New Administrative Decisions

The Division of Taxation has posted four new Administrative Decisions. All of them involve taxation of cigarettes and related products:

• 2016-17, cigarette and sales tax
• 2016-18, cigarette tax and dealer's license
• 2016-19, cigarette and sales tax
• 2016-20, cigarette tax and dealer's license

Administrative Decision on cigarette license

The latest Administrative Decision, posted today by the Division of Taxation, focuses on whether a cigarette dealer's license should be revoked.

Latest issue of newsletter

The latest issue of the Rhode Island Division of Taxation’s newsletter, posted today, includes:

• A look at some tax changes contained in recently enacted legislation.
• A review (with tables) of the new filing deadlines for business entities.
• An article about the new chief of the Division’s Excise Tax section.
• Regular features, including “Practitioners’ Corner” and “Legal Corner.”

To view a copy, please click here.

Notices on tax credit reporting, propane

The Rhode Island Division of Taxation has posted two notices:

•  Notice 2016-03 involves the reporting of tax credits and incentives.
•  Notice 2016-04 involves propane used for electricity generation.

$8 million in tax credits for seven projects statewide

The Rhode Island Division of Taxation has posted details about seven rehabilitation projects that involve a combined total of nearly $8 million in historic preservation tax credits. 

Four of the projects are in Providence; the others are in Newport, Bristol, and Woonsocket.

* The American Brewing Co. property at 431 Harris Ave., Providence, near the intersection with Atwells Avenue, was built as a brewery in 1892 and later converted for use as a moving and storage facility. Plans are to rehabilitate it for use as a theater, artist work space, and residential apartments. The project involves an estimated $500,000 in historic preservation tax credits.

* The rehabilitation of the Exchange Bank Building, a four-story brick structure built in 1845 and located at 28-32 Kennedy Plaza in the heart of Providence's financial district, has been cleared for an estimated $1.25 million in historic preservation tax credits. The upper floors would be converted for use as a hotel; half of the ground floor would be used as a restaurant to serve the hotel, while the rest of the ground floor would continue in use as a bank.

* The Siegal Building, a four-story structure at 150 Washington St. in downtown Providence, was built in 1927 by the founder of City Hall Hardware. Plans are to restore the building's exterior, including a new storefront and windows. The building would continue to be used for commercial purposes. The project involves an estimated $412,500 in historic preservation tax credits.

* A two-story brick structure at 26-30 Washington Square, Newport, built in 1931, would be rehabilitated to allow for continued business and commercial use. The project, in Newport's historic Washington Square area, involves an estimated $200,000 in historic preservation tax credits.

* The rehabilitation of the historic David Augustus Leonard House, at 366 Hope St., Bristol, involves an estimated $100,000 in historic preservation tax credits.

* The U.S. Rubber Company, Building 85, at 475-485 Valley St., Providence, now used as a warehouse, would be converted for warehouse and business use, according to the application filed by WaterFire Providence. The project involves an estimated $2.25 million in historic preservation tax credits.

* Rehabilitation of the Woonsocket Rubber Company, an industrial mill complex at 68 South Main St., in the Market Square section of Woonsocket, is to include, among other things, commercial space, residential apartments, community space, and management offices. The project involves an estimated $3.25 million in 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.

"Summary of Legislative Changes" posted

The Rhode Island Division of Taxation today posted the 2016 edition of its annual “Summary of Legislative Changes.”

This edition provides a summary of certain tax-related items contained in the recently enacted budget bill for fiscal year 2017.

Tax preparers warned about risk of data theft

Rhode Island Acting Tax Administrator Neena S. Savage is providing the following announcement from the Internal Revenue Service to inform Rhode Island tax practitioners about data theft risk.

WASHINGTON — Leaders from the Internal Revenue Service, state tax agencies and tax preparation community today warned tax preparers that they increasingly are targets of cybercriminals and should take appropriate steps to protect clients from data theft.

IRS also posted new information to help tax professionals get started with safeguards to protect clients’ data. It’s the first in a series of fact sheets and tips on security, scams and identity theft prevention measures aimed at tax professionals. The Protect Your Clients; Protect Yourself campaign will run through the start of the 2017 filing season.

Recognizing the risk to tax preparers, this new effort is an expansion of the Security Summit’s 2015 “Taxes. Security. Together.” campaign aimed at increasing public awareness for using security software, creating stronger passwords and avoiding phishing emails.

“We have more than 700,000 tax preparers in this country, with many of those taking good security precautions,” said IRS Commissioner John Koskinen. “But cybercriminals are continuing to evolve, using new technology, ruses and scams. The tax community handles large volumes of sensitive personal and financial information. We need every tax professional to stay on top of their security to protect taxpayers as well as their businesses.”

Fact Sheet 2016-23, “Tax Professionals: Protect Your Clients; Protect Yourself from Identity Theft,” urges preparers to follow the security recommendations found in Publication 4557, Safeguarding Taxpayer Data. The fact sheet outlines the critical steps necessary to protect taxpayer information and to build customer confidence and trust.

Preparers should sign up for e-News for Tax Professionals, the IRS Tax Pro Twitter account and the Return Preparer Office’s Facebook page to stay informed about this campaign and about scams and schemes in general. The IRS also is creating a Protect Your Clients; Protect Yourself page on IRS.gov.

The Security Summit consists of the IRS, state tax agencies and the private-sector tax industry working together to safeguard taxpayers from tax-related identity theft. On June 28, Summit partners announced their 2017 initiatives to combat stolen identity refund fraud.

Transportation network companies

The Rhode Island Division of Taxation has posted a Notice regarding a new law involving transportation network companies. The new law takes effect today, July 1, 2016.

To view a copy of the Notice, click here.