Tax Alerts
October 19, 2020
Tax Briefing(s)
2020 Tax Policies of the Major Presidential Candidates2020 Payroll Tax Deferral Order2020 Post-Filing Season UpdateCARES ActCoronavirus Tax Relief
Senate Fails to Pass “Skinny” COVID-19 Relief Bill
On September 10, 2020, the Senate failed to pass the Delivering Immediate Relief to America’s Families, Schools and Small Businesses Act. This bill was described as a targeted proposal, and included...
On September 10, 2020, the Senate failed to pass the Delivering Immediate Relief to America’s Families, Schools and Small Businesses Act. This bill was described as a targeted proposal, and included...
Higher Penalties on 2019 Returns Filed After September 14
The IRS has warned taxpayers who have not yet filed their 2019 tax returns that higher penalties will be imposed if they file after September 14. Taxpayers who submitted an extension of time to file t...
The IRS has warned taxpayers who have not yet filed their 2019 tax returns that higher penalties will be imposed if they file after September 14. Taxpayers who submitted an extension of time to file t...
E-Signatures Temporarily Approved for Certain Forms
The IRS has announced that it is temporarily allowing the use of digital signatures on certain forms that normally require a handwritten signature. The following forms can be submitted with digital ...
The IRS has announced that it is temporarily allowing the use of digital signatures on certain forms that normally require a handwritten signature. The following forms can be submitted with digital ...
Digital Signatures Allowed on More Forms
The IRS had announced that it would temporarily allow the use of digital signatures on certain forms that cannot be filed electronically; the Service has now added several additional forms to that...
The IRS had announced that it would temporarily allow the use of digital signatures on certain forms that cannot be filed electronically; the Service has now added several additional forms to that...
IRS Suspends Mailing Notices to Taxpayers with Balances Due
The IRS has temporarily suspended the mailing of three notices—CP501, CP503, and CP504—to taxpayers who have a balance due on their taxes. The IRS is taking this step to avoid confusion for taxpay...
The IRS has temporarily suspended the mailing of three notices—CP501, CP503, and CP504—to taxpayers who have a balance due on their taxes. The IRS is taking this step to avoid confusion for taxpay...
IRS Launches Partnership Audit Website
The IRS announced the launch of the Bi-Partisan Budget Act (BBA) Centralized Partnership Audit Regime website. The website intends to be a one-stop location for anything BBA-related including regulat...
The IRS announced the launch of the Bi-Partisan Budget Act (BBA) Centralized Partnership Audit Regime website. The website intends to be a one-stop location for anything BBA-related including regulat...
Form 1040 Now Available in Spanish
The IRS will be providing Form 1040 in Spanish for the first time as part of a larger effort to reach underserved communities. The IRS’s newly expanded multilingual initiative is a key part of helpi...
The IRS will be providing Form 1040 in Spanish for the first time as part of a larger effort to reach underserved communities. The IRS’s newly expanded multilingual initiative is a key part of helpi...
AL - Daily use range fees subject to tax
A shooting range operator (taxpayer) was required to remit Alabama sales and use tax on the admission fees it charged to use it’s shooting range. In this matter, the taxpayer operated seven outdoor ...
A shooting range operator (taxpayer) was required to remit Alabama sales and use tax on the admission fees it charged to use it’s shooting range. In this matter, the taxpayer operated seven outdoor ...
AK - Interest rate announced for Q3 of 2020
The Alaska interest rate for delinquent taxes and overpayment of taxes is set at 5.50%, compounded quarterly, for the period April 1, 2020, through September 30, 2020. The Department of Revenue postin...
The Alaska interest rate for delinquent taxes and overpayment of taxes is set at 5.50%, compounded quarterly, for the period April 1, 2020, through September 30, 2020. The Department of Revenue postin...
AZ - Interest rates unchanged for fourth quarter of 2020
The interest rates on underpayments and overpayments of Arizona taxes are unchanged at 3% for the fourth quarter of 2020.Previous Interest RatesThe interest rates from previous quarters and years may ...
