Tax Alerts
Tax Briefing(s)
IRS Issues Refunds for Taxes Paid on Unemployment Compensation
The IRS has planned to issue over 2.8 million refunds to taxpayers who paid taxes on unemployment compensation, that the American Rescue Plan Act (ARP) (Â P.L. 117-2) has recently excluded as taxable ...
The IRS has planned to issue over 2.8 million refunds to taxpayers who paid taxes on unemployment compensation, that the American Rescue Plan Act (ARP) (Â P.L. 117-2) has recently excluded as taxable ...
Online Child Tax Credit Payment Tool
The IRS and Treasury have unveiled an online non-filer sign-up tool designed to help families who do not normally file tax returns and register for monthly Child Tax Credit (CTC) payments. The tool wo...
The IRS and Treasury have unveiled an online non-filer sign-up tool designed to help families who do not normally file tax returns and register for monthly Child Tax Credit (CTC) payments. The tool wo...
IRS Collection and Enforcement Update
Due to the recent progress the U.S. has made in controlling the COVID-19 pandemic and returning to normal economic activity, the IRS plans to return to its normal casework processes later this summer....
Due to the recent progress the U.S. has made in controlling the COVID-19 pandemic and returning to normal economic activity, the IRS plans to return to its normal casework processes later this summer....
IRS Announces Shift in Procedure to Resolve Collection Issues
The IRS has announced that the Small Business/ Self Employed (SB/SE's) Automated Collection System (ACS) would now exclusively resolve collection issues. Under this new shift in procedure, Practitione...
The IRS has announced that the Small Business/ Self Employed (SB/SE's) Automated Collection System (ACS) would now exclusively resolve collection issues. Under this new shift in procedure, Practitione...
Applicable Terminal Charge and SIFL Rates for First Half of 2021
The IRS has released the applicable terminal charge and the Standard Industry Fare Level (SIFL) mileage rates for determining the value of noncommercial flights on employer-provided aircraft in effect...
The IRS has released the applicable terminal charge and the Standard Industry Fare Level (SIFL) mileage rates for determining the value of noncommercial flights on employer-provided aircraft in effect...
First Monthly Child Tax Credit Payment Coming in July
The IRS and the Treasury Department have announced that the first monthly payment of the new refundable Child Tax Credit (CTC) from the American Rescue Plan will be made on July 15. The increased CTC ...
The IRS and the Treasury Department have announced that the first monthly payment of the new refundable Child Tax Credit (CTC) from the American Rescue Plan will be made on July 15. The increased CTC ...
Late Filers Should File to Limit Penalties
The IRS reminded taxpayers who missed the recent tax-filing deadline but are due a refund that there is no penalty for filing late if a refund is due. Those who owe and missed the deadline without req...
The IRS reminded taxpayers who missed the recent tax-filing deadline but are due a refund that there is no penalty for filing late if a refund is due. Those who owe and missed the deadline without req...
Groups Urged to Share Tax Information With Those Without Permanent Addresses
In an ongoing effort to help those experiencing homelessness, the IRS has reminded people who do not have a permanent address or a bank account that they may still qualify for stimulus payments and ot...
In an ongoing effort to help those experiencing homelessness, the IRS has reminded people who do not have a permanent address or a bank account that they may still qualify for stimulus payments and ot...
IRS Updates Plug-In Credit for 2022 Vehicles
The IRS has added new 2022 models to the list of vehicles for which the plug-in vehicle credit would be available. The vehicles added include BMW and Mini vehicles. The BMW 745e XDrive has a credit am...
The IRS has added new 2022 models to the list of vehicles for which the plug-in vehicle credit would be available. The vehicles added include BMW and Mini vehicles. The BMW 745e XDrive has a credit am...
Adjustments for CTC, EITC, PTC Table
The IRS has modified inflation-adjusted amounts for the child tax credit (CTC), the earned income tax credit (EITC/EIC), and the applicable percentage table for Code Sec. 36B for calculating a taxpaye...
The IRS has modified inflation-adjusted amounts for the child tax credit (CTC), the earned income tax credit (EITC/EIC), and the applicable percentage table for Code Sec. 36B for calculating a taxpaye...
