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

Proposed Regs Provided for Code Sec. 163(j) Limit
The IRS has proposed regulations on the limitation on the business interest expense deduction under Code Sec. 163(j), as amended by the Tax Cuts and Jobs Act (TCJA) ( P.L. 115-97). The IRS also has is...

Brady Introduces Revised Tax, IRS Reform Package
The House’s top Republican tax writer has introduced a revised tax and IRS oversight package. The “tweaked” 253-page package addresses retirement savings, disaster relief, IRS reform...

New Tax Reform-Related Regs May Appear Soon
A top Senate tax writer has said additional proposed regulations for the new tax code are expected to be released soon. Treasury Secretary Steven Mnuchin provided Republican senators with an update on...

Tax Court Adopts Amended, New Practice Rules
The Tax Court adopted amendments to its electronic filing and paying rule. The adopted rules cover petitions and other documents that are currently not filed electronically. These rules were first pro...

Senate Confirms Key Tax Reform Architect for Top Treasury Role
A key figure in shaping last year’s tax reform has been confirmed as the Treasury’s second-highest ranking official. The Senate confirmed Justin Muzinich as deputy Treasury secretary on De...

TIGTA Presents Semiannual Report to Congress
The Treasury Inspector General for Tax Administration (TIGTA) has released its semiannual report to Congress, highlighting its audits, investigations, inspections and evaluations. The report includes ...

Proposed Regulations Intend to Reduce FATCA Withholding Compliance Burden
Proposed regulations address and intend to reduce taxpayer burden in complying with certain withholding requirements under the Foreign Account Tax Compliance Act (FATCA), Chapter 4 ( Code Secs. 1471 -...

Regulations to be Issued on Controlled Foreign Corporations’ Previously Taxed Earnings and Profits
The IRS and the Treasury intend to provide regulations that will address issues affecting foreign corporations with previously taxed earnings and profits (PTEP). The regulations are in response to cha...

IRS Extends Filing Deadlines, Penalty Relief for Health Insurance Forms
Insurers, self-insuring employers, other coverage providers, and applicable large employers now have until March 4, 2019, to provide individuals with Forms 1095-B, Health Coverage, or Forms 1095-C, Em...

Eligibility for Allocation of Deduction for Energy Efficient Commercial Building Property Clarified
The IRS has issued a memo that sets forth guidelines for determining various factual scenarios such as whether a taxpayer may qualify as a designer of energy efficient commercial building property und...

AL - Town of Oakman increased local rates
The town of Oakman increased the local Alabama sales and use tax rates for the following from 3% to 4%, effective December 1, 2018:general items;admissions to places of amusement and entertainment;ret...

AK - DOR adopts and files oil and gas regulations
The Alaska Department of Revenue (DOR) has adopted changes to regulations regarding the computation of a cost of capital allowance for marine vessels under the oil and gas production tax. The proposed...

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 - Protest denied for failure to substantiate various deductions
For Arkansas personal income tax purposes, a taxpayer was not entitled to claim certain deductions because she failed to meet her burden of proof. Generally, income is taxable unless a taxpayer can de...

CA - Upcoming application window for film tax credit program discussed
For corporate and personal income tax purposes, the California Film Commission (CFC) issued a production alert regarding the upcoming filing window for the Film and TV Tax Credit Program Credit Progra...

CO - Emergency retail marijuana tax regulations adopted
The Colorado Department of Revenue has adopted temporary emergency retail marijuana tax regulations in order to conform to recently-enacted statutory amendments. The adopted rules include new definiti...

CT - Guidance issued on purchases of vessels
Connecticut provides answers regarding the application of sales and use tax to the purchases of vessels.Topics DiscussedThe information provided includes discussions of:the reduced tax rate for sales ...

DE - Hazardous substances cleanup tax rate for 2019 announced
The Delaware Division of Revenue has issued a news release informing businesses that the new adjustable rate of hazardous substance cleanup tax for 2019 is 1.5244%. Effective January 1, 2019, the new ...

DC - DC passes emergency economic nexus sales tax bill
The District of Columbia has passed sales thresholds for sales tax economic nexus in emergency legislation, effective January 1, 2019. A retailer that doesn’t have a physical presence in Distric...

FL - Florida amends rule to reflect AMT, bonus depreciation changes
Florida amended a corporate income tax rule to reflect:the repeal of its alternative minimum tax (AMT); andchanges to the its bonus depreciation addback statute.AMT RepealFlorida imposed an AMT at a r...