The interest rates on underpayments and overpayments of Arizona taxes are unchanged at 3% for the fourth quarter of 2020.Previous Interest RatesThe interest rates from previous quarters and years may ...
AR - Taxation of "Arkansas ready for business" grants discussed
The Arkansas Department of Finance and Administration has updated its frequently asked questions on COVID-19 to discuss the income tax impact of Arkansas Ready for Business Program grants.What is the ...
The Arkansas Department of Finance and Administration has updated its frequently asked questions on COVID-19 to discuss the income tax impact of Arkansas Ready for Business Program grants.What is the ...
CA - Taxpayer was doing business in state, subject to limited liability company tax
A limited liability company (taxpayer) was doing business in California and, thus, was required to pay LLC tax. Generally, a taxpayer is considered doing business in California if it satisfies certain...
A limited liability company (taxpayer) was doing business in California and, thus, was required to pay LLC tax. Generally, a taxpayer is considered doing business in California if it satisfies certain...
CO - Condominium net income incorrectly excluded from tax assessment
For Colorado property for tax purposes, the Board of Assessment Appeals (Board) erred in excluding the additional income generated from rentals of individually owned condominium units from the taxpaye...
For Colorado property for tax purposes, the Board of Assessment Appeals (Board) erred in excluding the additional income generated from rentals of individually owned condominium units from the taxpaye...
CT - Resumption of non-judicial municipal tax sales announced
Connecticut Governor has issued an executive order that allows the resumption of certain non-judicial municipal tax sales for property tax purposes. The order permits municipalities, districts, and wa...
Connecticut Governor has issued an executive order that allows the resumption of certain non-judicial municipal tax sales for property tax purposes. The order permits municipalities, districts, and wa...
DE - City of Lewes authorized to impose lodgings tax
The city of Lewes is authorized to impose and collect a local Delaware lodgings tax of up to 3%. Ch. 275 (S.B. 210), Laws 2020, effective August 6, 2020...
The city of Lewes is authorized to impose and collect a local Delaware lodgings tax of up to 3%. Ch. 275 (S.B. 210), Laws 2020, effective August 6, 2020...
DC - District of Columbia health benefit exchange authority assessment upheld
The District of Columbia’s Health Benefit Exchange Authority assessment was:not preempted by the Affordable Care Act; andthe City Council did not impermissibly delegate its legislative power in viol...
The District of Columbia’s Health Benefit Exchange Authority assessment was:not preempted by the Affordable Care Act; andthe City Council did not impermissibly delegate its legislative power in viol...
FL - Tax information on adoption of 2020 internal revenue code published
The Florida Income Tax Code was amended to adopt the Internal Revenue Code (IRC) retroactively to January 1, 2020. As a result, Florida will follow the computation of federal taxable income. However, ...
The Florida Income Tax Code was amended to adopt the Internal Revenue Code (IRC) retroactively to January 1, 2020. As a result, Florida will follow the computation of federal taxable income. However, ...
GA - Local rate chart released for Q4 2020
The Georgia Department of Revenue has released a sales and use tax rate chart for the quarter beginning October 1, 2020. Georgia Sales and Use Tax Rate Chart, Georgia Department of Revenue, September...
The Georgia Department of Revenue has released a sales and use tax rate chart for the quarter beginning October 1, 2020. Georgia Sales and Use Tax Rate Chart, Georgia Department of Revenue, September...
HI - Renewable energy technologies credit amended
Hawaii’s requirements for solar energy systems to claim the renewable energy technologies income tax credit are amended. For each solar energy system, a tax credit of 35% of the actual cost or the c...
Hawaii’s requirements for solar energy systems to claim the renewable energy technologies income tax credit are amended. For each solar energy system, a tax credit of 35% of the actual cost or the c...
