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Tax Briefing(s)

Inflation Reduction Act of 2022, Signed Aug. 16 2022 Post-Filing Season Update SECURE Act 2.0

IRS Encourages Taxpayers to File Soon, IR-2022-137
The IRS has reminded taxpayers still waiting to file their returns to file as soon as possible. Taxpayers can use special tools available on IRS.gov that can help them file. The online tools are avail...

IRS Announces More Options for Taxpayers to Correct and Amend Returns Electronically, IR-2022-130
The IRS has announced that more forms can now be amended electronically. This includes filing corrections to the Form 1040-NR, U.S. Nonresident Alien Income Tax Return, Forms 1040-SS, U.S. Self-Employ...

IRS Issues Directions to Employees for Video Meetings with Taxpayers
The IRS has issued directions for its taxpayer facing employees to hold video meetings with taxpayers and their representatives. Going forward, the IRS will continue to offer video meetings via secure...

IRS Security Summit Warns Tax Professionals Against Identity Theft, IR-2022-135
The IRS, state tax agencies and the tax industry have warned tax professionals of new and ongoing threats involving their systems and taxpayer data. This effort began with the Security Summit's annual...

IRS Encourages Tax Professionals to Inform Clients About IP PIN Opt-In Program, IR-2022-140
The IRS, and the Security Summit Partners have encouraged tax professionals to inform their clients about the IRS Identity Protection (IP) PIN Opt-In Program to help protect taxpayers against tax rela...

IRS Releases Five Year Strategic Plan to Enhance Service to Taxpayers, IR-2022-142
The IRS has released its five-year strategic plan that outlined its goals to improve taxpayer service and tax administration. The plan would serve as a roadmap to meet the changing needs of the taxp...

AL - Hospital provider assessment extended through FY 2025
Alabama has extended its hospital provider assessment through fiscal year 2025. The assessment was previously scheduled to be imposed only through fiscal year 2022. For fiscal years 2023, 2024, and 20...

AK - Alaska's governor proposes fuel tax relief
Alaska Gov. Mike Dunleavy proposed an amendment to HB 104 for the immediate suspension of the collection of tax on motor and marine fuels, aviation gas, and aviation jet fuel until June 30, 2023. HB 1...

AZ - IRC conformity updated
Arizona has updated its conformity to the Internal Revenue Code (IRC) for income tax purposes. For tax years beginning after 2021, Arizona now conforms to the IRC as amended and in effect on January 1...

AR - Sale of kerosene for off-road use subject to tax
For sales and use tax purposes, a fuel distributor (taxpayer) would be subject to Arkansas gross receipts tax on the sale of kerosene for off-road use when sold from a terminal. Generally, dyed distil...

CA - Taxpayers not entitled to increase adjusted basis in limited partnership interests
For personal income tax purposes, the California Office of Tax Appeals (OTA) determined that the owners (taxpayers) of a limited liability company (LLC) were properly subject to additional tax because...

CO - Interest on expenditures accrues from date each expenditure was made
For Colorado property tax purposes, the Court of Appeals determined that interest for certain types of expenditures accrues from the date each expenditure was made, except with respect to improvements...

CT - Governor signs legislation suspending tax on gasoline for limited time
Connecticut Gov. Ned Lamont signed emergency legislation (H.B. 5501, Laws 2022) that:suspends the imposition of motor vehicle fuels excise tax on gasoline from April 1, 2022 to June 30, 2022; andenact...

DE - Legislation clarifying aspects of unclaimed property laws enacted
Recently enacted Delaware legislation amends the provisions of the unclaimed property law to exclude the property owned by a foreign government, the federal government, any other state government, or ...

DC - Capital gains deduction clarified
The District of Columbia has adopted an emergency act to clarify that the capital gains deduction for investing in a qualified opportunity fund will apply to an individual, estate, or trust. Act 246 (...

FL - Taxpayer lacked standing to challenge department's former practice
The taxpayer did not have standing to contest a notice of proposed assessment that assessed Florida sales and use tax, a penalty, and interest.Department's Former Practice Regarding Notices of Propose...

GA - Tax exemption for sporting event ticket sales expanded and extended
Georgia has expanded the sales and use tax exemption for sales to nonrecurring major sporting events expected to generate over $50 million. The exemption now also applies to FIFA World Cup matches.Add...

