Mazzeffi & Company

Tax Alerts

Tax Briefing(s)

2018 Post-Filing Season Update Congress Approves Sweeping Tax Overhaul Tax Cuts and Jobs Act 2017 Year-End Tax Planning

IRS Outlines Guidance on Business Interest Deduction
The IRS has announced initial guidance for computing the business interest expense deduction under Code Sec. 163(j) effective for tax years beginning after 2017, and aspects that will be cov...

2018 Fiscal-Year Blended Tax Rates for Corporations
The IRS has issued guidance on the changes to the federal income tax rates for corporations under Code Sec. 11(b) and the repeal of the alternative minimum tax (AMT) for corporations by the ...

IRS Provides Guidance for Reporting Fines, Penalties
The IRS has provided transitional guidance regarding the new reporting requirements for certain fines, penalties, and other amounts under Code Sec. 6050X, which was added by the Tax Cuts and Jobs...

IRS Provides 2018 Luxury Auto Caps, Lease Inclusion Tables
The IRS has issued "luxury car" depreciation caps for passenger automobiles first placed in service during calendar year 2018. For purposes of this guidance, "passenger automobiles"incl...

Qualified Opportunity Zones Designated
The Treasury and the IRS have designated Opportunity Zones in 15 states and three territories. Private investments in these specific Qualified Opportunity Zones get preferential tax treatment under th...

IRS Provides Workbook for 2017TY Transition Tax; FAQs Updated
The IRS has issued Publication 5292, How to Calculate Section 965 Amounts and Elections Available to Taxpayers, which provides guidance for determining the new transition tax on untaxed fore...

Additional Guidance on Foreign Earnings Transition Tax
The Treasury and IRS have issued another piece of guidance on the foreign earnings transition tax under Code Sec. 965. The new provision, which was enacted as part of the Tax Cuts and Jobs Act (&...

Withholding on Partnership Interest Transfers by Foreign Persons Addressed
The Treasury Department and the IRS have announced their intention to issue regulations, rules, and procedures on how to qualify for exemptions from withholding, or reductions in the amount of withhol...

Proposed Regs Would Expand ACA-Exempt Short-Term Insurance
In response to President Trump’s Executive Order 13813, the Departments Health and Human Services, Labor and the Treasury (the Departments) are proposing regulations to expand the availability o...

AL - Guidance provided on IRC §965 repatriation income
Alabama provides guidance on the state income tax treatment of IRC §965 repatriation income for:corporations;partnerships;S corporations; andindividuals.The Department of Revenue gives the follow...

AK - Bill that would limit federal credits passes house
Corporate income tax legislation that has passed the House of Representatives would, if enacted:limit federal credits to the portion earned by Alaskan operations;disallow the exclusion of foreign roya...

AZ - Repatriation income adjustment required for fiduciary return filers
Trusts or estates required to file federal Form 1041 will need to adjust their 2017 Arizona return if they:had income that was not distributed to beneficiaries; andthe income was IRC §965 repatri...

AR - Carryforward of qualified conservation contributions discussed
For personal income tax purposes, the Arkansas Department of Finance and Administration issued a legal opinion on whether the state follows the federal law provision (26 U.S.C. Section 170(b)(1)(E)(ii...

CA - Summary of 2017 federal legislation released
A Franchise Tax Board (FTB) report explains the new federal laws enacted during 2017 and any corresponding California income and franchise tax laws. The report includes an explanation of any Californi...

CO - Refund of enterprise zone renewable energy investment tax credit discussed
For corporate and personal income tax purposes, the Colorado Department of Revenue has issued a private letter ruling in response to a taxpayer’s query as to over what period the taxpayer could ...

CT - Department and IRS warn of new phone scam
Connecticut and the Internal Revenue Service (IRS) warn taxpayers of a new phone scam. Criminals use telephone numbers that mimic IRS Taxpayer Assistance Centers (TACs) to trick taxpayers into paying ...

DE - Tax filing deadlines discussed
The Delaware Division of Revenue has issued a press release reminding taxpayers that corporate income tax returns are due on or before April 17, and the personal income tax deadline is April 30. Taxpa...

DC - Payment of real property tax rules amended
Effective March 23, 2018, the District of Columbia Office of Tax and Revenue has amended Sections 313.1, 313.2, 313.5 and repealed Section 313.4 on payment of real property taxes. The amendments defin...

FL - Guidance provided on repatriation income
Amendments made to the Internal Revenue Code (IRC) by the Tax Cuts and Jobs Act (P.L. 115-97) impose a one-time transition tax at a reduced rate on foreign earnings as if they had been repatriated to ...

