Mazzeffi & Company

Tax Alerts

Tax Briefing(s)

Tax Increase Prevention Act of 2014/ABLE Act/Omnibus Funding Agreement 2014 Year-End Planning Fiscal Year (FY) 2015 Budget Proposals

Final FATCA regulations focus on individuals required to report foreign assets
Treasury and the IRS issued final regulations under the Foreign Account Tax Compliance Act (FATCA) that require individual U.S. taxpayers to report specified financial foreign assets. The final regula...

Treasury clarifies more details for myRA plan for small-dollar savers
Treasury has issued a final rule clarifying details of the new myRA retirement savings vehicle created by President Obama, via executive order, on January 29, 2014. The President intended the myRA pla...

IRS updates safe harbor explanations on eligible rollovers from retirement plans
The IRS has updated two safe harbor explanations for retirement plans to provide to participants who receive an eligible rollover distribution, that is, a distribution that can be rolled over from one...

Over- and underpayment interest rates remain same for first quarter 2015
The IRS has announced that the rates at which interest accrues on tax overpayments and underpayments of tax for the calendar quarter beginning January 1, 2015, will remain unchanged from the previous ...

60-days for strict IRA rollover deadline counts calendar, not business days
A taxpayer was not entitled to a waiver of the Code Sec. 408(d)(3) requirement that an IRA rollover be made within 60 days. The taxpayer’s explanation—that she had believed the 6...

IRS releases official 2015 inflation-adjusted tax brackets, other amounts
The IRS has released its list of 2015 inflation-adjusted tax amounts, based on recent CPI-U indices that have only recently been finalized. The Tax Code requires that federal income tax brackets and c...

IRS revises policy on structuring of cash transactions after reports of overreaching
Lawmakers and the media recently have questioned the reach of the IRS's policy on asset forfeiture by taxpayers suspecting of structuring cash transactions. In response, the IRS indicated it would cha...

Tax Court finds profit motive for horse racing/breeding activity despite lengthy history of losses
Despite earning a profit for only five of the past 30 years, a married couple successfully persuaded the Tax Court that they engaged in horse racing and breeding activity for profit. The court found t...

Many who contribute to retirement savings may still get Saver's Credit
The IRS recently issued a reminder that there is still time left for low- and moderate-income workers to save for retirement and earn a tax credit for 2014. Eligible taxpayers, including new college g...

IRA's acquisition of shares in gold trust not treated as collectible
The IRS has determined that an individual retirement account (IRA) could acquire shares in a trust invested in gold and the acquisition would not be treated as a collectible. As a result, the amount t...

IRS releases 2015 inflation adjustments to retirement-related amounts; SSA publishes 2015 wage base
The IRS recently issued a long list of cost of living adjustments (COLAs) for various Tax Code provisions related to retirement savings. These COLAs are for the 2015 tax year and are dependent upon th...

IRS finalizes rules on deductible local lodging expenses
The IRS has issued final rules under Code Secs. 162 and 262 for when employees may deduct their expenses for local lodging that are required in their trade or business. The final regulations also prov...

IRS announces per diem rates for post-September 30 travel
The IRS has released the simplified per diem rates that taxpayers can use to calculate reimbursements to employees for ordinary and necessary expenses incurred during business-related travel after Sep...

IRS describes tax benefits of van pooling; highlights "80/50" rule
In a recently-released information letter to a taxpayer, the IRS outlined the rules for excluding the costs of van pooling, which is one type of qualified transportation fringe benefit. Code Sec. 132(...

Senators seek action on tax refund fraud relief for victims
Tax refund fraud is a growing problem, 15 senators told the IRS in October. The senators urged the IRS to improve its oversight of refunds and reach out to victims of refund fraud and identity theft.R...

AL - Fiduciary income tax rule issued
The Department of Revenue has issued a new fiduciary income tax rule providing definitions of a “resident estate or trust” and a “nonresident estate or trust” for purposes of A...

AK - Interest rate unchanged for first quarter of 2015
The Alaska interest rate for delinquent taxes and overpayment of taxes remains at 3.75% for the period January 1, 2015, through March 31, 2015. Quarterly Interest Rate, Alaska Department of Revenue, J...

AZ - Governor proposes permanently indexing tax for inflation
In his State of the State Address, Arizona Gov. Doug Ducey proposed permanently indexing Arizona’s personal income tax for inflation. The governor said that Arizona taxpayers are currently faced...

AR - 2015 withholding tables available
The Arkansas Department of Finance and Administration has announced that the 2015 personal income withholding tax tables are available to calculate the appropriate withholding amounts. Withholding Tax...

CA - Self-employed health insurance deduction, ready return elimination, and more discussed
In its January 2015 issue of Tax News, the California Franchise Tax Board (FTB) discusses the following issues relating to corporation franchise and income and personal income taxes.Self-Employed Heal...

