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2022 Tax Year-In-ReviewConsolidated Appropriations Act, 2023Inflation Reduction Act of 2022, Signed Aug. 16Inflation Reduction Act of 2022
Factors to Consider When IRS Contacts Taxpayers, IR-2023-56
Taxpayers must keep some important factors in mind when the IRS may initiate direct contact with a them. The IRS provides many different payment options to help taxpayers meet their obligat...
Taxpayers must keep some important factors in mind when the IRS may initiate direct contact with a them. The IRS provides many different payment options to help taxpayers meet their obligat...
IRS Requests Comments on Treating NFTs as Collectibles, Notice 2023-27
The IRS requested comments on its intention to treat certain nonfungible tokens (NFTs) as collectibles under Code Sec. 408(m). If an NFT is treated as a collectible, an IRA's acquisition o...
The IRS requested comments on its intention to treat certain nonfungible tokens (NFTs) as collectibles under Code Sec. 408(m). If an NFT is treated as a collectible, an IRA's acquisition o...
Copies of Exempt Organization Returns Now Available Online Instead of DVD
The IRS has revised the instructions on obtaining the copies of exempt organization returns. Under the new revision, taxpayers will not be able to obtain the copies of returns on DVD. Instead, ...
The IRS has revised the instructions on obtaining the copies of exempt organization returns. Under the new revision, taxpayers will not be able to obtain the copies of returns on DVD. Instead, ...
Changes to 2023 Forms 5500 Issued
The Department of Labor (DOL), the Internal Revenue Service (IRS), and the Pension Benefit Guaranty Corporation (PBGC) issued final forms and instructions revisions for the Form 5500 Annual Return...
The Department of Labor (DOL), the Internal Revenue Service (IRS), and the Pension Benefit Guaranty Corporation (PBGC) issued final forms and instructions revisions for the Form 5500 Annual Return...
Indexing Adjustments Provided for Employer Shared Responsibility Applicable Dollar Amounts, Rev. Proc. 2023-17
The IRS has provided indexing adjustments for the applicable dollar amounts under Code Sec. 4980H(c)(1) and (b)(1). These indexed amounts are used to calculate the employer shared respon...
The IRS has provided indexing adjustments for the applicable dollar amounts under Code Sec. 4980H(c)(1) and (b)(1). These indexed amounts are used to calculate the employer shared respon...
IRS Announces Successful Expansion of Digital Scanning Initiative, IR-2023-41
The IRS has announced the successful expansion of the digital scanning initiative also known as Digital Intake. The Service has already scanned more than 120,000 paper Forms 940 since the s...
The IRS has announced the successful expansion of the digital scanning initiative also known as Digital Intake. The Service has already scanned more than 120,000 paper Forms 940 since the s...
Population Figures Provided for Calculating Low-Income Housing Tax Credits, Notice 2023-22
State and local housing credit agencies that allocate low-income housing tax credits and states and other issuers of tax-exempt private activity bonds have been provided with a listing of the prop...
State and local housing credit agencies that allocate low-income housing tax credits and states and other issuers of tax-exempt private activity bonds have been provided with a listing of the prop...
IRS Addresses FAQs on Nutrition, Wellness and General Health, IR-2023-47
The IRS announced frequently asked questions (FAQs) that addressed whether certain costs related to nutrition, wellness and general health are medical expenses. These are expenses that may b...
The IRS announced frequently asked questions (FAQs) that addressed whether certain costs related to nutrition, wellness and general health are medical expenses. These are expenses that may b...
AL - Assessment upheld because taxpayers failed to establish insolvency
A married couple (taxpayers) was properly assessed Alabama personal income tax on a certain cancellation of indebtedness because the taxpayers failed to establish that they were insolvent at the time ...
A married couple (taxpayers) was properly assessed Alabama personal income tax on a certain cancellation of indebtedness because the taxpayers failed to establish that they were insolvent at the time ...
