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

IRS Lists Population Census Tracts Designated as Qualified Opportunity Zones
The IRS has provided an official list of population census tracts designated as Qualified Opportunity Zones (QOZs), that now includes two additional census tracts in Puerto Rico. The chief executive o...

Inflation Adjustment and Credit for Renewable Energy Production Credit Provided
The IRS has published inflation adjustment factor and reference prices for determining the availability of the credit for renewable electricity production and refined coal production for calendar year...

Veterans Urged to Claim Refund for Tax Overpayments on Disability Severance
The IRS has urged veterans who received disability severance payments after January 17, 1991, and reported it as taxable income, to file Form 1040X, Amended U.S. Individual Income Tax Return, to ...

Obsolete Advance Payment Regulations Removed
The IRS has removed existing regulations regarding advance payments for goods and long-term contracts. These final regulations affect accrual method taxpayers who receive advance payments for goods, i...

Additional Information on Transition Tax for Untaxed Foreign Earnings Provided
The IRS provided additional information for taxpayers seeking guidance on the Code Sec. 965transition tax on untaxed foreign earnings. The Tax Cuts and Jobs Act ( P.L. 115-97) (TCJA) require...

Nina Olson Releases Report Intended to Improve EITC Administration
National Taxpayer Advocate Nina E. Olson has released a special report on the earned income tax credit (EITC), with recommendations designed to increase the participation rate of eligible taxpayers an...

AL - Paper refund petitions required for July, August, and September 2019
The Alabama Department of Revenue has issued a notice informing taxpayers that all quarterly gasoline and/or diesel fuel excise tax refunds will have to be filed manually for the third quarter of 2019...

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 - Qualified business income not deductible on state return
Individuals cannot deduct qualified business income (QBI) (IRC Sec. 199A) on their Arizona individual income tax returns. The starting point for determining Arizona taxable income is federal adjusted ...

AR - Protest denied for failure to show ATV purchase qualified for exemption
A taxpayer’s protest against Arkansas sales and use tax assessment was denied because he failed to prove its entitlement to the farm machinery and equipment exemption on the purchase of an all-t...

CA - California requires presidential candidates to submit tax returns
Candidates for U.S. President must now disclose their federal tax returns to appear on California’s primary ballot. Candidates for California Governor must disclose their returns as well. A new ...

CO - Contributions to club’s expansion project did not qualify for child care contribution credit
For corporate and personal income tax purposes, the Colorado Department of Revenue has issued a private letter ruling stating that a taxpayer’s contributions to a tax-exempt club’s expansi...

CT - Labor performed to install fuel cell facility was not subject to tax
For Connecticut sales and use tax purposes, labor performed to install a fuel cell facility (facility) was not taxable as a service to existing real property. In this matter, an electricity supplier (...

DE - Town of Millville authorized to impose lodgings tax
The town of Millville is authorized to impose and collect a local Delaware lodgings tax of up to 3%. Ch. 145 (S.B. 162), Laws 2019, effective July 23, 2019...

DC - Children’s hospital property tax exemption extended
The District of Columbia’s Children's Hospital Research and Innovation Campus property tax exemption will remain after the property is subdivided. The exemption continues as it exists before any...

FL - TCJA information reporting explained
Florida explains how certain Internal Revenue Code sections amended by the federal Tax Cuts and Jobs Act (TCJA) affect information required on state corporate income and franchise tax returns.Informat...

GA - SST taxability matrix and certificate of compliance updated
The Georgia DOR has reissued the state’s Streamlined Sales and Use Tax (SST) taxability matrix and certificate of compliance for 2019. The matrix and certificate are effective August 10, 2019.&n...

HI - Delay in implementing law requiring partnerships, estates, and trusts to withhold nonresident partners’ income tax announced
For corporate income tax purposes, the Hawaii Department of Taxation (department) announced a delay in implementing a law regarding the withholding of taxes on income of nonresident partners and benef...

ID - Tax rule temporarily amended for disabled veteran exemption changes
Idaho temporarily amends a property tax rule 717 (Procedure After Claim Approval ) to reflect changes enacted by H.B. 62, Laws 2019. The enacted bill applies existing circuit breaker and disabled...

