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

New Relief Procedures Allow Former Citizens to Avoid Covered Expatriate Treatment
The IRS has announced new relief procedures for certain individuals who have relinquished their U.S citizenship but want to come into compliance with their U.S. income tax and reporting obligations an...

New Tax Withholding Estimator Tool Helps Employees and Self-Employed
The IRS has reminded taxpayers that the new Tax Withholding Estimator tool includes a feature designed to make it simpler for employees who received self-employment income to accurately estimate the r...

Low-Income Housing Credit Relief Guidelines Provided for California
The IRS has expanded relief provided in Rev. Proc. 2014-49, I.R.B. 2014-37, 535, and Rev. Proc. 2014-50, I.R.B. 2014-37, 540, to owners of qualified low-income housing projects and to issuers of exemp...

IRS Encourages Taxpayers to Develop Emergency Preparedness Plan
The IRS has reminded taxpayers—whether individuals, organizations or businesses—to develop an emergency preparedness plan as the peak of hurricane season fast approaches.Taxpayers should p...

CAP Application Period Now Open
The IRS announced the opening of the application period for its 2020 Compliance Assurance Process (CAP) program. Eligible new corporate applicants for CAP must (1) have assets of $10 million or more; ...

List of Countries with U.S. Exchange of Information Agreements Updated
The IRS has added Georgia to the list of countries with which the United States has an agreement relating to the exchange of tax information. Under these agreements the United States consents to provi...

AL - Additional registration fee for battery and plug-in hybrid electric vehicles discussed
The Alabama Department of Revenue has issued a memorandum concerning the Rebuilt Alabama Act for motor fuel tax purposes. The act provides an additional registration fee for battery and plug-in hybrid...

AK - Interest rate announced for Q4 of 2019
The Alaska interest rate for delinquent taxes and overpayment of taxes is set at 7.75%, compounded quarterly, for the period October 1, 2019, through December 31, 2019. The Department of Revenue posti...

AZ - Interest rates remains same on underpayment and overpayment for fourth quarter of 2019
The interest rates on underpayments and overpayments of Arizona taxes for the period October 1, 2019, through December 31, 2019, are unchanged from the previous quarter at 5%. The Department of Revenu...

AR - Local tax rate changes announced
The following Arkansas local sales tax rate changes are effective January 1, 2020:Local Rate ChangesArkadelphia (Clark County) increases its local rate to 2.0%.Mayflower (Faulkner County) increases it...

CA - California enacts student loan debt relief
California has enacted a personal income tax exclusion for the amount of student loan indebtedness discharged under in certain situations. The exclusion applies to tax years 2019 through 2023.Impacted...

CO - Remote seller had substantial nexus for sale of exempt products
A remote seller doing business in Colorado had substantial nexus with Colorado and had to collect and remit state sales tax.Meeting the thresholdThe remote seller manufactured and sold baked goods for...

CT - Rate increase on certain meals and drinks discussed
Effective October 1, 2019, the Connecticut sales and use tax rate on certain meals and drinks is increased from 6.35% to 7.35%.Application of Rate Hike on Certain Meals and DrinksThe rate increase app...

DE - Grace filing period for corporate income taxpayers; waiver of late-filing penalty
The Delaware Department of Finance, Division of Revenue (division) issued a news release stating that it will be implementing a grace period for corporate taxpayers who file on or before November 15. ...

DC - District of Columbia announces upcoming tax rate changes for cigarettes and other tobacco products
There are upcoming tax rate changes in the District of Columbia for cigarettes and other tobacco products.Rate Increase for Cigarette Excise TaxThe cigarette excise tax is made up of:a fixed tax per p...

FL - Florida corporate income tax rate reduced
The Florida Department of Revenue (department) issued a publication informing corporate income taxpayers that the tax rate has been reduced from 5.5% to 4.458% for tax years beginning on or after Janu...

GA - Serving of legal documents discussed
The Georgia Department of Revenue (department) issued a bulletin discussing the appropriate methods for serving a legal document to the department. Under Georgia law, only the Commissioner or his/her ...

HI - Information for taxpayers doing business in the state
The Hawaii Department of Taxation has issued guidance providing a general overview of the most common Hawaii State taxes paid by businesses that are located in Hawaii and by businesses that are not lo...

ID - Taxpayers reminded to update paycheck withholding
The Idaho State Tax Commission (commission) issued a news release reminding personal income taxpayers that they must update their paycheck withholding. The new tax laws prompted a change in withholdin...

