Wednesday, November 22, 2017

Inflation-adjusted amounts for TY 2018

The Rhode Island Division of Taxation today announced the standard deduction amounts, tax bracket ranges, and other key figures for the Rhode Island personal income tax for tax years beginning on or after January 1, 2018. For details, click here.

Tuesday, November 21, 2017

Proposed regulation - insurance premium tax rate

The Rhode Island Division of Taxation has posted a regulation that has to do with a recently enacted law involving Rhode Island’s insurance premium tax rate.

The law, enacted in June 2016, is intended to encourage insurance companies to create jobs in Rhode Island by linking Rhode Island’s insurance premium tax rate to the number of jobs created by the
industry in Rhode Island. Adding new jobs in the state could trigger a reduction in the tax rate insurance companies will pay.

The tax rate reduction is designed to be revenue-neutral by requiring that any reduction in insurance company tax rates is fully offset by the income tax generated from the newly created jobs.

  • The new regulation sets the standards by which the number of jobs at qualifying insurers is calculated. 
  • The new regulation also identifies whether the statutory criteria was met during calendar year 2016 to reduce the insurance premium tax rate.

The regulation is to take effect December 21, 2017. Public comments are invited. For more information, click here.

Public hearing on regulations

The Rhode Island Division of Taxation has posted a public hearing for December on proposed changes involving 12 regulations.

The proposed changes are part of the agency's months-long effort to streamline and re-codify its regulations. 


  • The proposals mainly involve revisions to ensure that 11 of the regulations are presented in the new Rhode Island Code of Regulations format. 
  • For one of the regulations, involving tax collections and trusts funds, the Division proposes repeal because the regulation simply repeats statute.

The hearing is scheduled to begin at 9:30 a.m. Eastern Time on December 7, 2017. More information is available on the website of the Rhode Island Department of State (Secretary of State). To learn more, click here. A table of the regulations is below.

Regulations for hearing December 7, 2017
Bibles and Other Canonized Scriptures
Billboards and Signs
Clothing, Clothing Accessories
Delivery Charges
Exemption of Sales by Writers, Composers and Artists
Finance Charges
Mobile and Manufactured Homes
Pet Care Services
Streamlined Sales and Use Tax Agreement
Tax Collections – Trust Funds
Materialmen – Pay When Paid
Florists
For full titles of each regulation, and additional information, see Department of State (Secretary of State) website: www.sos.ri.gov

Monday, November 20, 2017

Interest rates for 2018

The Rhode Island Division of Taxation has posted the interest rates that will apply in 2018 to overpayments and underpayments. For more information, click here.

Friday, November 17, 2017

Wednesday, November 15, 2017

Estate tax adjustments for 2018

The Rhode Island Division of Taxation today announced the estate tax credit amount and threshold for the estates of decedents dying on or after January 1, 2018. For more information, click here.

Tuesday, November 14, 2017

Expiring ITINs

The Internal Revenue Service has issued a reminder for taxpayers with expiring Individual Taxpayer Identification Numbers (ITINs) to submit their renewal applications as soon as possible -- or face complications later on.

ITINs are used by people who have tax filing requirements under U.S. law but are not eligible for a Social Security number. For more information, click here.

Friday, November 10, 2017

Tax amnesty advertising campaign

The Rhode Island Division of Taxation this week launched an extensive advertising campaign to help spread the word about Rhode Island’s new tax amnesty program, which starts December 1.

Amnesty ads began appearing this week on local radio stations. Amnesty ads have also been posted on many local news websites and on a major web search engine (see screenshot below). To learn more, click here.


Thursday, November 9, 2017

Annual e-file shutdown and switchover

The Rhode Island Division of Taxation’s annual electronic filing shutdown and switchover will occur on November 18, 2017.

Thus, individuals and businesses seeking to e-file their Rhode Island returns for tax year 2016
must do so on or before Saturday, November 18, 2017. 

After that date, returns for tax year 2016 must be filed on paper. To learn more, click here.

Monday, November 6, 2017

Motor fuel tax regulations

The Rhode Island Division of Taxation plans to hold a public hearing on November 29 as the agency continues its months-long effort to streamline and re-codify its regulations.

The November 29 hearing involves eight regulations relating to the motor fuel tax. The Division proposes to repeal seven of them, merge their content into a new one, and ensure that the new one is presented in the new Rhode Island Code of Regulations format.

The proposals are available for viewing on the Rhode Island Secretary of State (Rhode Island Department of State) website at: www.sos.ri.gov. 

  • The hearing will begin at 1:30 p.m. on November 29, 2017, at One Capitol Hill, Providence, R.I., diagonally across Smith Street from the State House.

Thursday, October 26, 2017

Tax credits for Woonsocket project

The Rhode Island Division of Taxation has posted details about a rehabilitation project at Bernon Mills in Woonsocket involving $1.9 million in 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.

Tuesday, October 24, 2017

Public hearing tomorrow - motor vehicle regulations

The Rhode Island Division of Taxation plans to hold a public hearing tomorrow, October 25, 2017, on proposed actions involving approximately 20 regulations.