GA - 2019 interest rate announced
For 2019, the interest rate applied to Georgia tax overpayments and underpayments is 8.5% (accruing monthly), up from 7.5% for 2018. Policy Bulletin ADMIN-2019-01, Georgia Department of Revenue, ...

HI - Taxpayers advised to obtain IRS transcripts electronically
The County of Maui Department of Finance has issued a press release informing taxpayers that the federal government shut down is affecting some circuit breaker property tax credit applications. As a r...

ID - Lower court misread decision on whether a fee was a tax
A city’s sewer capitalization fee might be an actual fee, and not an unallowed tax, under a recent decision by the Idaho Supreme Court. When the district court reconsidered the case against the ...

IL - Bulletin regarding sales tax rate change issued
The Illinois Department of Revenue has issued a local sales tax rate change summary, noting local rate changes effective in Illinois on January 1, 2019. Taxes that are affected include business distri...

IN - Taxpayer subject to tax because it was engaged in business in state
An out-of-state taxpayer’s refund claim of Indiana sales and use tax was denied because it failed to show that it was not engaged in business in Indiana. Generally, a retail merchant who maintai...

IA - Rules regarding exemption for manufacturers engaged in processing adopted
Iowa adopted rules to implement the definition changes made to "manufacturer" and "manufacturing" last year. The definitions apply to the local option sales tax. Rules 701—21...

KS - 2019 interest rates announced
For 2019, the interest rate applied to Kansas tax overpayments and underpayments is 6% (0.500% per month), up from 5% (0.417% per month) for 2018. The new rate can be viewed at ksrevenue.org/pdf/...

KY - Kentucky proposes market-based sourcing rules
Kentucky proposed changes to a sales factor regulation to incorporate 2018 legislation that adopted:a single receipts factor corporate income tax apportionment formula; andmarket-based sourcing rules ...

LA - Louisiana adopts market-based sourcing regulations
The Louisiana Department of Revenue has adopted corporate income tax regulations governing market-based sourcing for the purpose of attributing sales other than sales of tangible personal propertyImpl...

ME - 2019 personal income tax rates discussed
The Maine revenue services issued a tax alerts discussing 2019 tax year Maine personal income tax rate. For 2019 tax year, the tax rate is unchanged; however, the income brackets have been changed.For...

MD - Changes for 2019 tax filing season announced
For income tax purposes, several changes will take effect for the 2019 tax filing season.Exemptions and DeductionsFor tax year 2018, the standard deduction is increased to a maximum value of $2,250 fo...

MA - Massachusetts updates directive on exemptions for federal employees
Massachusetts updated a directive on:the sales and use tax exemption for purchases by federal employees; andthe room occupancy excise tax exemption for room rentals by federal employees.Sales Tax Exem...

MI - Exemption authorized for stillbirths
Legislation has enacted that impacts how income is calculated for purposes of the Michigan income tax act.Still Birth ExemptionA taxpayer may claim an exemption in the tax year in which the taxpayer h...

MN - Fact sheet on submitting form 1099 information issued
The Minnesota Department of Revenue (department) has published a revised fact sheet explaining how taxpayers can electronically submit 1099 information to the department for corporate income or person...

MS - Vaiden imposes new tax
On January 1, 2019, the city of Vaiden, Mississippi, begins imposing a tourism, parks, and recreation tax. Authorization of the levy was previously reported.Tax RateThe new tax is imposed at a rate of...

MO - Taxpayer’s purchase subject to tax because it was not farm machinery or farm equipment
A taxpayer’s purchase of sheet metal for construction of a feed barn on his land was subject to Missouri state and local sales tax because the sheet metal was not a "farm machinery" or...

MT - Forms 2EZ and 2EC no longer available
Certain Montana personal income tax forms have been revised or discontinued.Individual Income Tax FormsThe Montana Individual Income Tax Return (Form 2EZ) has been discontinued. In addition, Form 2EC ...

NE - Nebraska governor proposes expansion of military retirement tax exemption
Nebraska Gov. Pete Rickets has proposed an expansion to the state’s military retirement personal income tax exemption.Proposed Military Retirement Tax ExemptionThe proposed law would exempt 50% ...

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 - Electricity consumption tax repealed
The New Hampshire Department of Revenue Administration has issued a technical information release for electricity consumers, electricity providers, and tax practitioners related to the repeal of secti...

