William P Cook

Tax Alerts

Tax Briefing(s)

2018 Year-End Tax Planning Tax Reform 2.0 2018 Post-Filing Season Update Congress Approves Sweeping Tax Overhaul

2019 Luxury Auto Depreciation Caps and Lease Inclusion Amounts Issued
The IRS has issued the luxury car depreciation limits for business vehicles placed in service in 2019, and the lease inclusion amounts for business vehicles first leased in 2019.Luxury Passenger Car D...

2020 Inflation Adjustments for HSAs Released
The IRS has released the 2020 inflation-adjusted amounts for health savings accounts (HSAs) under Code Sec. 223. For calendar year 2020, the annual limitation on deductions under Code Sec. 2...

IRS Unveils New Draft 2020 Form W-4
The IRS on May 31 unveiled a new preliminary draft of the 2020 Form W-4, Employee’s Withholding Allowance Certificate. Although an earlier version of the Form W-4 had been released last June, Tr...

IRS Discontinues Certain Faxing and Third-Party Mailing Service
The IRS will be ceasing its tax transcript faxing service, and will also amend the Form 4506, Request for Copy or Transcript of Tax Form, series to end third-party mailing of tax returns and transcrip...

New Actuarial Tables Delayed, IRS Tells Wolters Kluwer
The new actuarial tables are delayed, the IRS told Wolters Kluwer on May 30. "We are currently working on new actuarial tables, but we cannot predict when they will be published."Generally, the I...

IRS Updates 2018 Schedule D Instructions to Correct Worksheet Error
The IRS posted updated instructions for 2018 Schedule D (Form 1040), Capital Gains and Losses, that include a corrected worksheet. The revised worksheet corrects a rate error that may have calculated ...

IRS Finalizes Rules Increasing Enrolled Agent Application and Renewal Fees
The IRS has finalized regulations that increase both the enrollment and renewal user fee for enrolled agents from $30 to $67. The rules also increase the renewal user fee for enrolled retirement plan ...

Indian Tribal Casino Distributions Taxable to Members
A married couple had unreported taxable income in the form of distributions received from casino revenue. However, the IRS did not obtain written supervisory approval before the first formal communica...

IRS Allowed to Treat Partnership as Aggregate of its Partners
The IRS was allowed to assert its authority under the abuse of entity rule of Reg. §1.701-2(e) to treat a partnership as an aggregate of its partners. Treating the partnership as an agg...

IRS Issues Nonconventional Source Fuel Reference Price for 2018
The IRS has published the reference price under Code Sec. 45K(d)(2)(C). The credit period for the nonconventional source production credit under Code Sec. 45K ended on December 31, 2013...

Comments Sought on Carbon Oxide Sequestration Credit
The Treasury Department and the IRS have requested general comments on issues arising from the Bipartisan Budget Act of 2018 (BBA) ( P.L. 115-123) amendments to the Code Sec. 45Q credit...

IRS Clarifies Treatment of Refunds with New SALT Limits
The IRS has provided four examples of the interaction of the new limit on the deduction on state and local taxes (SALT) under Code Sec. 164(b)(6) with the tax benefit rule for refunds under&...

Plug-In Electric Vehicle Credit to Phase Out for GM Vehicles
The tax credit for new qualified plug-in electric drive motor vehicles sold by General Motors, LLC, will begin to phase out April 1, 2019. The credit begins to phase out in the second calendar quarter...

2019 Foreign Housing Expense Limitations Released
The IRS has provided the adjustments to the limitation on foreign housing expenses for specific locations for tax year 2019. Generally, a qualified individual whose entire tax year is within the appli...

2018 Waivers of 911 Eligibility Requirements Due to Adverse Conditions
The IRS has provided a waiver for any individual who, for the 2018 tax year, failed to meet the eligibility requirements of Code Sec. 911(d)(1) due to war, civil unrest, or similar adverse c...

IRS Revises EIN Application Process
As part of its ongoing security review, the IRS is revising the application process for obtaining an employer identification number (EIN). Starting May 13, 2019, only individuals with social security ...

IRS Issues 2018 Nonconventional Source Fuel Reference Price
The IRS has published the nonconventional source fuel reference price for calendar year 2018. The credit period for the nonconventional source production credit under Code Sec. 45K ended on ...

AK - Governor calls for constitutional amendments in sos address
In his first State of the State (SOS) address, Alaska Gov. Michael J. Dunleavy announced three constitutional amendments he plans to introduce. The amendments, which will be what he called "the f...

AR - Taxpayer was exempt from collecting, reporting and remitting tax
A nonprofit organization (taxpayer) was exempt from collecting, reporting, and remitting Arkansas gross receipts or sales tax because its sole purpose was raising funds and creating awareness for a be...

CA - Taxpayers who missed April 15 filing deadline qualify for automatic six-month extension
For personal income tax purposes, the California Franchise Tax Board (FTB) issued a news release stating that taxpayers who failed to file by the April 15 deadline qualify for an automatic six-month e...

CO - Treatment of enterprise zone investment and job growth incentive tax credits discussed
The Colorado Department of Revenue (department) in a private letter ruling determined that a corporate income taxpayer would be allowed an Enterprise Zone Investment tax credit (EZITC) and a Job Growt...

DE - Checkoff for taxpayers to donate to pediatric cancer research fund enacted
Legislation has been enacted authorizing the creation of a Pediatric Cancer Research Fund for the benefit of the Andrew Mcdonough B+ Foundation to which Delaware personal income taxpayers who claim an...

FL - Guidance provided on 2019 back-to-school sales tax holiday
The Florida sales tax holiday begins on Friday, August 2, 2019, and ends on Tuesday, August 6, 2019.Application of HolidayDuring the holiday, sales tax and local option tax, also known as "discre...

