Friday, December 20, 2013

Division of Taxation posts new Advisory

The Rhode Island Division of Taxation's latest Advisory, posted this afternoon, includes information about the following: 
  • the start date for filing season;
  • the first signed contract for historic tax credits;
  • a new online repository for such signed contracts;
  • a proposed regulation involving historic tax credits; and
  • an update involving the Streamlined Sales and Use Tax Agreement.

Tax credit contract now posted

The Rhode Island Division of Taxation today posted the first signed contract under the state's new program for historic preservation tax credits.

The contract includes the name of the recipient, the project involved, the project's cost, the amount of credits, and other details.

The Division of Taxation has also established an online repository where all such signed contracts will be posted.

The new historic preservation tax credit program -- and its attendant transparency -- are the result of legislation approved by the General Assembly and signed into law by Governor Lincoln D. Chafee in July.

Wednesday, December 18, 2013

Car sale triggers tax, penalties

An Administrative Decision posted today shows how someone wound up facing tax and penalties from the sale of a car. Click here to read the Decision.

Monday, December 16, 2013

Advisory on tax forms, sales tax, tax credits

The Rhode Island Division of Taxation's latest Advisory includes information about tax forms, the upcoming filing season, the annual sales tax reconciliation, historic tax credits, and more. Click here to view it.

Withholding tables now posted

The Rhode Island Division of Taxation has now posted on its website the booklet of withholding tables for tax year 2014.

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

The booklet is posted for review under the "software developers" section of the Division of Taxation's website. Click here to view it.


Tuesday, November 26, 2013

Tax changes take effect this Sunday

Two key tax changes will take effect this Sunday:

* If you buy wine and spirits from a liquor store in Rhode Island, you will not have to pay Rhode Island’s 7 percent sales tax.

* If you buy original works of art or limited edition works of art anywhere in Rhode Island, you will not have to pay Rhode Island’s 7 percent sales tax.

The Division of Taxation has just posted an Advisory with details about the changes.

Thursday, November 21, 2013

Renewal for historic tax credit reg

The Rhode Island Division of Taxation today renewed for 90 days its emergency regulation involving historic tax credits

The agency originally filed the emergency regulation this summer so that it would take effect August 1, 2013, and remain in force for 120 days, until November 29, 2013. The Division of Taxation today took action to renew it, with no changes, so that it will remain in effect from November 29, 2013, through February 27, 2014.

This will give the agency ample time to develop a formal (non-emergency) regulation on the subject. The agency tentatively plans to propose such a regulation sometime in December 2013, and schedule a public hearing on it sometime in January 2014; dates and other details will be announced. The goal is to make the regulation final by the end of February.

Legislation approved by the General Assembly and signed into law by Governor Lincoln D. Chafee in July 2013 essentially reopened the state’s historic tax credit program, with certain limits, to encourage redevelopment and reuse of historic buildings. The Division of Taxation’s emergency regulation is intended to provide guidance to developers and other stakeholders about the credit program.


Wednesday, November 20, 2013

Tax Administrator at SALT conference

Rhode Island Tax Administrator David M. Sullivan was a guest speaker on November 15, 2013, at the New England State and Local Tax Forum, held at the Boston Marriott Newton hotel in Newton, Mass.

Sullivan was on a panel of top tax officials from each of the six New England states. (See photo below.)

From left, Rhode Island Tax Administrator David Sullivan; John Lewandowski, director of the Audit Division for Maine Revenue Services; Mary Peterson, Vermont Commissioner of Taxes; Kevin Sullivan, Connecticut Commissioner of Revenue Services; John Beardmore, Commissioner of the New Hampshire Department of Revenue Administration; and Massachusetts Revenue Commissioner Amy Pitter. (Photo by Kathryn H. Michaelis)



Friday, November 15, 2013

Seminar draws more than 100 tax preparers

In Newport yesterday, the Rhode Island Division of Taxation held a seminar for tax preparers. The event, at the Community College of Rhode Island, focused on what's new for the coming filing season and other topics.

More than 100 preparers attended the session, which began with a greeting by Tax Administrator David M. Sullivan.

Preparers attend Division of Taxation seminar at CCRI in Newport.


