Recent developments

Security Summit issues warning

The Internal Revenue Service, the Rhode Island Division of Taxation, and other members of the Security Summit today urged tax professionals to beware of the continuing threat of phishing emails, which remain the most common tactic used by cybercriminals to steal sensitive data.

The Security Summit provided a list of simple steps which can help protect against stolen data. To learn more, click here.

E-file reminder

The Internal Revenue Service has posted a reminder that the modernized e-file (MeF) system will be shut down for a system upgrade from 12:01 a.m. Eastern time on Saturday, August 3, 2019, through 11:59 a.m. Eastern time on Monday, August 5, 2019. 

As a result, during that time period, federal and Rhode Island e-filing will be unavailable.

The IRS will not be accepting electronically filed federal tax returns during that time period. Also, the joint fed-state e-file program will be unavailable during that period. Therefore, Rhode Island returns transmitted via e-file during that time period will not be transmitted to the state. Tax preparers and taxpayers should plan accordingly.

• The joint fed-state e-file program is a cooperative tax-filing effort between the IRS and most states, including Rhode Island. In general, it allows for federal and state returns to be e-filed simultaneously to the IRS. Once the returns are filed, the IRS keeps the federal portion; the state portion is passed along electronically to the applicable state. 

New webpage for remote sellers

The Rhode Island Division of Taxation has updated its website to include a page for remote sellers, marketplace facilitators, and referrers.

Under legislation approved by the Rhode Island General Assembly and signed into law by Rhode Island Governor Gina M. Raimondo on March 29, 2019, remote sellers, marketplace facilitators, and referrers are required to register with the Division of Taxation and collect and remit Rhode Island sales and use tax, effective July 1, 2019, under certain circumstances.

The new webpage describes the circumstances under which the requirements must be met. The webpage also provides links to important documents and websites. (On a separate section of the page, toward the bottom, there is information about a 2017 law involving non-collecting retailers, retail sale facilitators, and referrers.) To view the new webpage, click here.

Screenshot of Division's new webpage for remote sellers

Preparers must have written plan

The Internal Revenue Service, the Rhode Island Division of Taxation, and other members of the Security Summit remind all professional tax preparers that they are required by federal law to create and implement a written information security plan to protect their clients’ data. To learn more, click here.

Six steps to help safeguard data

The Rhode Island Division of Taxation, the Internal Revenue Service, and other members of the Security Summit urge tax preparers and other tax professionals to use six security steps to help ensure that they are fully protecting their computers and email. The steps will also help safeguard sensitive taxpayer data. To learn more, click here.

Other tobacco products (OTP)

In an Administrative Decision posted today, the issue is whether the taxpayer owes "other tobacco products" (OTP) tax -- and what, if any, sanctions should apply. To learn more, click here.

Checklist for tax preparers

The Rhode Island Division of Taxation, the Internal Revenue Service, and other members of the Security Summit call on tax professionals to take time this summer to review their computer security practices.

The Security Summit has developed a checklist that can be used by tax professionals and others to help protect sensitive taxpayer data and guard against identity theft.  To learn more, click here.

E-filing

The Internal Revenue Service has announced that the modernized e-file (MeF) system will be shut down for a system upgrade for two upcoming periods. As a result, federal and Rhode Island e-filing will be unavailable during the two periods, which are as follows:

• From July 18, 2019, at midnight Eastern time, through July 22, 2019, at 12 noon Eastern time.
• From August 3, 2019, at midnight Eastern time, through August 5, 2019, at 12 noon Eastern time.

The IRS will not be accepting electronically filed federal tax returns during those periods. Also, the joint fed-state e-file program will be unavailable during those periods. Therefore, Rhode Island returns transmitted via e-file during those periods will not be transmitted to the state. Tax preparers and taxpayers should plan accordingly. 

The joint fed-state e-file program is a cooperative tax-filing effort between the IRS and most states, including Rhode Island. In general, it allows for federal and state returns to be e-filed simultaneously to the IRS. Once the returns are filed, the IRS keeps the federal portion; the state portion is passed along electronically to the applicable state.

State tax changes now in effect

The Rhode Island Division of Taxation today posted a reminder for tax professionals and others about tax changes that are now in effect.

Some of the changes are the result of recently enacted legislation. Other changes are the result of legislation enacted in recent years. Today’s Advisory includes a brief summary of some key provisions and their effective dates. To view or download a copy, click here.

Sales tax permits

The Rhode Island Division of Taxation has begun mailing out approximately 21,500 sales tax permits to retailers. Sales tax payment coupon booklets will go out next month. For more information, click here.

Warning issued about tax-related scams

The Internal Revenue Service today urged taxpayers to watch out for new versions of two tax-related scams. One involves Social Security numbers related to tax issues. The other threatens taxpayers with a tax bill from a fictional government agency. To learn more, click here.

The IRS's warning about the "tax bill" mailed from a fictional government agency is a familiar one: At least one taxpayer in Providence, Rhode Island, recently reported receiving such a letter and has contacted authorities about it. "Even though summer is here, individuals and businesses still need to be on their guard against scams," said Rhode Island Tax Administrator Neena Savage. "Criminals come up with many different ways to try, under false pretenses, to obtain your personal information, your money, or both. Be careful," she advised.

Earlier this year, she warned taxpayers about a scam from someone who calls on the phone, claiming to be from the Rhode Island Division of Taxation. “If you receive this sort of call, don’t provide any information. Write down the caller’s name and contact information, if available. Then hang up and contact the appropriate agency," she said at the time.

The IRS, the Rhode Island Division of Taxation, tax agencies from other states, and the tax community are part of the Security Summit. Partners in the Security Summit work together to combat identity theft to protect the nation’s taxpayers.