Rhode Island tax changes for 2022

The Rhode Island Division of Taxation reminds tax professionals and others about tax changes that will take effect in the 2022 calendar year.

The changes are important to keep in mind now for tax-planning purposes throughout the 2022 calendar year.

Many of these changes apply for tax years beginning on or after January 1, 2022, and generally do not affect the tax returns that businesses and individuals will file over the next few months, covering the 2021 tax year. 

Read more about all the changes here: https://tax.ri.gov/media/18411/download?language=en

Inflation-adjusted amounts set for tax year 2022

The Division has announced the standard deduction amounts, tax bracket ranges, and other key items for the Rhode Island personal income tax for tax years beginning on or after January 1, 2022.

Find the inflation-adjusted amounts set for tax year 2022 as well as changes for certain items involving 2021 tax year here: https://tax.ri.gov/media/18021/download?language=en

New: Form RI-706 replaces Forms RI-100 and RI-100A

The Rhode Island Division of Taxation has announced a new and streamlined process for filing Estate Tax returns. Starting January 1, 2022, if you are the executor/executrix, administrator/administratrix, or personal representative for the estate of a decedent who passed after January 1, 2015, and are filing a taxable or a non-taxable estate return, you will need to use the new  RI-706 form. There has been no statutory change or change in the administration of the Estate Tax. This update is simply to streamline the forms used to file.

Read more about this update here: https://tax.ri.gov/media/18026/download?language=en

Latest Administrative Decision

The Rhode Island Division of Taxation has posted a new Administrative Decision:

• Decision No. 2021-10 looks at cigarette tax; whether the taxpayer owes cigarette tax, and if so, should any sanctions be imposed?

 

Division's New Taxpayer Portal

Effective January 4, 2022, tax payments can no longer be made using the website which uses the following web address: https://www.ri.gov/taxation/business/index.php. Instead, online debit payments may only be made via the Division’s Taxpayer Portal, which can be accessed via the following address: https://taxportal.ri.gov. 

Learn more: https://tax.ri.gov/media/17931/download?language=en

For questions or assistance, please call the Division at (401) 574-8484. Please activate your Taxpayer Portal account as soon as possible. 

Reminder that mask and health screening are required for office visits

 Planning to visit our office? Please remember that masks and health screenings are required.

Join us in helping to limit the spread of the coronavirus (COVID-19). 

To learn more: click here

More than 70% of cyberattacks are aimed at small businesses

 The Rhode Island Division of Taxation, the Internal Revenue Service (IRS), and the tax industry – working together as the Security Summit – urge businesses to be alert to cyberattacks aimed at gaining access to business data and customer information. The Summit partners have also provided steps to help businesses with tax-related issues concerning to identity theft.

Learn more here: https://tax.ri.gov/media/17851/download?language=en

Tax pros should be wary of information-stealing scams

The Rhode Division of Taxation, the Internal Revenue Service (IRS), and other partners in the Security Summit today warned tax professionals that they face additional security risks from cybercriminals seeking to use the pandemic-related industry changes and scams to steal sensitive client information. 

Learn more here: https://tax.ri.gov/media/17846/download?language=en

IRS provides extra protection for taxpayers through IP PIN program

The Rhode Island Division of Taxation, the Internal Revenue Service (IRS), and the tax industry – working together as the Security Summit – remind taxpayers they can get extra protection starting in January by joining the IRS’s Identity Protection Personal Identification Number (IP PIN) program. 

Learn more here: https://tax.ri.gov/media/17841/download?language=en

Estate tax -- revision

The Rhode Island Division of Taxation has revised an Advisory, originally posted November 9, 2021, about the estate tax. As noted in the original Advisory, the credit amount of $74,300 applies for estates of decedents dying on or after January 1, 2022. However, under the revised Advisory, the threshold amount has been changed to $1,648,611 for decedents dying on or after January 1, 2022. To view the revised Advisory, click here.

The Security Summit issues warning about fake charities on #GivingTuesday

 

The Rhode Division of Taxation, the Internal Revenue Service (IRS), and other partners in the Security Summit today warned taxpayers to be wary of fake charities that are looking to take your money and your sensitive financial and personal information.

Learn more here: https://tax.ri.gov/media/17831/download?language=en

National Tax Security Awareness Week

 To help taxpayers and tax professionals, the Security Summit shared 10 basic steps everyone should remember during the holidays and as the 2022 tax season approaches.