CO - Taxpayers cautioned against substituting pay stubs for W-2s
The Colorado Department of Revenue is cautioning taxpayers against using their pay stubs as substitute W-2s for personal income tax filing because they do not usually include the employer’s fede...

CT - Payment date for refunded assessments announced
Under Connecticut insurance premiums tax law, each insurer that is a member of the Connecticut Insurance Guaranty Association (CIGA) must pay a portion of assessments refunded in January 2015 to the C...

DE - 2014 Unclaimed property list posted
The Delaware Division of Revenue has posted its 2014 list of unclaimed property. The list is available on the division’s website at http://finance.delaware.gov/unprop/unprop_lists.shtml. Notice,...

DC - Senior/disabled deduction income limit increased for 2015
The District of Columbia’s real property senior/disabled deduction income limit will increase to $127,100 (previously, $125,000) for the 2015 real property tax year. The aforementioned income li...

FL - Rules updated to conform with statutory provisions
A number of Florida sales and use and communications services tax rules are amended.Rule 12-13.004 is amended to make the rule consistent with legislation that increased the statutory maximum compromi...

GA - Electric company’s transmission and distribution system equipment was not exempt manufacturing machinery
The Georgia Tax Tribunal has ruled that the exemption in effect in 2009 and 2010 under O.C.G.A. §48-8-3(34) for machinery and equipment necessary and integral to the manufacture of tangible perso...

HI - Standard mileage rates for 2015 announced
Hawaii conforms to the federal standard mileage rates for computing personal income tax deductions for operating an automobile for business, charitable, medical, or moving expense purposes. The rates ...

ID - Governor addresses tax topics in annual speech
In his annual State of the State and Budget Address, Idaho Governor C. L. “Butch” Otter commented upon several noteworthy tax topics, such as improving the administrative operations of the...

IL - Tax sale reimbursement provision applies to counties
For purposes of the Illinois property tax and mobile home local services tax, a tax deed or a tax certificate of title will not be issued if a county, city, village, or incorporated town has a qualify...

IN - Research credits allowed, proceeds from sale of grain elevators “business income”
An Indiana corporate income taxpayer was allowed to claim research expense credits because the taxpayer supplied the appropriate supporting documentation. However, the taxpayer could not include a man...

IA - Governor proposes tax credit
In his 2015 Condition of the State Address, Iowa Gov. Terry Branstad announced a personal income tax credit proposal that would allow individuals to volunteer for worthy causes within Iowa’s com...

KS - Guidance on diplomatic exemption revised
The Kansas Department of Revenue has revised a notice that provides guidance on the application of retailers’ sales, use, or transient guest taxes to transactions in which the purchaser furnishe...

KY - Online withholding tax return and payment system launched
The Kentucky Department of Revenue has launched a new online personal income tax withholding return and payment system (WRAPS) at http://wraps.ky.gov. Employers can use WRAPS to file returns (annual, ...

LA - Removal of special assessment level upon transfer of property clarified
In the opinion of the Louisiana Attorney General, if property subject to a special assessment level (SAL), which prevents an increase in assessed value for property tax purposes, is transferred by mea...

ME - Governor’s budget proposal changes tax rates
In his 2016-2017 biennial budget briefing, Maine Gov. Paul LePage outlined major changes to individual, corporate and sales and use taxes.Regarding Maine individual income tax, the governor proposes r...

MD - Business personal property forms released
The Maryland Department of Assessments and Taxation has released 2015 business personal property tax forms for domestic and foreign corporations, limited liability companies, limited liability partner...

MA - Market-based sourcing regulation adopted
The Massachusetts Department of Revenue (DOR) has adopted a final regulation on the apportionment of income by multistate corporate excise taxpayers. The regulation implements 2013 legislation that re...

MI - Higher interest available for some refunds
Beginning January 1, 2015, certain Michigan business tax refunds that are not paid within 90 days after the claim is approved or 90 days after the date established by law for filing the return, whiche...

MN - Impact of tax increase prevention act discussed
For personal income tax purposes, the Minnesota Department of Revenue has issued a bulletin discussing the impact of the Tax Increase Prevention Act of 2014 on the 2014 Minnesota Schedule M1M, Income ...

MS - Taxpayers failed to exhaust remedies
Mississippi personal income taxpayers were not able to challenge an assessment against them in chancery court because they failed to exhaust all administrative remedies. The taxpayers acknowledged tha...

MO - Taxability of sales of bees and tangible personal property necessary to raise bees, produce honey discussed
The Missouri Department of Revenue has issued a letter ruling regarding the sales and use tax treatment of sales of bees and tangible personal property necessary to raise bees and produce honey. Speci...

MT - Latest tax news you can use issued
The Montana Department of Revenue has released the latest issue of Tax News You Can Use, which covers various corporate and personal income tax issues. The department has announced that it will begin ...

NE - Error in printed 2014 Nebraska tax table
The Nebraska Department of Revenue has announced that there is an error in the 2014 Tax Table included in the printed 2014 Nebraska Individual Income Tax Booklet, which will be mailed next week. The e...

