William P Cook

Tax Alerts

February 23, 2021

Tax Briefing(s)

2020 Tax Year-In-Review Consolidated Appropriations Act, 2021 (revised)2020 Post-Election Tax Policy Update 2020 Year-End Tax Planning 2020 Payroll Tax Deferral Order

Filing Season Begins February 12
The IRS will begin accepting and processing 2020 tax year returns for individual filers on Friday, February 12, 2021. This start date will allow the IRS time to do additional programming and testing o...

All Taxpayers Now Eligible for IP PINs
The IRS has expanded the Identity Protection PIN Opt-In Program to all taxpayers who can verify their identities. The Identity Protection PIN (IP PIN) is a six-digit code known only to the taxpayer an...

2021 Standard Mileage Rates Released
The IRS released the optional standard mileage rates for 2021. Most taxpayers may use these rates to compute deductible costs of operating vehicles for:business,medical, andcharitable purposes.Some me...

SBA, Treasury Announce PPP Re-Opening
The U.S. Small Business Administration (SBA), in consultation with the Treasury Department, announced that the Paycheck Protection Program (PPP) would re-open during the week of January 11 for new bor...

IRS Releases Final Regulations on Recovery of Misdirected Direct Deposit Refund
The IRS has released final regulations with the procedures under Code Sec. 6402(n) for identification and recovery of a misdirected direct deposit refund. This guidance reflects modifications to the l...

IRS Extends Acceptance of Signature Images, Digital Signatures
The IRS has announced that it is extending its temporary acceptance of certain images of signatures (scanned or photographed) and digital signatures on documents related to the determination or collec...

AK - Interest rates announced for Q1 of 2021
The Alaska interest rate for delinquent taxes and overpayment of taxes is set at 5.50%, compounded quarterly, for the period January 1, 2021, through March 31, 2021. Subscribers can view the Departmen...

AR - IRC conformity bill introduced
The Arkansas House of Representatives has introduced a bill that would, if enacted, update Internal Revenue Code conformity for corporate and personal income tax purposes. The bill would adopt the fol...

CA - Governor proposes $600 stimulus payments for low-income Californians
California Gov. Gavin Newsom has proposed sending $600 stimulus payments to roughly four million low-income Californians. The Golden State Stimulus, a 2021-22 State Budget proposal, would provide rapi...

CO - Governor issues declaration of vote on rate decrease ballot measure
Colorado Gov. Jared Polis has issued a proclamation declaring the vote on Proposition 116, which was approved by voters to decrease the income tax rate from 4.63% to 4.55%. The measure takes effect fr...

DE - Mandatory electronic filing for many business tax returns announced
The Delaware Division of Revenue (division) issued a memorandum notifying taxpayers that most gross receipts tax, excise tax, and withholding tax returns and payments will be required to be filed elec...

FL - Motor vehicle sales tax rates by state provided
Florida provides motor vehicle sales tax rates by state as of December 16, 2020. The chart indicates, for each state, the Florida tax rate to be imposed and whether credit for a trade-in is allowed by...

GA - Interest rate announced
For 2021, the interest rate applied to Georgia tax overpayments and underpayments is 6.25% (accruing monthly). The rate was 7.75% for 2020. Policy Bulletin ADMIN-2021-01, Georgia Department of Revenu...

HI - Honolulu completes 2021 assessments
The city and county of Honolulu, Hawaii has announced that real property assessments for 2021 are completed, and the total gross assessed valuation of all taxable real property on Oahu has decreased f...

IL - Governor calls for NOL changes, freeze on credits for construction jobs
Illinois Gov. J.B. Pritzker issued a press release calling for:decoupling Illinois income tax law from changes to the federal treatment of net operating losses (NOLs); anda freeze on corporate and per...

IN - Shipyard operator failed to establish research activities; research expense tax credit denied
A Limited Liability Corporation (LLC) that operated a shipyard along the banks of the Ohio rivers in Tell City was not entitled to receive a research expense credit on its Indiana corporate income tax...

IA - Roofing material supplier's sales subject to tax
A roofing material supplier’s (taxpayer’s) sales were subject to Iowa sales tax because its customers received the product at sites located in Iowa. Generally, sales tax is imposed upon the sales ...

