Tuesday, September 19, 2017

Regulatory hearing set for October

The Rhode Island Division of Taxation plans to hold a hearing on October 18, 2017, on proposed actions involving eight regulations. 

The hearing will begin at 9:30 a.m. at the Department of Administration building at One Capitol Hill in Providence, Rhode Island, diagonally across from the Smith Street entrance to the State House. 

The proposed changes – some of which involve presenting regulations in the new Rhode Island Code of Regulation format – are available for review on the Rhode Island Secretary of State website (click here). A summary of the proposed regulatory actions is in the table below.


Proposed regulatory actions
Regulation topic
Old #
Action:
New #
Reason
Access to public records
n/a
Amend
280-RICR-20-00-3
Stand-alone regulation separate from Dept. of Revenue; new format
Bank excise tax
BE 95-01
Repeal
n/a
Reg. merely restates existing statute
Compassion center surcharge
CCS 11-01
Repeal
n/a
Reg. merely restates existing statute
Taxpayer rights and responsibilities
TRR 98-01
Amend
280-RICR-20-00-4
New format
Sale of real estate by nonresidents
NRW 95-02
Repeal
n/a (see below)
Merging into new regulation
Sale of real estate by nonresident LLCs
NRW 95-03
Repeal
n/a (see below)
Merging into new regulation
Withholding on sale of real estate by nonresidents
NRW 91-01
Repeal
n/a (see below)
Merging into new regulation
Withholding tax on sale of real estate by nonresidents
n/a
Adopt
280-RICR-20-10-1
Consolidating three regulations scheduled for repeal (see above)

Monday, September 18, 2017

Final regulations

The Rhode Island Division of Taxation last week filed, as final, recent actions it has taken involving nine regulations. 

The filing -- which came after a public hearing was held on August 30 -- is part of a broader effort to streamline the agency’s regulations. The streamlining process includes eliminating some regulations, consolidating some, and changing regulations to a new standardized format. 

A summary of the finalized regulatory actions, which are effective October 3, 2017, is in the table below. To view the regulations, click here.

Regulatory actions last week
Regulation topic
Old #
Action:
New #
Reason
Administrative hearing procedures
AHP 97-01
Amended
280-RICR-20-00-2
New format; updated
Administrative rules of practice
AF 90-01
Amended
280-RICR-20-00-1
New format; new name:
Apportionment of franchise tax
FT 09-01
Repealed
n/a
Franchise tax law has been repealed
Bank deposits tax
BDT 95-01
Amended
280-RICR-20-05-1
New format; updated
Deadlines for filing sales tax
SU 87-32
Repealed
n/a (see below)
Merged into new regulation
Personal income tax filing deadlines
PIT 98-7
Repealed
n/a (see below)
Merged into new regulation
Filing deadlines (for all taxes)
n/a
Adopted
280-RICR-20-00-7
Consolidating two regulations into one
Offers in compromise
OC 98-01
Amended
280-RICR-20-00-6
New format; updated
Declaratory rulings
DR 03-01
Amended
280-RICR-20-00-5
New format; minor revisions; updated

Thursday, September 14, 2017

Calendar-year C corps on extension

The Rhode Island Division of Taxation reminds tax professionals and businesses that calendar-year C corporations are allowed a six-month extension.

Thus, for calendar-year C corporations who are filing on extension for tax year 2016, the extended due date is October 16, 2017. For more information, click here.

Deadline tomorrow

The Rhode Island Division of Taxation reminds tax professionals and taxpayers that tomorrow, September 15, is the deadline for certain payments, filings, and extensions. For more information on this and other topics, click here

Tuesday, September 12, 2017

Security Summit: Promptly report data losses

The Internal Revenue Service, state tax agencies, and the tax industry -- working together as the Security Summit -- urge practitioners to immediately report data losses.

"The IRS, the states and the nation’s tax community continue to make progress in the battle against tax-related identity theft," IRS Commissioner John Koskinen said in a statement today. "But we need the help of tax professionals across the country to help strengthen this effort. In addition to working to ensure the safety of their systems, practitioners should promptly report identity theft or data breaches to help protect their clients," he said.

For more information, click here.

Tuesday, September 5, 2017

Security Summit: Make data security a priority

The Internal Revenue Service, state tax agencies,  and the tax industry -- which are working together as the Security Summit -- today urged tax professionals to make data security an everyday priority.

The Security Summit noted that a few simple steps can go far in protecting taxpayer information from cybercriminals. To find out more, click here.


Wednesday, August 30, 2017

Draft guide - income from pensions, other sources

The Rhode Island Division of Taxation has posted a draft document for public comment. It involves the personal income tax modification for income from private pensions, government pensions, 401(k) plans, annuities, 403(b) plans, military retirement pay, and other such sources.

Public comment is invited. All comments must be submitted on or before 4:00 p.m. Eastern Time on Friday, September 15, 2017. 
  • To view the draft guide, click here
  • To comment on the draft guide, click here.




Tuesday, August 29, 2017

Wavemaker tax credit

Governor Gina M. Raimondo and the Rhode Island Commerce Corporation have announced the selection of the second round of recipients of the Wavemaker Fellowship awards. 

