Tax Alerts
Tax Briefing(s)
Fiscal Year (FY) 2016 Budget ProposalsTax Increase Prevention Act of 2014/ABLE Act/Omnibus Funding Agreement2014 Year-End Planning
IRS issues 2015 inflation-adjusted vehicle depreciation dollar limits
The IRS has released the inflation-adjusted limitations on depreciation deductions for business-use passenger automobiles, light trucks, and vans first placed in service during calendar year 2015. The...
The IRS has released the inflation-adjusted limitations on depreciation deductions for business-use passenger automobiles, light trucks, and vans first placed in service during calendar year 2015. The...
Store not yet open to public eligible for bonus depreciation
A federal district court has concluded that two buildings designed to be retail stores had been placed in service when the buildings were substantially complete, even though they were not yet open to ...
A federal district court has concluded that two buildings designed to be retail stores had been placed in service when the buildings were substantially complete, even though they were not yet open to ...
IRS Offshore Voluntary Disclosure Program to remain open indefinitely
The IRS recently announced that it will continue its offshore voluntary disclosure program (OVDP) for an indefinite period until otherwise announced. Since the program's inception, there have bee...
The IRS recently announced that it will continue its offshore voluntary disclosure program (OVDP) for an indefinite period until otherwise announced. Since the program's inception, there have bee...
IRS issues proposed guidance on employee consents for employers seeking FICA tax refunds
The IRS has issued a proposed revenue procedure to clarify questions from employers regarding what information must be provided in an employee's consent to a refund claim made under Code Sec. 6402 for...
The IRS has issued a proposed revenue procedure to clarify questions from employers regarding what information must be provided in an employee's consent to a refund claim made under Code Sec. 6402 for...
IRS will disallow most severance-pay FICA refunds after Quality Stores ruling
The IRS has announced that it will disallow claims for refunds of Federal Insurance Contributions Act (FICA) taxes paid with respect to most severance payments and will take no further actio...
The IRS has announced that it will disallow claims for refunds of Federal Insurance Contributions Act (FICA) taxes paid with respect to most severance payments and will take no further actio...
IRS issues 2015 auto and truck maximum FMVs for cents-per-mile/fleet-average valuation
The IRS recently issued the maximum fair market value (FMV) amounts that designate the proper valuation rule for employers calculating fringe benefit income from employer-provided automobiles, trucks,...
The IRS recently issued the maximum fair market value (FMV) amounts that designate the proper valuation rule for employers calculating fringe benefit income from employer-provided automobiles, trucks,...
IRS updates accounting method procedures
Taxpayers must obtain the IRS’s consent to change any of their accounting methods under Code Sec. 446(e). The IRS has updated and made changes to its revenue procedures for obtaining IRS consent...
Taxpayers must obtain the IRS’s consent to change any of their accounting methods under Code Sec. 446(e). The IRS has updated and made changes to its revenue procedures for obtaining IRS consent...
IRS guidance describes application of research credit to internal use software
Treasury and the IRS have issued proposed regulations on the research tax credit with respect to computer software developed for internal use. The proposed regulations define "internal use softwa...
Treasury and the IRS have issued proposed regulations on the research tax credit with respect to computer software developed for internal use. The proposed regulations define "internal use softwa...
Congress retroactively increases excludable transit benefits; IRS provides guidance for employers
At the end of 2014, Congress passed the Tax Increase Prevention Act of 2014 (2014 Tax Prevention Act) (P.L. 113-295), which extended numerous provisions for the 2014 tax year. One of these extensions ...
At the end of 2014, Congress passed the Tax Increase Prevention Act of 2014 (2014 Tax Prevention Act) (P.L. 113-295), which extended numerous provisions for the 2014 tax year. One of these extensions ...
National Taxpayer Advocate’s Annual Report to Congress criticizes IRS budget cuts
National Taxpayer Advocate (NTA) Nina Olson has released her 2014 Annual Report to Congress and cautioned that due to budget cuts, the IRS’s customer service has reached unacceptably low levels ...
