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Tax Briefing(s)

2021 Tax Year-In-Review Build Back Better Act Infrastructure Investment and Jobs Act 2021 Year-End Tax Planning

Automatic Consent Procedures Updated for Certain Accounting Method Changes
The IRS has updated automatic consent procedures for taxpayers to change their method of accounting to comply with final regulations under Code Secs. 263A, 448, 460 and 471 issued on January 5, ...

Form-Related Guidance on Early Termination of Employee Retention Credit Provided
The IRS has informed that taxpayers who are not recovery startup businesses are not eligible for the employee retention credit for wages paid after September 30, 2021 due to the amendments by the Infr...

IRS Releases New Form 8918, Material Advisor Disclosure Statement
The IRS has released a new version of Form 8918, Material Advisor Disclosure Statement, to include 2D barcodes. After June 1, 2022, the IRS will accept only the latest version of Form 8918 (Rev. Nove...

IRS Revises Form 1024 to Allow Electronic Submission
The IRS has revised Form 1024, Application for Recognition of Exemption Under Section 501(a), and its instructions to allow electronic filing for the first time. This development is the part of an ong...

IRS Criminal Investigation Releases Annual Report
The IRS-Criminal Investigation (IRS-CI) has released its Fiscal Year 2021 Annual Report. The report details statistics, important partnerships and significant criminal enforcement actions from IRS-CI,...

AL - Town of Vance increases certain local tax rates
Effective January 1, 2022, the town of Vance increases various local Alabama sales and use tax rates. The rates for the following increase as indicated:general items (from 2.0% to 3.0%);admissions to ...

AK - Interest rates announced for Q1 of 2022
The Alaska interest rate for delinquent taxes and overpayment of taxes is set at 5.50%, compounded quarterly, for the period January 1, 2022, through March 31, 2022. The Department of Revenue posting ...

AZ - Interest rates unchanged for first quarter of 2022
The interest rates on underpayments and overpayments of Arizona taxes are unchanged at 3% for the first quarter of 2022.Previous Interest RatesThe interest rates from previous quarters and years may b...

AR - Not-for-profit liable to pay tax on services received from vendor
A not-for-profit corporation (taxpayer) was liable to pay compensating use tax on taxable services it received from a vendor because the vendor failed to charge the taxpayer Arkansas sales and use tax...

CA - Replacement property value erroneously included in gain calculation; assessment sustained
For California personal income tax purposes, taxpayers were not entitled to nonrecognition of gain from an exchange of property because the taxpayers erroneously included replacement property value in...

CO - Heart monitor does not qualify for medical devices exemption
The Colorado Department of Revenue (department) issued a letter ruling discussing the application of sales and use tax on the retail sale of heart monitors. In this matter a company (taxpayer) sold he...

CT - 2021 legislative changes affecting the corporation business tax discussed
The Connecticut Department of Revenue Services (department) issued a special notice discussing the 2021 legislative changes affecting corporate income tax. The notice, among other information, clarifi...

DE - Hurricane IDA affected taxpayers can file returns by January 3, 2022
Delaware taxpayers located in areas affected by Hurricane Ida, that have been designated as disaster areas, will have until January 3, 2022 to file tax returns and submit tax payments.Â The Delaware ...

DC - Capital gains deduction clarified
The District of Columbia has adopted an emergency act to clarify that the capital gains deduction for investing in a qualified opportunity fund will apply to an individual, estate, or trust. Act 246 (...

FL - Solar panels on federal air base taxable
A Florida taxpayer’s tangible personal property used in connection with a solar energy generating facility within the federal Air Force base was taxable because once leased, the property is no longe...

GA - Guidance on life sciences manufacturing job tax credit issued
For corporate and personal income tax purposes, the Georgia Department of Revenue issued a regulation concerning the implementation and administration of the life sciences manufacturing job tax credit...

HI - New deadline for employers to file and furnish form W-2/HW-2 discussed
For personal income tax withholding purposes, the Hawaii Department of Taxation (department) has issued a tax announcement to remind all Hawaii employers about changes to due dates for Form W-2/HW-2.E...

ID - 2022 circuit breaker program addressed
The annual property tax reduction (or "circuit breaker") program available to qualified homeowners (including mobile homeowners and residents of a care facility or nursing home) who both own and live...