2022 HSA Amounts Released
The IRS has released the 2022 inflation-adjusted amounts for health savings accounts (HSAs) under Code Sec. 223. For calendar year 2022, the annual limitation on deductions under Code Sec. 223(b)(2) f...
The IRS has released the 2022 inflation-adjusted amounts for health savings accounts (HSAs) under Code Sec. 223. For calendar year 2022, the annual limitation on deductions under Code Sec. 223(b)(2) f...
Drafts of New Schedules K-2 and K-3 Released
The IRS and Treasury have released updated early drafts of new Schedule K-2 and Schedule K-3 for Form 1065, U.S. Return of Partnership Income, Form 1120-S, U.S. Income Tax Return for an S Corporation,...
The IRS and Treasury have released updated early drafts of new Schedule K-2 and Schedule K-3 for Form 1065, U.S. Return of Partnership Income, Form 1120-S, U.S. Income Tax Return for an S Corporation,...
Temporary Use of Digital Signatures Extended
The IRS has extended the list of federal tax forms that cannot be filed electronically for which it is temporarily allowing digital signatures. The IRS has also extended filing period for which digita...
The IRS has extended the list of federal tax forms that cannot be filed electronically for which it is temporarily allowing digital signatures. The IRS has also extended filing period for which digita...
AL - Married couple required to include wife's out-of-state income for computation of tax liability
A married couple (taxpayers) was required to include taxpayer wife's out-of-state income under adjusted income from all sources in their nonresident tax return for the purpose of computing the coupleâ...
A married couple (taxpayers) was required to include taxpayer wife's out-of-state income under adjusted income from all sources in their nonresident tax return for the purpose of computing the coupleâ...
AK - Alaska landing tax constitutional
The Supreme Court of Alaska held that the state landing tax does not violate the Import-Export and Tonnage Clauses of the United States Constitution or 33 U.S.C. §5(b).BackgroundIn this case, two com...
The Supreme Court of Alaska held that the state landing tax does not violate the Import-Export and Tonnage Clauses of the United States Constitution or 33 U.S.C. §5(b).BackgroundIn this case, two com...
AZ - Taxpayer's purchases qualified as exempt prosthetic appliances
A medical provider’s (taxpayer’s) purchases of items used in medical practice were exempt from Arizona sales and use tax because the items qualified as exempt prosthetic appliances. In this matter...
A medical provider’s (taxpayer’s) purchases of items used in medical practice were exempt from Arizona sales and use tax because the items qualified as exempt prosthetic appliances. In this matter...
AR - Taxpayer's sales qualifies as nontaxable software as a service
A corporation (taxpayer) that sells a cloud-based Software-Defined Wide Area Networking service (SD-WAN) to customers throughout the United States was not required to remit Arkansas sales and use tax ...
A corporation (taxpayer) that sells a cloud-based Software-Defined Wide Area Networking service (SD-WAN) to customers throughout the United States was not required to remit Arkansas sales and use tax ...
CA - Taxpayer failed to provide resale certificates for claimed nontaxable sales for resale
For California sales and use tax purposes, a corporation’s (taxpayer’s) redetermination petition was denied because the taxpayer failed to provide resale certificates for its claimed nontaxable sa...
For California sales and use tax purposes, a corporation’s (taxpayer’s) redetermination petition was denied because the taxpayer failed to provide resale certificates for its claimed nontaxable sa...
CO - Legislation that would make numerous tax changes passes house
The Colorado House of Representatives has passed legislation that, if enacted, would make multiple changes to corporate and personal income taxes, including:extending through 2025 the addback requirem...
The Colorado House of Representatives has passed legislation that, if enacted, would make multiple changes to corporate and personal income taxes, including:extending through 2025 the addback requirem...
CT - Commercial fisherman's guide to sales and use taxes and estimated income tax issued
Connecticut issues a commercial fisherman’s guide to sales and use taxes and estimated income tax. The guide describes the procedures fishermen must follow to apply for a commercial fisherman tax ex...
Connecticut issues a commercial fisherman’s guide to sales and use taxes and estimated income tax. The guide describes the procedures fishermen must follow to apply for a commercial fisherman tax ex...
