Monday, December 24, 2012

Rhode Island wins recertification on Streamlined pact

Rhode Island has been recertified for participation in the Streamlined Sales and Use Tax Agreement, which generates $2 million a year in revenue. Click here for more details.

Wednesday, December 19, 2012

Coupons available for 2013 estimated tax


Available for download from the Rhode Island Division of Taxation website: coupons for quarterly payments of 2013 estimated tax.

The coupons may be used by taxpayers who plan to make estimated payments of Rhode Island personal income tax for 2013.


Withholding tables for 2013 now online

Rhode Island income tax withholding tables for 2013 are now online.

Employers may use the tables to figure out how much to withhold from an employee's pay for Rhode Island personal income tax.


Monday, December 17, 2012

Update for retailers: annual sales tax reconciliation

The Rhode Island Division of Taxation posted an Advisory today which focuses on the annual sales tax reconciliation process for retailers, including some changes to the form.

Wednesday, December 12, 2012

E-filing increases for 2012


About 76 percent of Rhode Island personal income tax returns were e-filed this year, according to a new Advisory from the Tax Division.

The Advisory also reminds practitioners that the Tax Division will enforce the state's corporate tax e-file mandate starting next month.



Wednesday, December 5, 2012

Tax amnesty yields $17 million


Rhode Island's tax amnesty program wound up generating $17 million, according to preliminary totals posted today.

That's more than the state collected through its last amnesty, in 2006. It also exceeds the amnesty revenue estimate contained in the current fiscal year's budget. Details are in an Advisory online: http://www.tax.ri.gov/Advisory/ADV%202012-35.pdf

Thursday, November 29, 2012

Notices affect sellers of alcoholic beverages


The Tax Division yesterday posted two new Notices on its website. The Notices say that, under a new state law, those who sell alcoholic beverages either at the retail level or at the wholesale level must file an annual report with the Tax Division by February 1.

Friday, November 23, 2012

Materials now online for new computer system


Materials related to the Rhode Island Division of Taxation's new computer system project are now online. Businesses will use the materials to prepare bids for the project.

To view the bid documents, please use the following link -- and enter the word "tax" as a keyword once the website appears on your screen:


The project is known as the integrated tax system, or ITS, and will be phased in over four years. When fully operational, the new system will revolutionize the way the Tax Division works -- and broaden the services that the agency offers to taxpayers and practitioners. One piece of the new system will allow the Tax Division to expand electronic filing and online services to taxpayers and practitioners.

Friday, November 16, 2012

State tax deadline relief for hurricane victims


The Rhode Island Division of Taxation has just posted details about state tax deadline relief that is intended for hurricane victims in two Rhode Island counties -- Newport and Washington Counties. Click here for more information.

Thursday, November 15, 2012

Tonight's the night for amnesty


Rhode Island's tax amnesty ends tonight.

Mailed applications must be postmarked by midnight on Thursday, November 15, 2012. Thus, for example, a mailed application postmarked as late as 11:59 p.m. on Thursday will count. For details, see the amnesty website: www.TaxAmnesty.ri.gov

The Rhode Island Division of Taxation has collected about $9.4 million since the 75-day amnesty period began on September 2.





Wednesday, November 14, 2012

Tax amnesty ends tomorrow night


Rhode Island's tax amnesty ends tomorrow night.

The Rhode Island Division of Taxation has collected about $9.4 million since the 75-day amnesty period began on September 2. Details are included in the Tax Division's latest Advisory.

Amnesty applications must be filed by the end of Thursday, November 15, 2012, to count.

Mailed applications must be postmarked by midnight on Thursday. Thus, for example, a mailed application postmarked as late as 11:59 p.m. on Thursday will count.

Editor's note: The deadline for amnesty was November 15, 2012. The date was incorrectly listed in the original post on November 14, 2012, but was corrected on November 15, 2012.

Thursday, November 8, 2012

One week left for amnesty; $8.7M so far

There's just one more week left for Rhode Island's tax amnesty program.

The filing deadline is midnight on Thursday, November 15.

The program has generated $8.7 million so far.

Click here for more details.

Massachusetts DOR offers Hurricane Sandy relief

The Massachusetts Department of Revenue today announced relief for taxpayers from certain areas -- including Rhode Island -- that were affected by Hurricane Sandy.

Friday, November 2, 2012

Hours extended for amnesty; nearly $8M collected so far

The Tax Division has extended the daily operating hours for Rhode Island's tax amnesty program to accommodate higher volume.

