Mazzeffi & Company

Tax Alerts

Tax Briefing(s)

2018 Year-End Tax Planning Tax Reform 2.0 2018 Post-Filing Season Update Congress Approves Sweeping Tax Overhaul

Safe Harbor for Taxpayers Claiming 100 Percent Bonus Depreciation on Vehicles Subject to Luxury Car Depreciation Caps
A long-expected safe harbor allows the owner of a vehicle that is subject to the annual luxury car depreciation caps to claim depreciation deductions during each year of the vehicle’s regular re...

Senate Approves Bipartisan IRS, Treasury Funding Bill; Grassley Pushes for Tax Extenders
The Senate approved a bipartisan government spending bill on February 14 by an 83-to-16 vote to avert another partial government shutdown. The "minibus" spending package, which will keep the...

Tax Reform Benefits Seen in Larger Paychecks, Not Refunds, Treasury Says
The average refund amount at the beginning of the 2019 tax filing season was smaller than this time period last year, a new IRS report shows. However, most taxpayers are seeing tax reform’s bene...

IRS Recommends Acquiescence In Result in Case Holding Meals as De Minimis Fringe Benefits
The IRS has recommended acquiescence in result only to a Tax Court decision. In J.M Jacobs, 148 TC No. 24, Dec. 60,947, the Tax Court allowed a professional hockey team, organized as an...

IRS Issues Update on Enrolled Agent Renewal Processing
The processing of renewals for enrolled agents (EA) whose enrollment expires on March 31, 2019 will be delayed due to the government shutdown. Therefore, the IRS is automatically extending enrollment ...

AL - City of Florence increases local tax rates
Effective March 1, 2019, the city of Florence increases the local Alabama sales and use tax rates for the following from 3.5% to 4.5%:general items;admissions to places of amusement and entertainment;...

AK - Governor calls for constitutional amendments in sos address
In his first State of the State (SOS) address, Alaska Gov. Michael J. Dunleavy announced three constitutional amendments he plans to introduce. The amendments, which will be what he called "the f...

AZ - Guidance regarding state tax benefits for taxpayers issued
The Arizona Department of Revenue (department) has issued a notice informing taxpayers that they may still be eligible for property and personal income tax benefits. The notice provides that taxpayers...

AR - Federal opportunity zone investment provisions adopted by Arkansas
Effective for tax years beginning on and after January 1, 2018, Arkansas adopts the federal opportunity zone provisions under IRC Sec. 1400Z-2 for purposes of computing state corporate and personal in...

CA - California addresses application of IRC Sec. 367 and related regulations
The California Franchise Tax Board has issued a notice identifying how federal regulations will be applied in cases involving the transfer of certain appreciated property to an insurer.California Law ...

CO - Computer program maintenance service charges not subject to tax
A company’s (taxpayer’s) charges for computer program maintenance services were not subject to Colorado sales and use tax because the taxpayer was not selling taxable computer software as ...

CT - Summary of legislative changes affecting personal income tax issued
The Connecticut Department of Revenue Services has issued a summary of 2018 legislative changes affecting personal income taxes. The changes include:Taxpayers who for federal income tax purposes deduc...

DE - Taxpayers advised against overstating withholding amount
The Delaware Division of Revenue officials are noting an uptick in Delaware returns reporting overstated income tax withholding. Taxpayers must note that the appropriate amount to report is limited to...

DC - Release of updated withholding table delayed
For personal income tax withholding purposes, the District of Columbia Office of Tax and Revenue has not issued a new withholding due to the effects of the Tax Cuts and Jobs Act. The office advises th...

FL - Florida issues tax cuts and jobs act impact report
Florida issued a comprehensive 288-page report on how the federal Tax Cuts and Jobs Act (TCJA) impacts the state corporate income tax. State legislation enacted in 2018 directed the Florida Department...

GA - Georgia constitutional amendment barring county tax defective
The Georgia Supreme Court held that an annexation ordinance was not barred by a constitutional amendment prohibiting an educational tax.BackgroundThe City of Atlanta had enacted an ordinance to annex ...

HI - Rule describes persons with material interest in a tax return
For general excise tax purposes, the Hawaii Department of Taxation (department) has adopted an administrative rule concerning "persons with a material interest in a tax return." Persons with...

ID - Taxpayers may track refund status online
Idaho personal income taxpayers may track their tax refund status online at https://tax.idaho.gov/refund. Taxpayers must provide their Social Security number and the amount of their expected stat...