10 Key Steps to Protect Sensitive Information - Read them and the full Advisory here: https://tax.ri.gov/media/17826/download?language=en

Deadline for Certain Reporting on Health Insurance Mandate Extended

The Rhode Island Division of Taxation has extended, until March 31, 2022, the deadline by which employers must file with the Division certain reports involving Rhode Island’s individual health insurance mandate.

The detailed Advisory can be found here.

Latest Administrative Decisions

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

• Decision No. 2021-08 looks at whether the taxpayer's claimed refunds for the payment of tax on fuel purchases should have been denied.
• Decision No. 2021-09 focuses on whether the taxpayer owes sales tax and the tax on other tobacco products.

Reminder: Annual e-file shutdown tomorrow

The Rhode Island Division of Taxation reminds taxpayers and tax preparers that the Division’s annual electronic filing shutdown and switchover for personal and business returns will occur tomorrow -- Saturday, November 20, 2021, allowing the Division to prepare its system for the upcoming tax-filing season. For more information, click here.

Division unveils redesigned website

The Rhode Island Division of Taxation today launched its redesigned website. The site features a built-in translation option, mobile-friendly formatting, and an intuitive interface that uses a central toolbar at the top of the screen.

The redesigned website continues the Division’s work of engaging with Rhode Island taxpayers and assisting them through education and access to helpful resources. To view the website, please use the following link: https://www.tax.ri.gov 

Annual e-file shutdown; update on PPP

Modernized e-file (MeF)

The Rhode Island Division of Taxation’s annual electronic filing shutdown and switchover for personal and business returns will occur on Saturday, November 20, 2021, allowing the Division to prepare its system for the upcoming tax-filing season. For more information, click here.

Paycheck Protection Program (PPP) loans

A publication posted by the Division on November 3, 2021, provided answers to frequently asked questions (FAQs) about the Rhode Island tax treatment of Paycheck Protection Program (PPP) loan forgiveness. The Division has revised that publication by adding four new questions. That revised publication, and an updated form (RI-PPP – Entity), are available on the Division’s special PPP webpage. To view the page, click here.

Estate tax credit amount and threshold

The Rhode Island Division of Taxation today announced the Rhode Island estate tax credit amount and threshold for the estates of decedents dying on or after January 1, 2021. For more information, click here.

Learn more about taxation of PPP loan forgiveness

The Rhode Island Division of Taxation has created a webpage that will serve as a storehouse for information about the Rhode Island tax treatment of Paycheck Protection Program (PPP) loan forgiveness.

“This is an easily accessible resource for businesses, tax professionals, and others who want to find out the latest information about the taxation of PPP loans,” said Rhode Island Tax Administrator Neena Savage. “It is part of our continuing effort to provide taxpayer-friendly and business-friendly services.”

For more information, click here. To go directly to the new webpage, click here. 

Withholding calendar for 2022

The Rhode Island Division of Taxation has posted the withholding tax payment calendar for 2022.

The calendar shows, at a glance, the dates on which each employer must submit the Rhode Island personal income tax that the employer has withheld from employee pay for a given period.

The calendar is handy for employers, payroll-service providers, bookkeepers, and others. To view or download, click here.

Be on guard when online, Security Summit says

When you're online, please be on your guard for cyber criminals, especially if you're shopping online, navigating social media platforms, or sharing devices at home. 

The Rhode Island Division of Taxation, the Internal Revenue Service, and other partners in the Security Summit have provided tips and additional information. To view, click here. For details on Cybersecurity Awareness Month, click here.

PPP loans -- further guidance on tax treatment

The Rhode Island Division of Taxation today provided further guidance on the Rhode Island tax treatment of Paycheck Protection Program (PPP) loan forgiveness amounts.

According to the new guidance, the Division has developed a form for reporting the amount by which PPP loan forgiveness for 2020 exceeds $250,000. Taxpayers will also use the forthcoming form to compute any tax due.

For more information, click here.

Revisions completed

The Rhode Island Division of Taxation has revised a recent Advisory involving interest rates to show the correct month in 2006 in which a rate change took place. To view, click here.

The Division has revised a recent "Summary of Legislative Changes" and notice to more accurately reflect statute involving the scope of a real estate conveyance tax exemption. For the summary, click here. For the notice, click here.