National Taxpayer Advocate (NTA) Nina Olson has released her 2014 Annual Report to Congress and cautioned that due to budget cuts, the IRS’s customer service has reached unacceptably low levels ...
AL - Declaration for electronic filing rule updated
The Alabama Department of Revenue has updated its rule regarding the requirements for the partnership/LLC return of income declaration for electronic filing which includes Form 65 and PTEC. The update...
The Alabama Department of Revenue has updated its rule regarding the requirements for the partnership/LLC return of income declaration for electronic filing which includes Form 65 and PTEC. The update...
AK - Interest rate unchanged for first quarter of 2015
The Alaska interest rate for delinquent taxes and overpayment of taxes remains at 3.75% for the period January 1, 2015, through March 31, 2015. Quarterly Interest Rate, Alaska Department of Revenue, J...
The Alaska interest rate for delinquent taxes and overpayment of taxes remains at 3.75% for the period January 1, 2015, through March 31, 2015. Quarterly Interest Rate, Alaska Department of Revenue, J...
AZ - Local tax rate changes announced
Effective March 1, 2015, the following local Arizona transaction privilege tax changes are effective as noted below.Camp Verde will increase its rate to 3.65% (previously, 3.00%) for the following cla...
Effective March 1, 2015, the following local Arizona transaction privilege tax changes are effective as noted below.Camp Verde will increase its rate to 3.65% (previously, 3.00%) for the following cla...
AR - Returns reviewed to prevent fraud
The Arkansas Department of Finance and Administration has announced that it has isolated and is reviewing 7,500 personal income tax returns filed through TurboTax to ensure that the refund request is ...
The Arkansas Department of Finance and Administration has announced that it has isolated and is reviewing 7,500 personal income tax returns filed through TurboTax to ensure that the refund request is ...
CA - Taxpayer entitled to costs as “prevailing party” in litigation
A California superior court ruled that a taxpayer was the “prevailing party” for purposes of Code of Civil Procedure §1032 and, therefore, was entitled to recover litigation costs. Un...
A California superior court ruled that a taxpayer was the “prevailing party” for purposes of Code of Civil Procedure §1032 and, therefore, was entitled to recover litigation costs. Un...
CO - Blunt wraps are not “tobacco products” subject to taxation
Blunt wraps are not “tobacco products” within the meaning of §39-28.5-101(5) and are not subject to Colorado tobacco tax.In December 2006, the Colorado Department of Revenue issued an...
Blunt wraps are not “tobacco products” within the meaning of §39-28.5-101(5) and are not subject to Colorado tobacco tax.In December 2006, the Colorado Department of Revenue issued an...
CT - Governor proposes rate reduction
Connecticut Gov. Dannel P. Malloy has announced that the biennial budget that he will present to a joint session of the General Assembly at noon on Wednesday, February 18, 2015, includes a plan to low...
Connecticut Gov. Dannel P. Malloy has announced that the biennial budget that he will present to a joint session of the General Assembly at noon on Wednesday, February 18, 2015, includes a plan to low...
DE - Outside contractor examinations authorized
Effective January 29, 2015, the Delaware State Escheator may contract with a person to conduct a Delaware unclaimed property examination. However, no more than 50% of all unclaimed property examinatio...
Effective January 29, 2015, the Delaware State Escheator may contract with a person to conduct a Delaware unclaimed property examination. However, no more than 50% of all unclaimed property examinatio...
DC - TurboTax returns processed
The District of Columbia Office of Tax and Revenue has announced that it is processing personal income tax returns filed through TurboTax because it has effective controls in place to prevent fraud. P...
The District of Columbia Office of Tax and Revenue has announced that it is processing personal income tax returns filed through TurboTax because it has effective controls in place to prevent fraud. P...
FL - Transactions related to renting surgical instruments and sample kits discussed
The Florida Department of Revenue has issued a technical assistance advisement (TAA) document that discusses numerous transactions related to renting surgical instruments and sample kits for sales and...
