William P Cook

Tax Alerts

November 26, 2020

Tax Briefing(s)

2020 Post-Election Tax Policy Update 2020 Year-End Tax Planning 2020 Payroll Tax Deferral Order 2020 Post-Filing Season Update CARES Act Coronavirus Tax Relief

Economic Impact Payment Registration Deadline Extended to November 21
The IRS has announced that the deadline to register for an Economic Impact Payment (EIP) is now November 21, 2020. Further, the IRS has urged taxpayers, to register using the Non-Filers: Enter Info H...

PPP Loan Forgiveness Application Deadline Clarified
The Treasury Department and the Small Business Administration issued updated Frequently Asked Questions (FAQs) on October 13, 2020, regarding the Paycheck Protection Program (PPP). This was a follow u...

No Information Reporting for Qualifying PPP Loan Forgiveness
The IRS has notified lenders to not file information returns or furnish payee statements under Code Sec. 6050P to report the amount of qualifying forgiveness for covered loans made under the Paychec...

Deadline for Faxing Forms 1139 and 1045
The IRS has added an FAQ on the timing for ending the temporary procedures that allow Form 1139, Corporation Application for Tentative Refund, and Form 1045, Application for Tentative Refund, to be ...

IRS Extends Filing Deadlines, Penalty Relief for Health Coverage Reporting Forms
Health insurance providers (including employers and health insurance companies) now have until March 2, 2021, to provide individuals with Forms 1095-B, Health Coverage, or Forms 1095-C, Employer-Provi...

IRS Reminds Taxpayers to Check Tax Withholding
The IRS has reminded taxpayers that now is the perfect time to review their tax withholding and payments to avoid surprises while filing next year. An adjustment or two made now may boost take home pa...

Webpage Helps Owners Navigate Tax Steps When Closing Business
The IRS has launched a redesigned page on its website to help business owners navigate the federal tax steps when closing a business. The IRS has streamlined the "Closing a Business" page into sim...

IRS Updates Electronic Filing Requirement for Form 1040-NR
he IRS has removed Form 1040-NR, U.S. Nonresident Alien Income Tax Return, from the list of returns that are administratively exempt from the electronic filing requirement imposed on specified tax re...

AK - Interest rate announced for Q4 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 December 31, 2020. The Department of Revenue posting...

AR - Prescription drug sales tax exemption did not apply to purchases of reagents
A hospital was not entitled to an Arkansas sales and use tax exemption for prescription drugs on its purchases of chemical reagents used in its laboratory. Generally, the exemption applies to sales of...

CA - Taxpayer doing business in state properly subject to LLC 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...

CO - Deadline extensions announced for victims of east troublesome fire
The Colorado Department of Revenue has announced state tax filing and payment relief for businesses who have been affected by the East Troublesome fires. The primary areas impacted include Estes Park ...

DE - Hazardous substances cleanup tax rate for 2021 announced
Delaware has announced that the hazardous substance cleanup tax rate for 2021 is 0.9067%. Effective January 1, 2021, the new tax rate will apply to the taxable gross receipts from the sale of petroleu...

FL - Sumter county tourist development tax repealed
Beginning October 1, 2020, the Sumter County, Florida tourist development tax is repealed. On October 13, 2020, the Sumter County Board of County Commissioners approved Ordinance No. 2020-13. The ordi...

GA - Georgia issues film tax credit guidance during covid-19
Georgia has released guidance on the expenses that qualify for the corporate income tax film credit during the COVID-19 pandemic.Qualifying CostsCosts incurred during the COVID-19 shutdown qualify for...

HI - Hawaii provides additional information on tax treatment of covid-19 relief
Hawaii has released additional information on the general excise tax (GET) treatment of certain forms of COVID-19 relief. Lease and rent payments received by residential and commercial landlords throu...

IL - Permanent regulation on Illinois minimum wage credit adopted
Illinois adopted a permanent regulation on the withholding tax credit for small employers who pay minimum wage to their employees. Eligible employers can claim the credit against Illinois corporation ...

IN - Guidance on seller registration and other topics updated
Indiana issued an updated sales and use tax guidance on seller registration, methods of remittance, certified service providers, and the taxability matrix to clarify the department’s online portal f...