AK - Fisheries product development tax credit regulations changes adopted
The Alaska Department of Revenue adopted changes to regulations concerning the Fisheries Product Development Tax Credit. The adopted regulations add new language for establishing the method for calcul...
The Alaska Department of Revenue adopted changes to regulations concerning the Fisheries Product Development Tax Credit. The adopted regulations add new language for establishing the method for calcul...
AZ - Local rate changes announced
The Arizona Department of Revenue has announced a local transaction privilege tax (TPT) rate change.Buckeye has changed the city's use tax rate to 3% for items $5,000 or less. The rate is 1.1% for sin...
The Arizona Department of Revenue has announced a local transaction privilege tax (TPT) rate change.Buckeye has changed the city's use tax rate to 3% for items $5,000 or less. The rate is 1.1% for sin...
AR - Digital product and motion picture industry development incentive technical corrections
Arkansas has amended certain statutes related to the Digital Product and Motion Picture Industry Development Incentive to correct grammatical and other technical errors. Act 204 (H.B. 1286), Laws 2023...
Arkansas has amended certain statutes related to the Digital Product and Motion Picture Industry Development Incentive to correct grammatical and other technical errors. Act 204 (H.B. 1286), Laws 2023...
CA - Employers affected by 2023 winter storms may request relief
Employers in the counties of Calaveras, Del Norte, Glenn, Kings, San Benito and San Joaquin directly affected by the winter storms may request up to a two month extension of time from the Employment D...
Employers in the counties of Calaveras, Del Norte, Glenn, Kings, San Benito and San Joaquin directly affected by the winter storms may request up to a two month extension of time from the Employment D...
CO - Gross receipts from sales of real estate excluded from apportionment factor
The gross receipts from a real estate rental company’s sales of Colorado real estate must not be included in the company’s receipts for purposes of apportioning income for Colorado income tax purp...
The gross receipts from a real estate rental company’s sales of Colorado real estate must not be included in the company’s receipts for purposes of apportioning income for Colorado income tax purp...
CT - April 18 filing deadline reminder issued
The Connecticut Department of Revenue Services has issued a press release reminding taxpayers that the deadline for filing 2022 personal income tax returns is April 18, 2023. Press Release, Connecticu...
The Connecticut Department of Revenue Services has issued a press release reminding taxpayers that the deadline for filing 2022 personal income tax returns is April 18, 2023. Press Release, Connecticu...
DE - Governor discusses standard deduction, EITC bill
Delaware Gov. John Carney issued a press release discussing a bill that would implement his fiscal-year budget recommendations to:increase the standard deduction for personal income taxpayers; andincr...
Delaware Gov. John Carney issued a press release discussing a bill that would implement his fiscal-year budget recommendations to:increase the standard deduction for personal income taxpayers; andincr...
DC - Refund denied due to failure to provide resale certificate at time of purchase
A hospital (taxpayer) was not entitled to a refund of District of Columbia sales and use tax paid on its purchase of prepared meals from a vendor because the taxpayer failed to provide the vendor with...
A hospital (taxpayer) was not entitled to a refund of District of Columbia sales and use tax paid on its purchase of prepared meals from a vendor because the taxpayer failed to provide the vendor with...
FL - Electronic filing of partnership information returns (Form F-1065) available
The Florida Department of Revenue has issued a tax information publication informing corporate income taxpayers that beginning January 1, 2022, the Florida Partnership Information Return (Form F-1065)...
The Florida Department of Revenue has issued a tax information publication informing corporate income taxpayers that beginning January 1, 2022, the Florida Partnership Information Return (Form F-1065)...
GA - Personal income tax refund announced
Georgia Gov. Brian P. Kemp announced that he signed into law a bill granting a personal income tax refund, ranging from $250 for single filers to $500 for joint filers, for eligible taxpayers. The pre...
Georgia Gov. Brian P. Kemp announced that he signed into law a bill granting a personal income tax refund, ranging from $250 for single filers to $500 for joint filers, for eligible taxpayers. The pre...