Friday, November 8, 2013

Inflation adjustments for tax year 2014

The Division of Taxation today issued inflation-adjusted standard deduction, personal exemption, and other amounts for tax year 2014. For details, please click here.



Wednesday, November 6, 2013

Final regulations on arts district, film tax credit

The Division of Taxation today posted two final regulations: 
  • One provides guidance on the sales tax exemption for the new statewide arts district, which takes effect December 1, 2013. Click here to view it.
  • The other reflects changes in state law involving the motion picture production tax credit (sometimes called the film tax credit). Click here to view it.

Friday, November 1, 2013

One week left to register for tax preparers' seminar

There's one week left to register for the Division of Taxation's seminar for tax preparers.

At the seminar, the Division of Taxation will offer an update for filing season. There will also be a personal income tax "boot camp," which will focus on some items that are of particular interest to preparers, such as the Form RI-1040H (property tax relief).

The free seminar will be held at the Community College of Rhode Island in Newport from 9 a.m. to 11:30 a.m. on November 14, 2013, but pre-registration is required -- and the deadline to register is 4 p.m. on Friday, November 8, 2013. For more information, please click here.  (A second session, at CCRI in Warwick on December 4, 2013, is sold out.)

Thursday, October 31, 2013

Estate tax threshold for 2014

The Division of Taxation today set the Rhode Island estate tax threshold for 2014, as adjusted for inflation. In general, an estate valued below the threshold amount will not be subject to the tax. Please click here for the announcement.

Wednesday, October 30, 2013

Employer tax deadline tomorrow night

Tomorrow night is the deadline for employers to file their third wage and tax report for 2013 and pay the tax due.

About 32,000 employers have until midnight on October 31, 2013, 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. For more information, please click here.

Thursday, October 24, 2013

Hearing on sales tax break for statewide arts district

The Division of Taxation held a public hearing today (Thursday, October 24, 2013) on a proposed regulation to implement a sales tax exemption for the new statewide arts district.

Randall Rosenbaum (pictured below), executive director of the Rhode Island State Council on the Arts, testified at the hearing, which was held at One Capitol Hill (the Powers Building) in Providence.

Randall Rosenbaum, executive director of the
Rhode Island State Council on the Arts

Wednesday, October 23, 2013

Public hearing tomorrow on sales tax regulation

The Division of Taxation will hold a public hearing tomorrow (Thursday) on a proposed regulation implementing a sales tax exemption for the new statewide arts district.

The hearing will be at 9:30 a.m. at One Capitol Hill (the Powers Building) in Providence, near the State House in Providence. Click here for more details.

Tuesday, October 22, 2013

Hearing held on film tax credit regulation

A public hearing was held on Tuesday, October 22, 2013, on a proposed regulation drafted by the Rhode Island Division of Taxation in conjunction with the Rhode Island Film and Television Office. The regulation is intended to reflect changes in state law involving the motion picture production tax credit (sometimes called the film tax credit).

At the hearing, held at One Capitol Hill (the Powers Building) in Providence, a panel of state officials took testimony from David C. Morganelli (pictured below), a lawyer and CPA. Morganelli is a partner with the law firm of Partridge Snow & Hahn LLP, who chairs the firm's Tax Group. He also chairs the Rhode Island Society of Certified Public Accountants' Federal & State Taxation Committee.

David C. Morganelli, attorney and CPA


Monday, October 21, 2013

Public hearing tomorrow involves film tax credit

The Division of Taxation will hold a public hearing tomorrow (Tuesday) on a proposed regulation which would refect changes in state law involving the motion picture production tax credit (sometimes called the film tax credit).

The hearing will be held at 9:30 a.m. on Tuesday, October 22, 2013, at One Capitol Hill (the Powers Building) in Providence, near the State House. Click here for more details.

Thursday, October 17, 2013

Interest rates on underpayments, overpayments for 2014

The Rhode Island Division of Taxation today posted the interest rates that will apply in 2014 on overpayments and delinquencies. The rates are the same as those that applied for 2013:

  • The rate on delinquent tax payments will be 18 percent per annum for calendar year 2014.
  • Interest on overpayments for calendar year 2014 will be at the rate of 3.25 percent per annum.


Friday, October 11, 2013

Filing deadline is Tuesday

If you still haven't filed your Rhode Island personal income tax return for 2012, this holiday weekend is a good time to get it done. The deadline is Tuesday, October 15. The Rhode Island Division of Taxation posted an Advisory today with details about the tax-filing deadline as well as other tax news. To view it, click here.