DE - Certain sussex county rates changed
The amount of additional Delaware property taxes that may be imposed by a county vocational-technical high school district or county vocational-technical center in Sussex County has changed. The amoun...
The amount of additional Delaware property taxes that may be imposed by a county vocational-technical high school district or county vocational-technical center in Sussex County has changed. The amoun...
DC - Tax treatment of federal unemployment compensation exclusion discussed
The District of Columbia Office of Tax and Revenue, in a release, discusses personal income tax treatment of unemployment compensation. Taxpayers with less than $150,000 adjusted gross income (AGI) ca...
The District of Columbia Office of Tax and Revenue, in a release, discusses personal income tax treatment of unemployment compensation. Taxpayers with less than $150,000 adjusted gross income (AGI) ca...
FL - Cap on voluntary cleanup credit increased
Florida increased the cap on total corporate income tax credits for voluntary cleanup of brownfield and other contaminated sites, from $10 million to $27.5 million for the 2021-2022 fiscal year. Ch. ...
Florida increased the cap on total corporate income tax credits for voluntary cleanup of brownfield and other contaminated sites, from $10 million to $27.5 million for the 2021-2022 fiscal year. Ch. ...
GA - Definition of innkeeper amended to include marketplace facilitators
Effective July 1, 2021, Georgia innkeepers acting as marketplace facilitators are required to collect and remit the local excise taxes on rooms, lodgings, and accommodations. The state expanded the de...
Effective July 1, 2021, Georgia innkeepers acting as marketplace facilitators are required to collect and remit the local excise taxes on rooms, lodgings, and accommodations. The state expanded the de...
HI - Hawaii follows IRS requirements for reporting capital accounts to partners
Partnerships that are required to report capital accounts to partners for tax years beginning after 2019 must calculate the accounts using the transactional method for Hawaii income tax purposes. This...
Partnerships that are required to report capital accounts to partners for tax years beginning after 2019 must calculate the accounts using the transactional method for Hawaii income tax purposes. This...
ID - Provisions regarding tax levy, assessment, exemption changes and more revised
Recently enacted Idaho legislation amends the statute to revise provisions regarding the homeowner's exemption, the circuit breaker tax reduction, the disabled veteran's tax reduction, the property ta...
Recently enacted Idaho legislation amends the statute to revise provisions regarding the homeowner's exemption, the circuit breaker tax reduction, the disabled veteran's tax reduction, the property ta...
IL - Local sales tax rate changes issued
The Illinois Department of Revenue has issued a local sales tax rate change summary, noting local rate changes effective July 1, 2021. Taxes that are affected include:business district sales tax;home ...
The Illinois Department of Revenue has issued a local sales tax rate change summary, noting local rate changes effective July 1, 2021. Taxes that are affected include:business district sales tax;home ...
IN - Gasoline use tax rate for June 2021 announced
The Indiana gasoline use tax rate for the month of June 2021 is $0.160 per gallon. Departmental Notice #2, Indiana Department of Revenue, June 2021...
The Indiana gasoline use tax rate for the month of June 2021 is $0.160 per gallon. Departmental Notice #2, Indiana Department of Revenue, June 2021...
IA - Business interest expense guidance updated
Iowa recently updated its business interest expense guidance for corporate income taxpayers. Iowa’s conformity with the federal limitations on business interest expense deductions under IRC Sec. 163...
Iowa recently updated its business interest expense guidance for corporate income taxpayers. Iowa’s conformity with the federal limitations on business interest expense deductions under IRC Sec. 163...
KS - First-time home buyer savings account adjustments enacted
Kansas enacted personal income tax adjustments for first-time home buyer savings account income and contributions.Subtraction AdjustmentsEffective for tax years beginning after December 31, 2021, a ta...
Kansas enacted personal income tax adjustments for first-time home buyer savings account income and contributions.Subtraction AdjustmentsEffective for tax years beginning after December 31, 2021, a ta...
KY - Information bulletin on local government premium taxes updated
The Kentucky Department of Insurance has updated a bulletin that contains information on local government premium taxes (LGPT) for insurance companies and surplus lines brokers, including the 2021-202...
