William P Cook

Tax Alerts

September 22, 2020

Tax Briefing(s)

2020 Tax Policies of the Major Presidential Candidates 2020 Payroll Tax Deferral Order 2020 Post-Filing Season Update CARES Act Coronavirus Tax Relief

IRS Reminds Taxpayers Who Missed July 15 Deadline to File Now to Avoid Penalties
The IRS has reminded taxpayers who missed the July 15 deadline without requesting an extension about some important tips, including filing electronically as soon as possible to reduce potential penalt...

Interest Payments Coming to Timely Filers
The Treasury and IRS announced on August 18 that they were to start sending interest payments to about 13.9 million individual taxpayers who timely filed their 2019 federal income tax returns and are ...

Processing Pending Payments During COVID-19
The IRS has warned taxpayers that if they mailed checks (either with or without tax returns), the checks may still be unopened in the backlog of mail that it is processing due to COVID-19. Any payment...

IRS Reopens Registration Period for Economic Impact Payments for Certain Federal Beneficiaries
The IRS has announced that it will reopen the registration period for federal beneficiaries who did not receive $500 per child payments earlier this year, as it continues to look for ways to look for ...

Taxpayers Can File Form 1040-X Electronically
The IRS has announced that taxpayers can now submit Form 1040-X electronically with commercial tax filing software. Until now, taxpayers were required to mail a completed Form 1040-X to the IRS for pr...

IRS Reminds Individuals: Unemployment Compensation Taxable
The IRS has reminded individuals receiving unemployment compensation (beneficiaries) that they can have tax withheld from their benefits now to help avoid owing taxes on this income when they file the...

Taxpayers Urged to Renew Expiring ITINs
The IRS announced that more than one million Individual Taxpayer Identification Numbers (ITINs) will expire at the end of 2020. ITINs are used by people who have tax filing or payment obligations unde...

IRS Reminds Employers of Payroll Service Provider Options
The IRS has reminded employers of their options when it comes to choosing payroll service providers. The IRS also summarized the different types of third party providers available, including:payroll s...

AK - Interest rate announced for Q3 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 September 30, 2020. The Department of Revenue postin...

AR - Sale of extended warranty to out-of-state resident exempt from tax
A construction and forestry equipment dealer (taxpayer) was not required to collect Arkansas sales and use tax on the sale of extended warranty to an out-of-state resident. Generally, if a purchaser r...

CA - California rate schedules, filing thresholds, other adjusted figures released
California has released 2020 indexed income tax figures, based on a 1.4% inflation rate for June 2019 through June 2020. The Franchise Tax Board (FTB) provides indexed values for the following:persona...

CO - Tax rate reduction initiative qualifies for 2020 ballot
A proposed initiative to decrease the Colorado income tax rate has received enough signatures to appear on the state’s November 3, 2020, ballot.Tax Rate ReductionIf approved by voters, Initiative No...

DE - City of Lewes authorized to impose lodgings tax
The city of Lewes is authorized to impose and collect a local Delaware lodgings tax of up to 3%. Ch. 275 (S.B. 210), Laws 2020, effective August 6, 2020...

FL - Publication on information to update address/jurisdiction database issued
For sales and use tax purposes, the Florida Department of Revenue (department) has issued a tax information publication discussing the time and manner in which counties are required to submit informat...

GA - Guidance on sales and use tax exemption for qualified job training organizations issued
An update to Georgia sales and use tax exemption for qualified job training organizations guidance discusses that:sales tax exemption for qualified job training organizations expired on June 30, 2020;...

HI - Hawaii updates federal conformity, decouples from some cares act provisions
Hawaii updated its IRC conformity date for computing corporate and individual income tax liability. The new general conformity date is March 27, 2020, for tax years beginning after December 31, 2019. ...

IL - Retailer's sale, installation of appliances not exempt from tax
The Illinois Appellate Court affirmed the decision of the circuit court finding that a retailer’s (taxpayer’s) sale of certain appliances was not exempt from the retail occupancy tax despite its s...

IN - Refund of sales tax on vehicle purchase properly denied
An Indiana business (taxpayer) was not entitled to a refund of sales tax paid on a vehicle purchase as it was its lender, and not the taxpayer, that actually paid the tax under the financing arrangeme...

IA - Taxpayers' activities on farmland not sufficient to meet material participation threshold
Taxpayers were properly subject to additional Iowa personal income taxes resulting from the sale of farmland as the taxpayers failed to prove material participation in the cash-farm-lease activities t...