HI - Deadline to file personal income tax returns announced
The Hawaii Department of Taxation has issued a news release informing personal income taxpayers that the filing deadline for state income tax returns is April 20, 2023. The federal filing deadline for...
The Hawaii Department of Taxation has issued a news release informing personal income taxpayers that the filing deadline for state income tax returns is April 20, 2023. The federal filing deadline for...
ID - Capital investment credit amended
Idaho has amended the corporate income investment tax credit to close a loophole for mobile property.How is mobile property currently treated?Currently, the credit is pro-rated for mobile property sin...
Idaho has amended the corporate income investment tax credit to close a loophole for mobile property.How is mobile property currently treated?Currently, the credit is pro-rated for mobile property sin...
IL - Film production credit rules amended
Illinois amended rules for the film production services credit that eligible taxpayers can claim against corporate and personal income tax liability. The amended rules implement changes to the credit ...
Illinois amended rules for the film production services credit that eligible taxpayers can claim against corporate and personal income tax liability. The amended rules implement changes to the credit ...
IN - Electronic power of attorney discussed
Indiana corporate and personal income taxpayers may find it helpful to give their tax practitioner electronic access to their Indiana tax information via INTIME, the Department of Revenue’s (departm...
Indiana corporate and personal income taxpayers may find it helpful to give their tax practitioner electronic access to their Indiana tax information via INTIME, the Department of Revenue’s (departm...
IA - Rate reduction legislation introduced
A bill introduced in Iowa would, if enacted, reduce the:individual income tax;corporate income tax; andinsurance premium tax rates.When would rates be reduced?The rate reductions would occur beginning...
A bill introduced in Iowa would, if enacted, reduce the:individual income tax;corporate income tax; andinsurance premium tax rates.When would rates be reduced?The rate reductions would occur beginning...
KS - Guidance on elective pass-through entity tax calculation issued
Kansas issued guidance on the calculation of income tax liability for the 2022 tax year by S corporations or partnerships that:have made the election to be taxed at the entity level;have income form s...
Kansas issued guidance on the calculation of income tax liability for the 2022 tax year by S corporations or partnerships that:have made the election to be taxed at the entity level;have income form s...
KY - December sales tax facts sheet discusses residential utility exemption
Kentucky in its recent sales tax facts sheet discusses residential utility exemption, among other topics.The facts sheet discusses:Tax changes enacted by the General Assembly, through House Bill (HB)8...
Kentucky in its recent sales tax facts sheet discusses residential utility exemption, among other topics.The facts sheet discusses:Tax changes enacted by the General Assembly, through House Bill (HB)8...
LA - Limitation on local inventory property tax credit explained
The Louisiana Board of Tax Appeals explained the operation of the limitation on the local inventory property tax credit for entities taxed as S Corporations. Louisiana allows a credit against its pers...
The Louisiana Board of Tax Appeals explained the operation of the limitation on the local inventory property tax credit for entities taxed as S Corporations. Louisiana allows a credit against its pers...
ME - Personal exemption instructions clarifiedo other jurisdictions
Maine Revenue Services clarified the amount of personal exemptions certain taxpayers should take on their Maine personal income tax returns. This is after an error was discovered in the 2022 Form 1040...
Maine Revenue Services clarified the amount of personal exemptions certain taxpayers should take on their Maine personal income tax returns. This is after an error was discovered in the 2022 Form 1040...
MD - Wynne refund interest rates remain constitutional
In an unreported opinion, the Appellate Court of Maryland once again held that the state’s statutory interest rate for personal income tax refunds issued pursuant to the Wynne ruling is not unconsti...
In an unreported opinion, the Appellate Court of Maryland once again held that the state’s statutory interest rate for personal income tax refunds issued pursuant to the Wynne ruling is not unconsti...
MA - Interest rates unchanged for second quarter of 2023
The interest rates on the underpayment and overpayment of Massachusetts taxes are unchanged for the period April 1, 2023, through June 30, 2023.The rate for overpayments is 6%.The rate for underpaymen...
