Newsletter Published

The Rhode Island Division of Taxation's fourth quarter 2023 newsletter has been published. Find all of the Division's newsletters on the newsletter archive page of the Division's website.

Tax Compliance Day – January 10, 2024

As part of the Division of Taxation's continuing efforts to achieve its mission and to increase community involvement, the Division is hosting a special event. On January 10, 2024 (adverse weather day January 17, 2024), the Division is hosting a collaborative Tax Compliance Day at Rhode Island College to assist taxpayers with complicated multi-agency compliance issues.

More information is available in Advisory 2023-21.

Latest Administrative Decision

In the latest Administrative Decision, the issue addressed is whether the Taxpayer breached its 2022 Stipulation with the Division, and if so, should any sanctions be imposed. 

Details are contained in Administrative Decision 2023-09.

Withholding calendar for 2024

The Rhode Island Division of Taxation has posted the withholding tax payment calendar for 2024.

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. 

View or download the calendar.

Contacting the Division amid Washington Bridge westbound closure

The Rhode Island Division of Taxation reminds taxpayers and the community of the numerous ways they can choose to interact with the Division.

More information is available in Advisory 2023-20.

Rhode Island estate tax credit and threshold set for 2024

The Rhode Island Division of Taxation today published the Rhode Island estate tax credit amount and threshold for the estates of decedents with a date of death on or after January 1, 2024.

More information is available in Advisory 2023-19.

Annual e-file shutdown and switchover

Each year, the Rhode Island Division of Taxation temporarily closes its Modernized e-File (MeF) system in order to prepare the system for the upcoming filing season. The Internal Revenue Service (IRS) and many other states follow the same practice.

The Division's annual MeF electronic filing shutdown and switchover for Personal Income Tax 1040 returns will occur on November 18, 2023. All transmissions must be submitted before 11:59 p.m. (EST) on November 18.

All other MeF filings will be available until 11:59 p.m. (EST) December 15, 2023.

Rhode Island will resume acceptance of MeF returns when the IRS reopens MeF for the 2024 filing season.

More information is available in Advisory 2023-18.

Annual interest rates announced

The Rhode Island Division of Taxation has announced the interest rates that will apply in 2024 to overpayments and underpayments. The rates are based on formulas set in statute.

More information is Available in Advisory 2023-16.

Notice Posted

The Division of Taxation has posted a new Notice. This Notice directs International Fuel Tax Association (IFTA) tax filers to file and pay their Fourth Quarter 2023 on Rhode Island’s Taxpayer Portal.

Details are available in Notice 2023-03.

Latest Administrative Decision

In the latest Administrative Decision, the issue addressed is whether the Taxpayer owes the Division's assessment for tax year 2017. 

Details are contained in Administrative Decision 2023-08.

E-Filing

The Rhode Island Division of Taxation will be completing routine system maintenance. The modernized e-file (MeF) system will be available during the this time, but will not be able to issue acknowledgments of acceptance or rejection. 

• The temporary MeF delay of notifications will start at 12:00 a.m. on October 8, 2023
• The temporary MeF delay of notifications will end at 11:59 p.m. on October 12, 2023

Tax preparers and taxpayers may continue to submit returns during this period, but acknowledgements will be delayed.

Extended deadline is October 16

The Rhode Island Division of Taxation reminds tax professionals and taxpayers that the deadline for filing Rhode Island resident and nonresident personal income tax returns on extension is Monday, October 16, 2023.

Details are available in Advisory 2023-15.

Latest declaratory ruling

The Rhode Island Division of Taxation has posted its latest declaratory ruling. Ruling No. 2023-02 was issued after a taxpayer requested a ruling regarding the interpretations of Rhode Island law relating to the application of sales and use tax on the Taxpayer’s online educational courses.

Latest Administrative Decision

In the latest Administrative Decision, the issue addressed is whether the Taxpayer owes use tax on two (2) trucks purchased, one in 2018 and one in 2019, by the Taxpayer and if so, is a trade-in allowance allowed for trucks pursuant to R.I. Gen. Laws § 44-18-30(23). This issue also requires a determination of whether the Taxpayer was a bona fide nonresident of Rhode Island at the time of the purchase of the trucks. 

Details are contained in Administrative Decision 2023-07.

Deadline is September 15 for estimated payments

The Rhode Island Division of Taxation reminds taxpayers and tax professionals that September 15 is the deadline for filing and payment of the third quarter installment of estimated taxes under the Rhode Island personal income tax.

Pass-through withholding filers should note that form 1096PT-ES is no longer in use. Starting with Tax Year 2023, pass-through withholding must be reported on a schedule that will be part of Forms RI-1041, RI-1065 and RI-1120S.  This means that estimated payments for pass-through withholding for periods beginning with tax year 2023 should be made on either Form RI-1041ES (for Fiduciary filers) or BUS-EST (for corporate filers). 

