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

2019 Inflation Adjustment Amounts Released
The IRS has released new inflation-adjusted amounts for 2019. These inflation-adjusted figures generally apply to tax years beginning in 2019 or transactions or events occurring in calendar year 2019....

2019 Inflation Amounts for Pension Plans, Retirement Accounts Released
The IRS has released the 2019 cost-of-living adjustments (COLAs) for:pension plan dollar limitations, andother retirement-related provisions.Inflation AdjustmentsThe contribution limit has increased f...

Final Rules Expand Contraception Coverage Exemption
The government has released a joint agency rule finalizing and expanding the exemption from the contraceptive coverage mandate under the Patient Protection and Affordable Care Act (ACA) ( P.L. 11...

Exemptions Under ACA for Various Entities Holding Moral Convictions
The government has released a joint agency rule finalizing and expanding exemptions for various entities and individuals with sincerely held moral convictions opposed to coverage of some or all contra...

UNICAP Regs Finalize Modified Simplified Production Method
Final regulations issued under the uniform capitalization (UNICAP) rules adopt a new simplified method—the "modified simplified production method"—for determining additional Code...

Leave-Based Donation Programs Allowed for Victims of Hurricane Michael
The IRS has extended leave-based donation programs to victims of Hurricane Michael. These programs allow employees to forgo vacation, sick, or personal leave. In return, the employer makes cash donati...

Final Regulations Issued on Return Preparer Due Diligence
Amendments to the return preparer regulations expand the scope of preparer due diligence. The regulations apply to the due diligence penalty as it applies to:the child tax credit;the additional child ...

Enrolled Agent Application, Renewal Fees to Double
Becoming and remaining an enrolled agent or enrolled retirement plan agent will soon cost more. The IRS is proposing to increase the fees for becoming and renewing as an enrolled agent to $67. The fee...

Adjusted Applicable Dollar Amount for Fee Imposed on Health Insurance Plans Announced
The IRS has announced that the applicable dollar amount used to calculate the fees imposed by Code Secs. 4375 and 4376 for policy and plan years that end on or after October 1, 201...

AL - City of Elba stops using department to administer, collect taxes
The city of Elba stops using the Alabama Department of Revenue in the administration and collection of its sales/use and any other additional taxes, effective December 1, 2018.New AdministratorEffecti...

AK - DOR adopts and files oil and gas regulations
The Alaska Department of Revenue (DOR) has adopted changes to regulations regarding the treatment of carried-forward annual losses for the oil and gas production tax. The proposed changes were publicl...

AZ - High Court will not review assessments based on IRS information
The U.S. Supreme Court declined to review Arizona income tax assessments imposed on a taxpayer based on IRS information.Arizona Department of Revenue AssessmentsThe Department of Revenue determined th...

AR - Sale of aircraft for out-of-state use not taxable
A taxpayer’s sale of an aircraft to a resident of a foreign country qualified for an Arkansas gross receipts (sales) tax exemption because the buyer purchased the aircraft exclusively for use ou...

CA - Sales by out-of-state internet retailer properly subject to California use tax
The California Court of Appeals upheld a trial court decision that a Brisbane-based internet retailer’s sales of goods to California customers were properly subject to California local use tax, ...

CO - Colorado voters reject tax increase to fund education
Colorado voters rejected a ballot measure that would have established personal income tax brackets and raised taxes to fund public education. The ballot measure proposed amendments to the Colorado Con...

CT - Guidance on marketplace facilitators and sellers provided
Effective December 1, 2018, marketplace facilitators must collect and remit Connecticut sales tax on behalf of their marketplace sellers.Who is a Marketplace Facilitator?A "marketplace facilitato...

DE - Delaware amends historic preservation credit regulation
Delaware amended its historic preservation credit regulation. Taxpayers can apply the credit for historic property rehabilitation expenses against:corporate income tax liability;bank franchise tax lia...

DC - Food donation credit enacted
The District of Columbia enacted an income tax credit for donating food to nonprofit organizations. The credit is available to:individual taxpayers;corporations; andunincorporated businesses.How Much ...

FL - Discretionary sales surtax rate changes for calendar year 2019 announced
Florida has announced discretionary sales surtax rate changes for calendar year 2019.A new 0.5% school capital outlay surtax begins in Alachua County on January 1, 2019, and expires December 31, 2030....

GA - Timber producer tax credit enacted
Georgia enacted an income tax credit for timber producers with losses related to Hurricane Michael. The tax credit is available to taxpayers that have suffered losses and that will have to incur signi...