Friday, October 4, 2013

Latest newsletter now available

The Rhode Island Division of Taxation has posted the latest issue of its quarterly newsletter, "Rhode Island Tax News."  Topics include:

  • the new Special Investigations Unit; 
  • a project to revise all tax forms; 
  • a revised deadline involving historic preservation tax credits; 
  • an upcoming seminar for tax preparers; 
  • a sales tax exemption for the new statewide arts district; 
  • a new chief of E-Government; and 
  • regular features, such as Practitioners' Corner and Legal Corner.



Monday, September 23, 2013

Wednesday, September 18, 2013

Proposed reg on film tax credit

The Division of Taxation today posted a proposed regulation involving the motion picture production tax credit (sometimes called the film tax credit).

The proposal would update the existing regulation to reflect changes in state law enacted in June 2012.

A public hearing on the proposed regulation will be held at 9:30 a.m. on Tuesday, October 22, 2013, at One Capitol Hill (the Powers Building) in Providence, near the State House.

Tuesday, September 17, 2013

Public hearing on film tax credit

The Division of Taxation plans to hold a public hearing at 9:30 a.m. on Tuesday, October 22, 2013, on a proposed regulation involving the motion picture production tax credit (sometimes called the film tax credit).

The proposal would update the existing regulation to reflect changes in state law enacted in June 2012. The Division of Taxation expects to post the proposed regulation shortly. The hearing is to be held at One Capitol Hill (the Powers Building) in Providence, near the State House.



Monday, September 16, 2013

Estimated payments, corporate returns due tonight

Tonight's the deadline for third-quarter estimated payments of Rhode Island personal income tax -- and for filing certain corporate returns. Click here for details.

Tax amnesty begins in Connecticut

The State of Connecticut today launched a 60-day tax amnesty. The amnesty is open to anyone -- individuals or businesses -- owing Connecticut taxes for any period ending on or before November 30, 2012.  Click here for details.

Tuesday, September 10, 2013

Deadline is Monday for certain tax payments, filings

Monday, September 16, is the deadline for quarterly estimated payments of Rhode Island personal income tax -- and for filing certain corporate returns.

The deadline is normally September 15, but that falls on a Sunday this year, so the deadline moves to the following business day. Click here for details.

Friday, September 6, 2013

Rhode Island taxes and same-sex marriage law

The Division of Taxation today posted tax guidance involving Rhode Island's same-sex marriage law.

Click here for the summary, here for the FAQs.


Wednesday, August 28, 2013

Results of drawing on historic tax credits

The Division of Taxation has posted the results and a summary of yesterday's public drawing involving historic preservation tax credits. About 50 people attended the drawing, which took place in a conference room at the Powers Building in Providence, near the State House.
Project representatives, state officials, and others attended the drawing.

Tuesday, August 27, 2013

Drawing held for $34.5 million in tax credits

The Division of Taxation today held a drawing to allocate about $34.5 million in historic tax credits to applicants.

A total of 41 people or entities applied on August 1, 2013, for $54.5 million in credits -- about $20 million more than were available. So the agency held a drawing to allocate the credits.

The result: credits were tentatively allocated to the first 32 applicants whose numbers were drawn. Remaining applicants will remain in queue in case someone drops out.

About 50 people attended the drawing, which was open to the public and held at a conference room in the Department of Administration Building (also known as the Powers Building) near the State House in Providence.

Rhode Island Tax Administrator David M. Sullivan confers
with Principal Revenue Agent Donna Dube at tax credit drawing.

Monday, August 26, 2013

Drawing tomorrow for historic tax credits

The Division of Taxation holds a drawing tomorrow, August 27, to allocate tax credits from Rhode Island's newly reopened historic preservation tax credit program. Click here for details.

Wednesday, August 21, 2013

Tax credit report available online

The Division of Taxation has posted on its website the annual tax credit and incentive report, as required by Rhode Island statute. The report lists the recipients of more than $17.9 million in certain state tax credits and incentives for the year ended June 30. The report was posted August 15.