IL - Jodaviess county multiplier announced for 2021
The final JoDaviess County equalization factor (multiplier) for Illinois property tax purposes has been set for 2021 at 1.0000. The final 2020 multiplier was 1.0000. Release, Illinois Department of R...

IN - Partnership audit guidance released
Indiana provides guidance to income taxpayers regarding the new regime governing parntership audits and amended returns. The new regime is effective for partnership audits and amended returns occurrin...

IA - Rules related to hoover presidential library tax credit announced
For corporate and personal income tax purposes, the Iowa Department of Revenue has adopted rules related to the Hoover presidential library tax credit, effective November 19, 2021.The purpose of this ...

KS - Disabled access credit limit increased
For personal income tax purposes, the Kansas Department of Revenue (department) has issued a notice discussing recent amendments to the disabled access credit. The credit applies to Kansas residents w...

KY - Annual adjustment of standard deduction for 2022 tax year is $2,770
Kentucky Department of Revenue issued a press release stating that the personal income tax standard deduction for the 2022 tax year is $2,770, an increase of $80 from the last year. Press Release, Ke...

LA - Interest rate on unpaid taxes remains unchanged
The interest rate on unpaid Louisiana taxes remains 6.5% for 2022. Revenue Information Bulletin No. 22-001, Louisiana Department of Revenue, December 29, 2021...

ME - Paper mill's tax abatement request was correctly denied
For Maine property tax purposes, the Supreme Court affirmed the superior court’s decision affirming the State Board of Property Tax Review’s (Review Board’s) denial of a paper mill’s tax abate...

MD - Evidence for claiming refund under statute of limitation discussed
The Court of Special Appeals of Maryland (court), in a personal income tax matter, determined that in a situation where a taxpayer mails a claim for a refund, but the Comptroller of Maryland does not ...

MA - Denial of manufacturing classification affirmed as taxpayer was not engaged in any manufacturing activities
For property tax purposes, the taxpayer could not be classified as a manufacturing corporation for the year 2019 because it was not engaged in any manufacturing activities in Massachusetts as of Janua...

MI - Deduction allowed for wagering losses
For tax years beginning January 1, 2021, a taxpayer may deduct from Michigan personal income tax wagering losses deducted under Section 165(d) of the Internal Revenue Code for the same tax year. A non...

MN - Interest rates for 2022 remains 3%
The Minnesota Department of Revenue's (department's) interest rates remains 3% for the 2022 tax year. The department issued a release explaining how the interest rate is applicable on unpaid taxes.�...

MS - Additional filing extensions due to hurricane IDA announced
The Mississippi Department of Revenue has announced that it will follow the additional federal extended due date of February 15, 2022, to file certain income tax returns for victimes of Hurricane Ida....

MO - Food retail sales subject to reduced food tax rate
The Missouri Department of Revenue (department) issued a letter ruling discussing the applicability of reduced food tax rate on the sales of health supplements, protein powders and bars. In this matte...

MT - Education credit rules amended
Montana adopted amendments to its income tax rules regarding the student scholarship organization credit and the educational improvement program credit. Generally, the amendments reflect changes previ...

NE - Motor fuel rate decreased
From January 1, 2022, through June 30, 2022, the Nebraska motor fuel tax rate is decreased to 24.8 cents per gallon (previously, 27.7 cents per gallon). The notice can be viewed on the department's w...

NV - State high court upholds decision invalidating parts of 2019 MBT legislation
The Nevada Supreme Court affirmed a district court decision that invalidated portions of a 2019 law (S.B. 551) affecting the rates of the modified business tax. The law had resulted in Nevada continui...

NH - Disaster-related nexus waiver provisions enacted
New Hampshire has enacted provisions stating that no out-of-state businesses or employees who are in the state to perform disaster-related or emergency-relate work will be deemed to have established s...

NJ - Tax relief for hurricane IDA victims extended
Individuals and corporations affected by Hurricane Ida now have until February 15, 2022, to file their New Jersey tax returns and submit payments for any return and/or payment, including estimated pay...

