Mazzeffi & Company

Tax Alerts

March 01, 2021

Tax Briefing(s)

2020 Tax Year-In-Review Consolidated Appropriations Act, 2021 (revised)2020 Post-Election Tax Policy Update 2020 Year-End Tax Planning 2020 Payroll Tax Deferral Order

House Ways and Means Advances COVID Relief Bill
On February 11, the House Ways and Means Committee finished marking up draft legislative text in the Fiscal 2021 budget resolution reconciliation, which contains tax law proposals based on President J...

IRS Guidance on Identity Theft Involving Unemployment Benefits
The IRS urges taxpayers who receive Forms 1099-G, Certain Government Payments, for unemployment benefits they did not actually get because of identity theft to contact their appropriate state agency f...

IRS Warns Taxpayers of “Ghost” Return Preparers
The IRS has reminded taxpayers to avoid "ghost" tax return preparers whose refusal to sign returns can cause an array of problems. Filing a valid and accurate tax return is important because the taxpa...

IRS Spotlights Online Accounts for Taxpayers
The IRS has reminded taxpayers that they can securely access their IRS account information through their individual online account.Information that taxpayers can view online includes:the amount they o...

International Mail Disruption Affects Form SSA-1099
The IRS has warned individuals who live outside of the United States and receive Social Security benefits that they may not receive Form SSA-1099, due to the temporary suspension of international mail...

AL - Sale of wireless prepaid monthly phone plans taxable
The Alabama Tax Tribunal (tribunal) upheld a sales tax assessment against an authorized dealer (taxpayer) of a telecommunications company because the sale of prepaid wireless monthly phone plans by th...

AK - Interest rates announced for Q1 of 2021
The Alaska interest rate for delinquent taxes and overpayment of taxes is set at 5.50%, compounded quarterly, for the period January 1, 2021, through March 31, 2021. Subscribers can view the Departmen...

AZ - No local rate changes effective February 1
There are no local Arizona transaction privilege tax (TPT) changes effective February 1, 2021. The TPT rate chart can be viewed at: https://azdor.gov/sites/default/files/media/TPT_RATETABLE_02012021....

AR - Organization required to collect tax because it failed to qualify as charitable organization
A taxpayer was not entitled to an exemption from Arkansas sales and use tax because it did not meet the definition of a charitable organization. Under Arkansas law, "charitable organization" is define...

CA - Remand to reduce assessed value did not warrant award of attorney fees
A California trial court’s postjudgment order awarding attorney fees to a taxpayer who successfully contested the property tax valuation of his property was reversed because the trial court had rema...

CO - Colorado subtraction enacted for certain decoupled cares act provisions; EITC expansion accelerated
Enacted Colorado legislation creates a deduction from corporate and personal income taxes related to the state’s decoupling with certain CARES Act provisions for:net operating losses;excess business...

CT - Guidance on electronic filing of forms 1099-R, 1099-MISC, 1099-K and W-2G for tax year 2020 issued
For corporate and personal income tax purposes, the Connecticut Department of Revenue Services (DRS) has updated an informational publication that contains specifications and instructions for electron...

DE - Wilmington explains tax treatment of covid-19 telecommuters
The City of Wilmington issued guidance that explains how changes to earned income tax regulations apply to employees telecommuting during the COVID-19 emergency.Earned Income TaxNonresident employees ...

DC - Guidance regarding additions to online tax portal discussed
The District of Columbia Office of Tax and Revenue (office) has added the real property tax suite to its online tax portal, MyTax.DC.gov. The implementation of real property to MyTax.DC.gov supports ...

FL - Motor vehicle sales tax rates by state provided
Florida provides motor vehicle sales tax rates by state as of December 16, 2020. The chart indicates, for each state, the Florida tax rate to be imposed and whether credit for a trade-in is allowed by...

GA - Interest rate announced
For 2021, the interest rate applied to Georgia tax overpayments and underpayments is 6.25% (accruing monthly). The rate was 7.75% for 2020. Policy Bulletin ADMIN-2021-01, Georgia Department of Revenu...

HI - New cash bond deposit form issued
The Hawaii Department of Taxation has announced the issuance of a new Form D-160. The form is intended to be used by taxpayers who are contesting an assessment of additional tax, but who otherwise wis...