Wednesday, August 7, 2013

Tax credit drawing set for August 27

The Rhode Island Division of Taxation plans to hold a drawing on August 27, 2013, for $34.5 million in available historic preservation tax credits. A total of 41 applications were submitted or postmarked by 11:59 p.m. on August 1, 2013 -- which is the first day that the agency officially began accepting applications. (Applications received prior to August 1 were deemed received on August 1.)

Because the credits were oversubscribed on the first day -- the 41 applicants seek about $54.5 million in credits -- those applicants will be placed in a queue, their position to be determined through a drawing at an open meeting which starts at 10 a.m. on August 27 at the Division of Taxation in Providence. 

In essence, those who wind up toward the front of the queue will get first dibs on the credits -- if their completed applications are approved and they clear certain other hurdles. Those toward the middle or end of the queue may not earn the right to claim credits unless someone ahead of them drops out. Those with applications received on or after August 2, 2013, will be placed at or near the end of the queue, possibly through one or more separate drawings.


Friday, August 2, 2013

Historic tax credits oversubscribed; drawing to be held

The Division of Taxation has received applications for more than $54 million in historic tax credits -- which is about $20 million more than are available. As a result, the agency will hold a drawing later this month. Click here for details.

Tuesday, July 30, 2013

Streamlined Sales and Use Tax Agreement

The Division of Taxation recently filed documents with the Streamlined Sales Tax Governing Board in order to obtain annual recertification under the Streamlined Sales and Use Tax Agreement (SSUTA).

The Governing Board recertifies each member state of the SSUTA annually as of August 1.  The Division of Taxation recently filed with the Governing Board a recertification letter, as well as a taxability matrix and a certification of compliance.

Rhode Island became a full member of the Agreement on January 1, 2007. The purpose of the agreement is to simplify and modernize sales and use tax administration in order to substantially reduce the burden of tax compliance. The agreement focuses on improving sales and use tax administration systems.

Some out-of-state retailers have no physical presence in Rhode Island and are therefore not required to collect and remit the state’s sales and use tax. But because Rhode Island is a member of the SSUTA, some out-of-state retailers with no physical presence in Rhode Island voluntarily agree to collect and remit the tax anyway, generating in excess of $2 million in annual revenue that Rhode Island might not otherwise receive.

Thursday, July 25, 2013

Emergency regulation on historic tax credits

The Division of Taxation today posted an Advisory about an emergency regulation involving the new historic preservation tax credit program.

The regulation offers guidance to developers and other stakeholders on how the Division of Taxation will implement the new program.




Wednesday, July 24, 2013

Dispute involving historic tax credit is resolved

A new Administrative Decision resolves a dispute over an expense a taxpayer claimed in relation to the historic tax credit program. (The issue focuses on the historic tax credit law that was in place prior to July 2013.)

Saturday, July 20, 2013

Alcoholic beverages -- new form

The Division of Taxation has created a new form, "Alcoholic Beverage Return for Wholesalers or Manufacturers."  (Formerly, there was one form for wholesalers, another for manufacturers.)

New rates took effect July 1, 2013, which is when the new form is effective. The first due date for the return is August 10, 2013.

Wednesday, July 17, 2013

Historic tax credit program reopening

Rhode Island's historic tax credit program is reopening.

The Division of Taxation has posted an Advisory which includes information about the application process and other details.

There's also a new application form now online.




Wednesday, July 3, 2013

Wholesalers and manufacturers of alcoholic beverages

The Division of Taxation has posted a Notice for wholesalers/distributors and manufacturers of alcoholic beverages.

It sets forth changes in excise tax rates on a number of alcoholic beverages for the period July 1, 2013, through March 31, 2015. The changes are contained in the fiscal 2014 budget bill enacted this afternoon.



Summary of tax law changes

The Division of Taxation has posted a summary of tax law changes contained in the fiscal 2014 budget bill enacted this afternoon.


Thursday, June 27, 2013

Administrative Decision on personal income tax

The Division of Taxation has posted a new Administrative Decision. It deals with a married couple's claims for refunds of personal income tax. The claims were denied because they had not been filed in time.



Thursday, June 13, 2013

Deadline is Monday for second-quarter payments

Second-quarter estimated payments of Rhode Island personal income tax are due on or before Monday, June 17, 2013.

The payments would normally be due June 15 -- but that falls on Saturday this year, so the deadline becomes the following business day, which is Monday.

