Employer reporting for health insurance mandate

The Rhode Island Division of Taxation’s portal is now accepting electronic filings by employers and their representatives (such as health insurance carriers) regarding Rhode Island’s health insurance mandate (also known as the health coverage mandate or individual mandate). Click here.

Sales tax reconciliation - reminder

The Rhode Island Division of Taxation reminds holders of sales tax permits that the deadline is Monday, February 1, for filing the annual sales tax reconciliation. For details, click here.

Division announces start date for filing season

The Rhode Island Division of Taxation today announced details regarding the start of tax-filing season.

For more information, click here.

Executive Order extension

Rhode Island Governor Gina M. Raimondo has extended Executive Order 20-02, declaring 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 until February 17, 2021, unless renewed, modified, or terminated by subsequent Executive Orders. For more information, click here.

Withholding-tax guidance - emergency regulation extended

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.

To view the emergency regulation, whose expiration date has been extended to March 19, 2021, click here. To view an earlier Advisory, click here.

Executive Order extension

Rhode Island Governor Gina M. Raimondo has extended an Executive Order involving the “Rhode Island Qualified Jobs Incentive Act of 2015” program, under Rhode Island General Laws Chapter 44-48.3. The extended Executive Order will remain in effect until February 11, 2021 (unless renewed, modified or terminated by subsequent Executive Order). 

To view the order involving the extension, click here. To view the original order, click here.

Holiday schedule

The Rhode Island Division of Taxation will be closed for the holiday on Monday, January 18, 2021 (Birthday of Martin Luther King, Jr.). However, certain information and services will continue to be available that day on the Division's website and portal -- including corporate and personal income tax forms and instructions for the 2020 tax year.

Deadline for fourth-quarter payments

Tomorrow (Friday, January 15) is the deadline for making fourth-quarter estimated payments of Rhode Island personal income tax. Payment must be made or postmarked by 11:59 p.m. on January 15, 2021. 

January 15 is also the deadline for fourth-quarter estimated payments of income tax for calendar-year fiduciary filers (involving estates and trusts), pass-through withholding filers, and composite return filers. January 15 is also the reporting deadline for those subject to the bank deposits tax.

Making payments

Individuals, businesses, tax professionals, and others may use the Division of Taxation’s portal to make payments online. Payments for nearly all taxes – including estimated payments of individual and business taxes – can be made via the portal: https://taxportal.ri.gov.

For information about paying by credit card or debit card: http://www.tax.ri.gov/misc/creditcard.php.

For Rhode Island business tax EFT filing accounts: https://www.ri.gov/taxation/business/index.php.

If paying by check, please include a payment voucher. If you don’t have a voucher, blank forms are available online: http://www.tax.ri.gov/taxforms/.

"Summary of Legislative Changes"

The Rhode Island Division of Taxation has posted a summary of key tax provisions contained in the recently enacted budget bill for the 2021 fiscal year. To view a copy of the Division's "Summary of Legislative Changes", click here.

Elective entity-level tax on pass-through entities

In response to recent guidance from the Internal Revenue Service (Notice 2020-75), the Rhode Island Division of Taxation provides the following information about the effect of that guidance as it relates to Rhode Island’s elective entity-level tax on pass-through entities (“PTE election”).

The Division of Taxation, pursuant to Rhode Island General Laws § 44-1-10 and Regulation 280-RICR-20-55-1, will not assess underestimated payment interest for those entities that make the PTE election for the first time in the 2020 tax year and have not made estimated payments throughout the 2020 tax year.  Please note: If a taxpayer made the election in 2019 and 2020 and failed to make sufficient estimated payments in 2020, that taxpayer would be subject to the underestimated payment interest, as the recent guidance from the IRS did not affect that taxpayer.

Governor extends Executive Orders

Rhode Island Governor Gina M. Raimondo recently extended a number of Executive Orders until late this month, including the following:

• Executive Order 20-02, declaring 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 until January 20, 2021, unless renewed, modified, or terminated by subsequent Executive Orders. For more information, click here.
• Executive Order 20-19, involving unemployment insurance matters (including relief for employers related to unemployment insurance tax charges). This Executive Order will remain in full force and effect until January 28, 2021, unless renewed, modified, or terminated by subsequent Executive Orders. For more information, click here.

Health insurance mandate

The Rhode Island Division of Taxation last month posted, as final, a regulation involving Rhode Island’s health insurance mandate.

In developing that regulation, the Division received a number of public comments. Those comments -- and the Division’s responses -- are now posted on the Division’s “Health Coverage Mandate” webpage.

To view the comments and responses, click here. To view the webpage (see screenshot below), click here.

Latest declaratory ruling

The Rhode Island Division of Taxation today posted its latest declaratory ruling. Ruling No. 2020-03 was issued after a taxpayer requested a determination on whether the software the taxpayer sells is exempt from the Rhode Island sales and use tax.