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

Some Individuals Get 2018 Estimated Tax Penalty Waiver
The IRS announced that it is waiving the estimated tax penalty in certain circumstances. The waiver applies to certain individual taxpayers whose 2018 estimated tax payments did not meet the penalty&r...

IRS Will Process Tax Returns, Refunds Despite Government Shutdown
The IRS has announced that it will begin processing tax returns on January 28, 2019, despite the partial federal government shutdown. Taxpayer refunds will also be processed as scheduled."We are commi...

IRS Updates 2019 Tax Filing Season Shutdown Plan
The IRS released its much anticipated revised Fiscal Year (FY) 2019 Lapsed Appropriations Contingency Plan on January 15. The IRS’s updated plan for agency operations during the 2019 t...

IRS Reopens Backlogged Income Verification Service
The IRS has reopened its Income Verification Express Service (IVES) program during the partial federal government shutdown. IVES is a user fee-based program that enables mortgage lenders and others wi...

Proposed Regs Provided for Code Sec. 163(j) Limit
The IRS has proposed regulations on the limitation on the business interest expense deduction under Code Sec. 163(j), as amended by the Tax Cuts and Jobs Act (TCJA) ( P.L. 115-97). The IRS also has is...

Brady Introduces Revised Tax, IRS Reform Package
The House’s top Republican tax writer has introduced a revised tax and IRS oversight package. The “tweaked” 253-page package addresses retirement savings, disaster relief, IRS reform...

New Tax Reform-Related Regs May Appear Soon
A top Senate tax writer has said additional proposed regulations for the new tax code are expected to be released soon. Treasury Secretary Steven Mnuchin provided Republican senators with an update on...

Tax Court Adopts Amended, New Practice Rules
The Tax Court adopted amendments to its electronic filing and paying rule. The adopted rules cover petitions and other documents that are currently not filed electronically. These rules were first pro...

Senate Confirms Key Tax Reform Architect for Top Treasury Role
A key figure in shaping last year’s tax reform has been confirmed as the Treasury’s second-highest ranking official. The Senate confirmed Justin Muzinich as deputy Treasury secretary on De...

TIGTA Presents Semiannual Report to Congress
The Treasury Inspector General for Tax Administration (TIGTA) has released its semiannual report to Congress, highlighting its audits, investigations, inspections and evaluations. The report includes ...

Proposed Regulations Intend to Reduce FATCA Withholding Compliance Burden
Proposed regulations address and intend to reduce taxpayer burden in complying with certain withholding requirements under the Foreign Account Tax Compliance Act (FATCA), Chapter 4 ( Code Secs. 1471 -...

Regulations to be Issued on Controlled Foreign Corporations’ Previously Taxed Earnings and Profits
The IRS and the Treasury intend to provide regulations that will address issues affecting foreign corporations with previously taxed earnings and profits (PTEP). The regulations are in response to cha...

IRS Extends Filing Deadlines, Penalty Relief for Health Insurance Forms
Insurers, self-insuring employers, other coverage providers, and applicable large employers now have until March 4, 2019, to provide individuals with Forms 1095-B, Health Coverage, or Forms 1095-C, Em...

Eligibility for Allocation of Deduction for Energy Efficient Commercial Building Property Clarified
The IRS has issued a memo that sets forth guidelines for determining various factual scenarios such as whether a taxpayer may qualify as a designer of energy efficient commercial building property und...

AL - Town of Oakman increased local rates
The town of Oakman increased the local Alabama sales and use tax rates for the following from 3% to 4%, effective December 1, 2018:general items;admissions to places of amusement and entertainment;ret...

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 changes announced
Upcoming changes to local transaction privilege taxes and other fees in Arizona have been announced.GuadalupeEffective February 1, 2019, Guadalupe adds the following taxes at the rate of 4%:Use Tax Fr...

AR - Deduction for contributions to tuition savings program denied
A married couple was not allowed to deduct $10,000 on their joint Arkansas personal income tax return for the two $5,000 contributions made by the taxpayer-husband to each of his Arkansas tax-deferred...

CA - Guidance on disaster loss claims issued
The California Franchise Tax Board has issued publication informing taxpayers about disaster claims against their corporate and personal income tax liabilities. The publication explains who is eligibl...

CO - Governor proposes income tax reduction, vendor fee cap
Colorado Gov. Jared Polis has proposed amending the state’s tax code in order to reduce income tax rates for families and small business. The proposal came in the governor’s State of ...

CT - Q & A information publication on estimated corporate business tax updated
The Connecticut Department of Revenue Services has updated an informational publication that provides questions and answers regarding estimated corporation business tax filing and payment requirements...

DE - Hazardous substances cleanup tax rate for 2019 announced
The Delaware Division of Revenue has issued a news release informing businesses that the new adjustable rate of hazardous substance cleanup tax for 2019 is 1.5244%. Effective January 1, 2019, the new ...

