Mazzeffi & Company

Tax Alerts

Tax Briefing(s)

ACA Repeal and Replacement 2016 Tax Year-In-Review Post-Election Tax Policy Update

Social Security wage base and per-diem travel rates likely to rise
Around this time of year, key inflation-adjusted amounts are set for the coming year. For some of these amounts, there are “hints” at what final numbers may look like. Such is the case for...

Treasury delays controversial regulation on corporate interest deduction
The IRS has announced that it will amend the so-called controversial "documentation regulations" so they apply only to interests issued or deemed issued on or after January 1, 2019. Such delay also gi...

Complaints grow: IRS allowable living standards not realistic
In a recent post on the Taxpayer Advocate Service (TAS) site, National Taxpayer Advocate Nina Olson made the case that the IRS’s standards for assessing a taxpayer’s ability to pay an outs...

New IRS CI Chief describes enforcement priorities
The new chief of IRS Criminal Investigations (CI), Don Fort, has announced some enforcement priorities for his team. CI will organize a new nationally coordinated investigations unit, which will focus...

MyRA program to end because of low demand
The myRA savings program will be discontinued, the Treasury Department has announced. Treasury attributed the end of the program to low demand.Treasury launched myRA as nationwide in 2015. Account hol...

AL - Use of purchase mark-up audit proper
The Alabama Tax Tribunal held that the Department of Revenue's use of a purchase mark-up audit method to determine the sales tax liability of a convenience store/gas station was proper because the tax...

AK - Municipalities may impose PACE assessments
For Alaska property tax purposes, home rule municipalities and boroughs of the first and second classes may, by ordinance, establish an energy improvement assessment program under the Municipal Proper...

AZ - Cities’ compliance with jet fuel use tax exemption discussed
The Arizona Department of Revenue has confirmed that the statutory change to the jet fuel use tax will be in effect for the August reporting period that is filed in September. According to the revised...

AR - Charitable contributions are deductible
The Arkansas Department of Finance and Administration has issued a legal opinion providing that donations made to the Boy Scout Troop, whether monetary or in the form of goods, are deductible for Arka...

CA - California offers relief for businesses impacted by wildfires
For some taxes it administers, the California Department of Tax and Fee Administration (CDTFA) has announced that businesses, taxpayers, and fee payers affected by recent wildfires may request extensi...

CO - Emergency retail marijuana tax regulations adopted
The Colorado Department of Revenue has adopted emergency retail marijuana tax regulations in order to conform to recently-enacted statutory amendments. The adopted rules include new definitions and me...

CT - Dry cleaning establishment surcharge and business use tax discussed
The Connecticut Department of Revenue Services provides guidance on the dry cleaning establishment surcharge which applies to the gross receipts at retail from dry cleaning services. Legislation enact...

DE - Delaware enhances collection abilities for delinquent taxes
Effective retroactively to July 1, 2017, new Delaware legislation is enacted that enhances the ability of the state to collect delinquent corporate income taxes, personal income taxes, sales and use t...

DC - October 1st rate changes announced
The District of Columbia Office of Tax and Revenue has announced that on October 1, 2017, the surtax on cigarettes will increase from 42 cents to 44 cents per package resulting in a combined rate of $...

FL - Taxpayer allowed to cease filing consolidated returns
A taxpayer, who was the parent company of an affiliated group of corporations, was granted permission to cease filing consolidated Florida corporate income tax returns due to changes in business circu...

GA - Tax relief available to victims of hurricane harvey
The Georgia Department of Revenue is providing tax relief to the victims of Hurricane Harvey. The Department is postponing until January 31, 2018, certain deadlines for individuals who reside, and bus...

HI - Kauai home exemption conveyance, assessment cap provisions amended
For Kauai County, Hawaii, property tax purposes, ordinance sections concerning conveyances of certain residences with home exemptions and assessment caps have been amended. According to a Department o...

ID - Filing and payment extensions granted to victims of hurricane harvey
The Idaho State Tax Commission has announced that it is extending state tax filing and payment deadlines for taxpayers in parts of Texas affected by Hurricane Harvey. Taxpayers from designated disaste...