IL - Apprenticeship credit enacted, R&D credit extended
Enacted Illinois income tax legislation creates a new apprenticeship tax credit and extends the research and development tax credit five years.Apprenticeship Tax CreditA new apprenticeship tax credit ...

IN - Taxpayer required to include settlement proceeds in fit apportionment factor
A credit card company (taxpayer) was required to include proceeds it received from a settlement agreement in the numerator and denominator of its Indiana financial institutions tax (FIT) apportionment...

IA - DOR offers food delivery services tax guidance
The Iowa Department of Revenue has issued guidance regarding Iowa’s food delivery services tax. The guidance comes in response to S.F. 2417, the extensive state tax reform bill, which was signed...

KS - SST taxability matrix and certificate of compliance updated
The Kansas DOR has updated the state’s Streamlined Sales and Use Tax (SST) taxability matrix and certificate of compliance for 2019.Taxability MatrixThere is an exception added to the "No"&...

KY - Procedural information to help taxpayers and department employees understand tax matters discussed
The Kentucky Department of Revenue (department) issued guidance containing procedural information to help taxpayers understand the department’s opinions concerning tax liability matters and to h...

LA - Bulletin announces horizontal well exemption availability through June 2020
The Louisiana Department of Revenue has announced that for the fiscal year beginning July 1, 2019, and ending June 30, 2020, the prices applicable to the Louisiana horizontal severance tax exemption a...

ME - Taxpayer service hours will change starting August 1, 2019
Maine Revenue Services (revenue) announced that beginning August 1, 2019, it is changing taxpayer service hours to better serve taxpayers and tax professionals for corporate income, personal income, s...

MD - Nexus properly established as subsidiary lacked economic substance
An intellectual holding company and wholly-owned subsidiary of a multi-national producer and marketer of processed foods was confirmed to have sufficient contacts with Maryland to establish the requir...

MA - Massachusetts economic nexus law enacted
Massachusetts enacted an economic nexus law requiring remote retailers to collect sales and use tax effective October 1, 2019.Nexus Thresholds for Out-of-State RetailersRemote retailers must register ...

MI - SST taxability matrix and certificate of compliance updated
Michigan updated its Streamlined Sales and Use Tax (SST) Agreement taxability matrix and certificate of compliance. The taxability matrix changes are effective July 31, 2019, and the changes to the ce...

MN - Federal “minimum base amount” limitation properly incorporated in Minnesota tax credit statute
For purposes of computing a corporate franchise income taxpayer’s research and development (R&D) credit, the Minnesota Supreme Court determined that Minnesota incorporated the federal"minimu...

MS - Taxpayer’s use of alternative apportionment method upheld
The Mississippi Supreme Court affirmed the Board of Tax Appeals’ (BTA’s) decision that a taxpayer’s use of an alternative apportionment method to compute its corporate income tax lia...

MO - Interest rate on refunds increased for fourth quarter of 2019
The interest rate on all qualifying Missouri tax refunds is increased from 1.9% to 2.0% for the period from October 1, 2019, to December 31, 2019. Statutory Interest Rates, Missouri Departme...

MT - Full deduction allowed for dividends received from 80/20 companies
A taxpayer in a water’s edge combined group was entitled to a 100% exclusion under the Montana corporate income tax for dividends received from 80/20 companies.Law Does Not Address Actual Divide...

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

NV - Legislation relating to transferable tax credits for affordable housing amended
The State of Nevada has amended its law to enact provisions authorizing the Housing Division of the Department of Business and Industry to issue transferable tax credits that are authorized to be take...

NH - Remote seller protection provisions enacted
New Hampshire has enacted protection provisions for state businesses that are considered remote sellers in other jurisdictions and that may need to collect and remit sales and use taxes.Under the bill...

NJ - State-owned golf course, restaurant used for public purpose qualified for exemption
New Jersey property owned by the Department of Environmental Protection (DEP) on which a for-profit entity operated a golf course and restaurant was entitled to a property tax exemption for tax year 2...

NM - Refund denied for lack of sufficient documentation
A New Mexico corporate income taxpayer failed to provide sufficient documentation to establish that it was entitled to a refund arising out of the claimed net operation loss (NOL) carryover deduction....

