Latest Administrative Decisions

In the latest Administrative Decisions, the issues addressed were both related to Taxpayers that defaulted on their Stipulations with the Division:

• Whether the Taxpayer owes other tobacco products ("OTP") tax and if so, should any sanctions be imposed.
• Details are contained in Administrative Decision 2024-27.

• Whether the Taxpayer owes the cigarette and/or other tobacco products tax and penalties assessed by the Division, and whether the Taxpayer breached a settlement stipulation, and if so, what sanctions, if any, should be imposed.

• Details are contained in Administrative Decision 2024-28.

Withholding booklet for 2025

The Rhode Island Division of Taxation has posted the withholding booklet for 2025.

View the booklet on our website: www.tax.ri.gov.

Fee removals

The Division of Taxation reminds taxpayers that the passage of the State Fiscal Year 2025 budget has removed two fees, one for qualifying charitable organizations, and one related to estates.

Details are available in Advisory 2024-31.

Annual estate update

The Rhode Island Division of Taxation has published the Rhode Island estate tax credit amount and threshold for the estates of decedents dying on or after January 1, 2025.

Details are available in Advisory 2024-31.

Bi-annual application of consumer price index to Rhode Island Motor Fuel Tax

The Rhode Island Division of Taxation has applied a statutory formula to determine the Rhode Island Motor Fuel Tax rate that will be in effect as of July 1, 2025. The tax will increase from 37 to 38 cents per gallon, effective July 1, 2025. The Division is providing information regarding this most recent adjustment in advance of the July 1, 2025 effective date to allow stakeholders to take the necessary steps to accommodate the new rate.

Details are available in Advisory 2024-29.

Annual e-file shutdown and switchover

Each year, the Rhode Island Division of Taxation temporarily closes its Modernized e-File (MeF) system to prepare the system for the upcoming tax-filing season. Both Rhode Island and Federal Personal Income Tax Returns filed through electronic filing (e-file) software are impacted by the shutdown.

The Division's annual MeF electronic filing shutdown and switchover for Personal Income Tax 1040 returns will occur on November 30, 2024. All transmissions must be submitted before 11:59 p.m. (EST) on November 30.

Please note - if a return is filed while the shutdown is in effect, the return will not be transmitted until the system switches on in early 2025. This means that if direct debit is selected as the payment method for a return filed in this period, the payment will also not be transmitted until the shutdown ends in early 2025. If this occurs, the taxpayer will be subject to interest and penalties during the shutdown period due to late filing and payment. If you have an outstanding return, payment, or both, please file and pay before the shutdown to avoid being assessed interest and penalties for the shutdown period.

All other MeF filings will be available until 11:59 p.m. (EST) December 5, 2024. This shutdown does not impact the Division’s Taxpayer Portal.

Rhode Island will resume acceptance of MeF returns when the IRS reopens MeF for the 2025 filing season.

More information is available in Advisory 2024-28.

Latest Administrative Decision

In the latest Administrative Decision, the issue addressed was whether the Taxpayer owes other tobacco products ("OTP") tax and if so, should any sanctions be imposed.

Details are contained in Administrative Decision 2024-26.