GA - Historical local rates released for Q2
The Georgia Department of Revenue has issued a chart listing historical local sales and use tax rates. Rates are listed through the quarter beginning April 1, 2018. Historical Effective Dates of ...

HI - Guidance issued regarding agricultural cooperatives revised
The Hawaii Department of Taxation has updated its publication intended to provide general information about the application of the general excise and use taxes on agricultural cooperatives organized u...

ID - Tax payment options for late filers discussed
The Idaho State Tax Commission has issued a news release discussing various tax payment options for personal income taxpayers who missed the tax filing deadline. The release states that taxpayers fili...

IL - Decision holding taxpayer liable for company’s unpaid taxes upheld for lack of contrary evidence
A circuit court's affirmation of a decision by an administrative law judge (ALJ) holding a taxpayer liable for a company's unpaid employment withholding taxes and penalties was upheld by the Illinois ...

IN - Filing of amended returns discussed
The Indiana Department of Revenue has issued a news release informing personal income taxpayers about the option to file an amended tax return to address mistakes or omissions on their original return...

IA - Taxpayers alerted to IRS refunds scam
The Iowa Department of Revenue has issued a press release alerting tax professionals and taxpayers to identity scams, especially a new email version currently pretending to be from "IRS Refunds." Unde...

KS - Local rate changes announced
The local sales and use tax rate changes and developments below are effective July 1, 2018.County Rate ChangesButler County decreases its rate by 0.25% (from 0.25% to 0.00%), decreasing its total tax ...

KY - Kentucky enacts combined reporting
Kentucky became the latest state to enact combined income tax reporting for corporations that are members of a unitary business group.When do the combined reporting requirements take effect?The combin...

LA - Summary judgment ordering refund of taxes affirmed
The Louisiana Court of Appeals affirmed a trial court's grant of summary judgment in favor of the taxpayer ordering a refund of oil severance taxes paid under protest because the taxpayer properly com...

ME - Headquarters expansion credit amended
Maine enacted legislation modifying the income tax credit for the construction or expansion of a business headquarters in the state. Among other things, the legislation:clarifies that the credit is 2%...

MD - Maryland enacts amazon headquarters tax incentives
Maryland enacted legislation creating income, sales, and property tax incentives for qualified taxpayers that bring large-scale projects to the state. The legislation creates the Promoting ext-Raordin...

MA - Taxpayer's properties did not qualify for charitable exemption
The Massachusetts Appellate Tax Board determined that the properties owned by the taxpayer did not qualify for the property tax exemption because the taxpayer failed to meet its burden of proving that...

MI - Creation of special blend marked tobacco seller as manufacturer in Michigan
A case regarding the taxpayer's liability under the Michigan Tobacco Products Tax Act (TPTA) as a manufacturer was sent back to the Wayne Circuit Court in order to bind the taxpayer for trial. Michiga...

MN - Guidance regarding commissioner filed return issued
The Minnesota Department of Revenue has issued a press release informing tax professionals that if a personal income taxpayer fails to file his/her return, the department sends a "Demand to File"...

MS - Charitable and foster care organization credit enacted, adoption credit expanded
Mississippi two new charitable donation credits and increased the adoption tax credit. The two new enacted income tax credits are for donations to:qualifying charitable organizations; andqualifying fo...

MO - Writ of prohibition was appropriate because commission cannot modify assessments
The Missouri Court of Appeals affirmed the trial court decision issuing a permanent writ prohibiting the State Tax Commission (Commission) from exercising jurisdiction over the taxpayers' property tax...

MT - 529 withdrawals for K-12 tuition may be taxable
A withdrawal from a Montana 529 plan to pay for K-12 tuition is a nonqualified withdrawal under Montana law. A recent federal change exempts up to $10,000 in 529 distributions for elementary or second...

NE - Correction: Personal exemption credit, standard deduction enacted
Recently enacted Nebraska legislation creates a personal exemption credit, establishes a Nebraska standard deduction, and adjusts personal income tax brackets based on the Consumer Price Index for All...

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 - New Hampshire BPT and BET rate reduction effective dates amended
New Hampshire amended the effective dates of previously enacted rate reductions for the business profits tax (BPT) and business enterprise tax (BET). Future reductions that were going to take effect o...

NJ - Minister of music's residence not taxable
A congregation could claim a New Jersey property tax exemption for a residence used by its Minister of Music because he served the congregation and played a significant part in the religious life at t...

