Division of Taxation aided investigation

Massachusetts Attorney General Maura Healey said that the Rhode Island Department of Revenue's Division of Taxation (Special Investigation Unit) and the Rhode Island State Police were among those providing “critical assistance” in an investigation that led to the arrest of a Rhode Island man in a case involving tobacco products.

The man recently pleaded guilty and was sentenced to jail in connection with operating a multi-million-dollar tax evasion scheme through the sale of untaxed tobacco products in Massachusetts, Healey said. To learn more, click here.

Reminder about March 15 deadline

The Rhode Island Division of Taxation reminds tax professionals, business entities, and others that the deadline for filing and payments for a number of different entities is tomorrow, March 15, 2019.

For more details, please see the Division’s Advisory, posted today.

Ruling involving commercial fishermen

The Rhode Island Division of Taxation has posted its first Declaratory Ruling of 2019.

Background

A taxpayer had filed with the Division a request about how the federal Capital Construction Fund ("CCF") deduction would apply for Rhode Island personal income tax purposes.

The CCF is a special investment program administered by the National Marine Fisheries Services and the Internal Revenue Service. The program allows commercial fishermen to defer paying federal income tax on certain income they invest in a CCF account and later use to acquire, build, or rebuild fishing vessels.

Decision

In Ruling Request No. 2019-01, the Division said it will disallow CCF deductions on Rhode Island returns for tax year 2019 forward, but will continue to honor qualifying CCF deductions on Rhode Island returns taken prior to tax year 2019.

The ruling, which is limited to the facts stated, is available on the Division website.

Director of Revenue

The Rhode Island Senate on Wednesday, March 6, 2019, voted unanimously to consent to the reappointment of Mark A. Furcolo as Director of the Rhode Island Department of Revenue. The vote came after the Senate Finance Committee had recommended that the full Senate give its Advice and Consent to the nomination.

It was on October 27, 2017, that Rhode Island Governor Gina M. Raimondo announced Furcolo's original appointment to the post. Senate confirmation for that original appointment came in January 2018. Governor Raimondo proposed Furcolo for reappointment and the Senate this week voted its unanimous consent. 

William J. Conley, Jr., Chairman of the Senate Finance Committee, who rose in support of Furcolo’s reappointment on March 6, cited a number of DOR accomplishments under Furcolo, including:

• The implementation of sports betting by the Division of Lottery;
• The continuing rollout of REAL ID-compliant driver's licenses and identification cards by the Division of Motor Vehicles;
• The ramp-up of a customer call center at the Division of Taxation; and
• The establishment of a Central Collections Unit within the DOR.

In addition, “Mr. Furcolo has an impressive resume of private-sector business accomplishments and experience which serve as a solid foundation for the tasks he will confront in his service to the State” as DOR director, Conley said from the Senate Floor on March 6.

The Department of Revenue oversees the Division of Taxation, the Division of Lottery, the Division of Motor Vehicles, the Division of Municipal Finance, the Office of Revenue Analysis, and the Central Collections Unit.

Mark A. Furcolo, Director of Revenue

(Screenshot from Capitol TV)

Filing season reminders

The Rhode Island Division of Taxation today posted some filing-season reminders ahead of next month’s filing deadline for personal income tax returns.

Among the topics are the new Schedule E for personal income-tax returns, the “Where’s my tax refund?” online tool, and the tax treatment of Wavemaker program awards. To view the reminders, click here.