The Florida Department of Revenue has issued a technical assistance advisement (TAA) document that discusses numerous transactions related to renting surgical instruments and sample kits for sales and...
GA - Government contractor was liable for tax on items purchased to perform overseas contract
The Georgia Tax Tribunal has ruled that a taxpayer was not entitled to a refund of sales and use tax paid on items for use in the construction of electrical facilities on overseas military bases pursu...
The Georgia Tax Tribunal has ruled that a taxpayer was not entitled to a refund of sales and use tax paid on items for use in the construction of electrical facilities on overseas military bases pursu...
HI - IRC conformity legislation introduced
Legislation introduced in the Hawaii Senate would generally conform Hawaii corporate and personal income tax laws to the Internal Revenue Code (IRC) as amended as of December 31, 2014, for all taxable...
Legislation introduced in the Hawaii Senate would generally conform Hawaii corporate and personal income tax laws to the Internal Revenue Code (IRC) as amended as of December 31, 2014, for all taxable...
ID - Correction to supplemental schedule for residents instructions issued
The Idaho State Tax Commission has announced that the instructions for Form 39R, Idaho Supplemental Schedule (for residents), pertaining to Line 8 (retirement benefits deduction for qualified retireme...
The Idaho State Tax Commission has announced that the instructions for Form 39R, Idaho Supplemental Schedule (for residents), pertaining to Line 8 (retirement benefits deduction for qualified retireme...
IL - 2014 return processing begins after security measures implemented
The Illinois Department of Revenue has announced in a press release that it has started processing 2014 personal income tax returns after implementing additional security measures in an effort to safe...
The Illinois Department of Revenue has announced in a press release that it has started processing 2014 personal income tax returns after implementing additional security measures in an effort to safe...
IN - “Cost of performance” sourcing not allowed
An Indiana corporate income taxpayer was required to include income received from Indiana “online” students when calculating its Indiana adjusted gross income. The taxpayer was an out-of-s...
An Indiana corporate income taxpayer was required to include income received from Indiana “online” students when calculating its Indiana adjusted gross income. The taxpayer was an out-of-s...
IA - Estimated payment coupon mailing discontinued
The Iowa Department of Revenue has adopted a regulation amendment that removes the requirement that the department mail a preaddressed estimated tax form to all resident taxpayers who filed an estimat...
The Iowa Department of Revenue has adopted a regulation amendment that removes the requirement that the department mail a preaddressed estimated tax form to all resident taxpayers who filed an estimat...
KS - Agricultural publication updated
The Kansas Department of Revenue has updated its sales and use tax publication that provides guidance on agricultural transactions to include the most recent version of Form ST-28F (Agricultural Exemp...
The Kansas Department of Revenue has updated its sales and use tax publication that provides guidance on agricultural transactions to include the most recent version of Form ST-28F (Agricultural Exemp...
KY - Combined reporting, market-based sourcing and reportable transaction bill introduced
Legislation has been introduced in the Kentucky House of Representatives that would require unitary business groups to report Kentucky corporation income tax liability on a water’s edge combined...
Legislation has been introduced in the Kentucky House of Representatives that would require unitary business groups to report Kentucky corporation income tax liability on a water’s edge combined...
LA - Fraudulent returns filed through TurboTax discussed
The Louisiana Department of Revenue has announced that it has discovered a number of attempts to file fraudulent personal income tax returns for the 2014 filing season that it believes originated from...
The Louisiana Department of Revenue has announced that it has discovered a number of attempts to file fraudulent personal income tax returns for the 2014 filing season that it believes originated from...
ME - IRC conformity date revised, bonus depreciation decoupling extended
Gov. Paul LePage has signed legislation that updates Maine’s corporate income and personal income tax federal Internal Revenue Code (IRC) conformity date to December 31, 2014 (previously Decembe...
Gov. Paul LePage has signed legislation that updates Maine’s corporate income and personal income tax federal Internal Revenue Code (IRC) conformity date to December 31, 2014 (previously Decembe...
