William P Cook

Tax Alerts

Tax Briefing(s)

ACA Repeal and Replacement 2016 Tax Year-In-Review Post-Election Tax Policy Update

Software engineer denied deductions for Executive MBA degree
Expenses for an MBA degree may or may not be deductible depending upon a taxpayer’s current employment situation. Take two close cases with opposite results:In Creigh, TC Summary Opinion 2017-26...

President directs IRS to exercise discretion in enforcement of “Johnson amendment”
An Executive Order, issued on May 4, directs the IRS to exercise maximum discretion in its enforcement of the "Johnson amendment" concerning Code Sec. 501(c)(3) charitable/religious organizations. &nb...

IRS updates FAQs on passport certification
In 2015, Congress added Code Sec. 7345 as part of the Fixing America’s Surface Transportation Act of 2015 (FAST Act). Upon receiving certification of seriously delinquent tax debt from...

No equitable relief from missing tax court deadline for innocent spouse review
The Third Circuit Court of Appeals has found that the Tax Court properly dismissed for lack of jurisdiction an individual’s petition for review of the IRS’s denial of innocent spouse relie...

Stock broker proves real estate professional status for rental losses
Winning real estate professional status –and the benefits gained from taking business deductions and losses from an “active” rather than “passive” business-- often depend...

CBO reports on top tax incentives/expenditures
The Congressional Budget Office (CBO) issued a report in mid-March about current tax incentives. Tax expenditures, CBPO explained, reduce the amount of revenue that is collected for any given set of s...

IRS updates 401(k) hardship distributions exam materials
The IRS Tax Exempt and Government Entities Division (TE/GE) has updated guidance used to determine whether a Code Sec. 401(k) plan hardship meets the safe-harbor standards set forth in applicable regu...

Employee consent requirements for employer refund claims released
The IRS recently issued the employee consent requirements that an employer need to adhere to in order to support a claim for refund of overpaid taxes under the Federal Insurance Contributions Act (FIC...

New Offers in Compromise policy starts April 27
The IRS informed taxpayers and tax professionals of its updated policy with regards to the Offer in Compromise (OIC) application process. OIC applications received on or after March 27, 2017, will now...

Tax refund offsets may be used toward unpaid debts
A taxpayer who incurs an unpaid debt may notice a reduction in his or her federal tax refund. The Treasury Offset Program is allowed to use all or part of a taxpayer’s federal refund to settle u...

Passport certifications will begin in early 2017, IRS posts on website
The IRS has informed taxpayers via its website that the agency will begin, in early 2017, to remit certifications to the U.S. State Department for individuals who are seriously delinquent in paying th...

Tax returns lacking ACA coverage status will not be rejected
The IRS has announced that it will continue to process individual returns that do not report the taxpayer’s health coverage status under the Affordable Care Act (ACA). The IRS will accept return...

Dentist persuades Tax Court of material participation in real estate business
The Tax Court determined, in Zarrinnegar v. Commissioner, TC Memo. 2017-34, that a dentist by profession, was a real estate professional, and therefore could deduct rental real estate losses. As such,...

IRS confirms automatic six-month extension for C corporations
The IRS has confirmed that a new revision of the Instructions for Form 7004 correctly reflects that calendar year C corporations are eligible for an automatic six-month extension. Code Sec. 6081(a) pr...

Future pension payouts not counted as asset in determining insolvency exclusion
The Tax Court, in Schieber v. Commissioner, TC Memo. 2017-32, found that the right to a continuing monthly payment state pension plan was not an asset in determining insolvency for purposes of exclusi...

AK - DOR discusses effects of potential Alaskan government shutdown
For purposes of taxes and the unclaimed property law it administers, the Alaska Department of Revenue (DOR) has issued a release detailing the effects of a possible government shutdown on July 1, 2017...

AR - Taxpayer was domiciled in state and taxable as resident
A taxpayer was domiciled in Arkansas and was taxable as a resident of Arkansas for personal income tax purposes for 2014, because she failed prove that she changed her domicile to another state before...

CA - Tax rates in riverside county discussed
The California State Board of Equalization (BOE) reminds taxpayers that nine cities within Riverside County impose a sales and use tax rate of 8.75%: Cathedral City, Coachella, Hemet, Indio, La Quinta...

CO - Beneficial apportionment factors allowed for taxpayers investing in enterprise data centers
For corporate income tax purposes, Colorado Gov. John Hickenlooper has signed legislation allowing a taxpayer that makes a capital investment in an enterprise data center in Colorado to use a benefici...

DE - Delaware adopts federal return due dates
Legislation has been enacted that adopts federal filing deadlines for Delaware corporation income tax, partnership, and W-2 and 1099 series information returns. The due date for C corporation returns ...

FL - IRC conformity legislation, other changes enacted
Legislation has been enacted that updates the Internal Revenue Code (IRC) tie-in date for purposes of computing Florida corporate income tax liability from January 1, 2016, to January 1, 2017. The ame...

GA - Average retail sales prices for prepaid local tax revised
A sales tax bulletin issued by the Georgia Department of Revenue lists the average retail sales prices used to calculate prepaid local tax applicable to sales of motor fuel for highway use for the per...

