William P Cook

Tax Alerts

June 18, 2021

Tax Briefing(s)

2021 Post-Filing Season Update American Rescue Plan Act of 2021 2020 Tax Year-In-Review

First Monthly Child Tax Credit Payment Coming in July
The IRS and the Treasury Department have announced that the first monthly payment of the new refundable Child Tax Credit (CTC) from the American Rescue Plan will be made on July 15. The increased CTC ...

Late Filers Should File to Limit Penalties
The IRS reminded taxpayers who missed the recent tax-filing deadline but are due a refund that there is no penalty for filing late if a refund is due. Those who owe and missed the deadline without req...

Groups Urged to Share Tax Information With Those Without Permanent Addresses
In an ongoing effort to help those experiencing homelessness, the IRS has reminded people who do not have a permanent address or a bank account that they may still qualify for stimulus payments and ot...

IRS Updates Plug-In Credit for 2022 Vehicles
The IRS has added new 2022 models to the list of vehicles for which the plug-in vehicle credit would be available. The vehicles added include BMW and Mini vehicles. The BMW 745e XDrive has a credit am...

Adjustments for CTC, EITC, PTC Table
The IRS has modified inflation-adjusted amounts for the child tax credit (CTC), the earned income tax credit (EITC/EIC), and the applicable percentage table for Code Sec. 36B for calculating a taxpaye...

2022 HSA Amounts Released
The IRS has released the 2022 inflation-adjusted amounts for health savings accounts (HSAs) under Code Sec. 223. For calendar year 2022, the annual limitation on deductions under Code Sec. 223(b)(2) f...

Drafts of New Schedules K-2 and K-3 Released
The IRS and Treasury have released updated early drafts of new Schedule K-2 and Schedule K-3 for Form 1065, U.S. Return of Partnership Income, Form 1120-S, U.S. Income Tax Return for an S Corporation,...

Temporary Use of Digital Signatures Extended
The IRS has extended the list of federal tax forms that cannot be filed electronically for which it is temporarily allowing digital signatures. The IRS has also extended filing period for which digita...

AK - Interest rates announced for Q2 of 2021
The Alaska interest rate for delinquent taxes and overpayment of taxes is set at 5.50%, compounded quarterly, for the period April 1, 2021, through June 30, 2021. The Department of Revenue posting can...

AR - Legislation clarifying nonresident income allocation passes house
The Arkansas House of Representatives has passed income tax legislation that, if enacted, would provide that nonresidents who earn income from Arkansas sources will only pay tax on the income that the...

CA - California further conforms to federal treatment of PPP loans and EIDL advance grants
California has enacted legislation generally conforming to federal law that:excludes both forgiven Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loan (EIDL) advance grants from ...

CO - Expiring tax checkoffs extended
Enacted Colorado legislation maintains indefinitely six voluntary contribution options that currently appear on personal income tax returns, unless contributions for a program fall below $50,000 annua...

DE - Certain sussex county rates changed
The amount of additional Delaware property taxes that may be imposed by a county vocational-technical high school district or county vocational-technical center in Sussex County has changed. The amoun...

FL - IRC conformity bill heads to governor
The Florida Senate approved a bill that would modify the IRC conformity tie-in date for computing corporate income tax liability and require certain income tax adjustments. H.B. 7059, as passed by th...

GA - Tax credit for teachers teaching in certain qualifying public schools introduced
Georgia introduced a law establishing a teacher recruitment and retention program for a refundable personal income tax credit for teachers who agree to teach in certain rural schools or certain low-pe...

HI - Legislature approves IRC conformity update
A bill awaiting the governor’s signature would update Hawaii’s Internal Revenue Code tie-in date for computing corporate and individual income tax liability. The bill approved by the Legislature w...

IL - Film production services credit rules amended
Illinois amended rules covering its film production services credit. Eligible taxpayers can claim the credit against:Illinois corporate income tax liability; andIllinois personal income tax liabilit...

IN - Partnership audit procedures enacted
Indiana has enacted partnership audit procedures for corporate and personal income tax and financial institutions tax purposes to bring the state into conformity with federal partnership audit require...

IA - Manufacturing machinery tax exemption examined
The Iowa Supreme Court has held that customized overhead bins within a building where feed is manufactured constitute, essentially, part of a continuous piece of machinery within that building. Howeve...

