Corporate e-file way up

The number of corporate income tax returns filed electronically so far this season is up 83 percent over last year, according to new figures from the Rhode Island Division of Taxation.

The Tax Division has also received the first e-filed corporate return that includes a Schedule CRS, for combined reporting. (This is the first year in which a corporation that is part of a unitary business under common ownership must file a pro forma report for the combined group, to include the combined net income of the combined group.)

	Filing season 2011	Filing season 2012	Difference
E-filed corporate tax returns	3,461	6,341	+ 83.2%

        Cumulative figures for filing seasons through March 26 for returns e-filed on Form RI-1120C and Form RI-1120S.

New Administrative Decision about refund claim

The latest Administrative Decision is now available on the Rhode Island Division of Taxation website. It focuses on whether a nonresident married couple's claim for refund was timely filed.

With deadline on horizon, filing climbs

More tax returns are being filed compared with last year, and more are being e-filed, according to new figures from the Rhode Island Division of Taxation. As of March 21, a total of 329,375 Rhode Island personal income tax returns had been filed, up about 4 percent from the comparable point last filing season.

The number of e-filed returns is up 8.7 percent over last year. And so far this season, e-filing represents about 86.6 percent of all filings, compared with 82.8 percent at this point last year. The number of returns filed on paper continues to decline. This year’s filing deadline is April 17.

	Filing season 2011	Filing season 2012	Difference
E-filed returns	262,425	285,300	+  8.7%
Paper returns (no barcode)	39,122	30,637	- 21.7%
Paper returns (with barcode)	15,285	13,438	- 12.1%
Total:	316,832	329,375	+  3.9%

         Cumulative figures for filing seasons through March 23, 2011, and March 21, 2012.

Tax Division lists top ways to avoid refund delays

The Rhode Island Division of Taxation typically issues 98.5% of all personal income tax refunds within 30 days after the returns are received. Still, that always leaves some taxpayers who have not received their refunds. Often, refunds are delayed because of errors involving the returns themselves.

And so, with just four weeks left to file personal income tax returns for the 2011 tax year, the Tax Division today reminded taxpayers and preparers of the top five reasons why refunds are delayed:

1.       Schedule W – If you file Form RI-1040, chances are you must use Schedule W. It’s where you list key information from all of your Forms W-2 and Forms 1099 that show Rhode Island income tax withheld. This is the second year in which Schedule W is required, but many taxpayers are still forgetting to fill it out and file it with their returns.

2.       Form RI-1040H – When you file a claim for a “rebate” of up to $300 under the statewide property-tax relief program, you must include all of the required paperwork, such as your property tax bills (if you own your house), at least three months’ worth of rent receipts (if you rent), and your Social Security paperwork (such as your Social Security Administration award letter, or Form SSA-1099). Many claimants forget.

3.       Other state’s return – If you claim a credit on your Rhode Island return for income tax you paid to another state, you must include a copy of that state’s return with your Rhode Island return. Many taxpayers forget.

4.       Math problems – Some taxpayers calculate the numbers on their returns incorrectly. Make sure to double check your math before filing.

5.       Signature – Don’t forget to sign your return before you send it in.

If you make any of the mistakes on the “top five” list above, your tax return must be set aside for manual review. “That delays processing – and refunds,” said Tax Administrator David M. Sullivan. “Please take the time to review your return before it is filed to make sure it does not contain errors.”

Filing season update: Refunds have risen

The Rhode Island Division of Taxation has issued more personal income tax refunds so far this season than it had at the same point last filing season, and for greater amounts:
 

	Filing season 2011	Filing season 2012	Difference
Number of refunds	230,246	239,339	+  4%
Total amount refunded	$  104,670,273	$  123,749,130	+18%
Average refund	$  455	$  517	+14%
Figures are for each filing season to date, do not include refunds for prior years, and are before interest and offset. Filing seasons as of March 18, 2011, and March 16, 2012.

If you have questions about your refund, use the “Where’s My Refund” tool on the Tax Division’s website; the tool is updated once a week with fresh figures. Or call the Tax Division’s main number, at (401) 574-8829, and press option 3.

