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).

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.

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.

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.

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.

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.

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.

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.

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.

Free federal and Rhode Island e-file if you qualify

Still haven't done your taxes yet? The Rhode Island Division of Taxation now offers links to four independent tax-preparation companies through which you can prepare and file both your federal and Rhode Island returns online at no charge.

The offers aren't for everyone; you must meet their qualifications. To take advantage of the offers, you must go through the links on the Tax Division's website -- where you'll also find details. The companies behind the offers are part of the Free File Alliance, a consortium of tax software providers that make versions of their free-file products available through the Internal Revenue Service.