Following a competitive review process, a total of 224 college graduates who work in science, technology, engineering, mathematics, and design fields at Rhode Island employers will receive the award, which is a Rhode Island tax credit used to defray the cost associated with student loan repayment for a minimum of two years. To learn more, click here.

Criminals impersonate IRS and FBI

The Internal Revenue Service yesterday warned people to avoid a new phishing scheme that impersonates the IRS and the FBI. It is part of a ransomware scam to take computer data hostage. The scam email uses the emblems of both the IRS and the Federal Bureau of Investigation. For more information, click here.
In a separate announcement today, the Security Summit offered tips for how tax professionals can get started protecting their clients and their business from cybersecurity threats. The Security Summit is made up of the Rhode Island Division of Taxation, tax agencies from other states, the IRS, and the tax industry. For details, click here.

Practitioner Alert: Rhode Island tax scam

The Rhode Island Division of Taxation today warned taxpayers and tax professionals about a Rhode Island tax-related scam. It involves a caller who is impersonating a Rhode Island Division of Taxation employee. For more information, click here.

Monday, August 28, 2017

New appointment

Rahul Sarathy has been appointed chief of examinations at the Rhode Island Division of Taxation.

He has worked for tax-related organizations for more than 14 years, during which time he has gained experience involving the implementation of modernized systems and business processes, including the Rhode Island Division of Taxation's new integrated tax system.

He holds two Bachelor of Science degrees from the Massachusetts Institute of Technology, as well as a Master of Science in Taxation degree from Northeastern University.

He was most recently employed with Revenue Solutions Inc. (RSI), where he was chief functional architect for multiple government agencies. RSI is the vendor for the Division of Taxation's integrated tax system as well as its data warehouse.

In his new role as the Division of Taxation's third-in-command, he will oversee the agency's Field Audit section, Office Audit section, and Special Investigation Unit. He will also work on special projects, including a taxpayer portal, business organization assessment, and leveraging the integrated tax system to enhance revenues and improve taxpayer services.

"At this time in the Division’s history, his experience and skills will be a tremendous asset and resource for the Division," said Tax Administrator Neena Savage.

Thursday, August 24, 2017

Information for non-collecting retailers, others

The Rhode Island Division of Taxation has established a special section of its website to help foster compliance with the recently enacted "Non-Collecting Retailers, Referrers, and Retail Sale Facilitators Act."

The webpage provides links, forms, legislative language, and other items related to the new law -- all conveniently located in one place.

Under the legislation, which was approved by the General Assembly and signed into law by Governor Gina M. Raimondo on August 3, 2017, you may have certain registration and/or notice and reporting requirements involving Rhode Island sales and use tax.

Which requirements apply to you depends upon whether you qualify as a “non-collecting retailer”, a “retail sale facilitator”, or a “referrer” -- terms that are defined in the new law. To view the webpage, which includes a copy of the new law, please click here. (A screenshot of the webpage appears below.)


Wednesday, August 23, 2017

Recent developments

Restaurant industry ruling - sales and use tax

The Rhode Island Division of Taxation has posted a Declaratory Ruling regarding whether a restaurant group’s use of mobile point-of-sale devices is subject to the Rhode Island sales and use tax. 

The issue involves a large, full-service, casual-dining company, with restaurant locations in Rhode Island. In the ruling, which is based on the facts and circumstances of this particular case, the Division determines the following: 
  • Whether the vendor's lease or rental of the devices to the restaurant company would be subject to Rhode Island sales and use tax.
  • Whether the restaurant company's sale of games, news, songs, and other content through the devices to the company's customers would be subject to Rhode Island sales and use tax.
  • Whether the device vendor would have to apply for a Rhode Island retail sales permit and collect and remit tax on its sales to the restaurant company. 

To view Ruling 2017-03, click here.

Tax credit and incentive report

The Rhode Island Division of Taxation has posted its latest annual tax credit and incentive report, as required by Rhode Island statute.

The report identifies 17 businesses that received a combined total of approximately $21.6 million in certain state tax credits and incentives for the fiscal year ended June 30, 2017.

Certain of those recipients also received a combined total of approximately $3.9 million in other Rhode Island tax credits and incentives, the report shows. 
  • Altogether, approximately 365 businesses have received a total of $290 million in Rhode Island tax credits and incentives since 2008, the report shows.

Historic tax credits

The latest annual tax credit and incentive report also includes certain details regarding the historic preservation tax credit program of 2013.

The report shows, in the aggregate, the number of jobs created, the number of Rhode Island businesses retained for work, the total amount of qualified rehabilitation expenditures, and the cost of materials or products purchased from Rhode Island businesses.

Historic preservation tax credit program of 2013
Number of jobs created
1,301.5
Number of Rhode Island businesses retained for work
770
Total amount of qualified rehabilitation expenditures
$84,023,547
Total cost of materials or products purchased from Rhode Island businesses
$29,836,470


To view a copy of the report, which the Division posted by the statutory deadline, click here.