Mazzeffi & Company

Tax Alerts

October 22, 2020

Tax Briefing(s)

2020 Tax Policies of the Major Presidential Candidates 2020 Payroll Tax Deferral Order 2020 Post-Filing Season Update CARES Act Coronavirus Tax Relief

Senate Fails to Pass “Skinny” COVID-19 Relief Bill
On September 10, 2020, the Senate failed to pass the Delivering Immediate Relief to America’s Families, Schools and Small Businesses Act. This bill was described as a targeted proposal, and included...

Higher Penalties on 2019 Returns Filed After September 14
The IRS has warned taxpayers who have not yet filed their 2019 tax returns that higher penalties will be imposed if they file after September 14. Taxpayers who submitted an extension of time to file t...

E-Signatures Temporarily Approved for Certain Forms
The IRS has announced that it is temporarily allowing the use of digital signatures on certain forms that normally require a handwritten signature. The following forms can be submitted with digital ...

Digital Signatures Allowed on More Forms
The IRS had announced that it would temporarily allow the use of digital signatures on certain forms that cannot be filed electronically; the Service has now added several additional forms to that...

IRS Suspends Mailing Notices to Taxpayers with Balances Due
The IRS has temporarily suspended the mailing of three notices—CP501, CP503, and CP504—to taxpayers who have a balance due on their taxes. The IRS is taking this step to avoid confusion for taxpay...

IRS Launches Partnership Audit Website
The IRS announced the launch of the Bi-Partisan Budget Act (BBA) Centralized Partnership Audit Regime website. The website intends to be a one-stop location for anything BBA-related including regulat...

Form 1040 Now Available in Spanish
The IRS will be providing Form 1040 in Spanish for the first time as part of a larger effort to reach underserved communities. The IRS’s newly expanded multilingual initiative is a key part of helpi...

AL - Daily use range fees subject to tax
A shooting range operator (taxpayer) was required to remit Alabama sales and use tax on the admission fees it charged to use it’s shooting range. In this matter, the taxpayer operated seven outdoor ...

AK - Interest rate announced for Q4 of 2020
The Alaska interest rate for delinquent taxes and overpayment of taxes is set at 5.50%, compounded quarterly, for the period April 1, 2020, through December 31, 2020. The Department of Revenue posting...

AZ - No local rate changes effective November 1
There are no local Arizona transaction privilege tax (TPT) changes effective November 1, 2020. The TPT rate chart can be viewed at: https://azdor.gov/sites/default/files/media/TPT_RATETABLE_11012020....

AR - DFA reminds taxpayers of franchise tax oversight beginning in 2021
The Arkansas Department of Finance and Administration (DFA) has updated its website to remind taxpayers that it will begin administration and collection of state franchise taxes on January 1, 2021. Fo...

CA - FTB to develop plan for California economic improvement tax voucher program
The Franchise Tax Board (FTB), in consultation with the Treasurer and the Department of Finance, must develop a comprehensive plan for a California Economic Improvement Tax Voucher Program. The FTB mu...

CO - Condominium net income incorrectly excluded from tax assessment
For Colorado property for tax purposes, the Board of Assessment Appeals (Board) erred in excluding the additional income generated from rentals of individually owned condominium units from the taxpaye...

CT - Resumption of non-judicial municipal tax sales announced
Connecticut Governor has issued an executive order that allows the resumption of certain non-judicial municipal tax sales for property tax purposes. The order permits municipalities, districts, and wa...

DE - City of Lewes authorized to impose lodgings tax
The city of Lewes is authorized to impose and collect a local Delaware lodgings tax of up to 3%. Ch. 275 (S.B. 210), Laws 2020, effective August 6, 2020...

DC - District of Columbia health benefit exchange authority assessment upheld
The District of Columbia’s Health Benefit Exchange Authority assessment was:not preempted by the Affordable Care Act; andthe City Council did not impermissibly delegate its legislative power in viol...

FL - Tax information on adoption of 2020 internal revenue code published
The Florida Income Tax Code was amended to adopt the Internal Revenue Code (IRC) retroactively to January 1, 2020. As a result, Florida will follow the computation of federal taxable income. However, ...

GA - Requirement to collect transportation service tax began August 5, 2020
Georgia discusses transportation service and taxation of certain transportation services. Generally, the transportation services tax is a 50¢ excise tax on for-hire ground transport trips and a 25¢ ...

HI - Provided on application of P.L. 86-272 to Hawaii net income tax
Hawaii has released guidance on the application of P.L. 86-272 to Hawaii net income tax. The Department of Taxation provides the guidance both in general and specifically in light of Act 221 (S.B. 495...