DC - DC passes permanent sales tax nexus bill
District of Columbia passed a permanent sales tax nexus bill that requires remote sellers to collect DC sales tax if they have economic nexus, effective January 1, 2019. The Act includes sales thresho...

FL - Florida governor proposes two tax holidays and reduction in millage rate
Florida Gov. Ron DeSantis has proposed the following in his 2019-2020 budget:a three-day back to school sales tax holiday on clothing up to $60, school supplies up to $15, and the first $1,000 on comp...

GA - Date for processing individual income tax returns announced
The Georgia Department of Revenue (DOR) has issued a press release announcing that it will begin processing individual income tax returns on February 1, 2019. The filing deadline to submit 2018 indivi...

HI - Trial court erred in entering involuntary dismissal
For Hawaii property tax purposes, the Intermediate Court of Appeals (Appellate Court) found that the trial court erred in entering the order of dismissal with prejudice against the taxpayer because th...

ID - Changes for 2018 tax filing season discussed
For corporate and personal income tax purposes, the Idaho State Tax Commission (commission) has issued a tax update informing taxpayers that it has started processing 2018 tax returns, and the deadlin...

IL - Applicability of retailers’ occupation tax to motor vehicles discussed
The Illinois Department of Revenue has issued a general information letter regarding the applicability of retailers’ occupation tax to motor vehicles that are sold in Illinois to residents of an...

IN - Refund properly denied on basis of federal information
A taxpayer’s protest of an assessment of additional Indiana personal income tax was denied because the assessment was properly based on adjustments made to her federal income tax return for the ...

IA - Updated 2017 IA 6251 alternative minimum tax form published
The Iowa Department of Revenue has issued a press release informing personal income taxpayers that it has published an updated Form IA, 6251, Alternative Minimum Tax, for tax year 2017. Taxpayers may ...

KS - Q2 local rate changes announced, rate history released
The Kansas DOR has announced the local sales and use tax rate changes below for the quarter beginning April 1, 2019. The DOR has also updated its historical chart listing state and local sales and use...

KY - New tax filing form launched
Kentucky reminds employers that the Department of Revenue (department) has a new streamlined process that replaces the mailing of paper Forms W-2, W-2G, and 1099s. The employers will now need to submi...

LA - Recreational camp may qualify for homestead exemption
For Louisiana property tax purposes, the owner of a building or structure designated as a recreational camp may be eligible for the homestead exemption. There are no provisions under Louisiana law whi...

ME - Reduction to credit for taxes paid to another jurisdiction upheld
The Maine Supreme Judicial Court affirmed the reduction of a personal income tax credit for taxes paid to a foreign jurisdiction, in addition to assessed penalties and interest.Taxpayers’ Claim ...

MD - Changes for 2019 tax filing season announced
For income tax purposes, several changes will take effect for the 2019 tax filing season.Exemptions and DeductionsFor tax year 2018, the standard deduction is increased to a maximum value of $2,250 fo...

MA - Massachusetts releases draft guidance on international TCJA provisions
Massachusetts released draft guidance on its treatment of selected international provisions in the Tax Cuts and Jobs Act (TCJA). The guidance applies to:corporate excise taxpayers; andpersonal income ...

MI - Reminder issued for annual return
The Michigan sales, use, and withholding tax return is due by February 28, 2019. However, W-2s and 1099s should be submitted to the state Treasury Department by February 7, 2019. The notice can be vie...

MN - Filing tips for tax professionals discussed
For corporate and personal income tax purposes, the Minnesota Department of Revenue (department) has issued a bulletin containing tips for tax professionals on how to prepare for the 2019 filing seaso...

MS - Guidance on effects of TCJA released
Mississippi has issued guidance for personal and corporation income taxpayers on the effects of the Tax Cuts and Jobs Act (TCJA). Mississippi reminds taxpayers that many aspects of the TCJA will not a...

MO - Missouri provides guidance on global intangible low-taxed income
Missouri provides guidance on how to report global intangible low-taxed income (GILTI) for Missouri tax purposes. The federal GILTI provision (IRC Sec. 951A) may affect Missouri taxes for both:corpora...

MT - Interest rate increases
A Montana newsletter has announced that the interest rate in effect for individuals, estates, trusts, and pass-through entities is 5%, effective January 1, 2019. The 5% rate applies to:unpaid taxes wh...

NE - Warning provided on tax scam
The Nebraska Department of Revenue has warned taxpayers to be wary of websites purporting to sell sales tax resale certificates.Sales Tax FormsThe department does not charge for sales tax permits, res...