An Advisory posted today includes more details, and also elaborates on the tax deadline relief the agency is offering in the wake of Hurricane Sandy.


Wednesday, October 31, 2012

Mass. cuts backlog on TDI-related refund claims


The Massachusetts Department of Revenue said today that it has been able to significantly reduce the overall backlog of abatement claims involving Rhode Island's Temporary Disability Insurance (TDI) tax by reassigning staff and adding a Saturday shift. As a result, the agency anticipates that most of the claims will be processed by the end of November.

The agency said it received more than 44,000 associated claims. "Since this influx of claims increased our normal annual volume by more than one-third, a backlog resulted and abatement processing was delayed.  Please note that many of the claims received were filed on paper, and paper forms always take longer to process than electronically filed claims," the agency said.

The issue generally involves Massachusetts residents who work in private-sector jobs in Rhode Island and pay TDI tax. When filling out their Massachusetts resident returns, they're generally allowed to claim a credit for taxes paid to Rhode Island. But do TDI taxes count for purposes of the calculation? Yes, the agency said earlier this year. In response, thousands of taxpayers filed claims for refunds, also known as abatements.

Tax deadline relief in aftermath of hurricane

The Tax Division has just issued tax deadline relief in the aftermath of Hurricane Sandy.

Certain business-related filings and payments that would normally be due by midnight tonight will instead be due by November 7.

Rhode Island Tax Administrator David M. Sullivan said, “Many taxpayers and small businesses –and their tax preparers – have suffered through extended power outages, flooding, and other effects of the storm. We are therefore giving these taxpayers and preparers some extra time to file the required returns and pay the required tax. It’s the least we can do.”

Monday, October 29, 2012

Tax conference kicks off in Providence

An international conference on taxation kicked off in Providence this morning. The Rhode Island Division of Taxation is serving as host.

The Federation of Tax Administrators' Motor Fuel Tax Section is holding its annual meeting at the Renaissance Providence Downtown Hotel, opposite the State House.

The meeting's main focus is excise tax on gasoline, diesel, and other motor fuels. The conference has drawn about 130 tax officials and representatives from industry -- including the fuel, software, and accounting industries. Representatives from Canada and Argentina are taking part.

Registration and certain meetings were held over the weekend, but the official kickoff took place this morning -- despite the hurricane -- and included a welcoming speech by Rhode Island Tax Administrator David M. Sullivan. The conference is scheduled to run through Wednesday. Marc Levasseur, principal revenue agent at the Rhode Island Division of Taxation's Excise Tax section, led the efforts to plan and organize the event, according to Donald Englert, the section's chief.


David M. Sullivan

                               



Thursday, October 25, 2012

Rhode Island's tax amnesty program has generated more than $7 million to date.

Also, the program has now entered its final three weeks: The deadline for filing is November 15. Click here for more details.

Friday, October 19, 2012

Committee backs Rhode Island on Streamlined

A committee that helps to oversee the Streamlined Sales and Use Tax Agreement (SSUTA) voted unanimously yesterday to find Rhode Island to be in compliance with the agreement as of August 1, 2012. Click here for details.

Estate tax threshold to exceed $900,000 for first time

The Tax Division announced today that it has set the estate tax threshold for decedents dying in 2013.

The threshold will exceed $900,000 for the first time. Click here for details.

Monday, October 15, 2012

Don't forget tonight's filing deadline

Keep in mind that tonight is the filing deadline for a number of taxpayers -- including individuals and businesses -- that are on extension. A Tax Division Advisory offers details.

Interest rates posted for 2013

The Tax Division has posted the interest rates that will apply in 2013 on overpayments and delinquencies.

The rates are the same as the ones that apply for 2012.


Tax amnesty enters final month, collects $4.1 million

Rhode Island's tax amnesty program has just one more month to go. Taxpayers should therefore act soon in order to take advantage of the amnesty's many benefits. Thus far, the Tax Division has collected $4.1 million through the amnesty, a new Tax Division Advisory says.

Thursday, October 11, 2012

Filing deadline Monday

The Tax Division issued a reminder to taxpayers and practitioners today about Monday's filing deadline. Click here to view it.