* June 17 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.


* June 17 is also 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.


Friday, May 31, 2013

Refund stats, corporate e-file, regulatory outlook, more

The Division of Taxation's latest Advisory, posted this afternoon, includes information about the following:

  • personal income tax refund statistics;
  • final regulations just filed;
  • corporate e-file statistics;
  • the regulatory outlook; and
  • fiduciary returns and other items.

Thursday, May 30, 2013

Tax Division posts two final regs


The Rhode Island Division of Taxation today filed as final two regulations: one dealing with limited liability companies (LLCs), the other with a personal income tax credit for costs associated with residential lead removal or lead hazard reduction.

LLCs

Regulation CT 13-14, “Business Corporation Tax -- Limited Liability Companies,” amends and supersedes Regulation CT 12-14. It generally requires single-member LLCs which are disregarded entities to obtain a federal employer identification number.

Lead removal

Regulation CR 13-08, “Personal Income Tax – Tax Credits/Deductions – Residential Lead Abatement Income Tax Credit,” amends and supersedes Regulation CR 95-08. It generally updates the regulation to reflect provisions of current law.

Wednesday, May 22, 2013

Public hearing held today on two proposed regs


The Division of Taxation held a public hearing on May 22 on two proposed regulations: one dealing with limited liability companies (LLCs), the other with a personal income tax credit for costs associated with residential lead removal or lead hazard reduction.

LLCs

Proposed Regulation CT 13-14, “Business Corporation Tax -- Limited Liability Companies,” would amend and supersede Regulation CT 12-14. It generally would require single-member LLCs which are disregarded entities to obtain a federal employer identification number.

A written comment submitted during the public comment period suggested that language be added to the regulation focusing on LLC members that elect to be part of a composite return on Form RI-1040C-NE, “Rhode Island Nonresident Income Tax Agreement / Election to Be Included in a Composite Return.” The Division of Taxation is considering the suggested language.

Lead removal

Proposed Regulation CR 13-08, “Personal Income Tax – Tax Credits/Deductions – Residential Lead Abatement Income Tax Credit,” would amend and supersede Regulation CR 95-08. It generally would update the regulation to reflect provisions of current law. No public comments were received during the public comment period. As a result, the Division of Taxation plans to soon post the regulation as final – with the addition, for clarity, of two examples in Rule 8.

Thursday, May 16, 2013

Alert for businesses about mail solicitation


Rhode Island Secretary of State A. Ralph Mollis has issued an alert for Rhode Island businesses, urging them to be wary of a direct mail solicitation from an organization calling itself Rhode Island Corporate Compliance (RICC).

RICC has sent another round of notices to Rhode Island businesses asking for $125 by May 17. “We have been warning for-profit corporations and limited liability companies to be wary of these mailings since they first began appearing months ago,” Mollis said. 

Rhode Island Tax Administrator David M. Sullivan warned taxpayers about a similar solicitation in March involving RICC and a potentially misleading letter. The letter was presented in such a way that business owners could be confused and misled, Sullivan said.


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Thursday, May 9, 2013

Tax Division aids in breaking up smuggling ring

The Rhode Island Division of Taxation has assisted in a joint federal-state investigation that led yesterday to the breaking up of a cigarette smuggling ring. A sweep by agents resulted in seven arrests and the seizure of contraband cigarettes, cash, business records, and vehicles.

See the U.S. Department of Justice announcement for details.

Tuesday, May 7, 2013

Marketplace Fairness Act wins U.S. Senate approval

The U.S. Senate yesterday approved the Marketplace Fairness Act, involving sales tax and online purchases. Click here for a summary of the bill, S. 743, which now goes to the House.




Wednesday, May 1, 2013

Report on sales and taxation of alcoholic beverages

The Rhode Island Division of Taxation has posted on its website a report about the sale and taxation of alcoholic beverages in Rhode Island.

A state law enacted in June 2012 requires the Tax Administrator to provide such a report by May 1 of each year to the chairs of the House and Senate Finance Committee. The inaugural report was posted today.

Wednesday, April 24, 2013

Buying cigarettes online -- tax implications

If you buy cigarettes online, do you owe sales tax and cigarette tax? That's the issue outlined in the latest Administrative Decision, posted this morning.


