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

IRS Releases Guidance for Section 199A Pass-Through Deduction
The IRS has released long-awaited guidance on new Code Sec. 199A, commonly known as the "pass-through deduction" or the "qualified business income deduction." Taxpayers can re...

Regulations Issued on Partnership Representative Under Centralized Partnership Audit Regime
The IRS has issued final regulations regarding the designation and authority of the partnership representative under the centralized partnership audit regime. The final regulations make a number of ch...

Proposed Rules Address 100-Percent Depreciation Deduction
Proposed regulations address the new 100-percent depreciation deduction that allows businesses to write off most depreciable business assets in the year they are placed in service.BackgroundThe Tax Cu...

Regulations Proposed on Code Sec. 965 Transition Tax
Proposed regulations provide rules for determining the Code Sec. 965 inclusion amount of a U.S. shareholder of a foreign corporation with deferred foreign income. The tax imposed on the incl...

IRS Replaces Proposed Rules on Partnership Audit Regime
The IRS has released proposed regulations governing the centralized partnership audit regime. These regulations replace some existing proposed rules to reflect changes made by the Tax Technical Correc...

Short-Term Health Insurance Exemption from ACA Consumer Protections Broadened
The Departments of Health and Human Services, Labor, and Treasury have amended the definition of short-term, limited-duration individual health insurance coverage, by allowing such coverage to last up...

Hardest Hit Fund Safe Harbor Modified
The IRS has modified the safe harbor for computing deductible mortgage interest under Code Sec. 163 and real property taxes under Code Sec. 164(a)(1) by homeowners participating in...

IRS Extends Filing, Payment Deadlines for California Wildfire Victims
The IRS has extended filing and payment deadlines for certain California taxpayers affected by wildfires. Taxpayers in Shasta County may qualify for tax relief.Extended DeadlinesIndividuals and busine...

Discharge Relief Available for Private Student Loan Debtors
The IRS has provided relief to taxpayers who took out private student loans to finance attendance at a school owned by Corinthian College, Inc. (CCI) or American Career Institutes, Inc. (ACI). Under t...

Small Businesses Get Automatic Consent for Accounting Method Changes
The IRS will provide automatic consent to a small business taxpayer’s application to change to the cash method of accounting. Eligible small business taxpayers, as defined by the Tax Cuts and Jo...

Exempt Organizations May Not Need to Include Donor Information on Returns
Tax-exempt organizations, other than charities exempt under Code Sec. 501(c)(3), will soon be able to stop reporting the names and addresses of contributors on Schedule B when filing their inform...

IRS Unveils Draft Form 1040
Taxpayers will be able to file federal income taxes starting next filing season on a new postcard-sized Form 1040. The IRS officially released the draft 2018 Form 1040 on June 29.Draft Form 1040The ne...

Preparer Due Diligence Rules Include Head of Household Eligibility
The IRS has proposed amendments to the tax preparer due diligence regulations to reflect a recent law change. The Tax Cuts and Jobs Act ( P.L. 115-97) expanded the scope of the due diligence pena...

IRS Clarifies Estate and Trust Expenses Not Subject to Miscellaneous Itemized Deduction Suspension
The Treasury Department and the IRS plan to issue regulations clarifying that certain estate and nongrantor trust expenses remain deductible and are not subject to the miscellaneous itemized deduction...

Veterans Urged to Claim Refund for Tax Overpayments on Disability Severance Payments
The IRS has urged certain veterans who received disability severance payments after January 17, 1991, and included that payment as income that they should file Form 1040X, Amended U.S. Individual Inco...

IRS Highlights “Security Six” Safeguards
The IRS, along with Security Summit partners, offered important tips dubbed "Security Six"protections to help tax professionals protect their computers and email as well as safeguard sensitive ta...

AK - Exemption for interest in AIDEA property extended
A property tax exemption for interests in Alaska Industrial Development and Export Authority (AIDEA) property is extended.ExemptionAn interest created by a nonexclusive use agreement between the AIDEA...

AR - Taxability of motor vehicles and special mobile equipment discussed
A purchaser of a motor vehicle or trailer that is required to be licensed in Arkansas must apply for title and registration at the Department of Finance and Administration’s Office of Motor Vehi...

CA - New employment credit, head of household letters, and others discussed
In its September 2018 issue of Tax News, the California Franchise Tax Board (FTB) provides information on a variety of corporation franchise and income and personal income tax issues, including the fo...

CO - Charges for printed information provided as part of billing and related services not subject to tax
Charges a taxpayer received from its clients in return for printed information provided to the clients’ customers as part of billing and other financial services were not subject to Colorado sal...

DE - Delaware shifts administration of fantasy sports receipts tax
Delaware imposes an annual license and gross receipts tax on interactive fantasy sports operators. Legislation shifts administration of the tax to the Delaware Division of Revenue. The law also allows...

FL - Tax rate for rental, lease, or license to use real property to decrease
The Florida Department of Revenue has issued a tax information publication (TIP) explaining that the sales tax rate imposed on the total rent charged for renting, leasing, letting, or granting a licen...