HI - DOT amends summary of 2018 tax legislation
The Hawaii Department of Taxation (DOT) has amended its previous announcement listing laws enacted as part of the 2018 legislative session that amended or affected tax laws administered by the DOT, wh...

ID - Guidance regarding taxability of motor vehicles repairs issued
The Idaho State Tax Commission has provided a guidance regarding the applicability of sales tax to motor vehicle repairs. The guidance explains how to buy, bill, and charge sales tax on parts in diffe...

IL - Illinois adopts invest in kids credit regulations
Illinois adopted permanent regulations for the Invest in Kids credit. Taxpayers can apply the credit against Illinois:corporate income tax liability; andpersonal income tax liability.The regulation re...

IN - Warning about tax transcript email scam issued
The Indiana Department of Revenue Services (DOR) has issued a press release warning tax preparers and taxpayers of scam emails claiming to be from the Internal Revenue Service (IRS) and the DOR. These...

IA - DOR offers sales tax guidance
The Iowa Department of Revenue has issued guidance regarding remote sellers and marketplace facilitators. The guidance comes in response to SF 2417, the extensive state tax reform bill, which was sign...

KS - Withholding tax guide revised
The Kansas DOR withholding tax guide has been revised to apply to wages paid on or after January 1, 2017. The guide provides information on rates, reporting and payment, registration, and other withho...

KY - Kentucky issues guidance on deduction for state taxes
Kentucky issued guidance on which state taxes corporations can deduct from taxable income.Which State Taxes Are Deductible?Kentucky allows a deduction for all state taxes that are not based on gross o...

LA - Tax credit regulations adopted
The Louisiana Department of Revenue has adopted income tax regulations governing the Motion Picture Production Tax Credit Program and the Rehabilitation of Historic Structures Tax Credit.Qualified Ent...

ME - Assessment recomputed because income from sale of property was overstated
A taxpayer’s Maine personal income tax assessment recomputed because the assessment overstated the income the taxpayer received from the sale of a property. The taxpayer argued that the assessme...

MD - Information for 2018 season announced
The Maryland Comptroller’s Office has reminded corporate and personal income taxpayers of several changes for the upcoming 2018 filing season. Some of the changes involve tax credits, subtractio...

MA - Assessed value upheld as taxpayer failed to meet burden of proof
A Massachusetts taxpayer’s appeal to abate property taxes on its property was denied by the Appellate Tax Board (Board) because the taxpayer failed to prove that the property’s fair market...

MI - Tribunal interest rate increased
The interest rate applicable to amounts of Michigan tax determined by the Michigan Tax Tribunal to be unlawfully paid or underpaid is increased to 5.9% for the period January 1, 2019 through June 30, ...

MN - Guidance on third-party bulk filers updated
For personal income tax purposes, the Minnesota Department of Revenue has updated its fact sheet explaining responsibilities for the withholding tax registration and filing requirements of third-party...

MS - Local tax changes in grenada announced
The City of Grenada, Mississippi, imposes a tourist and convention tax beginning December 1, 2018.Tax RateThe new tax is imposed at a rate of 1% of the gross proceeds from:hotels and motels; andrestau...

MO - Benefits paid under pension plans deductible because they were not from privately funded sources
For Missouri corporate income tax purposes, benefits paid under pension plans of a publicly funded agency (taxpayer), created by state law under a compact approved by Congress, were "retirement b...

MT - IRC Sec. 965 guidance issued
Corporate taxpayers should attach the IRC 965 Transition Tax Statement to their Montana return and include the total amount of gross income from IRC Sec. 965 dividends as "other additions" o...

NE - Wage and investment levels for Nebraska advantage act announced
The average annual wage and investment requirements for the Nebraska Advantage Acts have been announced.Nebraska Advantage ActAn applicant must meet the following average annual wage (wage) and invest...

NV - Two sales tax exemptions approved by voters
Nevada voters approved two separate sales tax exemptions in the midterm election.Exemption for Feminine Hygiene ProductsA sales tax exemption for feminine hygiene products was approved by the voters. ...

NH - Governors responds further to wayfair
Following the decision in South Dakota v. Wayfair, Inc., U.S. Supreme Court, Dkt. No. 17-494, June 21, 2018, New Hampshire Governor Chris Sununu joined Attorney General Gordon MacDonald and Busin...

NJ - Tax amnesty period set
The New Jersey Division of Taxation announced that the 2018 tax amnesty program runs from November 15, 2018, through January 15, 2019.Application Of Tax Amnesty ProgramSigned into law in July 2018, th...