ID - Filing and payment deadlines extended for victims of hurricane Laura, California wildfires, and Iowa Derecho
For taxes it administers, the Idaho State Tax Commission has announced deadline extensions to file and pay taxes for victims of Hurricane Laura, the California wildfires, and the Iowa derecho from des...
For taxes it administers, the Idaho State Tax Commission has announced deadline extensions to file and pay taxes for victims of Hurricane Laura, the California wildfires, and the Iowa derecho from des...
IL - Tentative Winnebago County multiplier announced for 2020
The tentative Winnebago County equalization factor (multiplier) for Illinois property tax purposes has been set for 2020 at 1.0000. The final 2019 multiplier was 1.0000.The full text of the release is...
The tentative Winnebago County equalization factor (multiplier) for Illinois property tax purposes has been set for 2020 at 1.0000. The final 2019 multiplier was 1.0000.The full text of the release is...
IN - County income rates adjusted
Indiana has announced county income tax rates that are effective October 1, 2020.Which Counties Decreased the Rate?The counties decreasing their rate include:Pulaski County: 0.0285, decreased from 0.0...
Indiana has announced county income tax rates that are effective October 1, 2020.Which Counties Decreased the Rate?The counties decreasing their rate include:Pulaski County: 0.0285, decreased from 0.0...
IA - Reminder for upcoming tax deadline issued
Iowa issued a reminder for upcoming corporate and personal income tax deadline. The reminder discusses:The third-quarter installment of tax year 2020 estimated income tax for taxpayers filing on a cal...
Iowa issued a reminder for upcoming corporate and personal income tax deadline. The reminder discusses:The third-quarter installment of tax year 2020 estimated income tax for taxpayers filing on a cal...
KS - Interest rates announced
A Kansas Department of Revenue memorandum announces the interest rates for county property tax payments and refunds for calendar year 2021. For late payments of real property taxes by taxpayers, the i...
A Kansas Department of Revenue memorandum announces the interest rates for county property tax payments and refunds for calendar year 2021. For late payments of real property taxes by taxpayers, the i...
KY - Taxpayers affected by Oregon wildfires may file returns by January 15, 2021
Kentucky corporate and personal income taxpayers affected by Oregon wildfires, in any area designated by the Federal Emergency Management Agency (FEMA), may file their returns until January 15, 2021. ...
Kentucky corporate and personal income taxpayers affected by Oregon wildfires, in any area designated by the Federal Emergency Management Agency (FEMA), may file their returns until January 15, 2021. ...
LA - Taxpayer had no wrongful seizure cause of action against department
A taxpayer had no wrongful seizure cause of action against the Louisiana Department of Revenue (department) under general tort law because the dispute at issue pertained to a sales and use tax assessm...
A taxpayer had no wrongful seizure cause of action against the Louisiana Department of Revenue (department) under general tort law because the dispute at issue pertained to a sales and use tax assessm...
ME - General information bulletin on sales, fuel, and special tax updated
Maine issued an updated bulletin containing important information for taxpayers subject to sales, use, service provider, and other special taxes. The bulletin, among other topics, discusses applicabil...
Maine issued an updated bulletin containing important information for taxpayers subject to sales, use, service provider, and other special taxes. The bulletin, among other topics, discusses applicabil...
MD - Collection on hold until covid-19 emergency; taxpayers may receive tax liability notifications
The Office of the Maryland Comptroller (comptroller) will mail notifications to certain tax filers of unpaid tax liabilities that were due July 15 (the extended deadline from the traditional April 15 ...
The Office of the Maryland Comptroller (comptroller) will mail notifications to certain tax filers of unpaid tax liabilities that were due July 15 (the extended deadline from the traditional April 15 ...
MA - 2020 real estate tax credit threshold amounts announced
For personal income tax purposes, the Massachusetts Department of Revenue has issued a technical information release announcing the real estate tax credit and income threshold amounts for the 2020 tax...
For personal income tax purposes, the Massachusetts Department of Revenue has issued a technical information release announcing the real estate tax credit and income threshold amounts for the 2020 tax...