The interest rates on the underpayment and overpayment of Massachusetts taxes are unchanged for the period April 1, 2023, through June 30, 2023.The rate for overpayments is 6%.The rate for underpaymen...
MI - Individual personally liable for company’s unpaid taxes
An individual who was the sole corporate officer of a company was properly liable for the company’s outstanding Michigan sales and withholding tax liabilities because the Department of Treasury (dep...
An individual who was the sole corporate officer of a company was properly liable for the company’s outstanding Michigan sales and withholding tax liabilities because the Department of Treasury (dep...
MN - Filing instructions related to Form M1, individual income tax, updated
The Minnesota Department of Revenue highlighted a potential issue with reporting personal income tax refunds in tax preparation software.IssueWhile the instructions for Form M1, Individual Income Tax,...
The Minnesota Department of Revenue highlighted a potential issue with reporting personal income tax refunds in tax preparation software.IssueWhile the instructions for Form M1, Individual Income Tax,...
MS - Statute of limitations for assessment after IRS adjustment
The Mississippi Court of Appeals held that an assessment made against a taxpayer after the IRS adjusted the taxpayer's federal return was timely because the Mississippi Department of Revenue made the ...
The Mississippi Court of Appeals held that an assessment made against a taxpayer after the IRS adjusted the taxpayer's federal return was timely because the Mississippi Department of Revenue made the ...
MO - Local tax rate changes announced
The following local Missouri sales and use tax rate changes take effect April 1, 2023. Also, new rates are listed for each county, city, and special district affected by the rate changes.County Change...
The following local Missouri sales and use tax rate changes take effect April 1, 2023. Also, new rates are listed for each county, city, and special district affected by the rate changes.County Change...
MT - Taxpayer engaged in writing activities for profit not subject to hobby loss rule
The Montana Tax Appeal Board (board) determined that the limitations on personal income tax deductions, or the "hobby loss rule," did not apply to a professional writer (taxpayer) because he was engag...
The Montana Tax Appeal Board (board) determined that the limitations on personal income tax deductions, or the "hobby loss rule," did not apply to a professional writer (taxpayer) because he was engag...
NE - April 18 filing deadline reminder issued
Nebraska reminds taxpayers that April 18, 2023, is the deadline for filing 2022 corporate and personal income tax returns and 2023 first quarter estimated income tax payments. Featured Information, Ne...
Nebraska reminds taxpayers that April 18, 2023, is the deadline for filing 2022 corporate and personal income tax returns and 2023 first quarter estimated income tax payments. Featured Information, Ne...
NV - Film production credit regulations revised
Nevada has revised its regulations concerning transferable tax credits available for film and other qualified productions. Among other changes, the revised regulations set forth the requirements for c...
Nevada has revised its regulations concerning transferable tax credits available for film and other qualified productions. Among other changes, the revised regulations set forth the requirements for c...
NH - Governor proposes eliminating communications tax
In his 2023 Budget Address, New Hampshire Governor Chris Sununu said he will recommend elimination of the 7% Consumer Communications Services Tax. 2023 Budget Address,Gov. Chris Sununu, February 14, 2...
In his 2023 Budget Address, New Hampshire Governor Chris Sununu said he will recommend elimination of the 7% Consumer Communications Services Tax. 2023 Budget Address,Gov. Chris Sununu, February 14, 2...
NJ - Bulletins revised to include information on payments made with GSA smartpay credit card
New Jersey revised the following sales and use tax bulletins to include information about payments made with a GSA SmartPay credit card that has 5 as the sixth digit:Bulletin S&U-1, Restaurants an...
New Jersey revised the following sales and use tax bulletins to include information about payments made with a GSA SmartPay credit card that has 5 as the sixth digit:Bulletin S&U-1, Restaurants an...
