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.


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.