IL - Illinois decision prevents insurance premium finance companies being recharacterized of as business corporations
The parent company of out-of-state subsidiaries that provided short term loans to businesses to finance their commercial property and casualty insurance premium obligations was not allowed to amend it...

IN - Personal payments were not qualified business expenses
A married couple, sole shareholders in an automotive company, was properly subject to additional Indiana personal income tax and penalties because they failed to establish that payments made from thei...

IA - Taxpayers not entitled to capital gains deduction under retired farmer provision
Iowa personal income taxpayers were properly denied capital gain deduction claimed under the retired farmer provision because the taxpayer-husband did not materially participate in farming the land fi...

KS - Transient guest tax rate changes announced
The following Kansas transient guest tax rate changes are effective October 1, 2017: (1) the city of Jetmore imposes a transient guest tax rate of 5%; the city of Manhattan imposes a transient guest t...

KY - Guidance on reporting sales tax for online hotel bookings provided
The Kentucky Department of Revenue (DOR) has sent correspondence to hotels and other accommodation providers with guidance on the payment of sales tax on hotel bookings in Kentucky that are reserved t...

LA - Local rate changes announced
The following Louisiana local sales and use tax rate changes have been announced.In Lafayette Parish, the city of Carencro increased its local rate from 2% to 3%, resulting in a total (state and local...

ME - “Marijuana products” defined
Maine added "marijuana product" to its retail marijuana laws and updated the meaning of "retail marijuana product". "Marijuana product" means concentrated marijuana or a produ...

MD - Motor fuel tax deadline extended because of irma
The Maryland Comptroller of the Treasury has announced that because of Hurricane Irma, Maryland motor fuel tax license holders in Florida who may have difficulty filing their August 2017 and September...

MA - Changes to computation of tax for Non-U.S. corporations with treaty-exempt income announced
The Massachusetts Department of Revenue (DOR) has announced in a Technical Information Release (TIR) a change in policy on the calculation of the non-income measure of the corporate excise tax by a no...

MI - Prepaid fuel rates announced
The Michigan Department of Treasury has announced that for the period of October 1, 2017 through October 31, 2017, the prepaid sales tax rate on gasoline will increase from 12.0 cents per gallon to 12...

MN - Fact sheet regarding candy updated
A Minnesota Department of Revenue sales tax fact sheet regarding candy has been updated to reflect that, beginning July 1, 2017, the only taxable food sold through vending machines is prepared food, s...

MS - Vicksburg local taxes on restaurants and hotels imposed
The City of Vicksburg, Mississippi, has adopted a special 2% Economic, Recreation, and Tourism Development Tax to be levied on the gross proceeds of restaurants from sales of prepared food, effective ...

MO - Sales of gate accessory system to farmers for agricultural purposes exempt
A taxpayer’s sales of its gate accessory system that automatically opens and closes a fence gate when a tractor or other vehicle bumps the system’s mechanism and passes through the gate is...

MT - Homeowner vacation rentals taxable
Montana homeowners must collect both sales tax and lodging tax when renting their home, or a room in their home, to guests on a short-term basis. Recently, compnaies have made such rentals popular by ...

NE - Local rate changes announced
The Nebraska Department of Revenue has reminded taxpayers that beginning October 1, 2017, the village of Lawrence will impose a 1% local sales and use tax. Also, the village of Shelton will terminate ...

NV - Additional credit amount authorized for scholarship organization donations
Recently enacted Nevada legislation authorizes the Department of Taxation to allow additional credit amounts to be claimed against the modified business tax and the financial institution modified busi...

NH - DRA provides summary of 2017 legislation
For taxes it administers, the New Hampshire Department of Revenue Administration (DRA) has released a summary of the 2017 legislative session. The release is for informational purposes and is only int...

NJ - Protest may be filed after tax is paid
The New Jersey Tax Court dismissed a taxpayer’s motion for summary judgement finding that a protest of corporation business tax may be filed after payment of the tax. The taxpayer sold a variety...

NM - New Mexico high court finds retirement and continuing care community not exempt
The New Mexico Supreme Court has found that a retirement and continuing care community is not exempt from property tax because the property is not used primarily for a substantial public benefit furth...