HI - New deadline for employers to file and furnish form W-2/HW-2 discussed
For personal income tax withholding purposes, the Hawaii Department of Taxation (department) has issued a tax announcement to remind all Hawaii employers about changes to due dates for Form W-2/HW-2.E...

ID - Bonus depreciation adjustment provisions revised
Idaho has amended a 2021 law originally enacted to clarify that certain federal bonus depreciation should not be added back in determining Idaho taxable income. The new amendments change the 2021 law ...

IL - Tentative bond county multiplier announced for 2021
The tentative Bond County equalization factor (multiplier) for Illinois property tax purposes has been set for 2021 at 1.0766. The final 2020 multiplier was 1.0734. Release, Illinois Department of Re...

IN - Nonprofit organization filing guidance updated
Indiana has updated the income tax bulletin describing taxation and filing requirements of nonprofit organizations. The bulletin is updated with information addressing filing requirements when a nonpr...

IA - Economic development legislation enacted
Iowa has enacted legislation amending income tax credits including:extending the authorization of the Iowa Energy Center (IEC) and the IEC Board through the end of 2027 and requires the IEC to support...

KS - Senate approves pass-through entity tax, NOL deduction
The Kansas Senate approved amendments to legislation that include proposals to:provide an optional pass-through entity income tax to S corporations and partnerships;allow personal income taxpayers a c...

KY - Financial institution apportionment rules adopted
Kentucky adopted amendments to corporate income tax apportionment rules for financial institutions. A financial institution must apportion income from business activity in Kentucky using a receipts fa...

LA - Motions for summary judgment denied for lack of undisputed evidence
For sales and use tax purposes, the Louisiana Board of Tax Appeals (BTA) denied an oil and gas drilling equipment manufacturer’s (taxpayer’s) motion for partial summary judgment and the sales tax ...

ME - Paper mill's tax abatement request was correctly denied
For Maine property tax purposes, the Supreme Court affirmed the superior court’s decision affirming the State Board of Property Tax Review’s (Review Board’s) denial of a paper mill’s tax abate...

MD - Bipartisan tax relief agreement announced
Maryland Gov. Larry Hogan, Senate President Bill Ferguson, and House Speaker Adrienne A. Jones have announced they have reached a bipartisan agreement to provide $1.86 billion in tax relief over five ...

MA - Tiered minimum tax proposed
The Massachusetts legislature is considering 2021 carryover legislation that proposes a tiered minimum corporate excise tax. The minimum tax would increase based on a corporation's total sales in Mass...

MI - Disabled veteran's surviving spouse did not qualify for exemption
For Michigan property tax purposes, a surviving spouse of a disabled veteran was not eligible for the disabled veterans’ exemption because her husband never owned the property. The taxpayer and her ...

MN - 2023-2023 Petroleum debt service surcharge rate announced
The Minnesota Department of Revenue has announced that the petroleum debt service surcharge rate will remain at $0.035 per gallon for July 1, 2022, to June 30, 2023. The surcharge is included in the p...

MS - Rural economic development credit extended
The sunset date for the Mississippi rural economic development credit that may be claimed against corporate and personal income taxes is extended to October 1, 2025. The credit was previously schedule...

MO - Exemption created for purchases of certain utilities by transient accommodation establishments
A Missouri sales tax exemption is created for purchases of certain utilities by persons operating hotels, motels, or other transient accommodation establishments. The utilities exempt include electric...

MT - Education credit rules amended
Montana adopted amendments to its income tax rules regarding the student scholarship organization credit and the educational improvement program credit. Generally, the amendments reflect changes previ...

NE - Property owner did not qualify for extended redemption period
For Nebraska property tax purposes, the district court did err in finding that the property owner was not entitled to the five-year extended redemption period because she failed to prove that her ment...

NV - State high court upholds decision invalidating parts of 2019 MBT legislation
The Nevada Supreme Court affirmed a district court decision that invalidated portions of a 2019 law (S.B. 551) affecting the rates of the modified business tax. The law had resulted in Nevada continui...

NH - Position on out-of-state taxation of remote workers declared
New Hampshire has enacted a declaration regarding out-of-state taxation of remote worker income. New Hampshire states that the income from employer-employee relationships like "wage income, salary in...

NJ - Tax treatment of retirement income discussed
New Jersey issued a publication discussing personal income tax treatment of retirement income. Generally, New Jersey taxes retirement income differently than the federal government. The publication, a...

