William P Cook

Tax Alerts

Tax Briefing(s)

2018 Post-Filing Season Update Congress Approves Sweeping Tax Overhaul Tax Cuts and Jobs Act 2017 Year-End Tax Planning

FAQs Provide Penalty and Filing Relief for Taxpayers Subject to Section 965 Transition Tax
Three new FAQs covering the Code Sec. 965 transition tax provide welcome penalty and filing relief for taxpayers who make the election to pay the tax in eight annual installments. The IRS wi...

Updated 2018 Standard Mileage Rates Notice Reflects Tax Cuts Changes
The IRS has updated Notice 2018-3, I.R.B. 2018-2, 130, to reflect changes to the tax law made by the Tax Cuts and Jobs Act ( P.L. 113-97). Changes impacting Notice 2018-3include:the sus...

IRA Payments to Unclaimed Property Fund Are Subject to Federal Withholding and Reporting
The IRS has clarified that a trustee’s payment of an individual’s interest in a traditional individual retirement account (IRA) to a state unclaimed property fund, as required by state law...

Adjustments, Reference Prices for Renewable Energy Production Credit Released
The IRS has published the inflation adjustment factors and reference prices to be used in computing the renewable electricity production credit and the refined coal production credit under Code S...

Date Extended for Applying Foreign Branch Transaction Rules
The IRS has announced a new one-year extension for applying the Code Sec. 987 final and related temporary regulations covering foreign branch transactions of U.S. corporations. The regulatio...

Automatic Accounting Method Change for Deducting Citrus Replanting Costs
An automatic change in accounting method procedure provides guidelines for qualifying investors in damaged citrus groves to opt out of the uniform capitalization (UNICAP) rules of Code Sec. 263A....

IRS Provides Guidance on When Energy Property Construction Has Begun
The IRS has provided guidance and a safe harbor to determine when construction of "energy property" has begun for purposes of the investment tax credit (ITC) under Code Sec. 48.Backgrou...

Final Round of Opportunity Zone Designations Announced
The Treasury and the IRS have designated Opportunity Zones in 15 states and three territories. Investments in these specific Qualified Opportunity Zones get preferential tax treatment under the Tax Cu...

AK - Oil and gas tax credit repurchase bond program enacted
Alaska Gov. Bill Walker has signed H.B. 331, as part of his "Alaska Economic Recovery Plan." The law allows the state to issue bonds to purchase remaining oil and gas tax credit program cert...

AR - Purchase of pressure washer failed to qualify for farm equipment and machinery exemption
A taxpayer’s purchase of a "pressure washer" did not qualify for the farm equipment and machinery exemption from Arkansas gross receipts (sales) tax because the taxpayer failed to prov...

CA - Partnership audit legislation proposed
The California Assembly is considering legislation that would establish state procedures for dealing with federal partnership adjustments. The proposed legislation is in response to the new federal pa...

CO - Colorado enacts credit for employer organ donation expenses
For tax years 2020-2024, a new income tax credit is created for Colorado employers who grant a paid leave of absence to employees that have donated an organ. The credit is equal to 35% of:the donor em...

DE - Local lodging tax authorized
Delaware counties with populations greater than 500,000 are authorized to enact a local lodging tax of no more than 3% of the rent, in addition to the state tax imposed, for any rooms in a hotel, mote...

FL - 2018 legislative changes to tax credit scholarship program discussed
Florida discusses the 2018 legislative changes to the Tax Credit Scholarship Program for corporate income and sales and use tax purposes. The program allows taxpayers to make private, voluntary contri...

GA - Taxpayer with usufruct interest in property not subject to real property tax
For property tax purposes, the Georgia Supreme Court (court) affirmed a trial court decision that an agreement between a city and a private business (taxpayer) for the lease of retail concession space...

HI - IRC conformity updated
Hawaii’s Internal Revenue Code (IRC) tie-in date moves to February 9, 2018, for tax years beginning after 2017. The prior IRC conformity date was December 31, 2016, for tax years beginning after...

IL - Philadelphia reduces income tax rates
Beginning July 1, 2018, Philadelphia will reduce the rate of the:wage tax;earnings tax;net profits tax; andschool income tax.All paychecks issued after June 30, 2018 must have Philadelphia City Wage T...

IN - July 2018 gasoline use tax rate issued
The Indiana gasoline use tax rate for July 2018 is 16.7 cents per gallon. The rate for June 2018 is 15.9 cents per gallon. Departmental Notice #2, Indiana Department of Revenue, July 2018...

