Administrative Decisions on withholding, use tax

The Division of Taxation yesterday posted two new Administrative Decisions:

• Administrative Decision 2015-03 focuses on whether an employer owes penalty and interest on personal income tax withholding that the employer turned over to its payroll company, which then entered bankruptcy proceedings and did not transmit the withholding to the Division of Taxation.
• Administrative Decision 2015-04 looks at whether a group of restaurants owe use tax, interest, and penalty on the value of complimentary drinks given to patrons or prospective patrons.

Tax Administrator interviewed about fighting refund fraud

Rhode Island Tax Administrator David M. Sullivan discussed efforts to combat tax refund fraud during an interview yesterday on Channel 10. 

Sullivan told Frank Coletta, the veteran Channel 10 anchor, about the steps that the Rhode Island Division of Taxation has put in place to combat refund fraud, which he said is a growing threat at the federal and state tax levels.

The Division is also collaborating with other states, software providers, and the Federation of Tax Administrators to help identify possible patterns of fraud. (Click here for more details.)

Colleta, who anchors the "NBC 10 News Sunrise" and "NBC 10 News at Noon" programs, interviewed Sullivan at Channel 10’s headquarters in Cranston. The segment was broadcast during the station's news program at noon and was repeated on cable TV.

Tax Administrator David Sullivan (left) and Channel 10 Anchor Frank Coletta

Speakers highlight Rhode Island Free File program

U.S. Sen. Sheldon Whitehouse, U.S. Rep. Jim Langevin, and Rhode Island General Treasurer Seth Magaziner were among the featured speakers at a meeting in Providence on February 17 to highlight the benefits of the Rhode Island Free File program.

The Rhode Island Free File program generally allows people with income of $60,000 or less to use a participating tax preparation software program to prepare and file their federal and Rhode Island personal income tax returns online at no charge. (A special page on the Rhode Island Division of Taxation's website lists the participating software programs and includes a summary of each.)

The meeting was held at the Manton Heights Community Center on Salmon Street in Providence. Other speakers included Meg Chevalier of the Internal Revenue Service, Neil Downing of the Rhode Island Division of Taxation, Dave Macklin of the Computer & Communications Industry Association (CCIA), Jim Ruda of the Intuit Financial Freedom Foundation, Jennifer Hawkins of the Olneyville Housing Corporation, and Paul Tavares of the Providence Housing Authority.

Rhode Island is one of 20 states, plus the District of Columbia, that have formed state Free File programs. Free File is a public-private partnership between the Internal Revenue Service and tax preparation software companies. (See CCIA’s Free File website for more information about the Free File program.)

U.S. Sen. Sheldon Whitehouse at Rhode Island Free File event.

"Guide to Tax Refunds"

The Rhode Island Division of Taxation today posted its annual "Guide to Tax Refunds" -- updated for the 2015 filing season.

Fighting tax refund fraud

In response to reports last week of a surge in fraudulent refund activity in a number of states, including issues involving TurboTax personal tax preparation software, the Rhode Island Division of Taxation has begun implementing additional steps to combat tax refund fraud. Click here for details.

Tax credits for project in Providence

The Division of Taxation today posted details on a rehabilitation project on Chestnut Street in Providence that involves Rhode Island historic preservation tax credits. 

The Division of Taxation's web page on historic tax credits shows details involving all applicants that have signed a contract and paid the required fee under the state's 2013 historic preservation tax credit program.

Administrative Decision posted

The Rhode Island Division of Taxation today posted an Administrative Decision. It focuses on the requirement to file an amended personal income tax return following a federal change involving unreported income.

Section 179 guidance

The Rhode Island Division of Taxation today issued guidance involving the application of Section 179 expensing for Rhode Island tax purposes.