Tuesday, October 9, 2012

Latest issue of newsletter now available

The Tax Division has posted the latest issue of its quarterly newsletter, "Rhode Island Tax News." It  includes articles about:

  • tax amnesty
  • tax outreach
  • Tax Division award winners
  • the new chief of Estate Tax
  • the elimination of walk-in service
  • a look at new tax laws
  • the voluntary disclosure program
  • new Declaratory Rulings
  • new Administrative Decisions
  • the Legal Corner feature
  • the Practitioners' Corner feature
  

State Police assisted by Tax Division in piracy case

The Rhode Island State Police have arrested two Woonsocket convenience store owners in a case involving the illegal sale of pirated DVDs.

The State Police were assisted in the case by the Tax Division and by local police.

Friday, October 5, 2012

Corporate e-file; amnesty results; new rulings

The Tax Division's latest Advisory, posted today, offers updates on corporate tax e-filing, tax amnesty results for September, and new Declaratory Rulings and Administrative Decisions.

Corporate income tax refund

The Tax Division today posted a new Administrative Decision. At issue is whether a Rhode Island corporation filed its claim on time for a refund of corporate income tax.

Tuesday, October 2, 2012

Administrative Decision on personal income tax

The Tax Division today posted a new Administrative Decision. It deals with claims for refunds involving personal income tax. The claims were denied because they had not been filed in time.

Friday, September 28, 2012

New sales tax tables now online

The Tax Division today posted new sales tax rate tables - just in time for the tax changes that take effect on Monday.
 

Tax changes take effect on Monday

Several state tax changes will kick in on Monday. Please see the Tax Division's latest Advisory for details.

New chief of Estate Tax

Tax Division lawyer Linda Riordan was officially named today as the agency's new chief of Estate Tax.

Monday, September 24, 2012

Tax amnesty generates $2.7 million so far

Rhode Island's tax amnesty program has generated $2.7 million so far, early results show. A total of 725 applications have been filed.

The 75-day amnesty began September 2, 2012, and runs through November 15, 2012.

Thursday, September 20, 2012

Tax Division outreach meeting in Warwick

The Tax Division this morning met with the Rhode Island Association of Public Accountants to discuss the state's tax amnesty program, corporate e-file mandate, and other e-file issues.

Also on the agenda was the extension of the sales tax starting October 1 to certain clothing, taxicab services, and pet-care services. The meeting, held at a hotel in Warwick, was part of the Tax Division's outreach efforts. About 70 RIAPA members attended.

Monday, September 17, 2012

Estimated taxes due tonight

Tonight's the deadline for filing third-quarter estimated payments of Rhode Island personal income tax. It's also the deadline for:

  • estimated payments of Rhode Island pass-through withholding;
  • estimated payments of Rhode Island composite income tax; and
  • the filing of annual returns by calendar-year C corporations that are on extension.

(C corps that are subject to pro forma combined reporting may file for an additional one-month extension, moving their deadline to October 15, in order to file the Schedule CRS along with their Form RI-1120C.)
 

Tax Division to exhibit at business seminar

The Tax Division will be among the exhibitors at tomorrow’s “We Mean Business” event, which will run from 10 a.m. to 3 p.m. at the Crowne Plaza hotel in Warwick.

Talk face-to-face with us and dozens of other local, state, and federal agencies about your business issues. Among the state agencies that will participate are the Department of Environmental Management, Department of Health, Department of Transportation, and Department of Labor and Training.

You can also find us at the Expo’s “Smart Start” clinic. Get help -- with formation filings, patents, trademarks, tax documentation, and employer identification numbers -- from us, the Secretary of State’s office, the Internal Revenue Service, and volunteer attorneys and CPAs.

Friday, September 14, 2012

Deadline is Monday for estimated tax payments

Don't forget that Monday is the deadline for third-quarter estimated payments of Rhode Island personal income tax.

The deadline is normally the 15th, but that falls on a weekend this year, so the deadline has been moved to the following Monday - September 17. (Click here to learn more, including other taxes to which the September 17 deadline applies.)


Wednesday, September 12, 2012

Attorney General presents award to Tax Division employees

Rhode Island Attorney General Peter F. Kilmartin tonight presented the 2012 Justice Award to six Tax Division employees for their role in cracking a multi-state cigarette-smuggling ring late last year.

In a ceremony at his office in Providence, General Kilmartin presented the award to David Sullivan, Peter McVay, Michael Canole, Donald Englert, and Jacques Moreau. Award winner James Galvin, who was unable to make tonight's event due to a job-related assignment, was honored in absentia.