NM - Tax amnesty program gives New Mexico taxpayers a fresh start
Individual taxpayers and small businesses may qualify for forgiveness of penalties and interest on overdue taxes with New Mexico’s Fresh Start Program. Taxpayers must enroll by December 31....

NY - Taxpayer not entitled to credit for taxes paid to another state because income was not derived from that state
For New York personal income tax purposes, taxpayers were not entitled to credit for taxes paid to another state because their income was not derived from that state. In this matter, the taxpayers mai...

NC - Notice regarding prohibited uses for general direct pay permit issued
For sales and use tax purposes, the North Carolina Department of Revenue has issued a notice informing taxpayers that effective June 12, 2018, as per an amended statute, a general direct pay permit &l...

ND - Appeal to board of county commissioners required before appeal to court
North Dakota property owners claiming improper property tax assessments must first file a claim with the board of county commissioners. Property owners must file their claim with the board before fili...

OH - Ohio allows tax payments by cryptocurrency
With the introduction of OhioCrypto.com, Ohio has become the first state to authorize the payment of taxes with cryptocurrency.Cryptocurrency PaymentsBitcoin is the only cryptocurrency currently accep...

OK - Oklahoma addresses treatment of IRC Secs. 965 and 951(A) income
Oklahoma has issued guidance on the treatment of:foreign earnings subject to the federal IRC Sec. 965 repatriation transition tax; andglobal intangible low-taxed income (GILTI) included in federal inc...

OR - Assessment upheld as taxpayer failed to prove reduction claim
An Oregon taxpayer’s property tax appeal was denied because the taxpayer failed to provide sufficient evidence to substantiate his real market value reduction claim. The taxpayer argued that he ...

PA - Withholding regulation amended
Pennsylvania reduced the threshold requirement for 250 to 10 or more for the electronic transmission of the annual personal income tax withholding reconciliation statement. In addition, "magnetic...

RI - Rhode Island 2019 rate schedules, standard deductions, and personal exemptions announced
Rhode Island has released the personal income tax rate schedules, the tax rate schedules for trusts and estates, standard deduction amounts, and personal exemption amounts for the 2019 tax year. Addit...

SC - Protest denied for failure to refute assessment
A taxpayer’s protest against a South Carolina corporate income tax assessment was denied because the taxpayer failed to prove that the assessment was erroneous. In this matter, the taxpayer rais...

SD - South Dakota reaches wayfair settlement
The litigants of South Dakota v. Wayfair have entered into a settlement agreement.Wayfair Settlement Agreement TermsThe parties reached a settlement that:removes the injunction; andsets Janu...

TN - Fees charged by nonprofit organization in its transportation vehicle share programme subject to tax
Membership fees, single-use fees, usage fees and other fees charged by a nonprofit organization (taxpayer) in its transportation vehicle share programme were subject to Tennessee sales tax because the...

TX - September 2018 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 September 2018 is $49.64 per barrel for the three-month period beginning on June...

UT - Utah local rate schedules updated
The Utah State Tax Commission has updated its local sales and use tax rate schedules to reflect rate changes that are effective, January 1, 2019. The rate schedules are not intended for use ...

VT - 2019 interest rates announced
The interest rate for underpayments of Vermont taxes will increase from 6% annually to 6.75% annually (0.6% per month) for interest that accrues in calendar year 2019.The interest rate for overpayment...

VA - Loss from foreign limited partnership incorrectly included in sales factor
The Virginia Tax Commissioner remanded the taxpayer's appeal regarding the correction to the corporate income tax assessment because the taxpayer incorrectly included the ordinary loss passed through ...

WA - Taxability of surcharges and tariffs explained
Surcharges, including amounts to cover tariffs, that Washington businesses add to customer invoices are included in the selling price and are subject to excise taxes.Taxability of SurchargesSurcharges...

WV - Average wholesale price of motor fuel for 2019 announced
West Virginia has determined the 2019 average wholesale price of motor fuels and alternative fuels for excise and sales and use tax purposes. The combined tax is comprised of a flat motor fuel excise ...

WI - Guidance for hotels, motels, and other lodging providers issued
The Wisconsin Department of Revenue has issued a publication that explains how sales and use taxes affect hotels, motels, and other lodging providers. The publication provides, among other things, exa...

WY - Wyoming updates remote seller nexus guidelines
In light of the U.S. Supreme Court’s South Dakota v. Wayfair decision, Wyoming will require remote and on-line sellers that meet certain economic thresholds to collect sales tax beginn...