NV - Exemption violated Commerce Clause; tax still constitutional
A Nevada energy company was denied a use tax refund for the consumption of coal that was purchased in another state for use in Nevada. The company owned and operated electricity-generating plants in N...

NH - Developers lacked standing to seek refund of impact fees
The New Hampshire Supreme Court affirmed a trial court holding that a town was within its authority to enact an ordinance directing that any refund of impact fees be paid to the current property owner...

NJ - Five-year abatement exemption application denied as untimely filed
For New Jersey property tax purposes, a five-year abatement exemption of the 2012 tax year assessment of a taxpayer’s residence was denied due to the untimely filing of the application. Pursuant...

NM - Subsidiaries’ NOL carryovers deductible on combined return
A hearing officer for the New Mexico Taxation and Revenue Department (TRD) ruled that a parent corporation filing a combined consolidated group return for the first time could claim a deduction for ne...

NY - Site preparation credit discussed
A corporate taxpayer could not include costs expensed pursuant to Internal Revenue Code (IRC) §198 in the site preparation credit component of the brownfield redevelopment tax credit for New York...

NC - Department of revenue makes extended phone hours available
The North Carolina Department of Revenue has announced that it is offering extended telephone hours so that more personal income taxpayers may be helped. During the filing season, telephone assistance...

ND - Governor proposes property tax reform
In his 2015 State of the State address, North Dakota Gov. Jack Dalrymple called for the passage of property tax reform. Specifically, the governor stated, “we can provide additional tax relief d...

OH - DOT implementing safeguards against tax fraud/identity theft; refunds may be delayed
The Ohio Department of Taxation (DOT) has announced that it is implementing additional safeguards that will inevitably cause some personal income tax refunds to be delayed this upcoming filing season....

OK - Local rate changes announced
The following local sales and use tax rate changes take effect in Oklahoma on April 1, 2015:Grady County increases its sales and use tax rate by 0.125%, from 0.375% to 0.5%.The city of Healdton increa...

OR - DOR reminds businesses of date for filing personal property reports
The Oregon Department of Revenue has issued a notice to taxpayers regarding personal property taxes that reminds businesses that they must file personal property reports by March 1, 2015. The notice r...

PA - Taxpayers failed to disprove residency
Taxpayers were subject to Pennsylvania’s personal income tax based on their previous tax filings and correspondence with the state. In 2009, the taxpayers filed an amended 2005 tax return statin...

RI - Increased asset expense deduction available
The Rhode Island Division of Taxation reminds corporate and personal income taxpayers that they may claim a higher federal and state expensing deduction amount for assets placed in service in 2014. Be...

SC - Same-sex marriage filing guidance finalized
The South Carolina Department of Revenue (DOR) has issued a revenue ruling to address South Carolina’s income tax treatment of same-sex marriage. Previously, the DOR had issued a temporary rulin...

SD - 2015 municipal tax information bulletin released
The South Dakota Department of Revenue has issued a municipal tax information bulletin that provides an introduction to municipal sales, use, and gross receipts taxes. The bulletin also discusses sale...

TN - Increased reporting requirements rescinded
The Tennessee Department of Revenue has issued a notice rescinding a prior notice that provided information about increased reporting requirements for tobacco tax purposes. Notice #14-15, reported in ...

TX - Taxpayer switching combined groups could not claim temporary business loss carryover credits
A taxpayer, the designated reporting entity of a combined group, was not entitled to Texas temporary business loss carryover credits because the entities of the combined group had changed combined gro...

UT - Business personal property publications updated
The Utah State Tax Commission has updated two property tax publications relating to business personal property. The first publication deals with business personal property tax audits, and, aside from ...

VT - Governor will request change in click-through nexus law effective date
According to a Vermont Department of Taxes press release, Gov. Peter Shumlin will ask the Legislature to change the effective date of Vermont’s sales and use tax click-through nexus law to one y...

VA - First-time home buyer savings account guidelines issued
The Virginia Department of Taxation has issued guidelines regarding the first-time home buyer savings account legislation that established a personal income tax subtraction for income earned on contri...

WA - Guidance issued regarding form 1099-MISC income
The Washington Department of Revenue has issued tax guidance explaining that an individual is likely an independent contractor if the individual performed work for a business, individual, or any other...

WV - 2015 tax calendar released
A tax calendar for 2015 released by the West Virginia State Tax Department provides the due dates for the reporting and payment of multiple tax types. 2015 Tax Calendar, West Virginia State Tax Depart...

WI - Information returns, online access to form 1099-G discussed
The Wisconsin Department of Revenue has issued personal income and corporation franchise and income tax notices discussing the preparation of information returns and online access to Form 1099-G.Emplo...

WY - Local rate changes and 2015 interest rate announced
A Wyoming Department of Revenue newsletter announces the following local sales, use, and lodging tax rate changes taking effect April 1, 2015.County Rate ChangesCampbell County’s sales/use tax r...

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