The six were nominated by Rhode Island Revenue Director Rosemary Booth Gallogly, who also attended the ceremony.

Rhode Island Attorney General Peter F. Kilmartin (center) presents Justice Awards to Tax Division employees (from left to right) David Sullivan, Jacques Moreau, Peter McVay, Michael Canole, and Donald Englert.



Tax Division holds seminar for taxicab owners

The Tax Division today presented a seminar for taxicab owners and others to help implement a tax that takes effect October 1.

The meeting took place at the office of the Rhode Island Economic Development Corporation on Iron Horse Way in Providence. About 60 people attended.

Monday, September 10, 2012

Attorney General honors six Tax Division employees

Six Tax Division employees have been named winners of the Rhode Island Attorney General's Justice Awards.

The winners are James Galvin, Jacques Moreau, David Sullivan, Peter McVay, Michael Canole, and Donald Englert.

The awards are given each year to people who display an extraordinary commitment to justice.  Attorney General Peter F. Kilmartin honored the six Tax Division staffers because of their efforts last year in cracking a cigarette smuggling ring. They will receive their awards in a ceremony on Wednesday.

Friday, September 7, 2012

Final regs posted today

In response to testimony presented at a public hearing last month, and to written comments submitted in recent weeks, the Tax Division made a number of modifications to its proposed regulations, then filed the regulations as final today with the Secretary of State's office. Following is a brief description of each:

* SU 12-151 relates to the extension of the sales tax to certain taxi, limousine, charter bus, and other ground passenger transportation services, effective October 1, 2012.

* SU 12-152 involves the extension of the sales tax to pet care services (except veterinary and testing laboratories services), effective October 1, 2012.

* SU 12-13 details the extension of the sales tax to clothing, including footwear, with a retail price of more than $250 per item, effective October 1, 2012.

* CT 12-15 is amended chiefly to show that a C corporation subject to pro forma combined reporting may file a certain form to request a one-month filing extension.

* SU 11-150 involving the tax on package tours and scenic and sightseeing transportation services is now repealed. (The tax itself was repealed, effective July 1, 2012.)

Payments of estimated tax due September 17

In an Advisory issued today, the Tax Division said that September 17 is the deadline for the next quarterly estimated payment of Rhode Island personal income tax.

Payments would normally be due September 15, but that falls on a Saturday this year -- so the deadline has been moved to the next business day: Monday, September 17.


Wednesday, September 5, 2012

New Administrative Decision on sales tax

The Tax Division today posted a new Administrative Decision.

At issue: whether sales tax should apply to the property tax that's included in the price of a leased vehicle.

Friday, August 31, 2012

Advertising campaign set to run for tax amnesty

An advertising campaign to promote Rhode Island's tax amnesty program is right around the corner.

Print ads, like the one below, will begin running early next month. Online and radio ads will follow later in the amnesty period.

The amnesty opens on September 2, and will run through November 15, 2012. More information is available at the program's website: www.TaxAmnesty.ri.gov


Wednesday, August 29, 2012

Tax amnesty launched by Governor Chafee

Rhode Island Governor Lincoln D. Chafee this afternoon officially launched the state's tax amnesty program.

Rhode Island Revenue Director Rosemary Booth Gallogly and Rhode Island Tax Administrator David M. Sullivan joined Governor Chafee for a news conference in the State Room at the State House in Providence to kick off the 75-day tax amnesty period, which ends in November. Click here for the news release.

Rhode Island Gov. Lincoln D. Chafee
and Tax Administrator David M. Sullivan

Amnesty FAQs updated

The Tax Division today updated its list of FAQs regarding the state's tax amnesty program. The agency plans to further update the list as needed during the 75-day amnesty period, which starts this weekend and runs through November 15.

Tuesday, August 28, 2012

Governor Chafee to launch tax amnesty

Rhode Island Governor Lincoln D. Chafee is to hold a State House news conference tomorrow at 4 p.m. to kick off the state's tax amnesty program.

The amnesty's website has details about the program and how it will work.

Friday, August 24, 2012

Nearly 40 attend public hearing on regs

Nearly 40 people -- including small-business owners, lawyers, and tax officials -- attended a public hearing yesterday on proposed tax regulations.

The hearing, at the Powers Building at One Capitol Hill, Providence, was held by the Tax Division, which is in the process of implementing a number of tax-law changes enacted earlier this year.