Monday, April 22, 2013

Two business-related regulations just posted


The Rhode Island Division of Taxation this afternoon posted two proposed regulations:

  • One involves single-member limited liability companies (LLCs) that are treated as disregarded entities for federal tax purposes. Under the proposed regulation (CT 13-14), the entities generally would be required to obtain a federal Employer Identification Number (EIN) in order to file their Rhode Island return.
  • The other proposed regulation – CT 13-08 –involves the residential lead abatement income tax credit. The regulation would be updated to reflect current state law.

Both proposed regulations are on the Rhode Island Secretary of State’s website: http://www.sos.ri.gov/ProposedRules/. A public hearing on them is to be held on May 22, 2013, at 9:30 a.m. at the Division of Taxation, One Capitol Hill, Providence, R.I.

Monday, April 15, 2013

Filing deadline has arrived

Tonight's the night!

Have your Rhode Island personal income tax return e-filed or postmarked by 11:59 p.m. 
  
  • The deadline for filing your Rhode Island return is tonight -- regardless of Patriots' Day in Massachusetts, and regardless of Emancipation Day in Washington, D.C.

Friday, April 12, 2013

Monday is the deadline . . .

The deadline for filing your Rhode Island personal income tax return is 11:59 p.m. on Monday, April 15. Last-minute filing tips, refund statistics, and other information is contained in the Rhode Island Division of Taxation's latest Advisory, posted today.
  • The Rhode Island deadline is April 15 -- regardless of the Patriots' Day holiday in Massachusetts, and regardless of Emancipation Day in Washington, D.C.

Thursday, April 11, 2013

A note to practitioners

With the filing deadline just days away, the Division of Taxation has issued two reminders for practitioners. One is about which form to use for business-related extensions. The other is about which form to use for limited liability company (LLC) returns.

Monday, April 8, 2013

Outage fixed, phone line up and running


The Rhode Island Division of Taxation’s main customer service phone line, (401) 574-8829, has been repaired and is now up and running.

The line experienced sporadic outages this morning and early this afternoon, amid heavy volume, with the tax-filing deadline a week away.

“We regret the inconvenience that some callers may have experienced today,” said Rhode Island Tax Administrator David M. Sullivan. “Our outside telecommunications provider quickly dispatched a crew on-site and fixed the problem in a timely manner. We appreciate your patience and support as we worked our way through this,” Sullivan said.

Taxpayers may call the main customer service line, (401) 574-8829, from 8:30 a.m. to 4:00 p.m. business days. Taxpayers with questions about Rhode Island’s personal income tax may also e-mail: txassist@tax.ri.gov. Forms, instructions, and booklets are available at: www.tax.ri.gov

Friday, April 5, 2013

Tips for last-minute filers

The Rhode Island Division of Taxation's latest Advisory, posted this morning, includes tips for last-minute filers -- such as how to get forms and instructions, and how to obtain a six-month extension.

Average refund is $536, up 4%



The overall dollar amount of personal income tax refunds issued by the Rhode Island Division of Taxation is up so far this year, and so is the average amount per refund. 

The average refund is $536, up from $515 at the same point last year, an increase of 4 percent.

Use the “Where’s My Refund” tool on the Tax Division’s website to check the status of your refund. The tool is updated once a week, usually by Saturday, with fresh figures.


Filing season 2012
Filing season 2013
Difference
Number of refunds
267,170
259,473
- 2.88%
Total amount refunded
$137,632,600
$139,000,373
+0.99%
Average refund
$515
$536
+4.08%
Cumulative figures for tax year 2011 refunds through March 23, 2012, and for tax year 2012 refunds through March 22, 2013. Figures are before interest and offset, and do not include refunds for tax years other than those stated.

Sales tax permits and the 'block' program



The Rhode Island Division of Taxation’s Compliance & Collections section in March mailed notices to approximately 4,650 holders of sales permits, reminding them that they are delinquent on state tax.

The Tax Division has placed a “block” on their accounts, preventing renewal of their sales tax permits because they are delinquent on certain state taxes – such as sales, meals and beverage, hotel and/or withholding tax – and have not met their obligations.

If you don’t have a retail sales tax permit, you cannot legally operate a retail sales business in Rhode Island.