The hearing is on the Division's plan to repeal, amend, or adopt regulations. Most or all of the proposed regulations involve motor vehicles.

The hearing is to start at 9:30 a.m. tomorrow at the Department of Administration Building at One Capitol Hill, Providence, diagonally across from the Smith Street entrance to the State House. Details about the proposed regulations are available on the Rhode Island Department of State website: http://www.sos.ri.gov/ProposedRules/.

Thursday, October 19, 2017

Online sellers: voluntary disclosure

The Multistate Tax Commission National Nexus Program has extended the deadline for its special limited-time voluntary disclosure initiative.  

The initiative is intended for online marketplace sellers under certain circumstances. Taking part in the initiative are 24 states, including Rhode Island, plus the District of Columbia.

Rhode Island and the other jurisdictions will consider applications for voluntary disclosure received by Multistate Tax Commission (MTC) staff through November 1, 2017, from taxpayers meeting certain eligibility criteria. 

The original deadline was October 17, but the MTC recently extended the deadline to November 1. The extension was requested by potential applicants or their representatives, the MTC said. The MTC website has more information -- about the initiative and about the extension. 

(Note: The MTC initiative is separate from the Rhode Island Division of Taxation’s ongoing voluntary disclosure program. It is also separate from the Rhode Island general tax amnesty program, which is scheduled to launch in early December 2017.)

Wednesday, October 18, 2017

Security Summit convenes in D.C.

Members of the Security Summit -- including the Internal Revenue Service, the Rhode Island Division of Taxation, tax agencies from other states, and the tax industry - met in Washington, D.C., yesterday to discuss their continued progress in the fight against tax-related identity theft.

Those attending, including Rhode Island Tax Administrator Neena Savage, also discussed additional safeguards that have been prepared for the 2018 filing season to curb refund fraud. For more information, click here.

Tuesday, October 17, 2017

Tax on "other tobacco products"

The Division of Taxation has posted two new Administrative Decisions. Each focuses on whether a taxpayer owes the assessed tax on "other tobacco products," otherwise known as OTP. (In general, the term refers to tobacco products other than cigarettes.) The new postings are Decision 2017-12 and Decision 2017-13.

Monday, October 16, 2017

Tonight's the night

The filing and payment deadline is tonight for calendar-year taxpayers that are on extension for the 2016 tax year. Click here for more information.

Thursday, October 12, 2017

Deadline looms; IRS issues warning

Extended due date

The Rhode Island Division of Taxation reminds tax professionals and taxpayers that Monday – October 16, 2017 – is the deadline for filing Rhode Island resident and nonresident personal income tax returns for the 2016 tax year. For more information, click here.

IRS warning for tax professionals

The Internal Revenue Service has warned all users of the IRS e-Services online feature to beware of a new phishing scam that tries to trick tax professionals into “signing” a new e-Services user agreement. The phishing scam seeks to steal passwords and data. For more information, click here.

Thursday, October 5, 2017

New guide; newsletter; voluntary disclosure

Guide to tax break for 401(k) and pension income

The Division of Taxation has posted a guide to the tax break for income from 401(k) plans, 403(b) plans, pensions, annuities, and other such sources. To learn more, click here.

Division posts latest issue of newsletter

The Division of Taxation has posted the latest issue of its newsletter. Among the topics:

  • An award for the agency
  • A new chief of examinations
  • A summary of tax amnesty
  • Extended due dates
  • 'Legal Corner'
  • 'Practitioners' Corner'

To view a copy of the publication, click here.

Online marketplace sellers: voluntary disclosure

The Multistate Tax Commission National Nexus Program is offering a special limited-time voluntary disclosure initiative.  It is intended for online marketplace sellers under certain circumstances. Taking part in the initiative are 24 states, including Rhode Island, plus the District of Columbia.

Rhode Island and the other jurisdictions will consider applications for voluntary disclosure received by Multistate Tax Commission (MTC) staff through October 17, 2017, from taxpayers meeting certain eligibility criteria. The MTC website has more information. 

(Note: The MTC initiative is separate from the Rhode Island Division of Taxation’s ongoing voluntary disclosure programIt is also separate from the Rhode Island general tax amnesty program to launch in early December 2017.) 

Thursday, September 28, 2017

Recent developments

Preparations are under way for Rhode Island's tax amnesty, which begins in December. The Division of Taxation has posted a summary of amnesty information – some highlights, at a glance – for those tax professionals and taxpayers who are eager for information well in advance. To view, click here.

Rhode Island Director of Revenue Robert S. Hull has praised the work of the Rhode Island Division of Taxation, the Rhode Island Attorney General’s Office, and the City of Providence Police Department for their efforts in securing criminal indictments in a case that involved drugs, money laundering, and tax evasion. To learn more, click here.

Tuesday, September 26, 2017

Two new Administrative Decisions

The Rhode Island Division of Taxation has posted two new Administrative Decisions:

  • Decision 2017-10 involves whether a claim for a personal income tax refund was timely filed.
  • Decision 2017-11 looks at whether the Division correctly denied the taxpayer's historic tax credits.

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