NJ - New Jersey discusses: included and excluded business entities in combined groups
The New Jersey Division of Taxation (division) has issued a technical bulletin that explains what business entities are included and what business entities are not included in a combined group for the...

NM - Certain guaranteed payments were not taxable in New Mexico
A partner was not liable for New Mexico gross receipts tax on "guaranteed payments" from a partnership. Before the partner’s administrative hearing on his tax liability, the Taxation a...

NY - MTA surcharge rate increased for 2019
The New York corporate franchise tax MTA surcharge rate will increase from 28.6% to 28.9% for tax year 2019. The rate will remain the same in later tax years, unless the Commissioner of Taxation and F...

NC - Notice regarding revisions to alcoholic beverages tax forms issued
The Excise Tax Division of the North Carolina Department of Revenue (department) has issued an important notice to alcoholic beverage excise taxpayers regarding revisions to several of its alcoholic b...

ND - 2019 withholding tables released
North Dakota has released its 2019 withholding tables for employers. Income Tax Withholding Instructions and Tables, North Dakota State Tax Commissioner’s Office, December 2018...

OH - Municipal net profit tax estimated payment due December 17
The Ohio Department of Taxation (department) has issued a press release reminding municipal net profit tax practitioners and calendar-year corporate income taxpayers that the fourth declaration and es...

OK - 2019 employer’s withholding guide updated
The Oklahoma Tax Commission has updated its withholding guide for employers withholding personal income tax from their employees’ wages in 2019. The guide contains general information regarding ...

OR - Daycare property partially entitled to exemption
The Oregon Tax Court held that a daycare facility was entitled to property tax exemption on its leased property only for those parts used exclusively for educational purposes. The taxpayer, an exempt&...

PA - Notice regarding hotel occupancy tax issued for booking agents
For hotel occupancy (sales and use) tax purposes, the Pennsylvania Department of Revenue has issued a notice informing booking agents that effective January 22, 2019, a booking agent that facilitates ...

RI - Gas tax increases
The Rhode Island Division of Taxation has announced that based on the required inflation index, the gasoline tax rate will increase from 33 cents per gallon to 34 cents per gallon for the period begin...

SC - County rankings released for job credit, tax moratorium purposes
The South Carolina Department of Revenue has issued an information letter to provide the county rankings for purposes of the job tax credit, counties qualifying for the tax moratorium, and counties qu...

SD - New local sales and use tax rate changes announced
The South Dakota Department of Revenue has announced upcoming local sales tax rate changes that will take effect January 1, 2019.Sales and Use Tax rate ChangesTrent will increase its general sales and...

TN - Pallets used to package tangible personal property sold to consumers and sellers for resale exempt from tax
The Tennessee Department of Revenue (department) has issued a sales tax notice informing taxpayers that sales tax is not due on pallets used to package tangible personal property being sold (1) direct...

TX - November 2018 certification of 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 November 2018 is $49.28 per barrel for the three-month period beginning on Augus...

UT - Utah increases interest rate for taxes in 2019
The Utah general interest rate for taxes in 2019 is 4%. The rate for 2017 and 2018 was 3%. Interest Rates and Calculation, Utah State Tax Commission, January 2, 2019...

VT - 2019 withholding tables released
Vermont has released its 2019 income tax withholding instructions and tables. Publication GB-1210, Vermont Department of Taxes, December 2018...

VA - Interest rates increased for first quarter of 2019
The Virginia interest rates for the first quarter of 2018 that begins on January 1, 2019, will be 8% for tax underpayments (assessments) and 8% for tax overpayments (refunds). For the purpose of compu...

WA - Interest rate announced
The interest rate for Washington excise taxes for both assessments and refunds is 4%. The notice can be viewed on the department’s website at https://dor.wa.gov/sites/default/files/legacy/D...

WV - West Virginia amends historic property investment credit rules
West Virginia amended rules that apply to the historic property investment credit. Taxpayers can claim the credit for 25% of historic rehabilitation expenses against West Virginia:corporation net inco...

WI - Assessment and tax roll instructions guidance updated
The Wisconsin Department of Revenue has issued revised property tax assessment and tax roll instructions for clerks. The instructions include a list of important dates and requirements for assessors a...

WY - Local rate changes and other topics discussed
A Wyoming Department of Revenue newsletter discusses present and future local sales tax rate changes and provides various reminders for taxpayers.Tax Rate ChangesEffective with the tax return quarter ...