The Kentucky Department of Insurance has updated a bulletin that contains information on local government premium taxes (LGPT) for insurance companies and surplus lines brokers, including the 2021-202...
LA - Legislation to temporarily increase NOL deduction amount passes house
The Louisiana House of Representatives has passed a bill that, if enacted, would increase the amount of the corporate income tax deduction for net operating losses from 72% of the net operating loss c...
The Louisiana House of Representatives has passed a bill that, if enacted, would increase the amount of the corporate income tax deduction for net operating losses from 72% of the net operating loss c...
ME - Superior court's decision vacated as board's original tax assessment was correct
For Maine property tax purposes, the Supreme Court vacated the superior court’s decision because the State Board of Property Tax Review’s 2017 decision partly reducing the city’s assessment of t...
For Maine property tax purposes, the Supreme Court vacated the superior court’s decision because the State Board of Property Tax Review’s 2017 decision partly reducing the city’s assessment of t...
MD - Forgiven utility arrearages subtraction modification enacted
Enacted Maryland legislation creates a subtraction modification against personal income tax for certain utility arrearage amounts forgiven in tax year 2021, if the forgiveness of the utility arrearage...
Enacted Maryland legislation creates a subtraction modification against personal income tax for certain utility arrearage amounts forgiven in tax year 2021, if the forgiveness of the utility arrearage...
MA - Millionaire tax bill introduced
A bill introduced in Massachusetts proposes to amend the state constitution to allow an additional personal income tax on millionaires.Constitutional Amendment ProcessProposals to amend the Massachuse...
A bill introduced in Massachusetts proposes to amend the state constitution to allow an additional personal income tax on millionaires.Constitutional Amendment ProcessProposals to amend the Massachuse...
MI - Guidance for taxpayers who missed May 17 deadline issued
Michigan taxpayers who missed the May 17 state personal income tax filing deadline have options for filing a late return. Taxpayers who missed deadline have following options:Filing a return to claim ...
Michigan taxpayers who missed the May 17 state personal income tax filing deadline have options for filing a late return. Taxpayers who missed deadline have following options:Filing a return to claim ...
MN - Tax exclusion for veterans with disability discussed
The Minnesota Department of Revenue has issued a release on the property tax exclusion for veterans with disabilities. The veterans may qualify for the exclusion if they own and occupy a homestead pro...
The Minnesota Department of Revenue has issued a release on the property tax exclusion for veterans with disabilities. The veterans may qualify for the exclusion if they own and occupy a homestead pro...
MS - City of Sardis repeals tourism tax
Effective July 1, 2021 the city of Sardis will repeal its tourism tax. The Sardis tourism tax is levied at the rate of 3% on the gross proceeds derived from sales of prepared foods at restaurants and ...
Effective July 1, 2021 the city of Sardis will repeal its tourism tax. The Sardis tourism tax is levied at the rate of 3% on the gross proceeds derived from sales of prepared foods at restaurants and ...
MO - Rule adopted on electronic filing requirement and waiver
Missouri adopted a rule that provides guidance for the electronic filing of sales and use tax returns.Filers With Fewer Than Three Registered Business LocationsFilers with fewer than three registered ...
Missouri adopted a rule that provides guidance for the electronic filing of sales and use tax returns.Filers With Fewer Than Three Registered Business LocationsFilers with fewer than three registered ...
MT - Montana answers additional adult-use marijuana frequently asked questions
The Montana Department of Revenue has posted an additional "frequently asked questions" section on its website that addresses adult-use marijuana. Montana voters approved Initiative No. 190 which ex...
The Montana Department of Revenue has posted an additional "frequently asked questions" section on its website that addresses adult-use marijuana. Montana voters approved Initiative No. 190 which ex...
NE - Social security income exemption initiated
Nebraska initiated plans to provide an exemption from personal income tax for all social security income.Current TreatmentIndividuals computing Nebraska personal income tax liability can subtract soci...
Nebraska initiated plans to provide an exemption from personal income tax for all social security income.Current TreatmentIndividuals computing Nebraska personal income tax liability can subtract soci...
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...