GA - Updated guidance on nonprofit health organizations LOAs issued
The Georgia DOR has updated guidance on sales and use tax exemptions for nonprofit volunteer health clinics and nonprofit health centers. The updated guidance on letters of authorization (LOAs) was is...

HI - Notice of intention to revoke license due to abandonment
The Hawaii Department of Taxation has issued an announcement giving notice to revoke tax licenses due to abandonment. According to Hawaii Administrative Rules, the Department is required to post a not...

IL - Requirements about application process to obtain sales tax exemption certificates for building materials discussed
The Illinois Department of Revenue (department) has issued a publication discussing the requirements about the application process to obtain sales tax exemption certificates for building materials. Co...

IN - LLC’s claim for exemption on purchase of truck denied because purchaser was a different entity
A limited liability company’s (taxpayer’s) claim for the public transport exemption from Indiana sales tax paid on the purchase of a truck was denied because the truck was purchased by the...

IA - Guidance on like-kind exchanges updated
Iowa updated guidance for corporate and personal income taxpayers regarding the ability to elect deferral of gain or loss on like-kind exchanges of personal property. Iowa enacted legislation this yea...

LA - Sound recording investment credit amended, sunset date extended
The Louisiana sound recording investor credit against corporate and personal income taxes is amended to:authorize an increase in the base investment credit for resident copyright recordings;change eli...

ME - Maine enacts partnership audit procedures
Maine has enacted partnership audit procedures for corporate and personal income tax purposes to bring the state into conformity with federal partnership audit requirements. The law applies to partner...

MD - Nexus properly established as subsidiary lacked economic substance
An intellectual holding company and wholly-owned subsidiary of a multi-national producer and marketer of processed foods was confirmed to have sufficient contacts with Maryland to establish the requir...

MS - Eligible charitable business contribution tax credit discussed
The Mississippi Department of Revenue (department) issued a technical bulletin informing corporate income taxpayers about the eligible charitable business contribution tax credit.What Is the Eligible ...

MO - Benefits paid under pension plans not deductible because they were from privately funded sources
Benefits rolled over from a government defined benefit plan into an individual retirement arrangement (IRA) are not "retirement benefits received from sources other than privately-funded sources"...

NE - Pass-through entities required to file returns for tax years beginning on or after January 2019
For corporate income tax purposes, the Nebraska Department of Revenue (department) issued a bulletin informing all S corporations, limited liability companies and partnerships that have Nebraska-sourc...

NV - Legislation relating to transferable tax credits for affordable housing amended
The State of Nevada has amended its law to enact provisions authorizing the Housing Division of the Department of Business and Industry to issue transferable tax credits that are authorized to be take...

NH - Flat rate established for surplus lines policies
New Hampshire has enacted a flat insurance premiums tax rate on surplus line policies.Flat RatesFor policies procured from unlicensed insurers or surplus lines the new flat rate is:3% plus an amount e...

NM - New taxpayer rights and procedures for disputing tax assessments discussed
The New Mexico Taxation and Revenue Department (department) has updated several publications that explain new taxpayer rights and procedures for disputing tax assessments. As under the previous law, t...

NY - New York economic nexus threshold increases
New York increases the sales and use tax economic nexus threshold for businesses and marketplace providers that have no physical presence in the state.New Economic ThresholdThe economic nexus threshol...

NC - A closer look at the U.S. Supreme court's trust taxation decision
The U.S. Supreme Court reached a unanimous, but narrow, decision about the limits on a state's power to tax trust income. North Carolina law allows it to tax trust income that "is for the benefit...

OK - Fab lab exemption created
An Oklahoma sales tax exemption is enacted for sales of personal property to nonprofits associated with the MIT Fab Foundation.Qualifications for ExemptionThe exemption applies to an entity that:is ta...

OR - Tax credit transfers standardized
Oregon has enacted legislation establishing procedures for the uniform transfer of income tax credits.Notice ProceduresThe Department of Revenue may now require the taxpayer earning the credit and the...

PA - Opportunity zone program conformity enacted, tax credits amended
Pennsylvania has enacted legislation:conforming the personal income tax to the federal Opportunity Zones Program (IRC Sec. 1400z-2);excluding Olympic prize winnings and medals from income tax;creating...

SC - Changes to energy efficient manufactured home incentives explained
The South Carolina sales tax and income tax incentives for the purchase of certain energy efficient manufactured homes are amended.Income Tax CreditThe $750 nonrefundable credit for purchases of manuf...

TN - Interest rate increased
The interest rate on all taxes collected or administered by the Tennessee Department of Revenue is increased from 8.75% to 9.5% effective July 1, 2019 through June 30, 2020. The interest rate on insta...

TX - May 2019 certification of average closing price of gas and oil released
The Texas Comptroller of Public Accounts has determined the average taxable price of crude oil for the reporting period May 2019 is $42.91 per barrel for the three-month period beginning on February 1...

UT - Publication discussing interest and penalties issued
The Utah State Tax Commissioner has issued a sales and use tax publication discussing interest and penalties. The interest rate on taxes and fees is 4% for the period of January 1, 2019 to December 31...

VA - Taxpayer allowed 30 days to file return
The Virginia Department of Revenue (department) granted a taxpayer 30 days to file his 2015 resident Virginia individual income tax return since the taxpayer would have information that better represe...

WY - Local rate change announced
Beginning October 1, 2019, Carbon County, Wyoming will impose a specific purpose county option tax at a rate of 1%, for a total sales tax rate of 6%. The notice can be viewed on the department’s...