MD -Combined reporting legislation introduced
A bill has been introduced in the Maryland Senate that would require mandatory unitary combined reporting for corporate income tax under certain circumstances. If enacted, the legislation would apply ...
A bill has been introduced in the Maryland Senate that would require mandatory unitary combined reporting for corporate income tax under certain circumstances. If enacted, the legislation would apply ...
MA - Fiscal year 2015 tax amnesty program authorized
Legislation is enacted that addresses the fiscal year 2015 budget shortfall and authorizes the creation of a 60-day corporate excise tax amnesty program during the 2015 fiscal year. Under the program,...
Legislation is enacted that addresses the fiscal year 2015 budget shortfall and authorizes the creation of a 60-day corporate excise tax amnesty program during the 2015 fiscal year. Under the program,...
MI - Returns being accepted
The Michigan Department of Treasury has announced that it is processing 2014 personal income tax returns. All forms and instructions for the 2014 tax year are available on the department’s websi...
The Michigan Department of Treasury has announced that it is processing 2014 personal income tax returns. All forms and instructions for the 2014 tax year are available on the department’s websi...
MN - Change to form W-4MN announced, explained
The Minnesota Department of Revenue has announced that Minnesota Form W-4MN, Minnesota Withholding Allowance/Exemption Certificate, has been updated to include a personal income tax withholding exempt...
The Minnesota Department of Revenue has announced that Minnesota Form W-4MN, Minnesota Withholding Allowance/Exemption Certificate, has been updated to include a personal income tax withholding exempt...
MS - Ad valorem tax credit guidance issued
The Mississippi Department of Revenue has issued a notice regarding the ad valorem tax credit available to corporate income taxpayers. Specifically, the department reminds taxpayers that effective fro...
The Mississippi Department of Revenue has issued a notice regarding the ad valorem tax credit available to corporate income taxpayers. Specifically, the department reminds taxpayers that effective fro...
MO - Holdings company employing assets in state through limited partnership subject to tax
An out-of-state telecommunications holdings company that owned, directly or indirectly, 100% of a limited partnership that provided telephone services in Missouri was subject to the Missouri franchise...
An out-of-state telecommunications holdings company that owned, directly or indirectly, 100% of a limited partnership that provided telephone services in Missouri was subject to the Missouri franchise...
MT - Frequency of reporting credit information to committee changed
Montana legislation amends the frequency of reporting of certain information by the Department of Revenue regarding both the biodiesel blending and storage tax credit and the credit for contributions ...
Montana legislation amends the frequency of reporting of certain information by the Department of Revenue regarding both the biodiesel blending and storage tax credit and the credit for contributions ...
NE - Department of Revenue discusses fraud
In light of the increased attempts to file fraudulent income tax returns for the 2014 filing season as a result of identity theft, the Nebraska Department of Revenue is encouraging taxpayers to call t...
In light of the increased attempts to file fraudulent income tax returns for the 2014 filing season as a result of identity theft, the Nebraska Department of Revenue is encouraging taxpayers to call t...
NV - Governor proposes changes to business license fee
As part of the 2015-2017 Executive Budget, Nevada Gov. Brian Sandoval has proposed changes to the business license fee. Under the proposal, larger businesses would pay more than the current business l...
As part of the 2015-2017 Executive Budget, Nevada Gov. Brian Sandoval has proposed changes to the business license fee. Under the proposal, larger businesses would pay more than the current business l...
NH - Governor’s budget proposal contains cigarette tax increase, other revenue measures
The budget proposed by New Hampshire Gov. Maggie Hassan would raise the cigarette tax by 21 cents, allow Keno and self-service lottery machines, and increase vehicle registration fees. The governor al...
The budget proposed by New Hampshire Gov. Maggie Hassan would raise the cigarette tax by 21 cents, allow Keno and self-service lottery machines, and increase vehicle registration fees. The governor al...