IL - Reporting and filing of nontaxable sales for resale of previously rented or leased vehicles discussed
For sales and use tax purposes, the Illinois Department of Revenue (department) has issued an informational bulletin regarding nontaxable sales for resale of previously rented or leased vehicles. Effe...

IN - March 2019 Indiana gasoline use tax rate announced
The Indiana gasoline use tax rate for March 2019 is 11.4 cents per gallon. The rate for February 2019 is 11.0 cents per gallon. Departmental Notice #2, Indiana Department of Revenue, March 2019...

IA - Vape regulations adopted
Iowa has adopted regulations implementing changes to its cigarette tax law.Taxes and PermitsLegislation has imposed sales and use tax on all delivery sales of alternative nicotine products or vapor ("...

KS - ITFA did not exempt internet provider’s equipment purchases
The Kansas BOTA ruled that an Internet service provider was correctly assessed sales and use tax on its equipment purchases. The equipment was used to provide service. It consisted of routers, switche...

KY - Senate makes changes to IRC conformity bill
The Kentucky Senate approved a bill that updates IRC conformity for computing corporation and personal income tax liability.Senate Changes to BillThe Senate version of the bill removed a combined repo...

LA - Research and development credit regulations amended
The Louisiana Department of Economic Development has amended regulations governing research and development tax credits against corporate and personal income taxes.Recent Legislative Changes to Resear...

ME - Change in electronic tax filing system and tax paper form with respect to sales of marijuana discussed
The Maine Revenue Services has issued an important notice regarding sales of marijuana, stating that its sales/use and service provider tax electronic filing system and sales/use tax paper form have b...

MD - Combined reporting legislation introduced
Two separate bills have been introduced in the Maryland Senate that would require mandatory combined reporting of corporate income taxes beginning in 2020. While S.B. 76 would mandate combined reporti...

MA - Property exclusively used for charitable purposes granted exemption
The Massachusetts Appellate Tax Board (Board) determined that the property owned by the taxpayer was entitled to a full property tax exemption because the taxpayer met its burden of proving that it wa...

MI - Fiduciary return e-filing available for tax year 2018
Beginning with tax year 2018, Michigan allows electronic filing of fiduciary income tax returns. However, Michigan will not accept electronic payments of fiduciary income tax for tax year 2018.Fiducia...

MN - Information provided on filing for homestead credit refund
The Minnesota Department of Revenue has issued a news release informing tax professionals to use the taxpayers’ Statement of Property Taxes Payable in 2019 when filing the Homestead Credit Refun...

MS - Baldwyn and Clinton announce hotel tax effective dates
The Mississippi cities of Baldwyn and Clinton have announced effective dates for hotel tax changes.Baldwyn TaxRecent legislation had technically re-enacted the Baldwyn tourism tax on hotels, motels, r...

MO - Resources for helping taxpayers affected by error in withholding tables discussed
Missouri State Senator Dave Schatz in his weekly column discussed the resources that have been set up by the Department of Revenue (department) to help corporate and personal income taxpayers affected...

MT - Deduction of unreimbursed business expense properly denied
For Montana personal income tax purposes, a 50% shareholder of a real estate brokerage business was not entitled to deduct unreimbursed employee business expenses because the taxpayer failed to establ...

NE - Deadline for farmers, ranchers, and fishermen extended
For personal income tax purposes, the Nebraska Department of Revenue has issued a bulletin informing farmers, ranchers, and fishermen that the deadline to file and pay the taxes due on their 2018 retu...

NV - Regulation establishing standards to determine whether overpayment of taxes was made intentionally or by reason of carelessness
The Nevada Tax Commission has issued a sales tax regulation establishing the standards to be used by the Department of Taxation to determine whether an overpayment of certain taxes was made intentiona...

NH - Governor presents recommended budget
Gov. Chris Sununu presented his recommended budget for Fiscal Years 2020 and 2021 on February 14. The governor noted that his budget has no new taxes of any kind. Rather, he stated the budget includes...

NJ - Taxpayer entitled to full refund of royalty payments
A New Jersey corporation business taxpayer was entitled to a full refund of tax on added back royalty payments. The taxpayer’s subsidiary reported the royalties as income and paid tax on the all...

