Mazzeffi & Company

Tax Alerts

Tax Briefing(s)

2018 Year-End Tax Planning Tax Reform 2.0 2018 Post-Filing Season Update Congress 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...

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...

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...

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...

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 ...

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...

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...

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...

AR - House passes bill to reduce top rate, implement single sales factor apportionment formula
The Arkansas House of Representatives has passed legislation that, if enacted, would make several changes to corporate income taxes, including:implementing a single sales factor apportionment formula,...

CA - Tax return information notice explanation issued
The California Franchise Tax Board (FTB) issued the standard language for a notice explaining the adjustments to an entity's corporate income tax or minimum franchise tax return. The explanation inclu...

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...

CT - Guidance on military personnel and veterans updated
The Department of Revenue Services has revised an informational publication explaining how Connecticut personal income tax laws apply to U.S. armed forces personnel and veterans. The publication addre...

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...

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...

FL - County’s authority to enact ordinance discussed
A Florida county cannot enact an ordinance requiring persons to comply with the federal E-Verify program as a condition for obtaining a business tax receipt because no general law authorized such an o...

GA - Georgia discusses taxation of Canadian company
A Canadian company doing business in Georgia could be liable for Georgia tax, even though it was exempt from federal tax under a treaty.The company was based in Canada and it solicited sales to U.S. c...

HI - Hawaii enacts marketplace facilitator law
Hawaii has enacted legislation that establishes marketplace facilitators as the sellers of tangible personal property, intangible property or services for sales and use tax purposes. Hawaii Gov. David...

ID - Idaho amends federal foreign source income conformity provisions
Recently enacted legislation conforms Idaho corporate income tax law to several federal foreign source income provisions amended by the Tax Cuts and Jobs Act of 2017 (P.L. 115-97). This is accomplishe...

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...

IN - Department stresses on taxpayer honesty for timely processing of returns
The Indiana Department of Revenue (department) informs personal income taxpayers that they must be honest when filing their taxes to avoid issues and delays in processing their returns. The department...

IA - Some income tax deadlines extended
Iowa will follow the Internal Revenue Service and extend income tax filing dates for residents of five counties affected by flooding.Taxpayers whose primary residence or business is in the f...

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...

KY - Return filing extension period lengthened
Kentucky legislation lengthened the filing extension period for corporation income tax returns. A corporation can get an automatic Kentucky filing extension if it files:a federal extension application...

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...

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...

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, ...

MA - Notice of intent to assess information request discussed
For corporate and personal income tax purposes, the Massachusetts Department of Revenue (department) is sending out "Notice of Intent to Assess Information Request" for 2018 tax years. The n...

MI - Homestead property tax credit discussed
The Michigan Department of Treasury has issued a press release informing personal income taxpayers that if their household income is $60,000 or less a year, they may be eligible for a homestead proper...

MN - Department can disclose client information to tax professionals if it has power of attorney on file
For personal income tax purposes, the Minnesota Department of Revenue stated that it can disclose confidential client information to tax professionals provided it has a power of attorney on file grant...

MS - Incentive program provisions reenacted, repeal date extended
Mississippi has reenacted certain provisions which provide franchise and corporate and personal income tax incentives, and extended the repeal date to July 1, 2023 (previously, July 1, 2019). The reen...

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...

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...

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...

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...

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...

NJ - Tax relief for Alabama storm victims
New Jersey is following federal guidelines for tax relief for business and personal income taxpayers affected by the Alabama storm. Taxpayers in Lee County now have until July 31, 2019 to file their N...

NM - New Mexico enacts combined reporting bill
New Mexico has enacted legislation that:requires corporate income tax combined reporting and implements market-based sourcing;adds a new top personal income tax rate for all filing statuses (contingen...

NY - Taxpayer ineligible for deduction of excess FICA taxes
A New York corporate income taxpayer was not allowed to make subtraction modification for the amount of its excess Federal Insurance Contributions Act (FICA) taxes in computing its entire net income b...

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...

ND - New provision relating to income tax exclusion for employee education assistance introduced
North Dakota has enacted a law related to a personal income tax exclusion for employee education assistance provided by an employer. As per the law, an employee would be permitted to deduct from his/h...

OH - Earned income tax credit amended
Ohio has increased the amount of the personal earned income tax credit to 30% of the federal credit allowed. The credit was previously limited to 10% of the federal credit allowed.The limitation, on i...

OK - Protest, informal hearing, appeal provisions amended
Enacted Oklahoma property tax legislation makes changes concerning taxpayer protests, informal headings, and appeals to county district courts.Protest DeadlineThe bill changes from the first Monday in...

OR - Updated repatriation income instructions released
Oregon has updated instructions for corporate income taxpayers with repatriation income due to IRC Sec. 965. The revised instructions clarify the use of Oregon addition code 184 for repatriation incom...

PA - Compliance with notice requirements for tax sale satisfied
For Pennsylvania property tax purposes, the trial court did not err in concluding that County Tax Claim Bureau’s (Bureau) met its burden of proving the legal sufficiency of the posting because t...

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...

SC - Updated per capita figures released
The South Carolina Department of Revenue has released the most recently available per capita income figures for all South Carolina counties, as well as the state figure, for the purpose of calculating...

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...

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...

TX - Purchaser liable for payment of taxes imposed on personal property
A Texas trial court did not err in finding the taxpayer liable for personal property taxes because the taxpayer failed to present evidence as to why the taxes were improperly assessed and prove that h...

UT - Utah expands corporate income tax nexus standard
Utah legislation expands the state’s "doing business" standard for corporate income tax purposes. The legislation is operative for tax years beginning on or after January 1, 2019.The s...

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...

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...

WA - Protest of department’s designation of income from other states as throw-out income partly denied
For Washington business and occupation tax purposes, an online music network operator’s (taxpayer’s) protest of the Department of Revenue’s (department’s) designation of its in...

WV - Special apportionment rules for financial organization owners established
West Virginia established special personal income tax apportionment rules for banks and financial organizations owned by:individuals;S corporations;partnerships; andother pass-through entities.The rul...

WI - Itemized deduction credit properly subject to IRC limitation
An individual’s federal income tax was properly subject to the Internal Revenue Code (IRC) limitation for purposes of calculating his Wisconsin itemized deduction credit for the 2015 tax year. G...

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...