IL - Tentative Kendall county multiplier announced for 2019
The tentative Kendall County equalization factor (multiplier) for Illinois property tax purposes has been set for 2019 at 1.0000. The final 2018 multiplier was 1.0000.The full text of the release is a...

IN - Guidance provided on vehicle sharing excise tax
Beginning January 1, 2020, the Indiana vehicle sharing excise tax is imposed on the sharing of passenger motor vehicles and trucks in Indiana for periods of less than 30 days.Tax AmountThe tax is equa...

IA - Commercial enterprise exemption rules adopted
Iowa has adopted rules to implement a commercial enterprise exemption from sales tax added by S.F. 2417.Exemption QualificationsThe Iowa Code exempts from sales tax specified digital products, prewrit...

KS - Kansas department policy requiring all remote sellers to collect tax is invalid
The Kansas Attorney General’s office has opined that the Department of Revenue’s policy in Notice 19-04, requiring all remote sellers to collect and remit sales tax by October 1, 2019...

KY - Opinion issued on procedure for sale of city’s certificates of delinquency
The Kentucky Attorney General has issued a general opinion stating that if a city elects to have its ad valorem taxes, including delinquent taxes, collected by the county sheriff, then all procedures ...

LA - Valuation of property remanded for recalculation
For property tax purposes, the Louisiana Court of Appeal affirmed in part and reversed in part the district court’s decision because the district court erred in affirming the Louisiana Tax Commi...

ME - Marketplace FAQs issued
Maine Revenue Services provides answers to frequently asked questions about recent legislation that requires marketplace facilitators to register and collect sales and use tax. The legislation was eff...

MD - Comptroller's attempt to limit NOL was contrary to statute
The Maryland Tax Court reversed the Comptroller’s decision assessing additional corporate income tax on a taxpayer. In this case, the taxpayer merged with two companies. Subsequently, the taxpay...

MA - Draft guidance on IRC §163(j) interest expense limitation issued
Massachusetts issued draft guidance for corporate excise taxpayers on the IRC §163(j) business interest expense limitation. It explains the rules for:the calculation and application of the limita...

MI - Prepaid fuel rates announced
Beginning November 1, 2019, Michigan’s prepaid sales tax rate on fuel will change. From November 1, 2019 through November 30, 2019, the prepaid rate for gasoline decreases from 13.8 cents per ga...

MN - Guidance regarding isolated and occasional sales exemption updated
A Minnesota sales tax fact sheet that provides guidance regarding the sales tax exemption for isolated and occasional sales has been updated. The updated fact sheet clarifies that marketplace provider...

MS - Extension granted to taxpayers affected by severe storms
The Mississippi Department of Revenue has announced that it will follow federal extensions granted to victims of the severe storms and flooding that occurred between February 22, 2019, and March 29, 2...

MO - Refund based on replacement vehicle credit denied
Taxpayers were not entitled to a refund of Missouri sales tax based on the replacement vehicle credit because they were not the owners of the motor vehicle that was purchased. The taxpayers sold the o...

MT - New pass-through entity form announced, disregarded entity filing requirements changed
Montana announced that, beginning with tax year 2019, partnerships and S corporations will file their tax returns using the new Montana Pass-Through Entity Tax Return, Form PTE.The Montana S Corporati...

NE - Prepaid wireless surcharge rate increases
The Nebraska prepaid wireless surcharge rate increases from 5.3% to 5.4% for the period of January 1, 2020 through December 31, 2020. The release can be viewed on the department’s website at&nbs...

NV - Clark county tax increase coming
Nevada’s most populated county, Clark County, will soon see a sales and use tax increase.Sales Tax Rate IncreaseEffective January 1, 2020, Clark County’s sales and use tax rate will be 8.3...

NH - New Hampshire governor signs budget legislation that lowers rates, updates conformity
New Hampshire enacted budget legislation making changes to the business profits and business enterprise taxes. The legislation:changes the rates of the business profits tax and the business enterprise...

NJ - FAQs concerning transient accommodations discussed
The New Jersey Division of Taxation discusses frequently asked questions (FAQs) concerning transient accommodations. Beginning August 9, 2019, the rental of a transient accommodation obtained directly...

NM - CEO personally liable for company’s unpaid withholding tax
For New Mexico corporate income tax purposes, the chief executive officer (CEO) of a company was liable for the company’s unpaid withholding taxes because the CEO met the definition of "emp...

