Monday, May 21, 2018

Regulation; e-file

Hearing on regulation


The Rhode Island Division of Taxation will hold a public hearing on May 31, 2018, about amending a regulation involving the estate tax. No major changes are proposed. The hearing will start at 9:30 a.m. at the Department of Administration building, One Capitol Hill, Providence.

The Division proposes to modify the regulation in accordance with the new Rhode Island Code of Regulations (a uniform state code). In addition, the Division proposes to eliminate exhibits in the existing regulation and replace them with references to the applicable tax returns.

For more information about the codification process, and about each proposed regulation (including further details about the hearing), see the Rhode Island Department of State (Secretary of State) website. Click here.


Electronic filing


The Internal Revenue Service has announced its annual modernized e-file (MeF) systems shutdown for Memorial Day weekend. The shutdown starts Saturday, May 26, 2018, at 6:00 p.m. and ends on Tuesday, May 29, 2018,  at 6:00 a.m. 

That means the IRS will not be accepting electronically filed federal tax returns during that period. It also means that the Rhode Island Division of Taxation will not be accepting e-filed Rhode Island returns during that period because the federal/state e-file program will be unavailable. 

The joint fed-state e-file program is a cooperative tax‑filing effort between the IRS and most states, including Rhode Island. In general, it allows for federal and state returns to be e-filed simultaneously to the IRS. Once the returns are filed, the IRS keeps the federal portion; the state portion is passed along electronically to the applicable state. 

(Note: The IRS has issued a corrected announcement to reflect a date change. Therefore, this blog post has been updated as of May 22, 2018, at 9:17 a.m., and the new date issued by the IRS is underlined above.)

Thursday, May 3, 2018

Recent developments

Reports


On Monday, April 30, 2018, the Division of Taxation posted a report on the recently completed tax amnesty. To view a copy, click here.

On Tuesday, May 1, 2018, the Division of Taxation posted its annual report about the sales tax on alcoholic beverages. To view a copy, click here.


May 10 hearing


On May 10, 2018, the Division of Taxation will hold a public hearing on proposed amendments to four business-related regulations:

  • Consolidated returns. The Division proposes to include a sunset provision in the regulation, given that mandatory unitary combined reporting took effect for tax years on or after January 1, 2015. (For purposes of Rhode Island combined reporting, an affiliated group can elect to use the same members that the affiliated group includes in filing its federal consolidated return.) 
  • Limited liability companies: The Division proposes to match Rhode Island filing deadlines to federal due dates, and to set forth the filing deadline for single-member LLCs. (The Division has been following the deadlines in practice. The regulation formalizes the practice.)
  • Net operating loss deductions: The Division proposes to add language to reflect the treatment of NOLs for combined reporting purposes.
  • Qualified subchapter S subsidiary corporations: The Division proposes that the subchapter S corporation parent and its qualified subchapter S subsidiaries (Qsubs) must each obtain a federal employer identification number. 


The hearing will be held at the Department of Administration building (the Powers building) at One Capitol Hill in Providence. For each of the proposed regulations listed above, the format has been modified in accordance with the new Rhode Island Code of Regulations (a uniform state code). For more information about the codification process, and for more information about each proposed regulation (including further details about the hearing), see the Rhode Island Department of State (Secretary of State) website. Click here.

May 16 hearing


On May 16, 2018, the Division of Taxation will hold a public hearing on proposed amendments to two regulations involving historic tax credits. The proposed changes include removal of references to the franchise tax, which has been repealed.

The hearings will be held at the Department of Administration building (the Powers building) at One Capitol Hill in Providence. For each of the two regulations, the format has been modified in accordance with the new Rhode Island Code of Regulations (a uniform state code). For more information about the codification process, and for more information about each proposed regulation (including further details about the hearing), see the Rhode Island Department of State (Secretary of State) website. Click here.

Warning for small businesses


The Security Summit -- which includes the Internal Revenue Service, state tax agencies, and the nation’s tax industry -- warns small businesses to be on-guard against a growing wave of identity theft attempts against employers.

Small-business identity theft is big business for identity thieves. When businesses and their employees have their identities stolen, their sensitive information can be used to open credit card accounts or file fraudulent tax returns for bogus refunds. To read more about this issue, click here.

Tuesday, April 24, 2018

IRS warns of twist on an old scam

The Internal Revenue Service today warned of a new twist on an old phone scam as criminals use telephone numbers that mimic IRS Taxpayer Assistance Centers to trick taxpayers into paying non-existent tax bills. To learn more, click here.

Thursday, April 19, 2018

Public hearing May 9

The Rhode Island Division of Taxation will hold a public hearing on May 9, 2018, on proposed amendments to two regulations -- one involving forms reproduction, the other focusing on corporate tax (combined reporting).

The hearing will be held at the Department of Administration building (the Powers building) at One Capitol Hill in Providence beginning at 2:00 p.m.


In addition, the format of both regulations has been modified in accordance with the new Rhode Island Code of Regulations (a uniform state code). For more information about the codification process, and to view regulations, see the Rhode Island Department of State (Secretary of State) website.


Wednesday, April 18, 2018

Deadline is tonight

The Rhode Island Division of Taxation has extended this year’s tax deadline by one day. Therefore, the deadline for filing 2017 Rhode Island tax returns and for making Rhode Island tax payments is tonight – April 18, 2018.

Because of a computer-related outage at the Internal Revenue Service yesterday, the IRS last night extended the federal deadline to today. Rhode Island is following suit. “Having the same deadline for federal and Rhode Island filings and payments will be a convenience for tax professionals and taxpayers alike,” said Rhode Island Tax Administrator Neena S. Savage.

To learn more, click here.

Tuesday, April 17, 2018

Recent developments

IRS e-file outage


The Rhode Island Division of Taxation urges tax professionals and taxpayers to continue filing despite an outage today at the IRS. The Division also recommends e-filing. To learn more, click here.

  • IRS e-filing was out of commission for most of today. However, at around 5:00 p.m. (Eastern time) today, the IRS announced that the e-filing outage is over and that its system is up and running. For confirmation, click here.



Section 965 income


The Rhode Island Division of Taxation reminds tax preparers and taxpayers about certain Rhode Island tax obligations related to the federal tax legislation enacted in December 2017. 

“Due to recent inquiries from practitioners, we are confirming the treatment of Section 965 income  under Rhode Island law. This is a reminder that nothing has changed under Rhode Island law, and this guidance is intended to confirm the impact of federal tax reform,” said Rhode Island Tax Administrator Neena S. Savage. For details, click here.

Monday, April 16, 2018

Tax Administrator's reminder about deadline

Rhode Island Tax Administrator Neena Savage was interviewed this morning on Rhode Island Public Radio about tomorrow's tax-filing deadline. To learn more about the deadline for filings and payments, click here.
Rhode Island Tax Administrator Neena Savage on Rhode Island Public Radio.