Details are available in Advisory 2023-14.

Earned Income Tax Credit

The Rhode Island Division of Taxation reminds taxpayers that the passage of House Bill 5200, Substitute A, as amended, increased the Rhode Island earned income tax credit (EITC) for Tax Years beginning on or after January 1, 2024, to 16% of the federal credit. The refundable portion continues to be 100% of the amount by which the Rhode Island EITC exceeded the Rhode Island income tax.

Details are available in Advisory 2023-13.

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 13 businesses that received a combined total of over $38 million in certain state tax credits and incentives for the fiscal year that ended June 30, 2023.

Historic tax credits

A separate part of the report shows, in the aggregate, certain information related to projects that have requested certification 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. 

The full report is available on the Division's website.

Attn Tax Portal users:

The Division’s Tax Portal at https://taxportal.ri.gov will be unavailable from:

3:30 p.m. Friday, August 11th
                until
8:30 a.m. Tuesday, August 15th

Technical issues resolved

The tax portal is now available and taxpayers are able to file and make payments on the portal.  Taxpayers making a filing or payment on the portal for taxes due on July 31, 2023, must file and pay by 4:30 today, Thursday, August 3, 2023, to avoid the assessment of interest and penalty.  The Division of Taxation appreciates your patience and understanding.

Update: Technical issues

Due to technical issues outside of the control of the Division of Taxation, on July 31, 2023, filings and payments were impacted by temporarily unavailable or intermittent service on the Division’s tax portal.  

The tax portal remains temporarily unavailable.  

If you make your filing or payment for taxes due on July 31, 2023 on the tax portal by 4:30 pm on Thursday, August 3, 2023, then no interest or penalty will be assessed.  

Please check tax.ri.gov for the most recent updates.

Update: Technical issues

Due to technical issues outside of the control of the Division of Taxation, on July 31, 2023, filings and payments were impacted by temporarily unavailable or intermittent service on the Division’s tax portal. The tax portal remains temporarily unavailable.

If you make your filing or payment for taxes due on July 31, 2023 on the tax portal by 4:30 pm on Wednesday, August 2, 2023, then no interest or penalty will be assessed.

Please check tax.ri.gov for the most recent updates.

Attention: technical issues

Due to technical issues outside of the control of the Division of Taxation, on July 31, 2023, filings and payments were impacted by temporarily unavailable or intermittent service on the Division’s tax portal.

If you make your filing or payment for taxes due on July 31, 2023 on the tax portal by 4:30 pm on Tuesday, August 1, 2023, then no interest or penalty will be assessed.

Please check tax.ri.gov for the most recent updates.

Summary of Legislative Changes

The Rhode Island Division of Taxation has posted a plain-language summary of key tax provisions that were enacted in the 2023 session of the Rhode Island General Assembly. 
Most of the tax changes were enacted in the budget bill for the 2024 fiscal year. Some of the changes were enacted in stand-alone legislation.

Details are available in the Division's Summary of Legislative Changes.

Latest Administrative Decision

In the latest Administrative Decision, the issue addressed is whether the Taxpayer's claim for a sales and use tax refund for his tax payment on a car ("Car") that he purchased should have been denied by the Division.

Details are contained in Administrative Decision 2023-05.

Sales permits mailed

Retailers can expect to receive sales permits covering the period from July 1, 2023, to June 30, 2024.

Details available in Advisory 2023-12.

Latest newsletter now available

The Division's latest newsletter is available in the Newsletter Archive.

Read our 2nd Quarter 2023 Newsletter.

June 15 Deadline Guidance Posted

The Rhode Island Division of Taxation reminds taxpayers and tax professionals that an important deadline for many payment types is quickly approaching. June 15 is the deadline for the second installment of estimated payments. Estimated payments apply to some personal income filers and many business entities.

Details are available in Advisory 2023-11.

Bi-annual application of consumer price index to Rhode Island Motor Fuel Tax

The Rhode Island Division of Taxation has applied a statutory formula to determine the Rhode Island Motor Fuel Tax rate that will be in effect as of July 1, 2023. The Division is providing information regarding this most recent adjustment in advance of the July 1, 2023 effective date to allow stakeholders to take the necessary steps to accommodate the new rate.

Details are available in Advisory 2023-10.

Latest Administrative Decisions

 In the latest Administrative Decisions, the issues addressed were:

• Whether the Taxpayer owes the Division's assessment for tax years 2015 through 2019 in relation to the rental vehicle surcharge ("RVS"). Details are contained in Administrative Decision 2023-03. 
• Whether the Division correctly denied the Taxpayer's refund request for its payment of hard to dispose material tax for 2018. Details are contained in Administrative Decision 2023-04.