NM - Guidance on gross receipts tax holiday revised
The New Mexico Taxation and Revenue Department has revised its publication providing information on the gross receipts tax holiday. The publication covers numerous topics, including a general summary ...

NY - Deriving receipts nexus thresholds increased for 2022
New York announced an increase in the thresholds at which a corporation is deemed to be deriving receipts from activity in the state and in the Metropolitan Commuter Transportation District (MCTD) for...

NC - Updates to North Carolina withholding tax discussed
North Carolina Department of Revenue (department) issued a notice discussing updates to personal income tax withholding requirements. The notice, among other information, states that:All employers, pe...

ND - Summary of 2021 legislation released
North Dakota issued a summary containing highlights of corporate and personal income tax legislation enacted in 2021, including laws that:expanded the credits for nonprofit private school contribution...

OH - Changes for employers to report tax year 2021 W-2/1099-R discussed
Ohio informs employers that the Department of Taxation (department) is lowering the threshold for the electronic filing of W-2 and 1099-R information for calendar year 2021 information (submitted in 2...

OK - Employer blood donation credit enacted
Oklahoma has enacted a nonrefundable income tax credit for employers whose employees participate in a blood drive that is organized with a nonprofit blood donation organization. The blood drive may no...

OR - Regulation on spouse or disabled heir election to continue deferral amended
The Oregon Department of Revenue has amended its property tax regulation on a spouse or disabled heir's election to continue the property tax deferral. If a spouse or disabled heir did not apply joint...

PA - Guidance regarding cancellation of personal indebtedness issued
Pennsylvania has updated a personal income tax bulletin that provides guidance regarding the tax consequences of cancellation of personal indebtedness. The updated bulletin clarifies the treatment of ...

RI - Taxpayers informed of changes in certain income tax credits
Rhode Island issued a notice informing taxpayers of the changes made to certain Rhode Island corporate and personal income state tax credits because of the recently enacted legislation. The legislatio...

SC - Nexus relief for covid-19 telecommuting extended again
South Carolina has extended through March 31, 2022, relief that it previously announced regarding the establishment of income and sales tax nexus solely because an employee is temporarily working in a...

SD - Legislative changes expanding property tax relief for eligible landowners discussed
South Dakota has issued a release providing information on the legislative changes made to the riparian buffer strip program that expanded the property tax relief for eligible landowners. Applications...

TN - Extension announced for taxpayers affected by storms, tornadoes, and flooding
Tennessee announced an extension of franchise and excise tax filing and payment deadlines to May 16, 2022. This follows the IRS decision to extend federal deadlines for those located in a designated d...

TX - 2022 local sales and use tax is 1.75
The estimated average rate of local sales and use taxes imposed in Texas during the preceding state fiscal year ending August 2021 is 1.75%. This rate will be in effect for the period of January 1, 20...

UT - Recommended personal property valuation schedules and registered vehicle uniform fees updated
Utah has updated its recommended personal property valuation schedules to establish the taxable value for personal property in the 2022 assessment year. The schedules identify various types of persona...

VT - 2022 withholding tables released
Vermont has released its 2022 income tax withholding instructions and tables. Publication GB-1210, Vermont Department of Taxes, December 2021...

VA - Refund denied because return was untimely filed
A taxpayer’s claim for a refund of Virginia personal income tax for 2016 was properly denied because her tax return was filed beyond the statutory limitation period. Generally, an application for re...

WA - Guidance issued on invalidation of proportional attribution for certain periods
For business and occupation (B&O) tax purposes, the Washington Department of Revenue has provided interim guidance on the impact of the Thurston County Superior Court's decision in AT&T Servi...

WV - Home inspection services do not qualify as exempt professional services
Home inspection services do not qualify as professional services exempt from West Virginia sales and use tax.Professional ServicesThe term "professional service" is not defined in the tax code. Howe...

WI - Guide to Wisconsin wage statements and information returns updated
The Wisconsin Department of Revenue (department) has released an updated version of its guide on wage statements and information returns for personal and corporate income tax purposes. The guide provi...

WY - Interest rate announced
The interest rate for underpayment of Wyoming taxes is 7.25% as of January 1, 2022. The notice can be viewed on the department’s website. News Release, Wyoming Department of Revenue, January 3, 20...