MI - List of education foundations for tax credit released
The Michigan Department of Treasury has announced that there are no certified education foundations for tax year 2020 for purposes of the Michigan business tax credit for contributions to education fo...
The Michigan Department of Treasury has announced that there are no certified education foundations for tax year 2020 for purposes of the Michigan business tax credit for contributions to education fo...
MN - Taxpayer failed to serve notice of appeal to commissioner of revenue; appeal denied
A personal income taxpayer’s appeal was dismissed for want of jurisdiction because the taxpayer failed to provide a copy of his Notice of Appeal to the Minnesota Commissioner of Revenue (commissione...
A personal income taxpayer’s appeal was dismissed for want of jurisdiction because the taxpayer failed to provide a copy of his Notice of Appeal to the Minnesota Commissioner of Revenue (commissione...
MS - Taxpayers permitted to claim broadband credit against aggregate tax liability
For Mississippi corporate income tax purposes, an affiliated group of members (taxpayers) were permitted to claim broadband credits to 50 percent of their aggregate franchise tax liability and the tot...
For Mississippi corporate income tax purposes, an affiliated group of members (taxpayers) were permitted to claim broadband credits to 50 percent of their aggregate franchise tax liability and the tot...
MO - Taxpayers not entitled to casualty loss refund
Taxpayers were not entitled to a refund of Missouri sales tax paid on their motor vehicle that suffered casualty loss because they were not the owners of the replacement vehicle purchased. Generally, ...
Taxpayers were not entitled to a refund of Missouri sales tax paid on their motor vehicle that suffered casualty loss because they were not the owners of the replacement vehicle purchased. Generally, ...
MT - Wildfire disaster emergency property tax relief
Montana Gov. Steve Bullock reminds Montanans affected by wildfire that they may qualify for property tax reductions or other tax assistance. Montana property owners that have experienced a loss of the...
Montana Gov. Steve Bullock reminds Montanans affected by wildfire that they may qualify for property tax reductions or other tax assistance. Montana property owners that have experienced a loss of the...
NE - Guidance on taxability of interest and dividend income from state, local, and U.S. government obligations updated
The Nebraska Department of Revenue has updated a personal income tax information guide on the addition and subtraction adjustments to federal adjusted gross income (AGI) for interest and dividend inco...
The Nebraska Department of Revenue has updated a personal income tax information guide on the addition and subtraction adjustments to federal adjusted gross income (AGI) for interest and dividend inco...
NV - Nevada enacts tax amnesty program and temporary acceleration of net proceeds tax on minerals
New legislation requires the Nevada Department of Taxation to establish a tax amnesty program for delinquent taxpayers. It also accelerates payment of the net proceeds tax due for minerals.Tax Amnesty...
New legislation requires the Nevada Department of Taxation to establish a tax amnesty program for delinquent taxpayers. It also accelerates payment of the net proceeds tax due for minerals.Tax Amnesty...
NH - Interest rates decrease for 2021
Interest rates on underpayments and refunds of New Hampshire taxes will decrease for 2021.For 2021, rates are:5% for underpayments (down from 7% for 2020); and2% for refunds (down from 4% for 2020).Te...
Interest rates on underpayments and refunds of New Hampshire taxes will decrease for 2021.For 2021, rates are:5% for underpayments (down from 7% for 2020); and2% for refunds (down from 4% for 2020).Te...
NJ - Millionaire's tax passes legislature
The New Jersey Assembly and Senate passed legislation to increase the gross income tax rate on incomes over $1 million. The previously announced rate increase and tax rebate are a part of the Fiscal Y...
The New Jersey Assembly and Senate passed legislation to increase the gross income tax rate on incomes over $1 million. The previously announced rate increase and tax rebate are a part of the Fiscal Y...
NM - Agricultural biomass credit rules amended
The New Mexico Energy, Minerals and Natural Resources Department has amended rules governing the agricultural biomass credit against corporate and personal income taxes. The rules were amended to conf...