ID - 2020 electronic filing handbook issued
The Idaho State Tax Commission has issued its 2020 business and individual e-file (MeF) handbook for taxpayers e-filing their personal and corporate income tax returns. The publication includes an Ida...

IL - Taxability of construction items used for government contract discussed
The Illinois Department of Revenue issued a general information letter discussing the applicability of sales and use tax to a construction contractor’s (taxpayer’s) purchase of equipment and mater...

IN - Valuation upheld as conclusions were supported by competent substantial evidence
For Indiana property tax purposes, the Board of Tax Review’s final determination increasing the assessed property tax value of the taxpayer’s retail store was affirmed because it was supported by ...

IA - Small business relief grant program guidance issued
Iowa has released guidance regarding the Iowa Small Business Relief Grant Program income and franchise tax exemption. Eligible small businesses include those:employing between 2-25 employees prior to ...

KS - Bill proposes NOL carryback, GILTI and other deductions
A Kansas bill proposes several corporate and personal income tax adjustments, including deductions for:net operating loss carrybacks for tax years 2018, 2019, and 2020;IRC Sec. 951A global intangible ...

KY - Homestead exemption increased for 2021 and 2022
The Kentucky Department of Revenue has notified taxpayers that the maximum homestead exemption from property tax applicable to real estate owned by qualified taxpayers is increased by $1,200, from $39...

LA - 2021 individual tax filing season discussed
The Louisiana Department of Revenue has announced that it will begin accepting and processing 2020 state individual income tax returns on Friday, February 12, 2021. The 2020 individual state returns a...

ME - Maine IRC conformity bill introduced
Introduced legislation would change Maine’s income tax Internal Revenue Code conformity date to December 31, 2020 (currently, December 31, 2019). The conformity date would be applicable to tax years...

MD - Information for 2020 filing season announced
The Maryland Comptroller has announced that processing of personal income tax returns for Tax Year 2020 will begin on February 12, 2021. Corporate income tax returns will be accepted beginning on Febr...

MA - 2021 exclusion amounts for commuter benefits announced
A technical information release has been issued to explain the Massachusetts personal income tax tie-in to the federal personal income tax exclusion for employer-provided parking, transit pass, and co...

MI - Additional penalty and interest waiver announced
The Michigan Department of Treasury is automatically waiving penalty and interest on the late reporting or payment of sales, use, and withholding tax for any non-accelerated return or payment due on J...

MN - Fact sheet on residency updated
The Minnesota Department of Revenue has revised its guidance pertaining to the personal income tax responsibilities of Minnesota residents. The updated guidance discusses domicile, the 183-day rule, s...

MS - Judgement affirmed as taxpayer's roofing service was properly subject to tax
The Mississippi Court of Appeals affirmed the chancery court’s decision that a taxpayer’s sale and installation of roofing materials were subject to sales tax. In this case, the chancery court gra...

MO - Missouri allocation and apportionment regulations adopted
Missouri has adopted new regulations governing the allocation and apportionment of income for tax purposes beginning January 1, 2020. The regulations cover:general allocation and apportionment;allocat...

MT - Covid-19 business grants are taxable
Montana announced that COVID business grant income is taxable in the state. Montana adjusted gross income is derived from federal adjusted gross income. Unless exempted, grant income to businesses i...

NE - Bill would allow dividends received deduction for GILTI
A Nebraska bill would allow corporate and personal income taxpayers to claim a dividends received deduction for IRC Sec. 951A global intangible low-taxed income (GILTI). L.B. 347, as introduced in th...

NV - Guidance issued for upcoming tax amnesty program
Nevada has a tax amnesty program for businesses and individuals that will begin February 1, 2021, and end May 1, 2021.Amnesty Program DetailsThe amnesty program allows penalty and interest from Nevada...

NH - Taxability of covid-19 financial relief discussed
New Hampshire has released guidance discussing the taxability of certain COVID-19 financial relief programs under the business profits tax (BPT) and business enterprise tax (BET).State ReliefAll state...

NJ - Guidance regarding treating a combined group as a taxpayer issued
New Jersey provides guidance regarding a combined group being considered a taxpayer for the corporation business tax.Members with Independent OperationsFor privilege periods ending on and after July 3...

NM - Receipts from operating correctional facilities taxable
A private prison company (taxpayer) that operated correctional facilities under agreements with New Mexico counties was liable for gross receipts tax on receipts it received from the counties for mana...