NM - Sustainable building tax credit rules adopted
The New Mexico Taxation and Revenue Department has adopted corporate and personal income tax rules governing the 2021 sustainable building tax credit. Among other topics, the adopted rules include inf...

NY - Tat lacked jurisdiction to review small claims unit determination
For sales and use tax purposes, the New York State Tax Appeals Tribunal did not have jurisdiction to review the exception filed by a corporation (taxpayer) because the taxpayer had elected to proceed ...

NC - Taxpayer meets the definition of "marketplace facilitator"
Taxpayer, an affiliate of original equipment manufacturers (OEMs) that sell parts through their network, is a marketplace facilitator who makes marketplace facilitated sales in North Carolina for sale...

ND - Summary of 2021 legislation released
North Dakota issued a summary containing highlights of corporate and personal income tax legislation enacted in 2021, including laws that:expanded the credits for nonprofit private school contribution...

OH - New regulation on commercial activity tax credit adopted
For corporate income tax purposes, the Ohio Department of Taxation adopted new regulation on commercial activity tax credits.The regulation includes several new measure, such as:taxpayers may now clai...

OK - Legislation that removes tax on food and food ingredients passes house
The Oklahoma House of Representatives has passed a bill that would enact a 0% sales tax rate on food and food ingredients from July 1, 2022 through June 30, 2024. Local taxes would still apply.The leg...

OR - Denial of charitable organization exemption upheld due to taxpayer's defective application
An Oregon taxpayer’s property tax appeal of the county assessor's rejection of the taxpayer's charitable organization exemption application for the tax year 2020-21 was denied because the taxpayer d...

PA - Dismissal of taxpayer’s uniformity challenge upheld
A Pennsylvania trial court did not err in determining that the taxpayer was not entitled to property tax abatement on its apartment complex because the taxpayer failed to prove that the assessment of ...

RI - Prevailing wage requirement enacted for certain credits
Recently enacted Rhode Island legislation requires construction projects valued over $10 million and receiving credits under the Rebuild Rhode Island or historic preservation program to pay the prevai...

SC - Maximum tax expanded to watercraft motors
South Carolina has amended the requirements for filing accommodations tax returns and expanded the application of the maximum sales and use tax.Accommodations Tax ReturnsAccommodations tax returns wit...

SD - Local sales and use tax rate changes announced
South Dakota has announced upcoming local sales and use tax rate changes that will take effect July 1, 2022.Sales and Use Tax Rate ChangesGary is increasing the municipal tax rate to 2% (currently, 1%...

TN - Interest rate for 2022-2023 announced
The interest rate on all taxes collected or administered by the Tennessee Department of Revenue is 8% (formerly, 7.25%) effective July 1, 2022, through June 30, 2023. The interest rate on all tax liab...

TX - May 2022 certification of the average closing price of gas and oil released
The Texas Comptroller of Public Accounts has determined the average taxable price of crude oil for the reporting period May 2022 is $69.22 per barrel for the three-month period beginning on February 1...

UT - Mobile workforce exemption created
The wages of some nonresident individuals who work in the state for 20 or fewer days will not be subject to Utah income tax, beginning in tax year 2023. To qualify for the tax exemption:the individual...

VT - Summary of 2022 legislation released
Vermont released a summary of legislation enacted in 2022, including a number of corporate and personal income tax changes. Provisions covered in the summary include:new reporting requirements for par...

VA - Electronic payment requirement for certain taxpayers discussed
Virginia announced that a recent legislative change requires taxpayers to submit all of their income tax payments electronically if:any estimated tax payment exceeds $1,500;any extension payment excee...

WA - Partial waiver of interest granted due to governor's proclamation
A beverage manufacturer (taxpayer) was entitled to a partial waiver of interest on its Washington business and occupation (B&O) tax and use tax liabilities because the Governor’s proclamation wa...

WV - Arms and ammunition manufacturing credit rules adopted
West Virginia provides corporate and personal income credits for small arms and ammunition manufacturing in the state. It adopted rules that provide additional guidance on:qualified investment pro...

WI - Antiques, crafts, and artwork fact sheet created
The Wisconsin Department of Revenue has created a fact sheet that provides information about sales and purchases made by sellers of antiques, crafts, and artwork. Topics covered include seller’s per...

WY - Local rate changes announced
Wyoming has announced the following local sales and use tax rate changes:Beginning April 1, 2022, the rate in Laramie County increases to 6%.Beginning July 1, 2022, the rate in Johnson County decrease...