The New Mexico Energy, Minerals and Natural Resources Department has amended rules governing the agricultural biomass credit against corporate and personal income taxes. The rules were amended to conf...
NY - Draft regulations on MTA surcharge updated
New York has updated its draft regulations on the Metropolitan Transportation Business Tax Surcharge. Among other changes, the new version adds activities that are typically engaged in by banking corp...
New York has updated its draft regulations on the Metropolitan Transportation Business Tax Surcharge. Among other changes, the new version adds activities that are typically engaged in by banking corp...
NC - Qualified taxpayer unable to claim extra credit grant may file amended returns by October 15
The North Carolina Department of Revenue (department) issued an important notice, acknowledging that some personal income taxpayers with qualifying children who filed a 2019 Form D-400 might not be...
The North Carolina Department of Revenue (department) issued an important notice, acknowledging that some personal income taxpayers with qualifying children who filed a 2019 Form D-400 might not be...
ND - Local tax change announced
North Dakota has announced an upcoming local sales and use tax rate change that is effective October 1, 2020.ThompsonThompson will impose a city sales, use, and alcohol gross receipts tax of 2%. Rele...
North Dakota has announced an upcoming local sales and use tax rate change that is effective October 1, 2020.ThompsonThompson will impose a city sales, use, and alcohol gross receipts tax of 2%. Rele...
OH - Taxpayer properly subject to municipal tax as resident of riverside
A taxpayer was not exempt from Ohio municipal personal income tax as the taxpayer failed to establish that he was not a resident of village of Riverside. Generally, municipalities (like Riverside) may...
A taxpayer was not exempt from Ohio municipal personal income tax as the taxpayer failed to establish that he was not a resident of village of Riverside. Generally, municipalities (like Riverside) may...
OK - Taxpayers with income tax due may receive billing letters
Personal income taxpayers with balance due on their Oklahoma income tax account may receive billing letters. The balance due includes penalty, interest, and/or Underpayment of Estimate Tax Interest (U...
Personal income taxpayers with balance due on their Oklahoma income tax account may receive billing letters. The balance due includes penalty, interest, and/or Underpayment of Estimate Tax Interest (U...
OR - Taxpayers properly denied pass through entity's election calculation
An Oregon Pass-Through Entity’s (PTE’s) election calculation on taxpayers’ amended 2015 personal income tax return was properly denied as the taxpayers' initial election was irrevocable. In this...
An Oregon Pass-Through Entity’s (PTE’s) election calculation on taxpayers’ amended 2015 personal income tax return was properly denied as the taxpayers' initial election was irrevocable. In this...
PA - Guidance regarding servicemembers civil relief act issued
Pennsylvania has issued guidance for personal income taxpayers regarding the Servicemembers Civil Relief Act (SCRA). The act provides overriding federal rules related to the domiciles/residency and co...
Pennsylvania has issued guidance for personal income taxpayers regarding the Servicemembers Civil Relief Act (SCRA). The act provides overriding federal rules related to the domiciles/residency and co...
RI - Emergency regulations on withholding for teleworkers during covid-19 pandemic extended
The Rhode Island Department of Revenue has extended the expiration date for income tax emergency regulations governing employees who are temporarily working remotely due to the coronavirus pandemic.Wi...
The Rhode Island Department of Revenue has extended the expiration date for income tax emergency regulations governing employees who are temporarily working remotely due to the coronavirus pandemic.Wi...
SC - South Carolina updates IRC conformity
South Carolina has updated its Internal Revenue Code conformity date from December 31, 2018, to December 31, 2019.If there are IRC sections adopted by South Carolina that expired on December 31, 2019,...
South Carolina has updated its Internal Revenue Code conformity date from December 31, 2018, to December 31, 2019.If there are IRC sections adopted by South Carolina that expired on December 31, 2019,...
SD - Reminder issued on deadline for buffer strip tax incentive applications
For South Dakota property tax purposes, the Department of Revenue reminds landowners that applications for the riparian buffer strip tax incentive must be submitted by October 15, 2020. Applications f...
