When Does the Second Amendment Sales Tax Holiday Take Place?The 2020 holiday takes place between 12:01 A.M. Fri...

MO - Missouri exempts stimulus payments, adopts new procedures for partnerships
Missouri has enacted legislation that:exempts federal Coronavirus Aid, Relief and Economic Security (CARES) Act stimulus payments from state income tax;adopts new procedures for partnerships to report...

MT - Covid-19 guidance issued on military income
Montana has issued guidance on the personal income tax treatment of certain military income related to COVID-19.National GuardMontana Gov. Steve Bullock issued orders to Montana National Guard service...

NE - Reminder issued on homestead exemption application deadlines
Property owners must file Nebraska Homestead Exemption Application Form 458 with their county assessor by June 30, 2020. However, as the federal and state income tax filings have been extended, exempt...

NV - Fair market values at wholesale for marijuana announced
Nevada has announced the fair market values at wholesale for marijuana tax purposes.Fair Market Values for WholesaleFor the period January 1, 2020, through June 30, 2020, the fair market values at who...

NH - Dismissal of taxpayers' appeals for failure to sign abatement applications vacated and remanded
The New Hampshire Supreme Court vacated and remanded the Board of Tax and Land Appeals’ (BTLA) dismissal of the taxpayers’ appeals of the denials of applications for abatements of property...

NJ - Collateral estoppel barred challenge to farmland assessment
For property tax purposes, the New Jersey trial court’s order dismissing a third-party taxpayer’s challenge to a borough's finding that the property was qualified to be assessed as farmlan...

NM - Legislation waives interest and penalties on certain payments, decouples NOLs from cares act
New Mexico Gov. Michelle Lujan Grisham has signed legislation that temporarily waives interest and penalties on late income tax payments, and provides that corporate net operating losses follow the fe...

NY - Request for conciliation conference properly denied as untimely
A taxpayer’s request for a conciliation conference with the Bureau of Conciliation and Mediation Services regarding an assessment of New York personal income tax was untimely because it was not ...

NC - Medical and dental expense threshold addressed
North Carolina allows personal income taxpayers to claim an itemized deduction for medical and dental expenses. It issued a notice that addresses the medical and dental expense threshold for...

ND - Deadline for gas tax refund application is June 30
The last day that eligible taxpayers may apply for a refund of North Dakota fuel taxes paid on gasoline or gasohol purchased during 2019 is June 30, 2020. The refund is available to farmers, ranchers,...

OH - Second quarter 2020 petroleum activity tax due August 10
Ohio Department of Taxation reminds all petroleum activity tax (PAT) practitioners and taxpayers that the second quarter 2020 PAT return is due August 10, 2020. Taxpayers are required to file and pay ...

OK - Tax holiday announced
This year Oklahoma’s sales tax holiday begins Friday, August 7, at 12:01 a.m. and concludes at midnight on Sunday, August 9, 2020. During this time period, certain items of clothing and shoes wi...

OR - Wholesaler of electricity and natural gas not a public utility
Oregon could not classify a corporate wholesaler of electricity and natural gas as a public utility for corporate excise (income) tax apportionment purposes.Taxpayer’s BusinessThe taxpayer&rsquo...

PA - Denial of refund of tax on assignment of ground lease affirmed
For purposes of Philadelphia realty transfer tax, the trial court did not err in denying the taxpayer’s petition for refund of tax paid on the assignment of a ground lease for all existing struc...

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...

SC - Sales by electric vehicle charging station are taxable
An operator of an electric vehicle charging station is not subject to South Carolina sales tax on purchases of electricity from utilities as these transactions are wholesale sales. Sales of electricit...

SD - Local sales and use tax rate changes announced
South Dakota has announced an upcoming local sales and use tax rate change that will take effect July 1, 2020.Sales and Use Tax Rate ChangeErwin will have a new municipal general sales and use tax rat...

TN - Guidance provided on new filing threshold for out-of-state dealers
Tennessee provides guidance regarding the new filing threshold for out-of-state dealers for sales and use tax purposes.Filing Threshold Effective October 1, 2020Effective October 1, 2020, out-of-state...

TX - Taxpayer's claim for refund under enterprise zone act denied as untimely
A taxpayer was not entitled to a refund of Texas sales tax under the Enterprise Zone Act because the taxpayer filed the claim beyond the 18-month statute of limitation. Generally, a qualified business...

UT - Taxpayers did not exhaust administrative remedies by failing to request formal hearing
Personal income taxpayers' petition seeking judicial review of an Administrative Law Judge (ALJ) order requiring taxpayers to pay income tax and interest on the income the taxpayer-husband earned out-...

VT - Technical bulletin regarding maximum tax on tracked vehicles updated
The Vermont Department of Taxes has revised its technical bulletin to reflect that the maximum sales and use tax on tracked vehicles is $1,440 (previously, $1,380) for sales occurring between July 1, ...

VA - Guidelines on research and development expenses credit updated
Virginia released updated guidelines on the research and development expenses tax credit for taxable years beginning on or after January 1, 2020. The update reflects 2020 legislation that increased th...

WA - Tribal compacts explained
Washington retail sales tax compacts have been authorized to provide a share of revenues from qualified transactions between nontribal businesses and nonmember customers on certain tribal land to comp...

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 - Taxpayer's claim for refund barred by finality of notice of assessment
For Wisconsin sales and use tax purposes, a taxpayer’s claim for refund was properly denied because the taxpayer could not use a claim for refund as a procedural end-around to untimely appeal th...

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...