Reminder about October 15 deadline

Don't forget that the October 15 filing deadline is this Friday. 

To see tips for last-minute filers, and for other information about the deadline, click here.

Interest rates set for 2022

The Rhode Island Division of Taxation today announced the interest rates that will apply in 2022 to overpayments and underpayments. The rates are based on formulas set in statute. For more information, click here.

Latest newsletter now available

The Rhode Island Division of Taxation has posted its latest newsletter. Topics include the following:

• Division’s website to be upgraded.
• E-signatures for some forms.
• Options for making tax payments.
• A chief’s retirement.
• The “Legal Corner” feature.
• The “Practitioners’ Corner” feature.

To view or download, click here. For the Division’s newsletter archive, click here.

Administrative Decision involving offset

The Rhode Island Division of Taxation today posted its latest Administrative.

• Decision No. 2021-07 looks at whether a taxpayer's personal income tax refund should have been offset.

Executive Order extended

Rhode Island Governor Daniel J. McKee has extended Executive Order 20-02, which declared a state of emergency due to the dangers to health and life posed by the coronavirus (COVID-19) pandemic. 

This Executive Order will remain in full force and effect through October 30, 2021, unless renewed, modified, or terminated by subsequent Executive Orders. For more information, click here.

Second Administrative Decision

The Rhode Island Division of Taxation this afternoon posted its second Administrative Decision of the day, also involving personal income tax.

Decision No. 2021-06 looks at whether a taxpayer's request for a personal income tax refund for 2017 should have been denied.

Latest Administrative Decision

The Rhode Island Division of Taxation has posted its latest Administrative Decision.

• Decision No. 2021-05 looks at whether a taxpayer's request for a personal income tax refund should have been denied.

E-file schedule for Sunday

The Internal Revenue Service has announced that the modernized e-file (MeF) system will be temporarily unavailable for a length of time this coming Sunday due to maintenance. As a result, federal and Rhode Island e-filing will be unavailable during the period.

The MeF system will be unavailable on Sunday, October 3, 2021, from 12:01 a.m. Eastern time until 11:59 a.m. Eastern time. The IRS will not be accepting electronically filed federal tax returns during the period. Also, the joint fed-state e-file program will be unavailable during the period. Therefore, Rhode Island returns transmitted via e-file during the period will not be transmitted to the state. Tax preparers and taxpayers should plan accordingly.

Latest Administrative Decision

The Rhode Island Division of Taxation has posted its latest Administrative Decision.

• Decision No. 2021-04 looks at whether the taxpayers' request for a refund on their Rhode Island personal income tax return for 2016 was filed in time.

POA Form RI-2848 can now be e-signed

Form RI-2848 -- commonly called a “POA” -- can now be submitted with an electronic signature instead of a handwritten signature, a convenience for taxpayers and tax professionals. To learn more, click here.

Tax break on income from 401(k) plans, pensions, other sources

Haven't filed your 2020 personal income tax return yet? Don't forget Rhode Island's special tax break on income from 401(k) plans, pensions, and certain other sources. Click here to see if you qualify. 

 

Mask and health screening required for office visit

Planning to visit our office? Please remember that masks and health screenings are required.

Join us in helping to limit the spread of the coronavirus (COVID-19). To learn more: https://go.usa.gov/xFA4K

E-file schedule for Saturday

The Internal Revenue Service has announced that the modernized e-file (MeF) system will be temporarily unavailable for a length of time this coming Saturday due to maintenance. As a result, federal and Rhode Island e-filing will be unavailable during the period.

The MeF system shutdown begins at 7:00 a.m. Eastern time on Saturday, September 25, 2021, and ends at 5:00 p.m. Eastern time on the same day. The IRS will not be accepting electronically filed federal tax returns during the period. Also, the joint fed-state e-file program will be unavailable during the period. Therefore, Rhode Island returns transmitted via e-file during the period will not be transmitted to the state. Tax preparers and taxpayers should plan accordingly.

Using Free File to meet Oct. 15 due date

October 15 is the due date for tax returns that are being filed on extension. 

Still haven't filed yours? 

With the Rhode Island Free File program, you can prepare and file your federal and Rhode Island personal income tax returns for 2020 online at no charge. See if you qualify: http://www.tax.ri.gov/misc/efile.php

E-file schedule for early Sunday

The Internal Revenue Service has announced that the modernized e-file (MeF) system will be temporarily unavailable for a length of time this coming Sunday due to maintenance. As a result, federal and Rhode Island e-filing will be unavailable during the period.