IA - Refund denied as taxpayer did not file valid return
A taxpayer was properly denied refund on Iowa personal income tax return as the taxpayer did not file a valid return on which he claimed the refund. Generally, a claim for a refund is a formal request...

LA - Addback enacted for hurricane Laura or hurricane delta disaster losses
Louisiana has enacted a personal income tax addback equal to any federal tax decrease resulting from a deduction for certain net disaster losses attributable to Hurricane Laura or Hurricane Delta. The...

ME - Tax alert issued on proposed changes to rule governing residency
Maine Revenue Services has issued a Tax Alert to address proposed changes to the personal income tax rule on residency.Proposed ChangesThe proposed changes would:update the definition of "statutory r...

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 ...

MS - Assessment timeline changes for airline companies discussed
Mississippi has revised provisions relating to property tax assessments for airline companies. Effective January 1, 2021, airline companies must annually file a complete schedule of all aircraft of a ...

MO - Missouri 2020 tax year changes announced
Missouri has announced individual income tax changes related to the following items, effective for the 2020 tax year:tax rates;standard deduction;processed wood energy tax credit;reserves and inactive...

NE - Updated guidance on computer reporting procedure issued
For corporate and personal income tax purposes, the Nebraska Department of Revenue (department) released an information guide addressing the computer reporting procedure for forms W-2 and W-2G. Accord...

NV - Parts of 2019 Nevada MBT legislation invalidated
Portions of a 2019 Nevada law (S.B. 551) affecting the rates of the modified business tax have been invalidated. The law had resulted in Nevada continuing to impose its modified business taxes on empl...

NH - NH to challenge MA taxation of NH remote workers
Governor Chris Sununu has directed the New Hampshire Department of Justice to file a law suit in the United States Supreme Court challenging a Massachusetts’ rule that imposes Massachusetts' income ...

NM - Taxpayers were properly denied income tax credit and deduction for prior year’s taxes
A married couple (taxpayers) that paid a New Mexico personal income tax assessment stemming from previous year on an installment agreement was properly denied credits for those payments against their ...

NY - Mixed-use property primarily used for manufacturing activity eligible for brownfield redevelopment tax credit
A property owner’s mixed-use property was properly subject to the New York Brownfield Redevelopment Tax Credit manufacturing use cap because the property was "primarily" used for manufacturing act...

NC - Updates to filing penalties on informational returns for motor, alternative fuels discussed
For motor fuel tax purposes, North Carolina has issued a notice on filing penalties on informational returns for motor fuels and alternative fuels. In 2018, the legislature passed a law increasing the...

OK - Local rate change annouinced
The sales and use tax rate in Kingfisher, Oklahoma will decrease from 3.335% to 3.0% effective January 1, 2021. The notice can be viewed on the Tax Commission’s website. Rates and Codes for Sales,...

OR - Taxpayer’s improvements constituted minor construction
For Oregon property tax purposes, the improvements to the taxpayer’s fourplex constituted minor construction and consequently excluded from the taxable maximum assessed value. The taxpayer maintaine...

PA - Billboard revenue a factor in valuing property
The Supreme Court of Pennsylvania held that, in relation to real property containing billboards, although a billboard’s value may not itself be considered when assessing the underlying real property...

SC - Fee enacted for taxpayers claiming historic rehabilitation credit
The South Carolina historic rehabilitation credit has been amended to require claimants to pay a preliminary fee, based on estimated expenses, and a final fee, based on actual expenses, to the Departm...

TN - Short-term rental unit marketplaces must collect occupancy taxes
Effective January 1, 2021, short-term rental unit marketplaces are required to collect and remit Tennessee local occupancy taxes for short-term rental units rented through a marketplace.Registration a...

TX - Sales, excise taxation of motorcycles, autocycles, off-highway vehicles
Texas issued a publication clarifying that sales and use tax treatment of sale of motorcycles, autocycles, and off-highway vehicles is based on whether the vehicle is designed for on highway use or of...

UT - 2021 interest rate for underpayment and overpayment is 2%
In its updated publication on interest and penalties for many of the taxes it administers, the Utah State Tax Commission announced that the interest rate for underpayment and overpayment of taxes and ...

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...

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...