News about sales tax permits, LLCs, LPs, and LLPs

The Tax Division today posted an update on its website that includes news for holders of sales tax permits, as well as information for limited liability companies, limited partnerships, and limited liability partnerships. The update also includes the latest filing-season statistics.

Mass. revises directive on Rhode Island TDI tax

The Massachusetts Department of Revenue has revised its new directive related to Rhode Island’sTemporary Disability Insurance (TDI) tax, offering guidance to practitioners about amending prior-year returns.

New SOI reports now available

The Rhode Island Division of Taxation today posted on its website two new sets of Statistics of Income (SOI) reports. One set is for Rhode Island’s personal income tax; the other is for the state corporate income tax. Both cover tax year 2010.

The reports draw on figures contained in tax returns filed with the Tax Division. The reports do not disclose confidential taxpayer information. Rather, they provide aggregate data for a given tax type.

For example, the set of SOI reports for the Rhode Island personal income tax shows how many returns were filed for tax year 2010, how much adjusted gross income taxpayers reported in the aggregate, how many taxpayers claimed the standard deduction, how many itemized their deductions, and how much in credits they claimed.

Tonight’s the night

Tonight is the deadline for filing Rhode Island corporate income tax returns. The deadline applies to calendar year C corporations, S corporations, and limited liability companies (LLCs) that have elected to be treated as corporations. (For details about extensions, please see Form RI-7004.)

Also due tonight:

·      The first corporate estimated tax payments for calendar year 2012; and

·      The annual return for 2011 for a political organization with $100 or more of political organization taxable income.

Tax deadline for political organizations

Political organizations generally have until midnight tomorrow, March 15, to file their annual return for 2011 to the Rhode Island Division of Taxation.

Under Rhode Island General Laws § 44-11.1-1 et seq., a political organization with $100 or more of political organization taxable income generally must file a return and pay a state tax equal to 7.5 percent of that income.

Use Form RI-1120POL and payment voucher Form RI POL-V. For information about obtaining an extension, see Form RI 1120-POL Extension.

Personal income tax filing nears halfway mark

About 43 percent of all Rhode Island personal income tax returns have been filed so far this season, according to Rhode Island Division of Taxation figures as of March 7.

Overall, 258,669 returns have been filed thus far – out of about 604,665 returns that the agency estimates will be filed this year. Of the total returns filed so far:

• 231,303 were e-filed;
• 21,303 were filed on paper, most without a 2-D barcode; and
• 6,063 were filed on paper with 2-D barcode.

Rhode Island corporate tax deadlines a week away

Rhode Island corporate tax returns for tax year 2011 are due a week from today. For calendar year C corporations, S corporations, and limited liability companies (LLCs) that have elected to be treated as corporations, the deadline is midnight on March 15. (For details about extensions, please see Form RI-7004.)

 Also due a week from today are the first corporate estimated tax payments for calendar year 2012. (For details, please see Form RI-1120ES.) You may make payments online through your own Rhode Island business tax EFT filing account.

Guidance for C corps on combined reporting

The Rhode Island Division of Taxation today issued guidance for C corporations that are subject to the new filing requirement involving combined reporting and that wish to obtain an extension of the time to file:

First, make sure you file the Form RI-7004 for the usual six-month extension. It's due on or before March 15, 2012 (assuming you’re a calendar-year taxpayer).

After the March 15 deadline, but before September 15, the Tax Division will make available a new form on which you may file for an additional one-month extension. The new form, to be called RI-7004-CRS, is not available yet; it's under development and will be posted at some point after March 15 but before September 15.

It is not necessary to send a letter to the Tax Division seeking an extension related to the filing requirement involving combined reporting. Just file the Form RI-7004 by March 15, and the Form RI-7004-CRS when available.

New directive involves Rhode Island's TDI tax

The Massachusetts Department of Revenue has posted a new directive that deals with the treatment of tax paid by workers into Rhode Island’s Temporary Disability Insurance (TDI) program.

Directive 12-1, “Credit for Taxes Paid to Another Jurisdiction: Insurance Fund Payments Made Pursuant to Rhode Island Law,” was issued February 29. It replaces a draft directive on the topic issued January 25. It will be of interest mainly to people who work in Rhode Island, live in Massachusetts, and pay TDI tax.