ID - Filing and payment deadlines extended for victims of hurricane Laura, California wildfires, and Iowa Derecho
For taxes it administers, the Idaho State Tax Commission has announced deadline extensions to file and pay taxes for victims of Hurricane Laura, the California wildfires, and the Iowa derecho from des...

IL - Final saline county multiplier announced for 2019
The final Saline County equalization factor (multiplier) for Illinois property tax purposes has been set for 2019 at 1.0000. The final 2018 multiplier was also 1.0000.The full text of the release is a...

IN - October 2020 gasoline use tax rate announced
The Indiana gasoline use tax rate for the month of October 2020 is $0.110 per gallon. Departmental Notice #2, Indiana Department of Revenue, October 2020...

IA - Reminder for upcoming tax deadline issued
Iowa issued a reminder for upcoming corporate and personal income tax deadline. The reminder discusses:The third-quarter installment of tax year 2020 estimated income tax for taxpayers filing on a cal...

KS - IFTA interest rate announced
The Kansas interest rate for delinquent taxes under the international fuel tax agreement (IFTA) is 5% from January 1, 2021 through December 31, 2021. Penalty and Interest, Kansas Department of Reven...

KY - Taxpayers affected by Oregon wildfires may file returns by January 15, 2021
Kentucky corporate and personal income taxpayers affected by Oregon wildfires, in any area designated by the Federal Emergency Management Agency (FEMA), may file their returns until January 15, 2021. ...

LA - Taxpayer had no wrongful seizure cause of action against department
A taxpayer had no wrongful seizure cause of action against the Louisiana Department of Revenue (department) under general tort law because the dispute at issue pertained to a sales and use tax assessm...

ME - Corporate filing deadline extended to November 16, 2020
Due to recent federal corporate tax changes as a result of COVID-19, Maine Revenue Services has announced that it has automatically extended the filing deadline for state corporate taxpayers, on exten...

MD - Collection on hold until covid-19 emergency; taxpayers may receive tax liability notifications
The Office of the Maryland Comptroller (comptroller) will mail notifications to certain tax filers of unpaid tax liabilities that were due July 15 (the extended deadline from the traditional April 15 ...

MA - 2020 real estate tax credit threshold amounts announced
For personal income tax purposes, the Massachusetts Department of Revenue has issued a technical information release announcing the real estate tax credit and income threshold amounts for the 2020 tax...

MI - List of education foundations for tax credit released
The Michigan Department of Treasury has announced that there are no certified education foundations for tax year 2020 for purposes of the Michigan business tax credit for contributions to education fo...

MN - Taxpayer's motion for leave to amend denied
A Minnesota taxpayer’s motion for leave to amend his property tax petition to change the assessment date to January 2, 2019, instead of January 2, 2020, was denied because the tax court cannot autho...

MS - Rate code change to Jackson county hotel and motel tax
Beginning with the September 2020 filing period, sales and use taxpayers are instructed to use rate code 99 to report the 2% Jackson County hotel and motel tax. There is currently a 2% tax imposed on ...

MO - Seller and purchaser were different person; refund properly denied
A restaurant organized as Limited Liability Company (LLC) was properly denied Missouri sales and use tax refund on the sale of used motor vehicle as seller and purchaser were not the same person. Gene...

MT - Wildfire disaster emergency property tax relief
Montana Gov. Steve Bullock reminds Montanans affected by wildfire that they may qualify for property tax reductions or other tax assistance. Montana property owners that have experienced a loss of the...

NE - Guidance on taxability of interest and dividend income from state, local, and U.S. government obligations updated
The Nebraska Department of Revenue has updated a personal income tax information guide on the addition and subtraction adjustments to federal adjusted gross income (AGI) for interest and dividend inco...

NV - Nevada enacts tax amnesty program and temporary acceleration of net proceeds tax on minerals
New legislation requires the Nevada Department of Taxation to establish a tax amnesty program for delinquent taxpayers. It also accelerates payment of the net proceeds tax due for minerals.Tax Amnesty...

NH - Interest rates decrease for 2021
Interest rates on underpayments and refunds of New Hampshire taxes will decrease for 2021.For 2021, rates are:5% for underpayments (down from 7% for 2020); and2% for refunds (down from 4% for 2020).Te...

NJ - Earned income tax credit expanded
New Jersey is expanding the personal earned income tax credit so that it applies to resident individuals who are at least 21 years of age, but who cannot claim a qualifying child. A qualifying child i...

