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.

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.

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.

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.

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.

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

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.

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.