NM - Allowable uses for education savings plans broadened
New Mexico has amended its laws to expand the allowable uses for funds in tax-advantaged education savings accounts (sometimes known as 529 college savings plans). These amendments are meant to make t...
New Mexico has amended its laws to expand the allowable uses for funds in tax-advantaged education savings accounts (sometimes known as 529 college savings plans). These amendments are meant to make t...
NY - Brownfield redevelopment credit amendments discussed
New York issued a memorandum discussing various changes made to the brownfield redevelopment tax credit by budget legislation enacted in 2022. The credit is now allowed for sites accepted into the cle...
New York issued a memorandum discussing various changes made to the brownfield redevelopment tax credit by budget legislation enacted in 2022. The credit is now allowed for sites accepted into the cle...
NC - 2022 corporate income, franchise, and insurance tax bulletin issued
The North Carolina Department of Revenue has published a corporate income, franchise, and insurance tax bulletin reflecting the changes made in the 2022 regular session of the North Carolina General A...
The North Carolina Department of Revenue has published a corporate income, franchise, and insurance tax bulletin reflecting the changes made in the 2022 regular session of the North Carolina General A...
ND - Governor's budget proposal includes tax relief
North Dakota Gov. Doug Burgum has proposed a 2023-25 budget that would eliminate the state individual income tax for three out of five taxpayers. Under the proposal, those still paying the tax would h...
North Dakota Gov. Doug Burgum has proposed a 2023-25 budget that would eliminate the state individual income tax for three out of five taxpayers. Under the proposal, those still paying the tax would h...
OH - CAT assessment upheld because taxpayer failed to establish error
An assessment of Ohio corporate income tax against an architectural firm (taxpayer) was upheld because the taxpayer failed to provide credible evidence that the Department of Taxation (department) imp...
An assessment of Ohio corporate income tax against an architectural firm (taxpayer) was upheld because the taxpayer failed to provide credible evidence that the Department of Taxation (department) imp...
OK - Rate reduction passes house
The Oklahoma House has passed a bill that if enacted would replace the graduated personal income tax with a flat 4.5% rate in tax year 2024.What future rate reductions would occur?Further, the legisla...
The Oklahoma House has passed a bill that if enacted would replace the graduated personal income tax with a flat 4.5% rate in tax year 2024.What future rate reductions would occur?Further, the legisla...
OR - IRC conformity bill advances
The Oregon Senate passed a bill that would update the state's income tax Internal Revenue Code conformity date to December 31, 2022. The bill now goes to the Oregon House. S.B. 141, as passed by the O...
The Oregon Senate passed a bill that would update the state's income tax Internal Revenue Code conformity date to December 31, 2022. The bill now goes to the Oregon House. S.B. 141, as passed by the O...
PA - Philadelphia real estate tax bill reminder
The Philadelphia Department of Revenue reminds taxpayers that March 31 is the last day to pay current Philadelphia real estate taxes. Payments may be made in-person at the Municipal Services Building,...
The Philadelphia Department of Revenue reminds taxpayers that March 31 is the last day to pay current Philadelphia real estate taxes. Payments may be made in-person at the Municipal Services Building,...
RI - Services offered by employee incentives provider subject to tax
The Rhode Island Tax Division (division) determined that a multinational company’s (taxpayer’s) consulting, startup, website design, and transaction fees were subject to sales and use tax. In this...
The Rhode Island Tax Division (division) determined that a multinational company’s (taxpayer’s) consulting, startup, website design, and transaction fees were subject to sales and use tax. In this...
SC - Purchases of certain supplies and protective clothing did not qualify for machine exemption
A produce processing facility operator (taxpayer) was not entitled to a South Carolina sales and use tax exemption on its purchases of certain supplies and protective clothing because they did not qua...
A produce processing facility operator (taxpayer) was not entitled to a South Carolina sales and use tax exemption on its purchases of certain supplies and protective clothing because they did not qua...