LA - Bill permitting indefinite NOL carryover period passes senate
The Louisiana Senate has passed income tax legislation that, if enacted, would eliminate the 20-year maximum carryover period for corporation net operating losses. The bill would allow a corporate net...

ME - Telephone company not allowed to carry over loss; refund denied
The Maine Supreme Court affirmed the denial of a telephone company’s (taxpayer’s) request for a refund of corporate income tax, because the taxpayer claimed the refund based on a unitary business ...

MD - Guidance on Maryland relief act updated
The Maryland Comptroller has revised a Tax Alert discussing the recently enacted Recovery for the Economy, Livelihoods, Industries, Entrepreneurs, and Families (RELIEF) Act, which provides income and ...

MS - City of Sardis repeals tourism tax
Effective July 1, 2021 the city of Sardis will repeal its tourism tax. The Sardis tourism tax is levied at the rate of 3% on the gross proceeds derived from sales of prepared foods at restaurants and ...

MO - New foster care expense deduction allowed
For tax years beginning on or after January 1, 2022, Missouri will allow an income tax deduction for expenses directly incurred by a taxpayer in providing care as a foster parent to one or more childr...

NE - New FAQs about deadline extensions posted
Nebraska posted new frequently asked questions about the extension of the personal income tax filing and payment deadline for the 2020 tax year. Frequently Asked Questions about the Tax Year 2020 Ind...

NV - Home office credit ended December 31; tax treatment of credit discussed
Nevada taxpayers previously issued a 2020 estimated Home Office credit amount based on the previous year’s Ad Valorem may apply the Home Office Credit to the 2020 Insurance Premium Tax Reconciliatio...

NH - Catering provided to fraternity house subject to tax
A private catering business (taxpayer) failed to qualify for an exemption from New Hampshire meals and rooms tax (MRT) because the taxpayer did not meet any of the exemption criteria. In this matter, ...

NM - Exclusion from base income enacted for marijuana business expenditures
Enacted New Mexico income tax legislation creates an exclusion from base income for marijuana business expenditures eligible to be claimed as a federal income tax deduction, but that are disallowed by...

NY - Subtractions of royalties from foreign affiliates properly denied
A New York state based corporation (including its combined affiliates) was not allowed to exclude royalties received from foreign affiliates in the computation of its combines entire net income (ENI) ...

NC - Interest waived for North Carolina taxes due May 17, covid-19 rebates addressed
North Carolina enacted legislation that:waives interest on income tax payments originally due by April 15, 2021 and now due by May 17, 2021;clarifies the penalty relief for income tax returns due by t...

OK - Laws related to income tax related checkoff passed
Oklahoma passed a series of laws reauthorizing corporate and/or personal income tax related checkoffs.Wildlife Diversity Income Tax CheckoffThe state allows taxpayers the option of donating their pers...

OR - May 17 filing deadline discussed
For corporate and personal income tax purposes, the Oregon Department of Revenue (department) issued a release providing details about tax relief. The release informs taxpayers that:Tax filing and pay...

PA - Guidance on employee business expenses update, federal conformity issued
For personal income tax purposes, the Philadelphia Department of Revenue issued an advisory notice on employee business expenses. The notice clarifies that:the city does not conform with changes under...

SC - Revitalization acts amended
South Carolina’s Abandoned Buildings Revitalization Act, which provides a credit against property tax liability, has been extended to December 31, 2025.For purposes of the Textile Communities Revita...

TN - Deduction allowed for covid-19 relief payments
A Tennessee excise tax deduction is allowed for payments received between March 1, 2020, and December 31, 2021, through the following Tennessee economic relief programs funded by federal CARES Act fun...

TX - February 2021 certification of the 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 February 2021 is $33.36 per barrel for the three-month period beginning on Novem...

UT - Reminder issued on new botanical, cultural, recreational and zoological tax in Kanab
Utah reminds taxpayers that Kanab (Kane County) imposes a 0.1% botanical, cultural, recreational, and zoological sales tax, starting July 1, 2021.New Combined Sales Tax RateThe new combined sales tax ...

VA - Taxpayer required to provide financial audit to renew nonprofit exemption
For Virginia sales and use tax purposes, a taxpayer was required to provide the requested financial audit for review in order to renew its nonprofit exemption. Generally, if the entity's gross annual ...

WY - Taxation of natural gas consumed on-site clarified
Natural gas that is consumed on-site, other than for the purpose of (i) being vented and flared on-site, (ii) reinjection or consumption before sale to maintain, treat, or transport crude oil or natur...