HI - Change in mandatory tax filing and payment frequency announced
The Hawaii Department of Taxation (DOT) has announced changes to certain taxpayers’ mandatory general excise tax; transient accommodations tax; and rental motor vehicle, tour vehicle, and car-sh...

IL - IRS settlement agreement triggered federal adjustment notice obligations for indirect partners
The Illinois Appellate Court affirmed the decision of the Independent Tax Tribunal granting a motion for summary judgment to the Department of Revenue against personal income taxpayers because they fa...

IN - Bulletin regarding credit for contributions to a scholarship-granting organization updated
The Indiana Department of Revenue has updated its information bulletin that discusses the school scholarship tax credit available against the personal and corporate income taxes, insurance premiums ta...

IA - Taxpayer not entitled to capital gain deduction
A capital gains deduction claimed on an Iowa personal income tax return was properly disallowed because the taxpayer had not held the land for the requisite 10 year period and the sale was strictly a ...

LA - Flat tax bills pass house
The Louisiana House of Representatives has passed two bills that would, if enacted, change the corporate and personal income tax rates from graduated rates to flat rates. The corporate income tax flat...

ME - Legislation amends military retirement pay deductions, calculation of educational opportunity credit, and other provisions
Maine Gov. Paul LePage has signed legislation that makes several technical changes to the state’s personal income tax laws. Among other things, the legislation:clarifies that the military retire...

MD - Nonprofit exemption certificate renewal applications issued
The Maryland Comptroller’s office has released sales and use tax exemption certificate renewal applications for nonprofit organizations with certificates that expire on September 30, 2017. The d...

MS - Tax appeal bonds were recoverable costs
A circuit court erred when it denied a Mississippi property taxpayer’s motion for the cost of tax appeal bond premiums because "costs" mandated by the statute include the bond premiums...

MO - Local tax rate changes announced
The Missouri Department of Revenue has released the following local sales and use tax rate changes, effective July 1, 2017. The releases also list the new rates for each city and special district affe...

NE - Local rate changes and municipal boundary changes announced
The Nebraska Department of Revenue has announced that beginning October 1, 2017, the village of Lawrence will impose a 1% local sales and use tax. Also, the village of Shelton will discontinue its 1% ...

NV - Private party transfers of firearms discussed
The Nevada Department of Taxation has issued a sales and use tax bulletin providing information for retailers who perform background checks for private party transfers of firearms. The bulletin conclu...

NH - Credit for donations to scholarship organizations amended
New Hampshire has amended its credit against the business profits tax and the business enterprise tax for donations to scholarship organizations. The amendments extend the due date that a business has...

NM - Affiliate nexus rule vetoed, deductions and exemptions clarified
Gov. Susana Martinez vetoed numerous provisions in a bill intended to make significant sales and use tax reforms, leaving amendments that clarify exemptions and deductions for gross receipts tax and g...

NY - Dismissal of untimely request for administrative review upheld
The New York Tax Appeals Tribunal found that a taxpayer’s petition contesting a sales and use tax assessment following the issuance of a conciliation order was properly dismissed because it was ...

NC - Individual income tax, pass-through entities, and withholding bulletin updated
The North Carolina Department of Revenue has updated a publication discussing the administrative interpretation and application of North Carolina income tax laws to individuals and pass-through entity...

OK - Exemptions for national guard association, marine corps league created
Effective July 1, 2018, Oklahoma legislation creates sales and use tax exemptions for sales of tangible personal property or services to or by the National Guard Association of Oklahoma and the Marine...

OR - Unitary group determination amended
Oregon has enacted legislation for purposes of the corporate excise (income) tax that allows the Department of Revenue to consider the role of foreign affiliates when making the determination of wheth...

PA - Refund appeal schedules, hotel occupancy tax discussed
A Pennsylvania Department of Revenue newsletter discusses board of appeals schedules for sales and use tax refund petitions and the hotel occupancy tax.Refund Appeal SchedulesThe department’s bo...

SC - Membership fees for bookseller’s discount program are taxable
Membership fees charged by a discount bookseller for discounts and free shipping on purchases were subject to South Carolina sales tax because the fees were properly included in the retailer’s g...

TN - Refunds available on certain items for sevier county residents affected by wildfires
As previously reported, Sevier County residents whose primary and/or secondary residence was damaged or destroyed as a result of the wildfires that occurred during November 28 through December 9, 2017...

TX - Texas amends deadline for petition for redetermination, refund claim hearing
Beginning September 1, 2017, a taxpayer’s petition for redetermination of corporation income tax, personal income tax, sales and use tax, or other tax liability computed by the Texas Comptroller...

UT - Appeal dismissed as untimely
A Utah taxpayer’s appeal of property tax assessments of its centrally assessed mining equipment was dismissed because the appeal was filed beyond the statutory deadline. Under Utah law, a proper...

VA - Filing reminders issued
The Virginia Department of Taxation has issued filing reminders for corporate income tax returns (Form 500) and for pass-through entity returns (Form 502). Both forms are due electronically on or befo...

WY - Vehicle towing and tow-related services discussed
A Wyoming tax bulletin addresses the sales tax treatment of various services performed in conjunction with nontaxable tow services. A tow service involving a vehicle being moved from one location to a...