William P Cook

Tax Alerts

Tax Briefing(s)

2022 Post-Filing Season Update SECURE Act 2.0 2021 Tax Year-In-Review

Money Received Through Crowdfunding May be Taxable, FS-2022-20
The IRS stated that a crowdfunding website or its payment processor may be required to report distributions of money raised if the amount distributed meets certain reporting thresholds by filing Form ...

IRS Reminds Taxpayers of Steps to Take in Identity Theft Cases, FS-2022-25
The IRS reminded identity theft victims of important steps they should take to protect themselves from tax fraud. By requesting Identity Protection (IP) PINs from the Get an IP PIN tool, taxpayers ca...

IRS Reminds Employers of Penalty Relief Related to Claims for Employee Retention Credit, IR-2022-89
The Treasury Department and the IRS have received requests from taxpayers for relief from penalties arising when additional income tax is owed because the deduction for qualified wages is reduced by t...

FAQs for Payment by Indian Tribal Governments and Alaska Native Corporations to Individuals Finalized, FS-2022-23; IR-2022-68
The IRS has issued final frequently asked questions (FAQs) for payments by Indian Tribal Governments and Alaska Native Corporations to individuals under COVID- Relief Legislation. These reflect update...

IRS Announces Temporary Change to Procedures for Form 8802
The IRS announced a temporary change in policy with respect to Form 8802, Application for United States Residency Certification, for a two-year period. Effective April 4, 2022, if taxpayers received a...

IRS Reminds Tax-Exempt Organizations about May 16 Filing Deadline, IR-2022-93
The IRS reminded tax-exempt organizations about the May 16, 2022, filing deadline for many of them. Those tax-exempt organizations that operate on a calendar-year basis have to file the following retu...

AK - Alaska's governor proposes fuel tax relief
Alaska Gov. Mike Dunleavy proposed an amendment to HB 104 for the immediate suspension of the collection of tax on motor and marine fuels, aviation gas, and aviation jet fuel until June 30, 2023. HB 1...

AR - Sale of kerosene for off-road use subject to tax
For sales and use tax purposes, a fuel distributor (taxpayer) would be subject to Arkansas gross receipts tax on the sale of kerosene for off-road use when sold from a terminal. Generally, dyed distil...

CA - Unreported installment sale gain properly accelerated
An out of state S corporation and its shareholders group (taxpayers) were properly subject to additional California corporate income tax assessment as the S corporation (corporation) was dissolved and...

CO - Heart monitor does not qualify for medical devices exemption
The Colorado Department of Revenue (department) issued a letter ruling discussing the application of sales and use tax on the retail sale of heart monitors. In this matter a company (taxpayer) sold he...

DE - Hurricane IDA affected taxpayers can file returns by January 3, 2022
Delaware taxpayers located in areas affected by Hurricane Ida, that have been designated as disaster areas, will have until January 3, 2022 to file tax returns and submit tax payments.Â The Delaware ...

FL - IRC conformity legislation sent to governor
The Florida Senate approved and sent to Gov. Ron DeSantis legislation that would modify the IRC conformity tie-date for computing corporate income tax liability. H.B. 7071, as approved by the Florida...

GA - New tax rate chart released for sales exempt from certain local taxes
The Georgia Department of Revenue has released a sales and use tax rate chart for sales exempt from certain local taxes. The rates are effective April 1, 2022. Georgia Sales and Use Tax Rates - Sal...

HI - New deadline for employers to file and furnish form W-2/HW-2 discussed
For personal income tax withholding purposes, the Hawaii Department of Taxation (department) has issued a tax announcement to remind all Hawaii employers about changes to due dates for Form W-2/HW-2.E...

IL - Final boone county multiplier announced for 2021
The final Boone County equalization factor (multiplier) for Illinois property tax purposes has been set for 2021 at 1.0000. The final 2020 multiplier was also 1.0000. Release, Illinois Department of ...

IN - Property tax legislation enacted
Indiana property tax legislation is enacted that, among other provisions:effective January 1, 2023, provides that certain churches and religious societies are not required to file a personal property ...

IA - Economic development legislation enacted
Iowa has enacted legislation amending income tax credits including:extending the authorization of the Iowa Energy Center (IEC) and the IEC Board through the end of 2027 and requires the IEC to support...

LA - Interest rate on unpaid taxes remains unchanged
The interest rate on unpaid Louisiana taxes remains 6.5% for 2022. Revenue Information Bulletin No. 22-001, Louisiana Department of Revenue, December 29, 2021...