The MeF system shutdown begins at 12:01 a.m. Eastern time on Sunday, September 19, 2021, and ends at 7:00 a.m. Eastern time on the same day -- Sunday, September 19, 2021.

The IRS will not be accepting electronically filed federal tax returns during the period. Also, the joint fed-state e-file program will be unavailable during the period. Therefore, Rhode Island returns transmitted via e-file during the 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.

Latest Administrative Decision

The Rhode Island Division of Taxation has posted its latest Administrative Decision.

• Decision No. 2021-03 focuses on whether the taxpayer's refund claim for 2017 should have been denied by the Division.

Changed your name or address lately?

Changed your name or address lately? Let us know – to help make sure that refunds, notices, or other mailings are in your correct name and your correct address. To use our handy form, click here.

Reminder about September 15 due date

Reminder: September 15 is the deadline for the third installment of estimated tax under the Rhode Island personal income tax. September 15 is also the deadline for a number of business entities. 

For more information, including details about online and other payment methods, click here.

E-file schedule for this Saturday

The Internal Revenue Service has announced that the modernized e-file (MeF) system will be temporarily unavailable for a length of time this coming Saturday due to maintenance. As a result, federal and Rhode Island e-filing will be unavailable during the period.

The MeF system shutdown begins at 7:00 a.m. Eastern time on Saturday, September 11, 2021, and ends at 5:00 p.m. Eastern time on the same day -- Saturday, September 11, 2021.

The IRS will not be accepting electronically filed federal tax returns during the period. Also, the joint fed-state e-file program will be unavailable during the period. Therefore, Rhode Island returns transmitted via e-file during the 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.

Executive Order extended

Rhode Island Governor Daniel J. McKee has extended Executive Order 20-02, which declared a state of emergency due to the dangers to health and life posed by the coronavirus (COVID-19) pandemic. 

This Executive Order (see screenshot below) will remain in full force and effect through October 2, 2021, unless renewed, modified, or terminated by subsequent Executive Orders. For more information, click here.

Update on withholding regulation

The Rhode Island Division of Taxation last year posted an emergency regulation that provides withholding-tax guidance for employers that have employees who are temporarily working remotely due to the coronavirus (COVID-19) pandemic. That regulation (280-RICR-20-55-14) had been extended to September 15, 2021.

The Division recently modified the posting to say that the regulation is now scheduled to expire at 11:59 p.m. on September 13, 2021, to coincide with the expiration of Massachusetts regulation 830 CMR 62.5A.3 (Massachusetts Source Income of Non-Residents Telecommuting due to the COVID-19 Pandemic). 

Tax treatment of PPP loan forgiveness amounts

The Rhode Island Division of Taxation today posted its latest guidance regarding the tax treatment of PPP loan forgiveness amounts. To learn more, click here. 

Tax preparations for hurricanes, other disasters

Be prepared for hurricanes or other disasters. For information about how to safely stow tax and other important documents in advance of a storm, click here. The Internal Revenue Service's "Disaster Resource Guide" also offers tips, including details on claiming losses for tax purposes. To view, click here. 

Pay online through taxpayer portal

Making a Rhode Island state tax payment? You can pay online through our taxpayer portal. It's easy, convenient, and quick. Click here. First-time users will need a PIN to gain access. To find out more, click here.

Free File still available for taxpayers

Still haven't filed your tax return? 

With the Rhode Island Free File program, you can prepare and file your federal and Rhode Island personal income tax returns online at no charge. 

See if you qualify: http://www.tax.ri.gov/misc/efile.php.

How to check status of your refund

Want to check on the status of your Rhode Island personal income tax refund? It's easy! Just use this link: https://www.ri.gov/taxation/refund/  

Still need help? No problem! Email our Personal Income Tax area directly: Tax.Assist@tax.ri.gov, or call: (401) 574-8829, option # 3, during business hours.

Division posts reminders about entity filing requirements

What Rhode Island tax forms must your LLC file? What filing requirements does your S corp. have? To find answers, see the Division of Taxation's latest summaries by clicking here and here.

