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Tax Alerts

November 30, 2020

Tax Briefing(s)

2020 Post-Election Tax Policy Update 2020 Year-End Tax Planning 2020 Payroll Tax Deferral Order 2020 Post-Filing Season Update CARES Act Coronavirus Tax Relief

Warning: New COVID-Related Tax Scam
The IRS, state tax agencies and the tax industry have warned of a new text scam that tricks taxpayers into disclosing bank account information under the guise of receiving the $1,200 economic impact p...

New Relief Helps Taxpayers Settle Tax Debts
The IRS has announced changes to help struggling taxpayers impacted by Coronavirus Disease 2019 (COVID-19) more easily settle their tax debts. Under the new Taxpayer Relief Initiative:Taxpayers who qu...

IRS Encourages E-Filing of Payroll Tax Returns
The IRS recommends e-filing of employment tax returns—Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, Form 941, Employer's Quarterly Federal Tax Return, Form 943, Employer’s An...

IRS Releases Draft Form 1065 Instructions on Capital Reporting
The IRS released an early draft of the instructions to Form 1065, U.S. Return of Partnership Income, for tax year (TY) 2020. The draft included revised instructions for partnerships required to repo...

IRS SBSE Released Fiscal 2021 Focus Guide
The IRS Small Business and Self-Employed (SBSE) business unit has released its Fiscal 2021 Focus Guide, titled "It’s Still the Time," to lay out the compliance and service strategies for the comin...

AZ - Arizona voters approve income tax increase for education
Arizona voters at the November 3, 2020 general election approved Proposition 208, which increases income taxes on top earners to boost funding for teachers and education programs. Proposition 208 impo...

CA - Voters approve classification of app-based rideshare and delivery drivers as independent contractors
California voters at the November 3, 2020 general election approved Proposition 22, which classifies app-based rideshare and delivery drivers as independent contractors, rather than employees or agent...

CO - Colorado voters approve tax rate decrease measure
According to unofficial results, Colorado voters approved a ballot measure to decrease the tax rate from 4.63% to 4.55% for the following:corporate income tax;personal income tax; andpersonal income t...

FL - Sumter county tourist development tax repealed
Beginning October 1, 2020, the Sumter County, Florida tourist development tax is repealed. On October 13, 2020, the Sumter County Board of County Commissioners approved Ordinance No. 2020-13. The ordi...

GA - Georgia issues film tax credit guidance during covid-19
Georgia has released guidance on the expenses that qualify for the corporate income tax film credit during the COVID-19 pandemic.Qualifying CostsCosts incurred during the COVID-19 shutdown qualify for...

HI - Credit distribution rule adopted
Hawaii has adopted a rule indicating how to distribute an income tax credit to partners, S corporation shareholders, or beneficiaries of an estate or trust. The rule applies when Hawaii law:does not s...

ID - 2021 circuit breaker program addressed
The annual property tax reduction (or "circuit breaker") program available to qualified homeowners (including mobile homeowners and residents of a care facility or nursing home) who both own and live...

IL - Voters reject constitutional amendment on graduated rates
Illinois voters rejected a ballot measure proposing an amendment to the Illinois Constitution that would allow graduated personal income tax rates.Amendment ProposalThe amendment would have authorized...

IA - Certain filing deadlines extended due to Derecho storm
The Iowa Department of Revenue (department) announced that certain corporate income, personal income, and trust income tax filing and payment deadlines falling between August 10, 2020 and December 15,...

MD - Collection on hold until covid-19 emergency; taxpayers may receive tax liability notifications
The Office of the Maryland Comptroller (comptroller) will mail notifications to certain tax filers of unpaid tax liabilities that were due July 15 (the extended deadline from the traditional April 15 ...

MA - Taxpayer failed to protest within statutory deadline; appeal denied
A taxpayer’s appeal against Massachusetts personal income tax assessments was denied as untimely. The taxpayer filed a total of four abatement applications pertaining to the assessments at issue; ho...

NV - Parts of 2019 Nevada MBT legislation invalidated
Portions of a 2019 Nevada law (S.B. 551) affecting the rates of the modified business tax have been invalidated. The law had resulted in Nevada continuing to impose its modified business taxes on empl...

NM - Regulation to include amended returns while claiming refund was inconsistent with statute
A large company with subsidiaries (taxpayer) timely filed its New Mexico corporate income tax refund claim as the New Mexico Taxation and Revenue Department's (department’s) regulations and the appl...

NY - Receipts from digital advertising campaign management platform are taxable
An out-of-state corporation’s receipts from its digital advertising campaign management platform are subject to New York sales and use tax.Taxability of Digital Advertising Campaign Management Platf...

NC - Updates to filing penalties on informational returns for motor, alternative fuels discussed
For motor fuel tax purposes, North Carolina has issued a notice on filing penalties on informational returns for motor fuels and alternative fuels. In 2018, the legislature passed a law increasing the...

ND - Local tax change effective January 1, 2021 announced
North Dakota has announced an upcoming local sales and use tax rate change that is effective January 1, 2021.BinfordThe City of Binford will impose a city sales, use, and gross receipts tax of 2% effe...

OH - Interest rates announced
For calendar year 2021, the Ohio interest rate for underpayments and overpayments of income tax and sales and use taxes decreases to 3.0%. The interest rate for personal property tax and estate tax de...

OR - Income tax regulations set for hearing
Oregon has released a number of proposed regulations for hearing that for the following taxes:corporate activity tax;corporate income (excise) tax;personal income tax; andwithholding tax.Proposed Regu...

PA - Philadelphia withholding guidance updated
Philadelphia has updated its wage tax policy guidance for non-resident employees to remove guidance regarding non-resident withholding it included earlier this year. The updated guidance no longer sta...

TN - Short-term rental unit marketplaces must collect occupancy taxes
Effective January 1, 2021, short-term rental unit marketplaces are required to collect and remit Tennessee local occupancy taxes for short-term rental units rented through a marketplace.Registration a...

TX - Taxpayer's payment was not flow-through sales commissions; refund properly denied
A taxpayer’s Texas franchise tax refund claim was properly denied as the taxpayer’s payment at issue did not qualify as "sales commissions."Generally, a taxable entity must exclude from its total...

UT - 2021 interest rate for underpayment and overpayment is 2%
In its updated publication on interest and penalties for many of the taxes it administers, the Utah State Tax Commission announced that the interest rate for underpayment and overpayment of taxes and ...

VA - Reporting requirements for form 1099-k filers discussed
Payment settlement entities required to submit Form 1099-K to the IRS are now generally required to submit duplicates to the Virginia Department of Taxation. Specifically, Virginia law now requires th...

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