NJ - TurboTax (Intuit) returns not suspended
The New Jersey Division of Taxation has announced that it is not one of the states identified in the Intuit potential fraud activity and has not suspended the issuance of income tax refunds. However, ...
The New Jersey Division of Taxation has announced that it is not one of the states identified in the Intuit potential fraud activity and has not suspended the issuance of income tax refunds. However, ...
NM - Public health service employee not entitled to military pay exemption
A hearing officer with the New Mexico Taxation and Revenue Department (TRD) determined that a taxpayer’s income earned from the U.S. Public Health Service (USPHS) was not entitled to the persona...
A hearing officer with the New Mexico Taxation and Revenue Department (TRD) determined that a taxpayer’s income earned from the U.S. Public Health Service (USPHS) was not entitled to the persona...
NY - Travel reservation facilitation receipts were derived from out-of-state services
In a New York corporate franchise tax case involving an out-of-state company that operated a travel reservation facilitation business, it was improper for the Division of Taxation to classify the comp...
In a New York corporate franchise tax case involving an out-of-state company that operated a travel reservation facilitation business, it was improper for the Division of Taxation to classify the comp...
NC - IRC conformity bill passes senate
Legislation has passed the North Carolina Senate that would, if enacted, advance the Internal Revenue Code conformity date to January 1, 2015, for corporate and personal income tax purposes. The IRC c...
Legislation has passed the North Carolina Senate that would, if enacted, advance the Internal Revenue Code conformity date to January 1, 2015, for corporate and personal income tax purposes. The IRC c...
ND - Fraudulent filings discussed
The North Dakota Tax Commissioner’s Office has announced that personal income tax refunds have resumed after being suspended while resources were shifted to handle the increased volume in attemp...
The North Dakota Tax Commissioner’s Office has announced that personal income tax refunds have resumed after being suspended while resources were shifted to handle the increased volume in attemp...
OH - Consolidated elected and combined taxpayer groups information release updated
The Ohio Department of Taxation has updated its information release pertaining to the rule (OAC 5703-29-04) regarding excluded persons and the formation of consolidated elected and combined taxpayer g...
The Ohio Department of Taxation has updated its information release pertaining to the rule (OAC 5703-29-04) regarding excluded persons and the formation of consolidated elected and combined taxpayer g...
OK - Local rate changes announced
The following local sales and use tax rate changes take effect in Oklahoma on April 1, 2015:The city of Elk City increases its sales and use tax rate by 0.5%, from 4% to 4.5%.The city of Owasso, as si...
The following local sales and use tax rate changes take effect in Oklahoma on April 1, 2015:The city of Elk City increases its sales and use tax rate by 0.5%, from 4% to 4.5%.The city of Owasso, as si...
OR - Department addresses fraud
The Oregon Department of Revenue has identified inconsistencies in recently-filed state income tax returns prepared with third-party tax preparation software, indicating potential fraudulent activity....
The Oregon Department of Revenue has identified inconsistencies in recently-filed state income tax returns prepared with third-party tax preparation software, indicating potential fraudulent activity....
PA - Department addresses fraudulent claims
The Pennsylvania Department of Revenue informs taxpayers that it is working to ensure that personal income tax refunds are paid to the correct taxpayer. Last year the department instituted additional ...
The Pennsylvania Department of Revenue informs taxpayers that it is working to ensure that personal income tax refunds are paid to the correct taxpayer. Last year the department instituted additional ...
RI - State describes steps taken to prevent fraud
The Rhode Island Division of Taxation has described the steps it has taken to prevent personal income tax refund fraud. In response to the issues involving TurboTax tax preparation software, the divis...
The Rhode Island Division of Taxation has described the steps it has taken to prevent personal income tax refund fraud. In response to the issues involving TurboTax tax preparation software, the divis...
SC - Cross motions for summary judgment dismissed in apportionment case
A South Carolina administrative law judge (ALJ) has issued an order denying cross motions for summary judgment in a corporate income tax apportionment case. The taxpayer is a multi-media broadcast cor...