NM - Denial of high-wage job tax credit using replacement analysis method upheld
For corporate income tax purposes, the New Mexico Taxation and Revenue Department’s use of the "replacement analysis" method in denying a taxpayer's application for the high-wage jobs ...

NY - Taxpayer was responsible for LLC’S unpaid taxes
A taxpayer was properly held responsible for a limited liability company’s (LLC’s) unpaid New York sales and use taxes because he was a 50% member in the LLC. Under the law, a person requi...

NC - Guidance provided on repair, maintenance, and installation services for real property
North Carolina provides sales and use tax guidance on repair, maintenance, and installation services for real property and real property contracts. Generally, services to real property are retail sale...

ND - Local tax change announced
Effective July 1, 2018, the city of Ellendale, North Dakota, will eliminate its $50/sale maximum tax (refund cap).More information about local taxes is available at https://www.nd.gov/tax/user/bu...

OH - Reduced NOL credit overturned
The Ohio Supreme Court held that a taxpayer’s commercial activity tax (CAT) net operating loss (NOL) credit could not be reduced. The credit is based on the NOLs incurred by a taxpayer before th...

OK - Oklahoma enacts marketplace sales legislation
Recently enacted Oklahoma legislation makes several changes to the administrative functions of the Oklahoma Tax Commission. The maximum amount of tax liability that can be compounded, settled, comprom...

OR - Oregon tax assessment not in violation of due process clause or commerce clause of U.S. constitution
For Oregon corporate income tax purposes, the Tax Court held that an assessment of emergency communications tax (9-1-1 tax) against an out-of-state telecommunications services provider (taxpayer) was ...

PA - Bonus depreciation bill passes senate
Legislation passed by the Pennsylvania Senate decouples Pennsylvania’s income tax from federal bonus depreciation provisions in the Federal Tax Cuts and Jobs Act of 2017 (TCJA). As introduced, t...

RI - Treatment of IRC Sec. 965 income for fiduciaries discussed
Rhode Island provided guidance on the state income tax treatment of IRC Sec. 965 income for fiduciaries (trusts and estates). Guidance on the treatment of IRC Sec. 965 income for individuals and pass-...

SC - Streaming video subscription charges taxable
Subscription charges for enhanced streaming video content were subject to South Carolina sales and use tax. The provider offered streaming video content licensed by third parties, known as broadcaster...

SD - Fact sheet on sales, use, and contractors’ excise tax licensing requirements updated
The South Dakota Department of Revenue has updated a fact sheet regarding the sales, use, and contractors’ excise tax licensing requirements. Topics covered in the fact sheet include sales tax l...

TN - Third party was not entitled to redeem property
A third party who tried to redeem property after a Tennessee property tax sale was not entitled to do so. The third party did not meet the statutory definition of a "person entitled to redeem"&nb...

TX - March 2018 certification of average closing price of gas and oil released
The Texas Comptroller of Public Accounts has determined that the average taxable price of crude oil for the reporting period March 2018 is $44.09 per barrel for the three-month period beginning on Dec...

UT - New sample client letter on rate reduction, single-sales factor formula, and more now available
Utah recently enacted legislation that lowers income tax rates, phases in use of a single-sales factor apportionment formula, and makes other changes. A sample client letter has been created that assi...

VT - Fact sheet discussing uniform capacity tax on solar plants reissued
A Vermont fact sheet that discusses the taxation of power plants with respect to the uniform capacity tax and property taxes has been reissued. The document provides background information on the unif...

VA - Assessment upheld as it was timely issued
A Virginia personal income tax assessment issued against taxpayers in accordance with the devalued land preservation tax credit was upheld because the assessment was timely issued within the statutory...

WA -
A Washington rule has been adopted that provides for brief adjudicative proceedings to determine penalties and interest imposed under the Uniform Unclaimed Property Act. The proceedings will determine...

WV - Party who failed to redeem not an indispensable party in section 60 proceeding
A circuit court’s denial of a property owner’s motion to intervene was affirmed by the West Virginia Supreme Court because the property owner failed to avail the statutorily-created remedy...

WI - Wisconsin explains reconciliation with federal consolidated returns
Wisconsin explains how combined groups must reconcile corporations on the combined corporation franchise or income tax return, Form 6.A Department of Revenue bulletin also discusses other income tax t...

WY - Transfer of title not a taxable vehicle sale
When the taxpayer transferred title to his motor vehicle, no sale occurred for purposes of the Wyoming sales tax because there was no transfer of possession. The taxpayer transferred title to the moto...