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 - Solicitor general argues New Hampshire's challenge of Massachusetts rule should be denied
The acting Solicitor General of the United States has filed a brief arguing that the U.S. Supreme Court should deny New Hampshire’s motion challenging a Massachusetts rule requiring New Hampshire re...
The acting Solicitor General of the United States has filed a brief arguing that the U.S. Supreme Court should deny New Hampshire’s motion challenging a Massachusetts rule requiring New Hampshire re...
NJ - Corporation business tax standardized return for certain filers effective 2022 tax year
For corporate Business Tax (CBT) purposes, New Jersey, in a release, clarifies that creation of a new simplified standardized return for combined groups, banking corporations, financial business corpo...
For corporate Business Tax (CBT) purposes, New Jersey, in a release, clarifies that creation of a new simplified standardized return for combined groups, banking corporations, financial business corpo...
NM - Receipts from providing child psychiatry services subject to tax
Receipts that a taxpayer received from proving child psychiatry services were subject to New Mexico gross receipts (sales) tax because the taxpayer contracted with a staffing agency to provide his ser...
Receipts that a taxpayer received from proving child psychiatry services were subject to New Mexico gross receipts (sales) tax because the taxpayer contracted with a staffing agency to provide his ser...
NY - Certain estimated payment forms for nonresidents updated
New York has updated Forms IT-2663 and IT-2664, which nonresidents use to pay estimated personal income tax on the sale or transfer of real property or a cooperative unit located in New York. The esti...
New York has updated Forms IT-2663 and IT-2664, which nonresidents use to pay estimated personal income tax on the sale or transfer of real property or a cooperative unit located in New York. The esti...
NC - Penalty waiver information and extended deadline discussed
North Carolina Department of Revenue (department) reminds taxpayers that the extended personal income tax filing and payment deadline is May 17, 2021. The department clarified that it will not impose ...
North Carolina Department of Revenue (department) reminds taxpayers that the extended personal income tax filing and payment deadline is May 17, 2021. The department clarified that it will not impose ...
ND - Reporting requirements for special event organizers amended
A special event organizer or promoter must provide a list of all participating vendors to the North Dakota State Tax Commissioner for sales and use tax purposes if there are at least 25 vendors at an ...
A special event organizer or promoter must provide a list of all participating vendors to the North Dakota State Tax Commissioner for sales and use tax purposes if there are at least 25 vendors at an ...
OH - Authority of commissioners to place conditions on granting tax exemptions in the enterprise zone community-reinvestment-area agreements discussed
For corporate income and property tax purposes, the Ohio Attorney General issued an opinion discussing the authority of a board of county commissioners (commissioners) to place additional conditions o...
For corporate income and property tax purposes, the Ohio Attorney General issued an opinion discussing the authority of a board of county commissioners (commissioners) to place additional conditions o...
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...
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 - Taxpayers failed to show reasonable cause for untimely filed information returns
A married couple was properly denied to claim corporate income and personal income tax deduction as the taxpayers did not timely file their 1099s timely. In this matter, the taxpayer-husband operated ...
A married couple was properly denied to claim corporate income and personal income tax deduction as the taxpayers did not timely file their 1099s timely. In this matter, the taxpayer-husband operated ...
PA - Denial of tax abatement on condominium units affirmed
A Pennsylvania trial court did not err in determining that the taxpayers were not entitled to property tax abatement on their condominium units for the tax years 2014 and 2015 because the 10-year tax ...
A Pennsylvania trial court did not err in determining that the taxpayers were not entitled to property tax abatement on their condominium units for the tax years 2014 and 2015 because the 10-year tax ...
RI - Emergency regulations on withholding for teleworkers during covid-19 pandemic extended
The Rhode Island Department of Revenue has again extended the expiration date for income tax emergency regulations governing employees who are temporarily working remotely due to the coronavirus pande...
The Rhode Island Department of Revenue has again extended the expiration date for income tax emergency regulations governing employees who are temporarily working remotely due to the coronavirus pande...
SC - South Carolina enacts entity-level tax election
South Carolina enacted a law allowing qualified pass-through entities an annual election to pay taxes on active trade or business income at the entity level at a rate of 3%, applicable to tax years be...
