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

FAQs Provide Penalty and Filing Relief for Taxpayers Subject to Section 965 Transition Tax
Three new FAQs covering the Code Sec. 965 transition tax provide welcome penalty and filing relief for taxpayers who make the election to pay the tax in eight annual installments. The IRS wi...

Updated 2018 Standard Mileage Rates Notice Reflects Tax Cuts Changes
The IRS has updated Notice 2018-3, I.R.B. 2018-2, 130, to reflect changes to the tax law made by the Tax Cuts and Jobs Act ( P.L. 113-97). Changes impacting Notice 2018-3include:the sus...

IRA Payments to Unclaimed Property Fund Are Subject to Federal Withholding and Reporting
The IRS has clarified that a trustee’s payment of an individual’s interest in a traditional individual retirement account (IRA) to a state unclaimed property fund, as required by state law...

Adjustments, Reference Prices for Renewable Energy Production Credit Released
The IRS has published the inflation adjustment factors and reference prices to be used in computing the renewable electricity production credit and the refined coal production credit under Code S...

Date Extended for Applying Foreign Branch Transaction Rules
The IRS has announced a new one-year extension for applying the Code Sec. 987 final and related temporary regulations covering foreign branch transactions of U.S. corporations. The regulatio...

Automatic Accounting Method Change for Deducting Citrus Replanting Costs
An automatic change in accounting method procedure provides guidelines for qualifying investors in damaged citrus groves to opt out of the uniform capitalization (UNICAP) rules of Code Sec. 263A....

IRS Provides Guidance on When Energy Property Construction Has Begun
The IRS has provided guidance and a safe harbor to determine when construction of "energy property" has begun for purposes of the investment tax credit (ITC) under Code Sec. 48.Backgrou...

Final Round of Opportunity Zone Designations Announced
The Treasury and the IRS have designated Opportunity Zones in 15 states and three territories. Investments in these specific Qualified Opportunity Zones get preferential tax treatment under the Tax Cu...

AK - Oil and gas tax credit repurchase bond program enacted
Alaska Gov. Bill Walker has signed H.B. 331, as part of his "Alaska Economic Recovery Plan." The law allows the state to issue bonds to purchase remaining oil and gas tax credit program cert...

AR - Purchase of pressure washer failed to qualify for farm equipment and machinery exemption
A taxpayer’s purchase of a "pressure washer" did not qualify for the farm equipment and machinery exemption from Arkansas gross receipts (sales) tax because the taxpayer failed to prov...

CA - Budget trailer bill makes tax credit changes
A budget trailer bill makes tax credit and other changes necessary to implement the 2018 California budget act. The changes affect personal income and corporate franchise and income taxes. Specificall...

CO - Colorado enacts credit for employer organ donation expenses
For tax years 2020-2024, a new income tax credit is created for Colorado employers who grant a paid leave of absence to employees that have donated an organ. The credit is equal to 35% of:the donor em...

DE - Local lodging tax authorized
Delaware counties with populations greater than 500,000 are authorized to enact a local lodging tax of no more than 3% of the rent, in addition to the state tax imposed, for any rooms in a hotel, mote...

FL - Changes to sales and use tax exemptions for aquaculture business discussed
The Florida Department of Revenue has issued a tax information publication discussing changes to sales and use tax exemptions for aquaculture business. Effective July 1, 2018, the exemption for butane...

GA - Department will start accepting rural hospital organization expense tax credit applications July 1
The Georgia Department of Revenue (department) issued a press release announcing that it will begin accepting corporate income and personal income qualified rural hospital organization expense tax cre...

HI - Sourcing and apportionment of income from contracting or services discussed
For general excise tax (GET) purposes, the Hawaii Department of Taxation has issued a tax information release that discusses recently adopted rules relating to the sourcing and apportionment of income...

IL - Philadelphia reduces income tax rates
Beginning July 1, 2018, Philadelphia will reduce the rate of the:wage tax;earnings tax;net profits tax; andschool income tax.All paychecks issued after June 30, 2018 must have Philadelphia City Wage T...

IN - Department started issuing notices to delinquent taxpayers
The Indiana Department of Revenue has issued a press release stating that the department has started issuing notices to corporate and personal taxpayers having outstanding debt for the 2018 tax season...