LA - Gains properly included as other gross apportionable income
A Texas based corporation’s gain derived from sale of its interest in a Limited Liability Corporation (LLC) was properly included in the denominator of the "Revenue Ratio" as the applicable Louisi...

ME - Taxpayer's reconsideration request properly denied as untimely
The Maine Revenue Services (MRS) properly denied as untimely a taxpayer’s request to reconsider the MRS’s determination that the taxpayer was responsible for a corporation’s unpaid sales and use...

MD - Maryland due date extensions announced due to covid-19 emergency
Due to the economic impact on individuals and businesses as a result of COVID-19, the Maryland Comptroller has announced extended due dates for certain business taxes.Corporate and Pass-Through Entity...

MS - Judgement affirmed as taxpayer's roofing service was properly subject to tax
The Mississippi Court of Appeals affirmed the chancery court’s decision that a taxpayer’s sale and installation of roofing materials were subject to sales tax. In this case, the chancery court gra...

MO - Missouri rule modifies withholding for work from temporary location due to covid-19 pandemic
Missouri has adopted an emergency rule for withholding and remitting income tax from wages for work performed from a temporary location due to the COVID-19 pandemic. It allows certain employers to ele...

NE - Aircraft information reports due
For purposes of personal property tax, the Nebraska Department of Revenue has reminded owners, lessees, and managers of any aircraft hangar or land upon which is parked any aircraft, that the Nebraska...

NV - Guidance issued for upcoming tax amnesty program
Nevada has a tax amnesty program for businesses and individuals that will begin February 1, 2021, and end May 1, 2021.Amnesty Program DetailsThe amnesty program allows penalty and interest from Nevada...

NH - Bet filing threshold adjusted
The New Hampshire Department of Revenue Administration has released the inflation-adjusted filing threshold figures for the business enterprise tax.2021 Filing ThresholdFor taxable periods ending on o...

NM - New top income tax rate to take effect
A new top state personal income tax rate of 5.9 percent will be in effect in New Mexico for the 2021 tax year. The new rate applies to taxable income above $210,000 for single filers and above $315,00...

NY - Local hotel tax not applicable to online facilitation or service fees charged by online travel companies
For New York sales and use tax purposes, the Supreme Court Appellate Division noted that the local hotel tax ordinance does not authorize a hotel and motel tax against facilitation or service fees cha...

NC - SST boundary database updated
North Carolina has updated the boundary database under the Streamlined Sales and Use Tax (SST) Agreement.Effective Date of Boundary DatabaseThe database is updated to include changes effective January...

OK - Retroactive application of tax refund claim limitation period unconstitutional
A taxpayer was entitled to a refund of Oklahoma sales and use taxes erroneously paid by it, because a right to a refund erroneously paid is a substantive right which accrues when an erroneous tax is p...

OR - Surety bond rule updated
The Oregon Department of Revenue has updated its rule on tobacco taxpayers and the surety bond requirement. The following taxpayers must post security in the form of a surety bond in an amount equal t...

PA - 2021 underpayment and overpayment interest rates announced
Pennsylvania announced 2021 interest rates on tax underpayments and overpayments.Interest Rate on UnderpaymentsThe 2021 interest rate on underpayments of all Pennsylvania taxes is 3% per year, down fr...

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

TN - Guidance provided on taxability of hemp, e-cigarettes, and vape devices
Tennessee provides guidance on the application of cigarette and tobacco products tax to:tobacco substitutes;hemp and herbal cigarettes;e-cigarettes;vape devices; andother nicotine products.Important N...

TX - Apportionment rule changes proposed
Texas has proposed changes to its rule on the sourcing of revenue for franchise tax purposes. Most significantly, the proposed changes concern the sourcing of gross receipts from:general services;adve...

UT - Refund carry-forwards issued as refund checks in error
Utah taxpayers may request all or part of their Utah income tax refund to be applied as a prepayment against their following year’s corporate and personal income tax return. The due date for the 201...

VA - Guidelines on port volume increase credit updated
Virginia released updated guidelines on the port volume increase corporate and personal income tax credit. The update reflects 2019 legislation allowing credits issued in taxable years beginning on an...

WY - Interest rate announced
The interest rate for underpayment of Wyoming taxes is 8.45% as of January 1, 2021. The notice can be viewed on the department’s website. News Release, Wyoming Department of Revenue, January 7, 20...