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.

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.

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.

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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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.

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.

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.