South Carolina enacted a law allowing qualified pass-through entities an annual election to pay taxes on active trade or business income at the entity level at a rate of 3%, applicable to tax years be...
SD - Fact sheet providing overview of property tax issued
The South Dakota Department of Revenue has issued a fact sheet that provides a general overview of how property taxes are established. Property tax is an ad valorem tax on all real property (land and ...
The South Dakota Department of Revenue has issued a fact sheet that provides a general overview of how property taxes are established. Property tax is an ad valorem tax on all real property (land and ...
TN - Tennessee enacts tax holiday for food, food ingredients, and prepared food
A Tennessee sales and use tax holiday is enacted for food, food ingredients, and prepared food sold from July 30, 2021 through August 5, 2021.Food and Food Ingredients Tax HolidayA sales and use tax e...
A Tennessee sales and use tax holiday is enacted for food, food ingredients, and prepared food sold from July 30, 2021 through August 5, 2021.Food and Food Ingredients Tax HolidayA sales and use tax e...
TX - Texas offers tax relief in disaster areas
Texas businesses in state-declared disaster areas affected by recent flooding, tornadoes, hail and damaging wind will be granted a filing extension. Tax reports due May 20, 2021 and May 25, 2021, can ...
Texas businesses in state-declared disaster areas affected by recent flooding, tornadoes, hail and damaging wind will be granted a filing extension. Tax reports due May 20, 2021 and May 25, 2021, can ...
UT - Sample projection audit method did not properly represent taxpayer's sales
The Utah State Tax Commission ordered a recalculation of a sales and use tax deficiency issued against a taxpayer as the taxpayer presented evidence showing that the sample projection audit method use...
The Utah State Tax Commission ordered a recalculation of a sales and use tax deficiency issued against a taxpayer as the taxpayer presented evidence showing that the sample projection audit method use...
VT - Local tax changes announced
Vermont has announced local option sales tax and local option meals, alcoholic beverages, and rooms tax changes effective July 1, 2021.Local Option Sales TaxThe town of Elmore imposes a 1% local optio...
Vermont has announced local option sales tax and local option meals, alcoholic beverages, and rooms tax changes effective July 1, 2021.Local Option Sales TaxThe town of Elmore imposes a 1% local optio...
VA - More guidance issued on informational combined reporting requirement
Virginia has released additional guidance for corporations needing to file a one-time report by July 1, 2021, showing the difference between the amount of tax the corporation would pay if it filed as ...
Virginia has released additional guidance for corporations needing to file a one-time report by July 1, 2021, showing the difference between the amount of tax the corporation would pay if it filed as ...
WA - Administrative offices of nonprofits may be exempt
The Washington Department of Revenue has provided guidance on the eligibility for a property tax exemption by administrative offices of a religious organization.Nonprofit Administrative OfficeAn admin...
The Washington Department of Revenue has provided guidance on the eligibility for a property tax exemption by administrative offices of a religious organization.Nonprofit Administrative OfficeAn admin...
WV - Retailer may assume or absorb tax
A retailer can advertise or hold out or state to the public or to any purchaser, consumer, or user, directly or indirectly, that the West Virginia consumers sales, service, or use tax or any part of t...
A retailer can advertise or hold out or state to the public or to any purchaser, consumer, or user, directly or indirectly, that the West Virginia consumers sales, service, or use tax or any part of t...
WI - Virtual currency and other topics discussed
Wisconsin issued a tax bulletin noting that virtual currency, such as digital currency and cryptocurrency, is treated for tax purposes similar to other types of intangible property, and taxpayers must...
Wisconsin issued a tax bulletin noting that virtual currency, such as digital currency and cryptocurrency, is treated for tax purposes similar to other types of intangible property, and taxpayers must...
WY - Guides and outfitters subject to lodging assessment
Beginning July 1, 2021 guides and outfitters must collect the Wyoming lodging assessment. They are still exempt from local lodging taxes. Lodging services provided by guides and outfitters include pla...
Beginning July 1, 2021 guides and outfitters must collect the Wyoming lodging assessment. They are still exempt from local lodging taxes. Lodging services provided by guides and outfitters include pla...
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