NY - Protest denied as taxpayer failed to establish change in domicile
A taxpayer was properly subject New York State and City personal income tax assessment as the taxpayer failed to establish change in domicile. In this matter, although the taxpayer contended that he w...

NC - Final agency decision on apportionable income abrogated due to amendment in applicable statute
For corporate income tax purposes, the North Carolina Department of Revenue (department) has issued an important notice regarding the abrogation of a prior final agency decision due to an amendment cl...

ND - Annual oil trigger price adjustment for 2021 announced
North Dakota has announced the annual oil trigger price adjustment for oil extraction tax purposes.Oil Trigger PriceThe oil trigger price is $89.65 for the calendar year January 1, 2021, through Decem...

OH - 2021 estimate financial institution tax due February 1
Ohio Department of Taxation reminds financial institutions tax (FIT) practitioners and taxpayers that the first estimated tax payment for the 2021 FIT tax year is due by February 1, 2021. Release, Oh...

OK - Retroactive application of tax refund claim limitation period unconstitutional
A taxpayer was entitled to a refund of Oklahoma sales and use taxes erroneously paid by it, because a right to a refund erroneously paid is a substantive right which accrues when an erroneous tax is p...

OR - IRC conformity bills introduced
Bills were introduced in the Oregon Senate and House to update Oregon’s Internal Revenue Code (IRC) conformity date to December 31, 2020. H.B. 2457, H.B. 2577, S.B. 137, and S.B. 138, as introdu...

PA - Guidance regarding non-medical masks and face coverings issued
The Pennsylvania Department of Revenue has issued guidance regarding the taxability of non-medical masks and face coverings. Medical supplies, including medical and disposable surgical masks, are exem...

RI - 2021 filing season discussed
The Rhode Island Division of Taxation has announced that it will begin accepting and processing both electronically filed and paper personal income tax returns on February 12, 2021. The Division has a...

SC - Draft guidance released on charitable contributions, common-law marriage
South Carolina is seeking comments on draft revenue rulings concerning charitable contributions and common-law marriage.The first ruling is intended to advise taxpayers of the South Carolina impact of...

SD - Governor declares her intention on taxes
In her 2021 State of the State Address, South Dakota Gov. Kristi Noem stated that she has no plans for any tax increases. 2021 State of the State (as prepared), South Dakota State News, January 13, 2...

TN - Taxpayer would be considered a delivery network company provided criteria is met
A taxpayer who operates an online forum that connects sellers of certain taxable foods and beverages with potential customers would be considered a delivery network company, not required to collect an...

TX - Guidance on tax treatment of out of state wineries discussed
For corporate income tax and sales and use tax purposes, Texas published information on out-of-state wineries. An out-of-state winery can sell and ship wine directly to the state’s customers, even t...

UT - Business personal property guidance updated
Utah has updated its publication on business personal property taxes. Topics covered include definitions, assessment, valuation, taxation, appeals, and audits. Publication 20, Utah State Tax Commissi...

VT - Guidance on taxation of mobile home transfers issued
Vermont has issued a fact sheet that provides guidance on the taxation of the transfers (sales) of mobile homes. Taxation in Vermont on mobile home transfers depends on whether the mobile home is trea...

VA - Prototype engines qualified as exempt research and development
For Virginia sales and use tax purposes, marine prototype engines that a taxpayer designed qualified as exempt research and development because the engines were used in a one-time demonstration and co...

WA - Assessment upheld because taxpayer did not provide adequate records
A corporation (taxpayer) failed to maintain sufficient records and, therefore, was not entitled to a correction of an assessment of Washington business and occupation tax and sales and use tax. Genera...

WV - Publication on interest rates on tax underpayments reissued
West Virginia has reissued a publication that provides general information concerning interest and additions to tax and tax underpayments. The publication was revised to reflect the interest rates eff...

WI - Updated guidance on health savings accounts issued
For personal income tax purposes, the Wisconsin Department of Revenue (department) has updated a fact sheet on health savings accounts (HSAs). An HSA is a special account owned by an individual and us...

WY - Local rate changes announced
Local rate changes in Wyoming have been announced effective April 1, 2021.County Rate ChangesCampbell County increases its lodging tax rate to 4%.Fremont County increases its sales and use tax rate to...