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 - Requirement to file amended return due to federal disaster relief discussed
The Louisiana Department of Revenue has issued a bulletin discussing the requirement to file amended Louisiana personal income tax returns due to federal disaster relief. The bulletin states that the ...

ME - Electricity, gas, water sales discussed
The application of Maine sales and use tax to electricity, gas, and water is explained in an instructional bulletin that was published in 1952 and has been revised for the first time since then. Taxab...

MD - Wynne refunds discussed
The Maryland Tax Court issued a personal income tax order clarifying that section 16 of the budget reconciliation act of 2014 violates the dormant Commerce Clause of the United States Constitution by ...

MS - Tax sale void for failure to satisfy statutory notice requirements despite waiver of notice
A Mississippi chancery court did not err in voiding a property tax sale and refunding the purchase price because the county chancery clerk failed to satisfy the statutory notice requirements. The tax ...

MO - Legislation enacts exemptions for dues made to nonprofits and disposable diapers
Missouri sales and use tax exemptions are enacted for certain dues and disposable diapers.Initiation Fees or Dues Made to Nonprofit OrganizationsCharges for initiation fees or dues made to nonprofit o...

NE - Permit suspension or revocation hearings explained
Guidance has been provided on the hearing for the suspension or revocation of a Nebraska sales tax permit.Hearing ProceduresDuring the revocation/suspension hearing, the Department of Revenue will pre...

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 - Governor responds to wayfair
Following the decision in South Dakota v. Wayfair, Inc., U.S. Supreme Court, Dkt. No. 17-494, June 21, 2018, Governor Chris Sununu joined Senate President Chuck Morse, House Speaker Gene Chandler...

NM - Interest rate remains unchanged for third quarter of 2018
The interest rate charged on an underpayment or paid on an overpayment of New Mexico tax remains unchanged, at 5%, for the third quarter of 2018.The release can be viewed on the New Mexico Department ...

NY - 2009 amendments to empire zone credit program did not retroactively apply
For personal income tax purposes, the New York Tax Appeals Tribunal upheld an administrative law judge’s determination (ALJ’s) that certain 2009 statutory amendments to the Empire Zone Cre...

NC - North Carolina IRC conformity update and TCJA adjustments take effect June 12
North Carolina legislation that updated the IRC conformity date for computing corporate and personal income tax liability takes effect June 12, 2018. Most other income tax changes included in the legi...

OK - Commercial airline exemption amended
Oklahoma legislation amends the state aircraft excise tax exemption for commercial airlines.Commercial Airline ExemptionThe aircraft excise tax exemption for aircraft purchased or used by commercial a...

OR - New transportation tax withholding discussed
The Oregon Department of Revenue issued a press release informing corporate and personal income taxpayers about a new tax withholding on paystubs received after July 1, 2018. The release states that O...

PA - Tax credits available to entertainment industry expanded
Pennsylvania has expanded the availability of two corporate income tax credits.Keystone Special Development ZoneEntertainment Business Financial Management Firms operating in a Keystone Special Develo...

SC - Updated per capita figures released
The South Carolina Department of Revenue has released the most recently available per capita income figures for all South Carolina counties, as well as the state figure, for the purpose of calculating...

TN - Tax holiday will be held last weekend in July
The Tennessee Department of Revenue has announced that the sales tax holiday will be held on July 27 through July 29, 2018. Items that qualify for the holiday include clothing that costs $100 or less ...

TX - Guidance updated to remove exemption for mandatory repair services for components attached to equipment that emit radiation
The Texas Comptroller has revised a tax policy guidance to exclude from sales and use tax exemption, mandatory repair services for items that are merely attached or connected to equipment that is a so...

UT - Protest partially denied as taxpayers were domiciled in Utah
Utah taxpayers appeal against an assessment of additional personal income taxes for the tax years 2010, 2011, 2014, and 2015 was partially denied because the taxpayers were Utah resident for 2014 and ...

VA - Innovations to protect taxpayers data discussed
For corporate and personal income tax purposes, the Virginia Department of Taxation issued a news release discussing the initiatives taken by a team of experts called the "Refund Fraud Team" in p...

WY - Local rate changes announced
Local Wyoming sales and use tax changes have been amended. Beginning October 1, 2018, Carbon County will decrease its rate from 6% to 5%. The combined lodging and sales tax rate will be 7%. Taxin...