ME - Paper mill's tax abatement request was correctly denied
For Maine property tax purposes, the Supreme Court affirmed the superior court’s decision affirming the State Board of Property Tax Review’s (Review Board’s) denial of a paper mill’s tax abate...

MD - Bipartisan tax relief agreement announced
Maryland Gov. Larry Hogan, Senate President Bill Ferguson, and House Speaker Adrienne A. Jones have announced they have reached a bipartisan agreement to provide $1.86 billion in tax relief over five ...

MS - Rural economic development credit extended
The sunset date for the Mississippi rural economic development credit that may be claimed against corporate and personal income taxes is extended to October 1, 2025. The credit was previously schedule...

MO - Rate table issued for upcoming 2022 show-me green tax holiday
The Missouri Department of Revenue has issued a sales and use tax rate table for the Show-Me Green Tax Holiday set for April 19 through April 25, 2022. Show Me Green Holiday Rates, Missouri Departmen...

NE - Cigarette regulations amended
The Nebraska Department of Revenue has revised several cigarette tax regulations. The revised regulations reflect that "cigarette" has the same meaning as in the sales and use tax provisions. Nonpar...

NV - State high court upholds decision invalidating parts of 2019 MBT legislation
The Nevada Supreme Court affirmed a district court decision that invalidated portions of a 2019 law (S.B. 551) affecting the rates of the modified business tax. The law had resulted in Nevada continui...

NH - Disaster-related nexus waiver provisions enacted
New Hampshire has enacted provisions stating that no out-of-state businesses or employees who are in the state to perform disaster-related or emergency-relate work will be deemed to have established s...

NM - New Mexico pass-through entity-level tax enacted
Applicable to taxable years beginning on or after January 1, 2022, New Mexico will allow pass-through entities to pay income tax at the entity level. The entity-level tax is imposed on the distributed...

NY - Petition dismissed for lack of jurisdiction
A taxpayer’s petition for revision of a determination of New York State sales and use tax was dismissed as the Division of Tax Appeals (division) lacked subject matter jurisdiction. In this matter, ...

NC - Taxpayer meets the definition of "marketplace facilitator"
Taxpayer, an affiliate of original equipment manufacturers (OEMs) that sell parts through their network, is a marketplace facilitator who makes marketplace facilitated sales in North Carolina for sale...

OK - Legislation that removes tax on food and food ingredients passes house
The Oklahoma House of Representatives has passed a bill that would enact a 0% sales tax rate on food and food ingredients from July 1, 2022 through June 30, 2024. Local taxes would still apply.The leg...

OR - Funded research activities not qualified for research credit
For Oregon corporate income and personal income tax purpose, a corporation and its shareholders (taxpayers), were properly denied research tax credit as the taxpayers failed to establish whether or to...

PA - Dismissal of taxpayer’s uniformity challenge upheld
A Pennsylvania trial court did not err in determining that the taxpayer was not entitled to property tax abatement on its apartment complex because the taxpayer failed to prove that the assessment of ...

SC - Reporting issues for active trade or business income discussed
South Carolina released an information letter discussing 2021 tax forms and reporting issues related to active trade or business income (ATBI). As previously reported, beginning with tax year 2021, So...

TN - State decouples from TCJA changes to research deduction
Tennessee has decoupled from the federal Tax Cuts and Jobs Act changes affecting the deduction under IRC Sec. 174 for research and experimental expenditures. Accordingly, for tax years beginning after...

TX - Audiovisual service provider was properly denied franchise tax refund
An audiovisual equipment and service provider was properly denied Texas franchise tax refund as the taxpayer's payments made to hotels that are corporations were not required to be included on Form 10...

UT - Mobile workforce exemption created
The wages of some nonresident individuals who work in the state for 20 or fewer days will not be subject to Utah income tax, beginning in tax year 2023. To qualify for the tax exemption:the individual...

VA - Expiration of exemption for covid-19 PPE effective march 24, 2022, discussed
The Virginia Department of Taxation issued a bulletin regarding the expiration of the retail sales and use tax exemption for personal protective equipment (PPE) related to COVID-19. Effective March 24...

WY - Local rate changes announced
Wyoming has announced the following local sales and use tax rate changes:Beginning April 1, 2022, the rate in Laramie County increases to 6%.Beginning July 1, 2022, the rate in Johnson County decrease...