NY - Document repository and litigation support receipts were derived from out-of-state services
In a New York corporate franchise tax case involving an out-of-state taxpayer that provided electronic document repository and litigation support services, it was improper for the Division of Taxation...

NC - Guidance provided regarding extension of conditional farmer exemption certificate
The North Carolina Department of Revenue advises that Form E-595CFEX, Application for One-Year Extension for Conditional Farmer Exemption Certificate, must be used by a conditional farmer to request a...

ND - Leases and rentals, repairs, and more discussed
A North Dakota Office of State Tax Commissioner sales tax newsletter discusses leases and rentals; repair services; farm machinery; snowmobiles, off-highway vehicles, and ice houses; and returns, rest...

OH - Fourth quarter of 2017 wholesale prices of gasoline for PAT calculations released
The Ohio Department of Taxation has issued a release showing the statewide average wholesale prices of a gallon of unleaded regular gasoline at $1.556 (previously, $1.473), diesel fuel at $1.537 (prev...

OK - Interest, penalty waivers allowed because of hurricane harvey
The Oklahoma Tax Commission has issued an order stating that it will waive any interest and/or penalties under $10,000 that become due as a result of the inability to report or make payment in August ...

OR - Disqualification of forestland assessment invalid
For Oregon property tax purposes, disqualification of a property from forestland special assessment was invalid because the county assessor failed to follow procedural requirements. The property owner...

PA - Exceptions to decision finding net loss carryover deduction provision unconstitutional denied
A Pennsylvania corporate taxpayer’s and the commonwealth’s exceptions to a decision, finding that a statutory limitation on the Pennsylvania corporate net income tax net loss carryover (NL...

RI - Tax applies to motor vehicle documentation and title preparation fees
The Rhode Island Division of Taxation has issued a notice regarding the application of sales and use tax to motor vehicle documentation and title preparation fees, and other such miscellaneous fees, e...

SC - Comments sought on draft form and ruling for motor fuel income tax credit
The South Carolina Department of Revenue is circulating a public draft of Form I-385 and the related revenue ruling for the new motor fuel income tax credit enacted in May of 2017 Comments on the publ...

SD - Applications open for buffer strip incentives
South Dakota Gov. Dennis Daugaard has notified taxpayers that they can apply to receive riparian buffer strip property tax incentives, enactment of which was reported previously. Under the new law, el...

TN - Filing changes for vending sales discussed
The Tennessee Department of Revenue launched a website called "Tennessee Taxpayer Access Point (TNTAP)" on March 6, 2017, and sales and use tax returns are now filed electronically in TNTAP....

TX - Hotel tax suspension for hurricane harvey victims extended to September 22
Texas Governor Abbott has extended the suspension of the collection of state and local hotel or motel occupancy taxes for Hurricane Harvey victims and relief-effort personnel from September 7 through ...

UT - Assessment upheld as taxpayers were full-year residents of state
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 - Exemption for parent-child center properties affirmed
The Vermont Supreme Court held that properties owned by a parent child center were entitled to the claimed public use property tax exemption because the properties met the requirements of the exemptio...

VA - “Subject to tax” exception to intangible expense addback determined to apply on post-apportionment basis
For corporate income tax purposes, the Supreme Court of Virginia has affirmed a decision from the Circuit Court of the City of Richmond, holding that the "subject to tax" exception to the st...

WA - Activities were “services rendered in respect to” construction
A store developer disputed an assessment that stemmed from a finding that the store developer provided "services rendered in respect to" construction when it accepted responsibility for asse...

WV - Effective date of local tax imposition or rate change amended
A West Virginia emergency rule amendment provides that if a municipality imposes or changes the rate of a local consumers sales and use tax, the effective date for payment and collection of the tax wi...

WI - Relief announced for taxpayers affected by hurricane harvey
The Wisconsin Department of Revenue has issued a notice announcing certain filing and payment extensions under the corporation franchise and income, personal income, sales and use, withholding, and ex...

WY - SST taxability matrix and certificate of compliance revised
The Wyoming Department of Revenue has revised the state’s Streamlined Sales and Use Tax (SST) taxability matrix and certificate of compliance, effective August 1, 2017. The taxability matrix is ...