NY - Recordkeeping tips for claiming child and dependent care credit issued
The New York Department of Taxation and Finance issued a press release reminding personal income taxpayers that they must keep good records throughout the year to ensure an easy process for claiming t...

NC - Waiver of penalty for failure to electronically file 2019 form nc-3 announced
North Carolina announces:an automatic waiver of the penalty for failure to electronically file the 2019 Form NC-3, along with required W-2 and 1099 statements, for personal income tax purposes; andan ...

ND - “claimant agency” definition for the purpose income tax refund setoff amended
North Dakota amends its law, relating to corporate and personal income tax refund set off for debts owed to the state, to include state institutions of higher education and the North Dakota student lo...

OH - Ohio investment credits enacted, amended
Ohio’s recently enacted budget legislation enacted new and amended existing income tax credits for:opportunity zone investments;small business investment;motion picture expenditures;historic reh...

OK - Additional Q4 local rate changes announced
The local sales and use tax rate changes below take effect in Oklahoma on October 1, 2019. Other local sales and use tax rate changes taking effect in Oklahoma on October 1 were previously reported.Ci...

OR - Oregon credits enacted and extended
Oregon has enacted legislation extending nine income tax credits and enacting a:education credit; andshort line railroad credit.Education and ABLE Account Subtraction Replaced with Contribution Credit...

PA - Philadelphia homeowners encouraged to enroll for homestead exemption
The Philadelphia Department of Revenue has issued a press release reminding homeowners to enroll for homestead exemption to reduce their property tax bill. Taxpayers must own the property and live in ...

RI - Ten-year SOL enacted
Effective July 1, 2019, there is a 10-year statute of limitations on Rhode Island sales and use tax notices of deficiency and collection actions. However, the 10-year statute of limitation is tolled i...

SC - Energy efficient manufactured homes incentive program extended
The South Carolina Department of Revenue has announced the extension of the sales and use tax exemption and personal income tax credit under the energy efficient manufactured homes incentive program. ...

SD - Application of state and local taxes to motor vehicles lease and rentals discussed
The South Dakota Department of Revenue has updated a tax facts sheet discussing the application of state and local sales and use taxes to motor vehicles lease and rentals. Specifically, the fact sheet...

TN - Purchaser reimbursed expenses incurred before order confirming tax sale
For Tennessee property tax purposes, a tax sale purchaser was entitled to recover expenses incurred to preserve property value despite occurring prior to the trial court’s entry of the order con...

TX - Amendments to rule on computing taxable margin proposed
Texas proposes amendments to its rule on computing taxable margin for franchise tax purposes. The Comptroller of Public Accounts issued proposed amendments that:memorialize the comptroller's applicati...

UT - Amendment concerning unclaimed property provisions made
A Utah legislation has amended the property law concerning unclaimed property provisions. The amendment provides that an indication of apparent owner interest for determining whether property is presu...

VT - General overview of unique tax situations for florists
The Vermont Department of Taxes (department) has issued a fact sheet that provides a general overview of the unique sales tax situations for florists operating in the state. The publication discusses,...

VA - Refund denied for taxpayer’s failure to provide sufficient evidence
A telecommunications equipment, software and service provider (taxpayer) was denied Internet Service Providers’ (ISPs) exemption from Virginia sales and use tax because the taxpayer failed to pr...

WA - Taxpayer’s protest denied as it failed to show department’s audit was unreasonable
A national title insurer’s (taxpayer’s) protest of the Washington Department of Revenue’s (department) assessment of retail sales tax, retailing business and occupation tax (B&O)...

WV - Business and occupation tax exemption enacted for merchant power plants
A merchant power plant is exempt from the West Virginia business and occupation tax imposed on businesses that:generate or produce electricity for sale, profit, or commercial use, either directly or i...

WI - Wisconsin in compliance with terms of streamlined sales and use tax agreement
The Wisconsin Department of Revenue has certified that Wisconsin is in substantial compliance with the terms of the Streamlined Sales and Use Tax Agreement as of August 1, 2019. Further, Wisconsin has...

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 ...