Most of the testimony at the hearing focused on the expansion of the sales tax to certain pet care, taxi, limousine, and charter bus services, effective October 1, 2012.


Wednesday, August 22, 2012

Tax amnesty website

Rhode Island’s tax amnesty program now has its own website: www.TaxAmnesty.ri.gov

The Tax Division is in the process of adding information to the site in preparation for amnesty, which officially begins on September 2, 2012, and runs through November 15, 2012.

Seminar for owners of taxicabs

The Rhode Island Division of Taxation will hold a seminar next month to explain how the state's 7 percent sales tax will apply to taxicab services.

The seminar -- intended mainly for owners and operators of taxicab services -- will be held on September 12, 2012, at 10:00 a.m., at the offices of the Rhode Island Economic Development Corporation, 315 Iron Horse Way – Suite 101, Providence (off Valley Street).

The sales tax will extend to taxicab services starting October 1, 2012. To help implement the provision, the Tax Division has posted a related Notice and a proposed regulation.





Public hearing tomorrow on proposed regs


The Tax Division will hold a public hearing tomorrow – Thursday, August 23 – on several proposed regulations. In general, the regulations involve changes that will take effect on October 1 -- including the extension of the sales tax to certain clothing, pet care services, taxi services, and limousine services.

The hearing starts at 9:30 a.m. and will be held at the Powers Building, One Capitol Hill, Providence. Thus far, the Tax Division has received more than 600 public comments about the proposed regulations, most of them having to do with pet care services.

 

Thursday, August 9, 2012

Tax Division launches outreach effort

The Tax Division on August 8 began a comprehensive outreach campaign to raise awareness among practitioners, businesses, and others about changes in state tax law.

Tax Administrator David M. Sullivan and other Tax Division personnel held a seminar at the Rhode Island Society of Certified Public Accountants in Providence to discuss the coming state tax amnesty program, as well as the extension of the sales tax starting October 1 to certain clothing, taxi services, and pet-care services.

Monday, July 30, 2012

Tax Division posts new Advisory


The Tax Division today posted an Advisory on multiple tax topics, including an employer tax deadline, the Streamlined Sales and Use Tax Agreement, and a drawing involving the scholarship tax credit.

Friday, July 27, 2012

Employer tax deadline

The Tax Division reminds employers that the deadline is right around the corner for filing their second-quarter wage and tax report for 2012 and paying the tax due.

Employers have until midnight on July 31, 2012, to file and pay their state unemployment insurance tax and Job Development Fund tax, and to file and remit the amount of Rhode Island Temporary Disability Insurance (TDI) tax withheld from employees’ wages.

Monday, July 16, 2012

New Administrative Decision on personal income tax

A new Administrative Decision posted today looks at whether a taxpayer's refund claim was timely filed.

Corporate tax update: E-file mandate

The Rhode Island Division of Taxation announced today that it will mandate the electronic filing of corporate tax returns beginning with the filing season that starts in January 2013 -- in other words, about six months from now. The agency posted a new Advisory with details.

Monday, July 9, 2012

Tax Division posts latest newsletter

The Tax Division today posted on its website the latest issue of its quarterly newsletter.

The newsletter includes information about recent changes to state tax law, changes in store at the Tax Division, a primer on filing requirements for business entities, and answers to practitioners' questions.

Thursday, July 5, 2012

Court upholds Tax Administrator on income tax case

The Rhode Island Supreme Court today upheld the Tax Administrator in a case involving more than $1 million in unpaid personal income taxes. Click here for details.




Friday, June 29, 2012

Tax changes take effect this weekend in Rhode Island

Saturday is the last day for the tax on package tours and sightseeing services -- the tax has been repealed, effective Sunday.

The tax on cigarettes goes up by 4 cents per pack of 20 starting Sunday. Also Sunday, the surcharge on rental vehicles changes. The Tax Division posted an Advisory today that provides details.


Mass. DOR blog adds details about TDI tax

The Massachusetts Department of Revenue has posted on its blog some additional information about processing of abatement requests related to Rhode Island's Temporary Disability Insurance (TDI) tax.

The post will be especially helpful to those who live in Massachusetts, work in the private sector in Rhode Island, and pay TDI tax.

Thursday, June 28, 2012

Sentence handed down in contraband case

A key figure in last year's case involving contraband cigarettes was sentenced today in U.S. District Court, Providence. For more about the sentencing, click here. For more about the case, click here.