GA - Manufacturer energy rates for Q4 released
There are no local Georgia sales and use tax rate changes for energy sold to manufacturers for the quarter beginning October 1, 2018. Georgia Sales and Use Tax Rates for Energy Sold to Manufactur...

HI - 2018 standard mileage rates announced
The 2018 standard mileage rates for Hawaii income tax deductions for using vehicles for designated purposes are:business—54.5 cents per mile;medical or moving—18 cents per mile; andcharita...

IL - Increase in standard exemption amount discussed
For corporate and personal income tax purposes, the Illinois Department of Revenue published an information bulletin on changes to the standard exemption amount. The standard exemption calculation inc...

IN - Indiana ready to enforce economic nexus for sales tax
Indiana will enforce its sales tax economic nexus law on October 1, 2018. Retailers will be required to collect sales tax if they have a minimum number of sales revenues or transactions in Indiana. Ph...

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 - Changes to tax treatment of school tuition organization donations discussed
The Louisiana Department of Revenue has issued a bulletin regarding the changes to corporate, personal and fiduciary income tax treatment of donations made to school tuition organizations. Act 377 of ...

ME - Certification for home accessibility credit revised
The certification process for Maine’s "AccessAble Home" personal income tax credit was revised. The credit is for certain costs to make a home accessible to a disabled person who lives...

MD - “Enterprise dependency” used to establish nexus in Maryland
A Maryland court ruled that corporate income tax nexus was created through "enterprise dependency" between the taxpayers and affiliated entities. In addition, the court upheld the state&rsqu...

MS - Local tax changes in Richland announced
The City of Richland, Mississippi will impose a Tourism, Parks and Recreation Tax beginning October 1, 2018.Lodging Tax RateThe special tax is levied at the rate of 3% on the gross proceeds from room ...

MO - Federally recognized native American tribe and affiliates not subject to tax
For personal and corporate income tax purposes, a federally recognized Native American Tribe and its affiliates conducting business activities in Missouri were not subject to Missouri income tax becau...

NE - Local rate changes announced
Several Nebraska cities will undergo local sales tax rate changes effective January 1, 2019.Local RatesThe city of Pender terminates its local sales and use tax rate. Randolph and Wahoo each increase ...

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 - Governors responds further to wayfair
Following the decision in South Dakota v. Wayfair, Inc., U.S. Supreme Court, Dkt. No. 17-494, June 21, 2018, New Hampshire Governor Chris Sununu joined Attorney General Gordon MacDonald and Busin...

NM - Receipts from family living services under developmental disabilities medicaid waiver program subject to tax
A taxpayer’s receipts from providing Family Living Services under the Developmental Disabilities Medicaid Waiver Program were subject to New Mexico gross receipts tax because the taxpayer failed...

NY - Petition dismissed as assessment was previously adjudicated
A taxpayer's petition for redetermination or for a refund of New York personal income tax was dismissed due to lack of jurisdiction because the assessment had been previously adjudicated. The Division...

NC - SST certificate of compliance updated
The North Carolina Department of Revenue has updated its Streamlined Sales and Use Tax (SST) Certificate of Compliance. The certificate documents compliance with the provisions of the SST Agreement an...

OK - Electronic filer handbook issued for TY 2018
The Oklahoma Tax Commission has updated its individual income tax electronic filer handbook for tax year 2018.ChangesThe handbook includes an updated electronic filing calendar for 2018. In addition, ...

OR - Alimony deduction properly denied
A taxpayer was properly denied an alimony deduction on his 2014 Oregon personal income tax return because the payments were not made under a divorce or separation instrument. The taxpayer and his form...

PA - Warning about fraudulent notices issued
The Philadelphia Department of Revenue (DOR) has issued a press release warning personal income taxpayers of a scam involving fraudulent notices threatening taxpayers with legal action or criminal pro...

SC - Assessment properly adjusted to include embezzled funds
The South Carolina Department of Revenue properly adjusted a taxpayer’s personal income tax liability, for tax years 2011 through 2013, to include amounts that the taxpayer had embezzled from hi...

TN - Tennessee provides post-wayfair tax collection advice for out-of-state dealers
Tennessee provides sales and use tax advice for out-of-state dealers in the wake of the decision in Wayfair v. South Dakota.South Dakota v. Wayfair Inc. DecisionIn South Dakota v. Wayfa...

TX - Texas sourcing of subscription revenues upheld
A satellite radio company properly apportioned its subscription revenues to Texas based on the locations of its primary production facilities. This reflected the fair value of the services performed i...

UT - Utah enacts economic nexus provisions
Enacted Utah legislation imposes economic nexus and expands certain sales and use tax exemptions.Economic NexusA seller not otherwise obligated to pay or collect and remit sales and use tax is so obli...

VA - First-time home buyer savings account subtraction discussed
For Virginia personal income tax purposes, individuals having a first-time home buyer savings account with a bank or another financial institution can subtract the income produced by that account from...

WY - Guidance for remote sellers provided
Despite the U.S. Supreme Court’s decision in South Dakota v. Wayfair, the Wyoming Department of Revenue does not currently require remote sellers to license with the state and collect ...