NM - Introduced legislation would require combined reporting, broaden personal tax brackets
New Mexico legislation has been introduced that would, among other changes:require corporate income tax combined reporting and implement market-based sourcing; andbroaden personal income tax brackets ...

NY - Petition pertaining to federal tax issues denied
New York State personal income taxpayers’ petition was dismissed as the taxpayers failed to provide a required New York State or City statutory notice. In this matter, the taxpayers filed a peti...

NC - Senate passes IRC conformity update
The North Carolina Senate passed a bill that:updates the IRC conformity date for computing corporate and personal income tax liability; andmakes other technical changes.S.B. 56, as passed by the North...

ND - Guideline discussing classification of property for assessment purposes issued
The North Dakota Office of State Tax Commissioner has issued a guideline containing information on classification of property for assessment of property tax. The guideline states that sometimes it can...

OH - Security monitoring contracts properly sourced to Ohio
Gross receipts from the sale of security monitoring contracts were properly sourced to Ohio, the location of the property being monitored. After signing security monitoring contracts, the taxpayer the...

OK - Additional economic nexus bill introduced
An economic nexus sales tax bill has been introduced in the Oklahoma Senate. The bill contains almost all the provisions contained in economic nexus legislation introduced in the House.As currently dr...

OR - Taxpayers impacted by federal tax cut and jobs act may receive waivers of interest on 2018 tax underpayment
The Oregon Department of Revenue (department) is providing relief for some corporate and personal income taxpayers by waiving underpayment interest for taxpayers whose 2018 Oregon withholding and esti...

PA - Taxpayers with pending property assessment appeals required to pay tax by march 31 deadline
For Pennsylvania property tax purposes, the City of Philadelphia Department of Revenue issued a news release informing taxpayers waiting for a decision on their property assessment appeals to pay thei...

RI - Newsletter addresses 2019 filing season
The Rhode Island Division of Taxation has issued a special edition of Rhode Island Tax News containing information for taxpayers and tax practitioners regarding the 2019 filing season.2019 Return Info...

SC - Interest rate remains unchanged
The interest rate on tax underpayments remains 6% through June 30, 2019.Reduced Rate on RefundsThe refund rate for overpayments is 3% because of 2018-2019 budget bill provisions. Information Lett...

SD - Fact sheet explaining application of taxes to photographers issued
The South Dakota Department of Revenue has updated a fact sheet explaining how state and local sales and use taxes apply to photographers. The fact sheet covers topics including photography sales and ...

TN - Governor proposes to repeal amusement tax on gym memberships
Tennessee Gov. Bill Lee has proposed to repeal the amusement tax on gym memberships. The proposal will be part of the governor’s upcoming budget.The Amusement TaxThe amusement tax is placed on m...

TX - January 2019 certification of the average closing price of gas and oil released
The Texas Comptroller of Public Accounts has determined the average taxable price of crude oil for the reporting period January 2019 is $40.67 per barrel for the three-month period beginning on Octobe...

UT - Repatriation tax amendments enacted
Utah has modified:the definition of "unadjusted income" as it relates to deferred foreign income described in IRC §965; andthe schedule for a corporation to pay the state tax on deferre...

VT - Fact sheet on veterans’ exemption reissued
The Vermont Department of Taxes has reissued a fact sheet summarizing the information veterans and their tax preparers need to ensure that veterans receive available property tax assistance through th...

VA - Martinsville can appoint special commissioner to convey tax-delinquent property
Recently enacted Virginia legislation, adds Martinsville to the list of cities that are permitted to have a special commissioner convey tax-delinquent real estate. The real estate can be conveyed to t...

WA - Taxpayer subject to tax because it was providing dating service
For Washington’s Retailing Business and Occupation (B&O) tax purposes, a taxpayer was providing dating service and was required to charge retail sales tax on the charges its customers paid f...

WV - West Virginia updates IRC conformity
West Virginia updated its IRC conformity provisions that it adopts for calculating:corporation net income tax liability; andpersonal income tax liability.IRC Conformity DateThe state follows all amend...

WI - Taxability of sales and purchases by painting and finishing contractors discussed
For sales and use tax purposes, the Wisconsin Department of Revenue has issued a guidance regarding the taxability of sales and purchases made by painting and finishing contractors. Generally, sales o...

WY - Broadband internet service exemption enacted
A Wyoming sales and use tax exemption has been authorized for broadband internet service infrastructure.Broadband Internet Service ExemptionSales of equipment to a telecommunications service provider,...