Corporate e-file: higher than all of last year

More corporate tax returns have been filed electronically so far this year than for all of last year, new Tax Division figures show.

For the year to date (through June 25), 10,037 corporate returns have been e-filed. That’s up from 6,250 for the corresponding period a year ago. It’s also greater than the 10,025 corporate returns that were e-filed during all of last year.



Filing season 2011

Filing season 2012


Difference
Total returns processed
20,730
26,998
+ 30.24 %
Returns e-filed
6,250
10,037
+ 60.59 %
E-file as a percentage of total
30 %
37 %
+ 23.33 %

For tax year 2010 returns (on Forms RI-1120C and RI-1120S) filed through June 25, 2011, and tax year 2011 returns filed through June 25, 2012. Many returns are filed after the usual mid-March deadline because they are on extension.


In addition, the number of partnership information returns e-filed so far this year on Form RI-1065 exceeds the number e-filed for all of last year – a total of 1,076 so far this year, compared with 939 for all of last year.




Friday, June 22, 2012

Sales tax booklets, new Notices, personnel changes

The Tax Division's latest Advisory focuses on sales tax booklets, new Notices, and some personnel changes.

Repeal of tax on package tours

A new Notice provides details about the repeal of the tax on package tours and scenic and sightseeing transportation services. The tax will no longer apply after June 30, 2012. The Tax Division is in the process of distributing the Notice by mail to tour operators, tourism councils, and others.

Changes to surcharge on car rentals

The Tax Division today posted a Notice that explains changes to the surcharge on motor vehicle rentals. The changes are the result of a new law and take effect July 1, 2012. The Tax Division is also in the process of distributing the Notice by mail to car rental agencies and others.

Monday, June 18, 2012

"Summary of Legislative Changes" now online

The Tax Division today posted the latest “Summary of Legislative Changes.” It summarizes key tax items in the newly enacted state budget for the year that begins July 1.

The budget bill -- House Bill No. 7323 SUB A as amended -- was approved by the House on June 8, and by the Senate on June 11. It was signed into law on June 15.

Friday, June 15, 2012

Tonight's the night -- deadline for estimated tax

Here's a last-minute reminder: Quarterly estimated payments of Rhode Island personal income tax are due by midnight tonight.

Tonight is also the deadline for the second installment of estimated tax for calendar-year payers of corporate tax, franchise tax, bank excise tax, political organization tax, composite income tax, and pass-through withholding.

In addition, tonight's the deadline for the second installment of estimated tax for payers of the bank deposits tax, insurance gross premiums tax (admitted carriers), and public service corporation tax.

Tuesday, June 12, 2012

Corporate tax update - Form 1065

The Tax Division yesterday posted on its website a draft of the revised Form RI-1065 partnership return so that software developers and others may review it.

The form is for tax year 2012, is generally for LLCs, LPs, and LLPs, and reflects changes in state tax law that were enacted in June 2011.

Sales tax permits, fiduciary returns, and more

The latest Advisory, posted today by the Tax Division, has information about sales tax permits, fiduciary returns, combined reporting, and assistance for East Providence related to refund offsets.

Monday, June 11, 2012

Corporate tax update - combined reporting

The Rhode Island Division of Taxation today posted on its website a form related to pro forma combined reporting: RI-7004-CRS. Corporations that are subject to pro forma combined reporting rules may use the form to request an additional one-month filing extension.

(To file the new Form RI-7004-CRS, you must have previously filed for the standard six-month extension on Form RI-7004. Filing the new form means you will have an overall seven-month extension.)

Friday, June 8, 2012

Estimated payments due a week from tonight

Don't forget that quarterly estimated payments for Rhode Island personal income tax are due a week from tonight. The deadline is midnight on June 15.

June 15 is also the deadline for the second installment of estimated tax for calendar year payers of corporate tax, franchise tax, bank excise tax, political organization tax, composite income tax, and pass-through withholding.

In addition, June 15 is the deadline for the second installment of estimated tax for payers of the bank deposits tax, insurance gross premiums tax (admitted carriers), and public service corporation tax.

Wednesday, June 6, 2012

Final regulations posted

The Tax Division today posted several final regulations, mainly involving business taxes and sales taxes. The regulations take effect July 1.

Among those affected by the new rules are limited liability companies (LLCs), limited partnerships (LPs), and limited liability partnerships (LLPs).

Thursday, May 24, 2012

New information about tax credit program

New information is available on the Tax Division’s website about a program involving state tax credits for contributions to scholarship organizations.

