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Phase-In Periods Extended for Regulations on Dividend Equivalent Payments...

The Treasury Department and IRS intend to amend the Code Sec. 871(m) regulations to delay the effective/applicability date of certain rules in the final regulations. Code Sec. 871(m) treats dividend...

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Weekly Report from Washington, D.C.

Congress has started its August recess, with lawmakers expected to return to Capitol Hill after Labor Day. The Treasury Inspector General for Tax Administration (TIGTA) issued a report on employment...

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Maine Defines “Marijuana Product”

Maine added the the term “marijuana product” to its retail marijuana laws and updated the meaning of the term “retail marijuana product”. The Maine Legislature passed the amending bill on August 2,...

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Oregon Repeals Functional Test for Apportioned Income

Oregon Gov. Kate Brown has signed a bill removing the functional test for determining apportioned income subject to the corporate excise tax. Also, the bill states that certain types of money received...

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Rhode Island Authorizes Tax Amnesty Program

The budget bill signed by Rhode Island Gov. Gina Raimondo on August 3, 2017, directs the tax administrator to establish a tax amnesty program for all taxpayers and all taxes. The amnesty program will...

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Rhode Island Adds Requirements for Remote Retailers

Rhode Island Gov. Gina Raimondo has signed the 2017-18 fiscal year budget bill, which makes various changes to the sales and use tax laws. Specifically, the legislation affects certain out-of-state...

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Bargain Sale of Farm’s Development Rights Not Income From Farming (Rutkoske, TC)

Farmers who conveyed, through their limited liability company, a conservation easement to a public charity were not “qualified farmers” entitled to an enhanced charitable contribution deduction. A...

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Massachusetts Increases Marijuana Tax Rates

Newly enacted legislation has increased the excise tax on recreational marijuana to 10.75% (previously, 3.75%), and authorized localities to impose a local sales tax rate up to 3% (previously, 2%)....

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Rhode Island Lists Responsibilities for Retail Sale Facilitators

The Rhode Island Division of Taxation issued a notice that summarizes recently enacted legislation regarding all retail sale facilitators (Ch. 302 (H.B. 5175), Laws 2017). (TAXDAY, 2017/08/07, S.9)...

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Oil Pipeline Owner Ineligible for Lower Texas Franchise Tax Rate

A taxpayer was not eligible for the 0.5% Texas franchise tax rate available for entities primarily engaged in the retail or wholesale trades. On its federal income tax returns and Texas franchise tax...

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Wyoming Disallows Exemption for Oil Refinery Purchases

An oil refinery did not qualify for a manufacturing exemption from Wyoming sales tax on purchases of certain chemicals, catalysts, oils, lubricants, and other materials, because the items were not used...

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Federal Tax Update 2017 – Live CPE Conferences Scheduled for...

CCH CPELink Live Conferences is sponsoring one- and two-day conferences in a city near you. During these conferences, leading practitioners will discuss strategies for wealth management, family and...

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Guidance Offered to Taxpayers with Expiring ITINs (IR-2017-128)

The IRS has urged taxpayers with expiring Individual Taxpayer Identification Number (ITIN) to file a renewal application in time to have a renewed ITIN for the upcoming tax season and to avoid refund...

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Koskinen Discusses Taxpayer Service, Return Preparers at NATP Event

IRS Commissioner John Koskinen spoke on August 8 at the National Association of Tax Professionals (NATP) National Conference in Washington, D.C. During the event, Koskinen discussed his tenure as head...

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Selling Excess Arkansas Tax Credits Generated Apportionable Business Income

A taxpayer’s proceeds from selling its excess tax credits to other companies in 2015 were held to be taxable as apportionable business income for Arkansas corporate income tax purposes. The taxpayer...

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California Amends Tax Penalty Provisions

California Gov. Edmund G. Brown, Jr., has signed legislation easing several corporation franchise and income tax and personal income tax penalties. Specifically, the legislation: repeals the “failure...

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Help Desk and Online Back Up Services Are Not Taxed in Missouri

Fees paid for access to a help desk for computer hardware and software support on purchased items are not subject to Missouri sales tax. Missouri imposes tax on sales of tangible personal property and...

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Bottled Water Sales are Taxed in Washington

The Washington Department of Revenue issued guidance on beverages, noting that sales of bottled water are subject to sales tax as of August 1, 2017. The notice lists other beverages subject to sales...

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Tax Reform Details Still Undecided

As Congress prepares to tackle tax reform, disagreement among Republicans on how to approach the issue may stifle efforts. The House Ways and Means and Senate Finance Committees are currently drafting...

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Colorado Updates Marijuana Tax Guidance

Changes to the Colorado excise tax on retail marijuana can be found in updated Colorado Department of Revenue guidance. As of August 9, 2017, the tax no longer applies to sales or transfers made by a...

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