NM - Agricultural biomass credit rules amended
The New Mexico Energy, Minerals and Natural Resources Department has amended rules governing the agricultural biomass credit against corporate and personal income taxes. The rules were amended to conf...

NY - Request for conciliation conference properly denied as untimely
A New York taxpayer’s request for a conciliation conference with the Bureau of Conciliation and Mediation Services regarding an assessment of cigarette tax was untimely because it was not filed with...

NC - Qualified taxpayer unable to claim extra credit grant may file amended returns by October 15
The North Carolina Department of Revenue (department) issued an important notice, acknowledging that some personal income taxpayers with qualifying children who filed a 2019 Form D-400 might not be...

ND - Local tax change announced
North Dakota has announced an upcoming local sales and use tax rate change that is effective October 1, 2020.ThompsonThompson will impose a city sales, use, and alcohol gross receipts tax of 2%. Rele...

OH - Sourcing of security monitoring contracts to Ohio overturned
The Ohio Supreme Court has held that gross receipts from the sale of security monitoring contracts do not have to be sourced to Ohio for purposes of the commercial activity tax (CAT), the location of ...

OK - Taxpayers with income tax due may receive billing letters
Personal income taxpayers with balance due on their Oklahoma income tax account may receive billing letters. The balance due includes penalty, interest, and/or Underpayment of Estimate Tax Interest (U...

OR - Department announces wildfire and wind tax relief
The Department of Revenue provides interest and penalty relief to taxpayers impacted by the Oregon wildfires and straight-line winds. Interest and penalty imposed for late filing or late payment relat...

PA - Billboard revenue a factor in valuing property
The Supreme Court of Pennsylvania held that, in relation to real property containing billboards, although a billboard’s value may not itself be considered when assessing the underlying real property...

RI - Emergency regulations on withholding for teleworkers during covid-19 pandemic extended
The Rhode Island Department of Revenue has extended the expiration date for income tax emergency regulations governing employees who are temporarily working remotely due to the coronavirus pandemic.Wi...

SC - Business license tax act adopted
South Carolina has adopted a Business License Standardization Act to govern the imposition of business license taxes by counties and municipalities.Computation of TaxA business license must be issued ...

SD - Reminder issued on deadline for buffer strip tax incentive applications
For South Dakota property tax purposes, the Department of Revenue reminds landowners that applications for the riparian buffer strip tax incentive must be submitted by October 15, 2020. Applications f...

TN - Tax impacts on corporations' restructuring discussed
The Tennessee Department of Revenue, in a letter ruling, discussed the corporate income tax treatment of a taxpayer’s companies that were structured corporations and elected Subchapter S status for ...

TX - Tax treatment of sales made by school districts and public schools discussed
Texas, in a recent publication, clarifies that school districts and public schools are exempt from paying Texas sales and use tax on taxable items they purchase. Qualified nonprofit private schools ar...

UT - Guidance on reporting requirements of holders of unclaimed property issued
Utah has issued guidance that summarizes reporting instructions for holders of unclaimed property. The guidance discusses Utah’s 2020 unclaimed property laws concerning the reporting requirements of...

VT - Guidance on veterans' exemption updated
Vermont provides guidance for veterans regarding their eligibility for a property tax exemption and credit. The document discusses eligibility and filing requirements. Fact Sheet No. FS-1003, Vermont...

VA - Tax rate changes for central Virginia region starting October 1, 2020, announced
Effective October 1, 2020, the sales and use tax rate will increase by 0.7% in several cities and counties of Central Virginia. The increase applies to sales made in the city of Richmond and the count...

WA - Rule on radio and television broadcasting revised
For Washington business and occupation (B&O) tax purposes, a broadcasting station may deduct gross receipts from national, network, and regional advertising by using a standard deduction or by ite...

WV - Rules implement coal severance tax rebate
The West Virginia coal severance tax rebate is available to taxpayers that make a capital investment in new machinery and equipment that results in an increase in coal production. The rules sunset eff...

WI - Machinery, tools, and patterns used in manufacturing not entitled to exemption
For Wisconsin personal property tax purposes, any machinery, tools, and patterns (MTP) used in any way in manufacturing are not exempt. In this case, the Wisconsin Department of Revenue found that the...

WY - State lodging assessment imposed
Beginning January 1, 2021, all Wyoming lodging vendors collect a 3% assessment on lodging services. If a county does not have a county lodging tax imposed on January 1, 2021, lodging vendors collect t...