LA - Louisiana requests notices for disaster and emergency-related services rendered by nonresidents
The Louisiana Department of Revenue has requested that state registered businesses provide written notices concerning disaster or emergency-related services rendered by nonresident personal and corpor...

ME - General information bulletin on sales, fuel, and special tax updated
Maine issued an updated bulletin containing important information for taxpayers subject to sales, use, service provider, and other special taxes. The bulletin, among other topics, discusses applicabil...

MD - Unauthorized insurance company not subject to corporate income tax
On remand, the Maryland Tax Court held that an unauthorized insurance company was exempt from state corporate income taxation under Title 4 of the Insurance Article. The exemption language under Title...

MS - Taxpayer’s use of alternative apportionment method upheld
The Mississippi Supreme Court affirmed the chancery court’s decision that the Department of Revenue (DOR) failed to fairly represent the true value of a corporate income taxpayer’s capital employe...

MO - Taxpayer not entitled to casualty loss refund
A taxpayer was not entitled to a refund of Missouri motor vehicle sales tax paid on her purchase of a new motor vehicle because the purchase was not due to the casualty loss of her old vehicle. Genera...

NE - Local rate changes and municipal boundary changes announced
Several local sales and use tax rate changes and municipal boundary changes take effect in Nebraska on January 1, 2021.Local Tax Rate ChangesThe tax rates for Gordon, Greeley, and Juniata increase fro...

NV - Nevada enacts tax amnesty program and temporary acceleration of net proceeds tax on minerals
New legislation requires the Nevada Department of Taxation to establish a tax amnesty program for delinquent taxpayers. It also accelerates payment of the net proceeds tax due for minerals.Tax Amnesty...

NH - Interest rates decrease for 2021
Interest rates on underpayments and refunds of New Hampshire taxes will decrease for 2021.For 2021, rates are:5% for underpayments (down from 7% for 2020); and2% for refunds (down from 4% for 2020).Te...

NM - Delivered groceries may not be taxable
The New Mexico Taxation and Revenue Department has issued new guidance on when grocery deliveries may be subject to gross receipts taxes. Grocery deliveries have increased as people try to stay home m...

NY - Taxpayer allowed partial child and dependent care credit
A New York personal income taxpayer established that he was entitled to a partial child and dependent care credit for the tax years at issue. In this matter, the taxpayer claimed a child and dependent...

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 October...

OK - Rule on used tire recycling fee amended
The Oklahoma Tax Commission has amended its rule on the used tire recycling fee to reflect that the fee applies to first titling of a semitrailer or trailer and to the first titling of motor vehicles ...

OR - Business energy tax credit did not generate taxable income; protest sustained
A married couple’s purchase of business energy tax credit at a discount did not generate taxable income for Oregon personal income tax purposes. In this matter, the Department of Revenue (department...

PA - Pennsylvania senior tax freeze discussed
The Philadelphia Department of Revenue reminds seniors about their real estate tax bills and the Senior Tax Freeze program that is available. Although the official deadline to apply for the program is...

SC - Interest rate for overpayments and underpayments unchanged
From September 30, 2020 through December 31, 2020, the South Carolina interest rate on underpayments of taxes remains 3%. The refund rate for overpayments remains 0%. Information Letter 20-25, South ...

TN - Effect of cares act provisions in Tennessee discussed
The federal CARES Act amended IRC Sec. 168 to reduce the MACRS recovery period of qualified improvement property from 39 years to 15 years, thereby making such property eligible for federal bonus depr...

TX - Second extension for filing franchise tax and other matters discussed
In its August 2020 tax policy newsletter, Texas clarified that entities that properly secure a second extension (after filing a first extension by July 15) will have until January 15, 2021, to file th...

UT - Received in response to covid-19 exempted from Utah tax
Utah will not tax certain amounts received by taxpayers in response to COVID-19. The tax relief applies for tax years beginning on or after January 1, 2020, for amounts received as:a forgiven loan und...

VA - Ratio of vehicles miles traveled in Virginia used in calculating trucking company’s tax
For Virginia corporate income tax purposes, an out of state trucking company would calculate its Virginia source income by allocating the relevant percentage of their total taxable income based on a r...

WY - SST certificate of compliance updated
Wyoming has updated its Streamlined Sales and Use Tax (SST) Agreement certificate of compliance. The changes are effective August 1, 2020. SST Certificate of Compliance, Wyoming Department of Revenue...