For South Dakota property tax purposes, the Department of Revenue reminds landowners that applications for the riparian buffer strip tax incentive must be submitted by October 15, 2020. Applications f...
TN - Rossville local sales tax rate hike imposed
The Tennessee local sales tax rate in the town of Rossville is increased from 2.25% to 2.75% effective October 1, 2020.Approval of Tax Rate HikeVoters in the town approved a measure on August 6, 2020,...
The Tennessee local sales tax rate in the town of Rossville is increased from 2.25% to 2.75% effective October 1, 2020.Approval of Tax Rate HikeVoters in the town approved a measure on August 6, 2020,...
TX - Taxpayer properly denied cost of good sold deduction
A broadband communications service provider, was not entitled to a Texas franchise tax refund claim as the taxpayer did not qualify to cost-of-goods-sold (COGS) deductions. Generally, the COGS deducti...
A broadband communications service provider, was not entitled to a Texas franchise tax refund claim as the taxpayer did not qualify to cost-of-goods-sold (COGS) deductions. Generally, the COGS deducti...
UT - Guidance on reporting requirements of holders of unclaimed property issued
Utah has issued guidance that summarizes reporting instructions for holders of unclaimed property. The guidance discusses Utah’s 2020 unclaimed property laws concerning the reporting requirements of...
Utah has issued guidance that summarizes reporting instructions for holders of unclaimed property. The guidance discusses Utah’s 2020 unclaimed property laws concerning the reporting requirements of...
VT - Guidance on veterans' exemption updated
Vermont provides guidance for veterans regarding their eligibility for a property tax exemption and credit. The document discusses eligibility and filing requirements. Fact Sheet No. FS-1003, Vermont...
Vermont provides guidance for veterans regarding their eligibility for a property tax exemption and credit. The document discusses eligibility and filing requirements. Fact Sheet No. FS-1003, Vermont...
VA - Tax rate changes for central Virginia region starting October 1, 2020, announced
Effective October 1, 2020, the sales and use tax rate will increase by 0.7% in several cities and counties of Central Virginia. The increase applies to sales made in the city of Richmond and the count...
Effective October 1, 2020, the sales and use tax rate will increase by 0.7% in several cities and counties of Central Virginia. The increase applies to sales made in the city of Richmond and the count...
WA - Exemption for data centers with multiple buildings explained
The Washington Department of Revenue has issued guidance on application of the data center sales and use tax exemption to centers composed of multiple buildings.Qualifying TenantsThere are a total of ...
The Washington Department of Revenue has issued guidance on application of the data center sales and use tax exemption to centers composed of multiple buildings.Qualifying TenantsThere are a total of ...
WV - Rules implement coal severance tax rebate
The West Virginia coal severance tax rebate is available to taxpayers that make a capital investment in new machinery and equipment that results in an increase in coal production. The rules sunset eff...
The West Virginia coal severance tax rebate is available to taxpayers that make a capital investment in new machinery and equipment that results in an increase in coal production. The rules sunset eff...
WI - Machinery, tools, and patterns used in manufacturing not entitled to exemption
For Wisconsin personal property tax purposes, any machinery, tools, and patterns (MTP) used in any way in manufacturing are not exempt. In this case, the Wisconsin Department of Revenue found that the...
For Wisconsin personal property tax purposes, any machinery, tools, and patterns (MTP) used in any way in manufacturing are not exempt. In this case, the Wisconsin Department of Revenue found that the...
WY - State lodging assessment imposed
Beginning January 1, 2021, all Wyoming lodging vendors collect a 3% assessment on lodging services. If a county does not have a county lodging tax imposed on January 1, 2021, lodging vendors collect t...
Beginning January 1, 2021, all Wyoming lodging vendors collect a 3% assessment on lodging services. If a county does not have a county lodging tax imposed on January 1, 2021, lodging vendors collect t...
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