Now online is the Business Entity Tax Credit Application form for the fiscal year that starts in July, and a list of qualified scholarship organizations that are eligible to receive contributions under the program. More information is available on the program’s webpage.

Monday, May 21, 2012

Arrests in cigarette tax case


The Rhode Island State Police’s two-month investigation into illegal gambling has uncovered the illegal sale of contraband cigarettes.

The Rhode Island State Police Intelligence Unit found that three convenience stores in northern Rhode Island maintained illegal gambling machines. Two of the stores were also involved in the illegal sale of fraudulent and forged stamped cigarette packs, the State Police said.

Search warrants were executed Friday by members of the State Police Intelligence Unit, uniform members of the State Police, members of the Rhode Island Division of Taxation, and members of the Pawtucket, Smithfield and Woonsocket Police Departments. Click here for the State Police announcement about the case. Click here for more arrest details.

Wednesday, May 16, 2012

Extension requests up, payments down


The Tax Division received about 21,000 applications for automatic six-month filing extensions this year, up about 2 percent from last year.

The extension applications were accompanied by about $52.13 million in payments of personal income tax, down 9.56 percent from last year.

In general, an application for an automatic six-month extension must be filed on paper – typically using Form RI-4868 – by mid-April. It is an extension of the time to file, not of the time to pay; payments still must be paid by the usual mid-April deadline. (The Tax Division does not currently accept electronically filed extensions. However, the actual returns that are filed on extension can be e-filed.)




Filing season 2011


Filing season 2012

Difference
Extension requests
20,953
21,347
+   1.88%
Payments
$ 57,638,000
$ 52,130,000
-    9.56%
Average payment per request
$ 2,751
$ 2,442
-  11.23%


Tuesday, May 15, 2012

Comments offered on proposed regulations

Three people submitted written comments in advance of today’s public hearings on proposed regulations. A lawyer discussed the forms to be used by LPs, LLPs, and LLCs. Another lawyer focused on the filing requirements for LLCs. And a trade group suggested changes to a proposed regulation involving rentals and leases of motor vehicles.

The Tax Division will leave the public comment period open for five more days. The agency completed the hearings this morning. It plans to take further action on them soon after reviewing the public comments. (Click here to read the proposed regulations.)

Monday, May 14, 2012

Public hearing tomorrow

Don't forget tomorrow's public hearing on proposed regulations that would affect LPs, LLPs, and LLCs, among others.

The hearing starts at 9 a.m. at the Tax Division, One Capitol Hill, Providence, near the State House.

Wednesday, May 9, 2012

Advisory has new stats, sales tax update, more

The Tax Division today issued an advisory that includes new stats from this year’s filing season, an update for retailers about sales tax booklets, a summary of next week’s public hearings, an update on direct debits, and more. Click here for details.

Wednesday, May 2, 2012

Now's a good time to check on your withholding

Now's a good time to check on how much Rhode Island income tax is withheld from your paycheck - and to make adjustments if needed.

The Tax Division today posted an advisory with information on how to adjust the amount of your state tax withholding.

Friday, April 27, 2012

Deadline on Monday for employer taxes

Monday is the deadline for employers to file their first wage and tax report for 2012 and pay the tax due. About 32,000 employers have until midnight on Monday, April 30, 2012, to file and pay their state unemployment insurance tax (also known as the Employment Security, or ES, tax) and Job Development Fund tax, and to file and remit the amount of Rhode Island Temporary Disability Insurance (TDI) tax withheld from employees’ wages. This will be the first payment of state unemployment insurance tax using the new taxable wage base that applies for 2012.

To file employer tax reports, tax payments, and wage reports, some employers will use the paper version of Form TX-17 as updated for 2012. For more information about filing and paying online, click here. Employers with 25 or more employees must submit wage data electronically. For more information, call the Tax Division’s Employer Tax section at (401) 574-8700 (select option 2).

Thursday, April 26, 2012

State Police, Tax Division investigate fraud

Members of the Rhode Island State Police Intelligence Unit and the Rhode Island Division of Taxation conducted a three-week investigation this month into the illegal sale of fraudulent and forged stamped cigarettes, according to Colonel Steven G. O'Donnell, superintendent of the State Police and director of the Department of Public Safety.

