Practitioner Alert: ERSRI Form 1099-R

The Division of Taxation today issued the following Practitioner Alert:

The Employees' Retirement System of Rhode Island (ERSRI) recently advised its members that the Form 1099-R they initially received in the mail for tax year 2015 inadvertently omitted certain information and should be discarded.

An updated Form 1099-R for tax year 2015, containing all of the necessary information, was mailed January 27, 2016. The correct version of the form includes all of the following: 

• The federal tax identification number for the Employees’ Retirement System of Rhode Island;
• State income tax withholding for 2015 (if state income tax withholding was elected);
• The return mailing address of the Employees’ Retirement System of Rhode Island; and
• An account number in the bottom right-hand corner of the form.

Members also may view and print the correct version of the Form 1099-R by logging into their account at the ERSRI website, http://www.ersri.org. Those with questions may call the agency at (401) 462-7600.

Returns for insurance companies, surplus lines brokers

Insurance companies and surplus lines brokers/licensees must file their tax year 2015 returns directly with the Rhode Island Division of Taxation.

The returns may no longer be filed through the Online Premium Tax for Insurance system, otherwise known as OPTins.

Details are included in an Advisory for Tax Professionals posted yesterday afternoon on the Division of Taxation website.

Tax credits for rehab of former mill in Providence

The Rhode Island Division of Taxation has posted details about the rehabilitation of a former mill in Providence, a project 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. 

Proposed regulation on combined reporting

The Rhode Island Division of Taxation has posted a proposed corporate tax regulation involving mandatory unitary combined reporting.

It is a revised version of the proposed regulation for which a public hearing was held last month. Although there are no major differences between the versions, there are enough differences to warrant a re-posting and a second public hearing, said Acting Tax Administrator Neena S. Savage.

“We believe that stakeholders will find no major differences, but we nevertheless are re-posting the regulation and scheduling a second public hearing in the interest of transparency, and to keep everyone informed,” she said. 

Tax-filing season opens

The Rhode Island Division of Taxation today began accepting electronically filed personal income tax returns for tax year 2015, signaling the official opening of tax-filing season. More details are contained in an advisory for tax professionals which was issued today by the Division of Taxation. Please click here to view it.

Special edition of newsletter: filing season

The Rhode Island Division of Taxation today posted a special edition of its newsletter, Rhode Island Tax News. It focuses on what’s new for tax-filing season. Topics include:

• The April 18 filing deadline;
• New security and safeguard procedures;
• An increase in the property-tax relief credit;
• A change in the earned income credit formula;
• A reduction in the corporate income tax rate; and
• An extended due date for C corporations.

Deadline tomorrow for payments, filings

Tomorrow is the deadline for making fourth-quarter estimated payments of Rhode Island personal income tax.

Payment must be made or postmarked by 11:59 p.m. on Friday, January 15, 2016. If you don’t have your own estimated tax coupons, blank copies are available on the Division of Taxation website.

• January 15 is also the deadline for fourth-quarter estimated payments of income tax for calendar-year fiduciary filers (involving estates and trusts), pass-through withholding filers, and composite return filers.
• January 15 is also the reporting deadline for those subject to the bank deposits tax.

Proposed regulation on Wavemaker credit

The Rhode Island Division of Taxation yesterday posted a proposed regulation on tax credits under the new “Stay Invested in RI Wavemaker Fellowship” program.

The program, which was proposed by Governor Gina M. Raimondo and approved by the General Assembly in 2015, is intended to provide an incentive to keep educated individuals in the state.

The tax credits are to help qualifying applicants, who have graduated from college and who meet program rules, to pay their higher education loans. The credits can be applied against the Rhode Island personal income tax.

A public hearing on the proposed regulation is scheduled to be held at 10:30 a.m. on February 11, 2016, in Conference Room B at the Powers Building (Department of Administration building), One Capitol Hill, Providence, R.I. The hearing will be held in conjunction with the Rhode Island Commerce Corporation.

Details about public comments and other matters are contained in the proposed regulation, which was filed with the Rhode Island Secretary of State. The proposed regulation mirrors one filed by the Commerce Corporation. To view it, please click here.

Some tax forms now available for download

The Division of Taxation is advising tax professionals that it has posted a number of forms, schedules, and other documents in advance of the filing season, which starts later this month. For details, click here.