Mask and health-screening required for office visit

The Division has posted a reminder for visitors: Masks and health-screenings are required. It's part of an effort to limit the spread of the coronavirus (COVID-19). For details, click here.

Latest Security Summit advice for tax professionals

The Rhode Island Division of Taxation, the Internal Revenue Service, and other partners in the Security Summit warn tax professionals to beware of evolving phishing scams that use various pandemic-related themes to steal client data. To learn more, click here.

The Security Summit also urges tax professionals to learn the signs of data theft so they can react quickly to protect clients. For more information, click here.

Annual report on tax credits, incentives

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

The latest report identifies, by name and amount, the 14 businesses that received a combined total of approximately $18.78 million in certain state tax credits and incentives for the fiscal year that ended June 30, 2021.

Two of those recipients also received a combined total of approximately $3.76 million in other Rhode Island tax credits and incentives, the report shows.

Since 2008, more than 421 businesses have received a cumulative total of $379 million in Rhode Island tax credits and incentives, the report states.

Historic tax credits

A separate part of the report shows, in the aggregate, certain information related to projects that have requested certification of a completed building rehabilitation under Rhode Island’s 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. 

Full report

To view the full report, click here.

Executive Order extended

Rhode Island Governor Daniel J. McKee has extended Executive Order 20-02, which declared a state of emergency due to the dangers to health and life posed by the coronavirus (COVID-19) pandemic. 

This Executive Order will remain in full force and effect through September 4, 2021, unless renewed, modified, or terminated by subsequent Executive Orders. For more information, click here.

Free File available for filing on extension

Still haven't filed your Rhode Island personal income tax return for 2020? The Rhode Island Free File program lets you prepare and file your federal and Rhode Island returns online at no charge. See if you qualify: http://www.tax.ri.gov/misc/efile.php.

How tax professionals can help victims of UI fraud

The Rhode Island Division of Taxation, the Internal Revenue Service, and other partners in the Security Summit today outlined how tax professionals can help clients who were victims of unemployment insurance fraud schemes that targeted state workforce agencies in 2020 and 2021. To learn more, click here.

Latest newsletter now available

The latest edition of the Division of Taxation's newsletter is now available. Among the topics:

• Assistant Tax Administrator retires
• New DOR Director
• Filing on extension
• Extension forms
• Free File continues
• Ways to make tax payments
• Sales tax calendar

This edition also includes the “Practitioners’ Corner” and “Legal Corner” features. To view a copy, click here.

Motor vehicles and sales/use tax

The Rhode Island Division of Taxation has posted a revised version of a regulation that involves motor vehicles and sales/use tax. There were no substantive changes to the regulation. Rather, the revisions were technical in nature, such as the addition of a table of contents. The regulation is 280-RICR-20-70-28 ("Motor Vehicle and Non-Motorized Vehicle Taxes"). To view, click here.

Combat ID theft with federal Identity Protection PIN

The Rhode Island Division of Taxation, the Internal Revenue Service, and other partners in the Security Summit urge tax professionals to increase efforts to inform clients about the federal Identity Protection PIN Opt-In Program. Having an Identity Protection PIN can protect against tax-related identity theft. To learn more, click here.

Division posts 'Summary of Legislative Changes'

The Rhode Island Division of Taxation today posted a plain-language summary of recently enacted State tax-law changes. Among the topics covered in the summary:

• Paycheck Protection Program loans
• Sales tax permits
• 'Wavemaker' awards
• Historic preservation tax credits
• East Providence tourism
• Real estate conveyance tax

To learn more, click here.

Tax treatment of unemployment benefits - reminder

The Rhode Island Division of Taxation today posted a reminder about the tax treatment of unemployment benefits. To learn more, click here.

Protect against identity and data theft, Security Summit says

The Rhode Island Division of Taxation, the Internal Revenue Service, and other partners in the Security Summit urge tax professionals and taxpayers to use multi-factor authentication to help protect against identity and data theft. For more information, click here.

Guidance on withholding tax

The Rhode Island Division of Taxation has extended an emergency regulation that provides withholding-tax guidance for employers that have employees who are temporarily working remotely due to the coronavirus (COVID-19) pandemic.

The expiration date for the emergency withholding regulation (280-RICR-20-55-14) has been extended to September 15, 2021. However, the regulation would terminate sooner if Rhode Island’s state of emergency declaration expires before then. (The state of emergency is currently extended to August 6, 2021.)