SD - Alternative fuel taxes can be collected under IFTA
South Dakota is now authorized to impose and collect alternative fuel taxes within the state's IFTA agreement. Currently, South Dakota only includes diesel fuel and diesel blends in it's ITFA collecti...
South Dakota is now authorized to impose and collect alternative fuel taxes within the state's IFTA agreement. Currently, South Dakota only includes diesel fuel and diesel blends in it's ITFA collecti...
TN - Updated manual released
Tennessee released an updated version of its franchise and excise tax manual. Among other changes, the updates:clarify how a taxpayer determines if it is a manufacturer eligible for the $2 billion cap...
Tennessee released an updated version of its franchise and excise tax manual. Among other changes, the updates:clarify how a taxpayer determines if it is a manufacturer eligible for the $2 billion cap...
TX - Taxpayers failed to prove entitlement to refunds
The Texas Comptroller of Public Accounts denied water solutions services providers’ (taxpayers’) claims for refunds of sales and use tax paid on purchases of certain equipment, services, and chemi...
The Texas Comptroller of Public Accounts denied water solutions services providers’ (taxpayers’) claims for refunds of sales and use tax paid on purchases of certain equipment, services, and chemi...
UT - Tax commission to share information for education savings incentive purposes
Upon request from the Department of Workforce Services, the State Tax Commission must inform the department whether an individual claimed and is entitled to claim a federal earned income tax credit fo...
Upon request from the Department of Workforce Services, the State Tax Commission must inform the department whether an individual claimed and is entitled to claim a federal earned income tax credit fo...
VT - Summary judgment affirmed as property owner’s action was time-barred
For Vermont property tax purposes, the Supreme Court affirmed the Superior Court’s grant of summary judgment to the town because the property owner’s action was time-barred by the one-year statute...
For Vermont property tax purposes, the Supreme Court affirmed the Superior Court’s grant of summary judgment to the town because the property owner’s action was time-barred by the one-year statute...
VA - Single sales factor election enacted for certain affiliated groups with retail company activities
Beginning with taxable year 2023, a new Virginia provision allows affiliated corporations filing on a consolidated basis to elect to apportion the taxable income of all members of the affiliated group...
Beginning with taxable year 2023, a new Virginia provision allows affiliated corporations filing on a consolidated basis to elect to apportion the taxable income of all members of the affiliated group...
WA - Taxpayer could not bring nonconstitutional challenge to reporting instructions under APA
An asphalt manufacturer was not permitted to challenge the department's use tax reporting instructions pursuant to the Administrative Procedure Act (APA) because it was required to follow the procedur...
An asphalt manufacturer was not permitted to challenge the department's use tax reporting instructions pursuant to the Administrative Procedure Act (APA) because it was required to follow the procedur...
WV - New withholding tables and forms released
West Virginia released new personal income tax withholding tables and forms for the 2023 tax year, including:Form IT-100.1.A, Employer's Withholding NoticeForm IT 104, Employee's Withholding/Exemption...
West Virginia released new personal income tax withholding tables and forms for the 2023 tax year, including:Form IT-100.1.A, Employer's Withholding NoticeForm IT 104, Employee's Withholding/Exemption...
WI - Guidance on pass-through withholding and composite returns issued
For corporate income tax purposes, the Wisconsin Department of Revenue has issued a fact sheet providing guidance on pass-through withholding and composite returns. The fact sheet provides a general o...
For corporate income tax purposes, the Wisconsin Department of Revenue has issued a fact sheet providing guidance on pass-through withholding and composite returns. The fact sheet provides a general o...
WY - Local lodging rate changes announced
Wyoming has announced local lodging rate changes that take effect April 1, 2023.County Rate ChangesThe following counties decrease their lodging rates to 2%: Albany, Converse, Crook, Fremont, Laramie,...
Wyoming has announced local lodging rate changes that take effect April 1, 2023.County Rate ChangesThe following counties decrease their lodging rates to 2%: Albany, Converse, Crook, Fremont, Laramie,...
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