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 - Guidance on internal revenue code adjustments issued
New Hampshire informs Business Profits Tax (BPT) taxpayers of the new Schedule IV, “Other Internal Revenue code Reconciling Adjustments,” used to make required adjustments.Why is the Adjus...

NJ - New Jersey increases hourly minimum wage, enacts credits
New Jersey enacted two income tax credits for employers in conjunction with a minimum wage increase. The credits will be available to employers of employees with impairments whose wages are changed by...

NM - Protest granted because department failed to show taxpayer’s inclusion of payroll factor was distortive of in-state business activities
For New Mexico corporate income tax purposes, a multistate financial institution’s (taxpayer’s) protest of the Taxation and Revenue Department’s denial of its refund claim was sustai...

NY - Petition for redetermination of deficiency denied
A New York State personal income taxpayer’s protest of a deficiency determination was denied because the taxpayer failed to establish that the tax court overlooked or misapprehended relevant fac...

NC - Four counties adopt additional 0.25% local tax
Effective April 1, 2019, the following North Carolina counties levy an additional 0.25% local sales and use tax:Graham;Moore;Stanly; andSwain.Total Tax RateAs of that date, the local sales and use tax...

ND - North Dakota senate passes bill to impose sales and use tax duties on marketplace facilitators
The North Dakota Senate passed a bill that would impose sales and use tax duties on marketplace facilitators. S.B. 2338, as passed by the North Dakota Senate on February 1, 2019...

OH - Local rate change announced
Ohio has authorized a sales and use tax rate change effective April 1, 2019.Local Rate ChangeGallia county increases its local rate from 7.0% to 7.25%. The notice can be viewed on the department&rsquo...

OK - Governor comments on tax in state of the state address
In this year’s State of the State address, Oklahoma Gov. Kevin Stitt made several tax-related comments. With respect to the levy and administration of taxes, he commented that:the state nee...

OR - Common mistakes in filing form OR-STI discussed
The Oregon Department of Revenue (department) has issued a reminder informing personal income taxpayers about the need to file Form OR-STI, Statewide Transit Individual Tax Return, the new form f...

PA - Pennsylvania tax filing season opens
The Pennsylvania Department of Revenue (department) has announced that the personal income tax filing season for tax year 2018 has opened. All taxpayers who received more than $33 in total gross taxab...

RI - Rhode Island tax filing season opens; new developments discussed
The Rhode Island Division of Taxation has issued an advisory informing tax practitioners and taxpayers that it has begun accepting and processing electronically and paper-filed Rhode Island resident a...

SC - Protest denied because proceeds from waivers given to customers were statutorily taxable
For South Carolina sales and use tax purposes, the Administrative Law Court (ALC) properly held that retail store operators’ (taxpayers’) proceeds from waivers given to their customers wer...

SD - IRC conformity bill passes senate
The South Dakota Senate passed legislation that would update the bank franchise (income) tax Internal Revenue Code conformity date. The new IRC conformity date would be January 1, 2019.The bill previo...

TN - Failure to exhaust administrative remedies barred judicial review
The Tennessee Court of Appeals (Court) upheld the trial court's decision dismissing a taxpayer’s complaint alleging an improper assessment of property tax due to reclassification of the property...

TX - December 2018 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 December 2018 is $46.06 per barrel for the three-month period beginning on Septe...

UT - Utah governor proposes sales tax rate cut and broader tax base
Utah Gov. Gary Herbert has proposed:slashing the state sales tax rate from 4.85% to 1.75%; andbroadening the sales tax base, including taxing services.The proposal came in the governor’s 2019 St...

VT - Publication discussing applicability of taxes to nonprofit organizations issued
The Vermont Department of Taxes (department) has issued a sales and use tax publication discussing applicability of taxes to nonprofit organizations. The publication provides that many nonprofit organ...

VA - Reminder regarding filing of withholding tax returns issued
The Virginia Department of Taxation (department) reminds employers that they are required to file their withholding tax returns and make payments electronically. The due date for:monthly and seasonal ...

WA - Municipal annexations announced
Beginning April 1, 2019, the following Washington cities have imposed annexations that may impact businesses’ sales and use tax rates: Bellingham, College Place, Elma, Ephrata, Kalama, Leavenwor...

WV - Royalty rates discussed
The West Virginia State Tax Department has issued an administrative notice discussing the determination of 2019 royalty rates for producing coal and other natural resources, exclusive of oil and natur...

WI - Tax treatment of political organization and candidates discussed
The Wisconsin Department of Revenue has issued a publication explaining the federal and Wisconsin tax treatment of political organizations and candidates effective December 1, 2018. Further, the publi...

WY - House passes bill authorizing tax collection by marketplace facilitators
The Wyoming House of Representatives has passed a bill that would require marketplace facilitators to collect sales tax.Marketplace FacilitatorsMarketplace facilitators would collect and remit sales t...