A South Carolina administrative law judge (ALJ) has issued an order denying cross motions for summary judgment in a corporate income tax apportionment case. The taxpayer is a multi-media broadcast cor...
SD - References to internal revenue code updated
South Dakota Gov. Dennis Daugaard has signed legislation amending the state’s bank franchise (income), property, and sales and use tax provisions to conform their federal tax law references to t...
South Dakota Gov. Dennis Daugaard has signed legislation amending the state’s bank franchise (income), property, and sales and use tax provisions to conform their federal tax law references to t...
TN - Governor proposes expansive nexus legislation
Tennessee Gov. Bill Haslam has issued a press release detailing his recently introduced legislation entitled the Revenue Modernization Act (H.B. 644) that would, if enacted, adopt a market-based sourc...
Tennessee Gov. Bill Haslam has issued a press release detailing his recently introduced legislation entitled the Revenue Modernization Act (H.B. 644) that would, if enacted, adopt a market-based sourc...
TX - High court asked to review decision on sexually oriented business tax
The U.S. Supreme Court has been asked to review a decision of the Texas Court of Appeals which held that the state’s sexually oriented business tax was a general excise tax rather t...
The U.S. Supreme Court has been asked to review a decision of the Texas Court of Appeals which held that the state’s sexually oriented business tax was a general excise tax rather t...
UT - Evidence established that taxpayer changed domicile, became nonresident
A deceased taxpayer's representative provided sufficient evidence that the taxpayer was a nonresident for Utah individual income tax purposes for the tax years in question. The auditing division of th...
A deceased taxpayer's representative provided sufficient evidence that the taxpayer was a nonresident for Utah individual income tax purposes for the tax years in question. The auditing division of th...
VT - Fraudulent filings discussed
The Vermont Department of Taxes has issued a personal income tax fact sheet addressing frequently asked questions concerning e-filing and tax refund fraud. Among other topics, the fact sheet discusses...
The Vermont Department of Taxes has issued a personal income tax fact sheet addressing frequently asked questions concerning e-filing and tax refund fraud. Among other topics, the fact sheet discusses...
VA - Possible delay in receipt of refunds discussed
The Virginia Department of Taxation has announced that it uses various processes to validate personal income tax refunds prior to issuance in order to reduce the risk of refund fraud. According to the...
The Virginia Department of Taxation has announced that it uses various processes to validate personal income tax refunds prior to issuance in order to reduce the risk of refund fraud. According to the...
WA - Statute of limitations barred assessment on rolling stock
The Washington Department of Revenue was time-barred from assessing use tax on a taxpayer's trucks and related trailers that failed to qualify for the exemption for rolling stock used in substantial p...
The Washington Department of Revenue was time-barred from assessing use tax on a taxpayer's trucks and related trailers that failed to qualify for the exemption for rolling stock used in substantial p...
WV - Penalty assessment for improper shipping upheld
A taxpayer subject to the West Virginia motor fuels tax who transported fuel to a diverted location within the state without documentation was properly assessed a civil penalty. Motor fuel shipping do...
A taxpayer subject to the West Virginia motor fuels tax who transported fuel to a diverted location within the state without documentation was properly assessed a civil penalty. Motor fuel shipping do...
WI - Reporting of basis modification for pass-through entities and their owners discussed
According to a personal income and corporation franchise and income tax release issued by the Wisconsin Department of Revenue, starting with the first taxable year beginning after December 31, 2013, a...
According to a personal income and corporation franchise and income tax release issued by the Wisconsin Department of Revenue, starting with the first taxable year beginning after December 31, 2013, a...
WY - Valuation of vacant residential lot affirmed
A Wyoming county assessor’s property tax valuation of 4.12 acres of vacant residential land for 2011 was supported by substantial evidence and was not unlawful, arbitrary, or capricious. Because...
A Wyoming county assessor’s property tax valuation of 4.12 acres of vacant residential land for 2011 was supported by substantial evidence and was not unlawful, arbitrary, or capricious. Because...
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