If you hold a retail sales permit and you’re delinquent on your state taxes, your best bet is to pay what you owe. That way, you can get your retail sales permit renewed – which means you’ll legally be able to continue conducting your retail sales business in Rhode Island. If you have questions, or seek to make arrangements to pay, call the Compliance & Collections section at (401) 574-8941 from 8:30 a.m. and 4 p.m. business days.

Ten days to deadline



The Rhode Island Division of Taxation today reminded taxpayers that there are only 10 days left until the deadline for filing Rhode Island personal income tax returns. Resident and nonresident returns must be e-filed or postmarked on or before 11:59 p.m. on Monday, April 15, 2013.

“There have been times in the past when the mid-April filing deadline fell on a day other than April 15,” said Rhode Island Tax Administrator David M. Sullivan. “But this year, April 15 is really April 15.” He urged taxpayers to complete their returns as soon as possible – and to file them electronically – to avoid the last-minute crunch and to ensure prompt processing. Nearly 90 percent of returns have been e-filed so far.


Filing season 2012
Filing season 2013

Difference

E-filed returns
309,430
330,134
+     6.69 %
Paper returns
33,386
27,117
-   18.78 %
2-D barcode returns
15,821
12,668
  -   19.93 %
Total returns:
358,637
369,919
 +     3.15 %
% of returns e-filed:
86.28%
89.24%
 +     3.43 %
Cumulative figures for tax year 2011 returns filed through March 28, 2012, and tax year 2012 returns filed through April 3, 2013. Table uses April 3, 2013, data because start of federal and state filing seasons was delayed this year due to federal legislation.

Tuesday, April 2, 2013

Latest issue of newsletter now online


The Rhode Island Division of Taxation has posted the second-quarter issue of its newsletter, Rhode Island Tax News.

Among the highlights are:

* filing for an extension
* claiming a TDI tax refund
* help for East Providence and Woonsocket.

Friday, March 29, 2013

Corporate e-file nearly doubles


The number of Rhode Island corporate tax returns filed electronically so far this year is nearly double what it was at about the same point last year.

Furthermore, about 71 percent of all corporate returns have been e-filed so far this year, compared with about 52 percent at approximately the same point last year. “We are gratified that more and more practitioners and taxpayers are taking advantage of the many benefits of e-filing,” Sullivan said.

He also attributed some of the increase in e-filing to a decision by the Division of Taxation to enforce the state’s corporate e-file mandate, effective January 1, 2013. The mandate generally applies only to returns filed on Form RI-1120C, Form RI-1120S, and Form RI-1065 by paid preparers.


Filing season 2012
Filing season 2013

Difference

E-filed returns
6,341
12,089
+    90.65 %
Paper returns
5,812
4,843
 -    16.67 %
Total returns:
12,153
16,932
+   39.32 %
% of returns e-filed:
52.2 %
71.4 %

Cumulative figures for tax year 2011 returns filed through March 24, 2012, and tax year 2012 returns filed through March 26, 2013.

Alert to business owners about misleading letter


Rhode Island Tax Administrator David M. Sullivan today cautioned Rhode Island business owners about a potentially misleading letter that some business owners have received recently from an organization calling itself Rhode Island Corporate Compliance.

The letter tells business owners that failure to satisfy “minimum annual filing requirements” in a timely manner causes their business to be in “bad standing” with the state. The letter says that Rhode Island Corporate Compliance can help a business “avoid potential non-compliance” – if the business owner sends a $125 “Document Fee.”

“The letter is presented and written in such a way that business owners could easily be confused and misled,” Sullivan said. “Let me be clear: Neither the Rhode Island Division of Taxation nor any other Rhode Island state agency sent that letter.”

Businesses typically must file an annual return with the Rhode Island Division of Taxation, Sullivan said. And in certain circumstances, a business may need a letter of good standing or a certificate of good standing from the Rhode Island Division of Taxation. But in so doing, they use officially sanctioned Rhode Island Division of Taxation forms, and pay the required tax or filing charge, Sullivan said.

The letter from Rhode Island Corporate Compliance is not an officially sanctioned Rhode Island Division of Taxation form, and the Rhode Island Division of Taxation does not charge a $125 “Document Fee,” Sullivan said. Anyone with questions about their annual tax filing obligations should contact the Rhode Island Division of Taxation at (401) 574-8829 from 8:30 a.m. to 4 p.m. business days.