NY - Updates to 2018 forms CT-33-I, CT-33-A-I, CT-225-I, and CT-225-A-I discussed
The New York Department of Taxation and Finance (department) announced updates to 2018 Forms CT-33-I, CT-33-A-I, CT-225-I, and CT-225-A-I that affects corporate income taxpayers who were required to i...

NC - SST boundary database updated
The North Carolina Department of Revenue has updated information related to the Streamlined Sales and Use Tax (SST) Agreement. The sales tax boundary database, which specifies the boundaries for all t...

ND - Guidance for marketplace facilitators issued
Starting October 1, 2019, a marketplace facilitator must collect North Dakota sales and use taxes and all applicable local taxes on qualifying sales made on its marketplace.Registration Requirements f...

OH - Non-remittance notice for unpaid individual and school district income taxes
Starting August 1, 2019, the Ohio Department of Taxation has started mailing non-remittance notices to personal taxpayers who have not paid in full their 2018 Ohio individual and/or sch...

OK - Q1 local rate changes announced
The local sales and use tax rate changes below take effect in Oklahoma on January 1, 2020.City Rate ChangesRoff imposes a new use tax at a rate of 3.5%.Carlton Landing imposes a new use tax at a rate ...

OR - Department to hold meetings seeking input from taxpayers and preparers regarding administrative rules for cat
The Oregon Department of Revenue issued a news release informing corporate income taxpayers and tax preparers that it will host a series of meetings across the state over the next three weeks to seek ...

PA - Corporate nexus standard updated
Corporations do not need to be physically present in Pennsylvania in order to have nexus for corporate tax purposes. Out-of-state corporations doing business in Pennsylvania must file tax reports if t...

RI - Interest rates announced for 2020
Rhode Island tax interest rates for 2020 will be:5% for refunds (5.25% for 2019); and18% for delinquencies (same as for 2019).Advisory 2019-26, Rhode Island Department of Revenue, Division of Taxation...

SC - Amazon was liable for South Carolina tax on third-party merchant sales
Amazon Services is liable for South Carolina sales taxes on the sale of third-party merchant products because it is "in the business of selling" for purposes of the Sales and Use Tax Act. Am...

SD - Publication discusses various sales and use tax topics
The South Dakota Department of Revenue has updated a publication addressing various sales and use tax topics. The updated publication includes information on remote sellers and marketplace sellers. Th...

TN - Charges for web-based information database service are not subject to tax
Charges for access to a web-based information database service are not subject to Tennessee sales and use tax.How Do Customers Access the Web-Based Information Database?The taxpayer:compiles data;stor...

TX - Texas outlines tax collection responsibilities for sellers after wayfair
Texas outlines the sales and use tax collection responsibilities for sellers after the U.S. Supreme Courts’s decision in South Dakota v. Wayfair. Texas businesses selling items or services ...

UT - Assessment upheld as taxpayers failed to rebut presumption of domicile
An assessment of Utah personal income tax against a married couple (taxpayers) was upheld because the taxpayers failed to rebut the presumption of domicile based on receiving the primary residential e...

VT - MFTIA and MFTA rates announced for final quarter of 2019
Vermont announced the motor fuel transportation infrastructure assessment (MFTIA) and motor fuel tax assessment (MFTA) rates for October through December 2019.MFTIA RateThe MFTIA rate for the final qu...

VA - Taxpayer not liable to pay tax as he relied upon department's written advice
A Virginia personal income tax assessment against a taxpayer was abated because he was not a domiciliary resident of Virginia in 2015. The Department of Taxation (department) received information from...

WA - Scope of insurance exemption explained
The Washington business and occupation (B&O) tax exemption for insurance businesses only applies to amounts received in respect to insurance business upon which a gross premium tax is paid. Amount...

WV - Buckhannon imposes municipal tax beginning in 2020
Buckhannon imposes a West Virginia municipal sales and use tax at a 1% rate, which brings the combined rate to 7%, effective January 1, 2020.The West Virginia State Tax Department had formerly indicat...

WI - Wisconsin updates nexus rule, sets regular activity at 15 days
Wisconsin has updated its corporate income tax nexus rule to clarify the level and types of activities that will require out-of-state businesses to file Wisconsin returns.Regular ActivityThe terms&nbs...

WY - SST taxability matrix and certificate of compliance updated
Wyoming updated its Streamlined Sales and Use Tax (SST) Agreement taxability matrix and certificate of compliance. The changes are effective August 1, 2019. Taxability Matrix, Wyoming Department ...