The investigation led to the arrests that were made on Tuesday, according to new details of the case posted by the State Police. The joint effort by the Tax Division and the Rhode Island State Police is another example of the emphasis that Governor Lincoln Chafee has placed on rooting out corruption and fraud, O'Donnell indicated.

New filing season stats


The Rhode Island Division of Taxation has received nearly 520,000 personal income tax returns so far this year, up slightly from the corresponding period a year ago.

Thus far, e-filed returns are up about 7 percent over last year, while paper returns are down about 30 percent, and returns with 2-D barcodes are down about 16 percent. (The agency continues to process returns that were filed at or near the April 17 deadline, and will continue to process returns filed on extension.)


Filing season 2011
Filing season 2012
Difference
E-filed returns
411,041
441,255
+   7.35%
Paper returns
71,846
50,321
- 29.96%
2-D barcode returns
32,848
27,446
- 16.45%
Total returns:
515,735
519,022
+   0.64%

Cumulative figures for tax year 2010 returns filed through April 27, 2011, tax year 2011 through April 25, 2012.



Wednesday, April 25, 2012

Three arrests in cases involving cigarette tax

The Rhode Island State Police yesterday arrested three men on charges involving the cigarette tax.

Charges against one of the men included importing cigarettes with intent to evade taxes. The Rhode Island Division of Taxation has played a contributory role in the cases.

Monday, April 23, 2012

Judge issues ruling in case involving sales tax

A Rhode Island Superior Court judge has issued a ruling in a case involving Dell Computer Corp. and Rhode Island sales tax. Click here to read it.

Friday, April 20, 2012

Refunds remain ahead of last year

The Rhode Island Division of Taxation continues to issue more refunds this year -- and in greater amounts -- compared with last year. Through mid-April, the Tax Division issued about 342,000 refunds, up about 5 percent from the corresponding period a year ago. The total amount refunded so far this year is about $175 million, up about 13 percent. The average refund is $513, up about 8 percent.

Filing season 2011

Filing season 2012

Difference
Number of refunds
326,753
341,573
+   4.54%
Total amount refunded
$    155,644,458
$    175,321,236
+ 12.64%
Average refund
$   476
$    513
+   7.77%

Cumulative figures for tax year 2010 through April 15, 2011, and for tax year 2011 through April 13, 2012. Figures for each filing season do not include prior-year returns and are before interest and offset.


Friday, April 13, 2012

Proposed regulations posted today

The Tax Division today posted on its website several proposed regulations, mainly having to do with business taxes and sales tax.

Among those affected: limited liability companies (LLCs), limited partnerships (LPs), and limited liability partnerships (LLPs). Public hearings start at 9 a.m. May 15 at One Capitol Hill, Providence.


Latest issue of Tax Division newsletter

The latest issue of the Rhode Island Division of Taxation's newsletter is now available online.

It includes articles about checking the status of your Rhode Island personal income tax refund, filing for a TDI refund, the deadline for extensions, and other items.

Wednesday, April 11, 2012

New Administrative Decision on sales and use tax

The Rhode Island Division of Taxation today posted on its website a new Administrative Decision. At issue is a state law that generally gives a trucking company an exemption from sales and use tax on the purchase of a truck -- if certain conditions are met.

Tuesday, April 10, 2012

Filing deadline a week from tonight


The deadline is a week from tonight for filing Rhode Island personal income tax returns covering tax year 2011. Returns must be e-filed or postmarked by midnight on Tuesday, April 17. The Rhode Island Division of Taxation posted an advisory today with resources, new statistics, and other information.

April 17 is also the deadline for making your first quarterly estimated tax payment for 2012.

Friday, April 6, 2012

Tax help for some people in nursing homes

The Rhode Island Executive Office of Health and Human Services (EOHHS) is working with nursing homes and others to address the impact of recent state tax law changes on certain individuals who are eligible for Medicaid long-term care.

Under the new law, which took effect last year, the top personal income tax rate was reduced and standard deduction amounts were increased, benefiting most taxpayers. But some taxpayers can no longer deduct medical expenses because itemized deductions are no longer allowed. As a result, some people eligible for Medicaid long-term care who are contributing nearly all of their income toward the cost of their care may now face a state tax liability - but may not have the funds to pay.

EOHHS has developed a process that essentially allows an eligible individual’s patient liability to decrease by the amount of the individual’s tax -- thus ensuring that someone in such circumstances who has insufficient resources will not be unduly harmed by having to pay two liabilities. For details, click here to read the state EOHHS memorandum.