Rhode Island Secretary of State of State A. Ralph Mollis is also urging Rhode Island business owners to be wary of the direct mail solicitation from Rhode Island Corporate Compliance.

The official-looking letter cites a state law that requires corporations to keep records of accounts, minutes and shareholders. It directs recipients to submit an “Annual Disclosure Statement” along with a “Document Fee” of $125. But the letter did not come from the Secretary of State’s office or any other state agency. Mollis tracked the return address to a postal box at a UPS store in downtown Providence.

Anyone with questions about the direct mail solicitation should contact the Secretary of State’s office at (401) 222-3040 or corporations@sos.ri.gov.

 

Friday, March 22, 2013

Filing deadline less than one month away


There's less than one month to go for tax-filing season – which means there’s less than a month left to file your Rhode Island personal income tax return (due date: April 15, 2013).

“There’s always a last-minute rush every year. It’s human nature,” said Tax Administrator David M. Sullivan. “But you can beat the rush by filing early – and by filing electronically.” 

E-filing saves time and money, and results in fewer errors and faster processing, said Peter McVay, associate director of revenue services. And only by e-filing can you have your refund deposited directly into your bank or credit union account; you cannot have direct deposit if you file your return on paper, said Susan M. Galvin, chief of Tax Processing Services. E-filing is up 4 percent so far this year.


Filing season 2012
Filing season 2013

Difference

E-filed returns
261,268
271,777
+     4.02 %
Paper returns
27,089
17,553
-   35.20 %
2-D barcode returns
11,156
9,150
  -   17.98 %
Total returns:
299,513
298,480
  -     0.34 %
Cumulative figures for tax year 2011 returns filed through March 14, 2012, and tax year 2012 returns filed through March 20, 2013.

Average refund is $536, up 3.7%


Rhode Island personal income tax refunds are averaging $536 apiece so far this season, up 3.7 percent from approximately the same point a year ago.

The total dollar amount of refunds issued so far this year is $124.76 million, up slightly from about the same point a year ago.


Filing season 2012
Filing season 2013

Difference

Number of refunds
239,339
232,577
-     2.83 %
Total amount refunded
$123,749,130
$124,763,474
+    0.82 %
Average refund
$517
$536
     +    3.68 %

Cumulative figures for tax year 2011 refunds through March 16, 2012, and for tax year 2012 refunds through March 15, 2013. Figures for each filing season are before interest and offset, and do not include refunds for tax years other than those stated.


Friday, March 15, 2013

Corporate e-file up 85%

The Tax Division's latest filing season update has just been posted. It shows that corporate tax e-filing has jumped 85 percent so far this year. It also includes information about the latest Statistics of Income (SOI) reports.

Thursday, March 14, 2013

Tuesday, March 12, 2013

Updated list of tax-prep software programs


The Rhode Island Division of Taxation has updated its list of tax preparation software programs that have completed and passed acceptance testing for tax year 2012:

The list contains commercial software programs that have been cleared for e-filing by the Division of Taxation. It includes 12 tax preparation programs cleared for e-filing Rhode Island corporate tax returns, 31 for individual returns, and 12 for partnership returns.

The Division of Taxation this season began mandating the e-filing of corporate returns:

Thursday, March 7, 2013

Filing season update: all forms now accepted

The Internal Revenue Service over the weekend finished reprogramming and testing of its computer systems, clearing the way for the filing of federal income tax returns – individual and business – that may have been delayed earlier in the filing season.

It also cleared the way for the filing of Rhode Island income tax returns that may have been delayed. The reason has to do with a longstanding federal-state partnership. Under that arrangement, electronically filed Rhode Island personal income tax returns are transmitted to the IRS, then downloaded by the Rhode Island Division of Taxation.

When the IRS system closed for part of January to let the IRS update its computers to reflect last-minute changes in federal tax law, the IRS could not accept e-filed returns – and the Rhode Island Division of Taxation generally couldn’t, either.

That situation was resolved by late January. However, because some other federal returns couldn’t be filed until early March (because certain forms were still being updated and tested), some Rhode Island returns still could not be filed, either. Now, however, it’s open season: the IRS and the Rhode Island Division of Taxation are accepting, without restriction, individual and business returns.