IA - DOR offers wayfair guidance
Iowa issued guidance regarding how the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc., Docket No. 17-494 affects Iowa and online retailers, remote sellers, and marketplace p...

LA - Remote sellers required to collect
Louisiana will require remote retailers to collect sales and use tax if they meet certain sales thresholds. The thresholds apply to tax periods on or after the date of the final ruling in South D...

ME - Electricity, gas, water sales discussed
The application of Maine sales and use tax to electricity, gas, and water is explained in an instructional bulletin that was published in 1952 and has been revised for the first time since then. Taxab...

MD - Wynne refunds discussed
The Maryland Tax Court issued a personal income tax order clarifying that section 16 of the budget reconciliation act of 2014 violates the dormant Commerce Clause of the United States Constitution by ...

MS - Tax sale void for failure to satisfy statutory notice requirements despite waiver of notice
A Mississippi chancery court did not err in voiding a property tax sale and refunding the purchase price because the county chancery clerk failed to satisfy the statutory notice requirements. The tax ...

MO - Legislation enacts exemptions for dues made to nonprofits and disposable diapers
Missouri sales and use tax exemptions are enacted for certain dues and disposable diapers.Initiation Fees or Dues Made to Nonprofit OrganizationsCharges for initiation fees or dues made to nonprofit o...

NE - Government property leased to private party was exempt
Property owned by the Natural Resources District (NRD) and leased to a private party for grazing purposes qualified for exemption from Nebraska property tax as it was used for a public purpose.Public ...

NV - Regulations adopted on credit for new or expanding businesses
Nevada adopted regulations on the transferable credit available to new or expanding businesses. Taxpayers can apply the credit against:the modified business tax;the financial institution modified busi...

NH - Regenerative manufacturing exemption enacted
New Hampshire enacted a 10 year exemption from the business profits tax (BPT) and business enterprise tax (BET) for regenerative manufacturing businesses.The business must:file an election stating it ...

NM - Decision holding taxpayer liable for unpaid taxes withdrawn
The New Mexico Administrative Hearings Office (office) withdrew a previous decision in which it upheld a personal income tax assessment against a taxpayer, and issued an amended decision stating that ...

NY - NOL deduction required even when tax computed on asset base
New York required a corporation computing the former bank tax on an alternative base to use a net operating loss (NOL) deduction.The deduction decreased the corporation’s entire net income in 20...

NC - North Carolina violated New York trust’s due process
The North Carolina Supreme Court held the state could not constitutionally collect personal income tax from a New York trust based solely on the presence of its beneficiaries in the state. Under North...

OK - Commercial airline exemption amended
Oklahoma legislation amends the state aircraft excise tax exemption for commercial airlines.Commercial Airline ExemptionThe aircraft excise tax exemption for aircraft purchased or used by commercial a...

OR - Taxpayers entitled to certain business expense deductions
For Oregon personal income tax purposes, taxpayers were entitled to certain business expense deductions related to their daycare business, including expenses for union dues and utility. However, no de...

PA - Release discussing study of 10-Year tax abatement issued
For Pennsylvania property tax purposes, the City of Philadelphia Department of Revenue has issued a press release discussing the new study of Philadelphia’s 10 year abatement of real estate taxe...

SC - Annual sales tax holiday announced
South Carolina’s annual sales tax holiday will take place from August 3, 2018 through August 5, 2018. During this period, the state and local sales tax will not apply to clothing, clothing acces...

TN - Guidance on taxability of dues or fees paid to physical fitness facilities issued
The Tennessee Department of Revenue has issued a notice that provides guidance on the applicability of sales tax to dues or fees paid to physical fitness facilities. Generally, dues or fees paid to he...

TX - Foreclosure on property tax liens allowed
For Texas property tax purposes, a school district was entitled to enforce its tax lien on the taxpayer’s property to collect the amount of taxes, penalties, and interest due on the taxpayer&rsq...

UT - Protest partially denied as taxpayers were domiciled in Utah
Utah taxpayers appeal against an assessment of additional personal income taxes for the tax years 2010, 2011, 2014, and 2015 was partially denied because the taxpayers were Utah resident for 2014 and ...

VA - Innovations to protect taxpayers data discussed
For corporate and personal income tax purposes, the Virginia Department of Taxation issued a news release discussing the initiatives taken by a team of experts called the "Refund Fraud Team" in p...

WY - Airplane purchased in another state but stored and used in Wyoming subject to tax
An out-of-state corporation’s (taxpayer’s) purchase of a used airplane was subject to Wyoming use tax because the taxpayer bought the airplane in another state but stored and used it in Wy...