Application period for Wavemaker reopens

The application period for the Wavemaker Fellowship has reopened.

The Wavemaker Fellowship is available to graduates who have incurred student loan debt during the completion of an associate degree, bachelor's degree, or graduate degree, and are pursuing careers in science, technology, engineering, mathematics, or design-related fields -- including life, natural or environmental sciences; computer, information or software technology; advanced mathematics or finance; engineering; industrial design or other commercially related design field; or medical or medical device technology, or healthcare in the state.

Any resident or nonresident with higher education loan debt who is employed in Rhode Island in one of the fields mentioned above is encouraged to apply. The maximum annual Rhode Island tax credit awarded under the Wavemaker program is $6,000 for graduate degree holders, $4,000 for bachelor's degree holders, and $1,000 for holders of an associate degree. 

All applications must be submitted by 11:59, June 14, 2023, for consideration.

For more details on the Wavemaker program, visit the Wavemaker website.

Report on alcoholic beverages

The Rhode Island Division of Taxation has posted the annual report on the sales and taxation of alcoholic beverages. 

Read the report here.

Guide to the modification for Income from Pensions, 401(k) Plans, Annuities, and Other Such Sources

The due date is approaching for 2022 Personal Income Tax returns. Don't forget Rhode Island's special modification relating to income from 401(k) plans, pensions, and certain other sources. 

View the Division's annually updated Guide to the Modification for Income from Pensions, 401(k) Plans, Annuities, and Other Such Sources (Publication 2023-01) to see if you qualify. 

Latest Administrative Decision

In the latest Administrative Decision, the issue addressed is whether the Taxpayer owes additional income tax, interest, and a penalty for the tax year 2018.

Details are contained in Administrative Decision 2023-02.

Extension filing: extension is for filing only – payment due by original due date

The Rhode Island Division of Taxation today provides guidance for taxpayers and tax professionals regarding personal income tax extension filing.

If a taxpayer is unable to file a return by the due date, a proper extension must be filed. This year both the Federal and Rhode Island due date for personal income tax filings and payments is April 18^th.

More information is available in Advisory 2023-09.

Latest declaratory ruling

The Rhode Island Division of Taxation has posted its latest declaratory ruling. Ruling No. 2023-01 was issued after a taxpayer requested a ruling regarding the interpretations of Rhode Island law relating to the application of sales and use tax on the Taxpayer’s various offerings.

Driver privilege cards and driver privilege permits

The passage of P.L. 2022, ch. 241 and P.L. 2022, ch. 242 provides for the issuance of driver privilege cards and driver privilege permits.

The Division of Taxation will assist in the process by verifying that applicants meet the qualification requirements for driver privilege cards and permits.

Details are available in Advisory 2023-08.

Latest newsletter now available

The Division's latest newsletter is Available in the Newsletter Archive.

Read Newsletter 1st Quarter 2023.

Latest Administrative Decision

In the latest Administrative Decision, the issue addressed is whether the Taxpayer owed the Division's notice of assessment in relation to the Taxpayer's 2020 personal income. 

Details are contained in Administrative Decision 2023-01. 

Entity filing reminders

The Rhode Island Division of Taxation provides two pieces of guidance regarding entity filing:

• The Rhode Island Division of Taxation reminds taxpayers, tax professionals, and business entities that the filing and payment deadline for many types of entities will fall on Wednesday, March 15. 

• More information is Available in Advisory 2023-07.

• The Rhode Island Division of Taxation reminds taxpayers that Limited liability companies (LLCs) are required under Rhode Island law to file an annual return with the Rhode Island Division of Taxation and pay an annual tax or fee. Which form to file, and which tax/fee to pay, depends upon the LLC.

• More information is Available in Notice 2023-01.

Free tax preparation software is available for many taxpayers

The Rhode Island Division of Taxation, in partnership with the Free File Alliance, reminds taxpayers that many Rhode Islanders qualify for the Free File program. The program allows filers to use name-brand tax preparation software to prepare and file their state and federal income taxes at no cost.

More information is Available in Advisory 2023-06.

Update on IRS guidance regarding Child Tax Rebate

On February 10, 2023, the IRS provided guidance determining that the Child Tax Rebate issued by Rhode Island is not taxable and should not be included within federal adjusted gross income. The Rhode Island Division of Taxation today provides updated guidance regarding the taxability of the Child Tax Rebate. 

Details are available in Advisory 2023-05.

Annual Sales Tax Reconciliations Due January 31

The Rhode Island Division of Taxation reminds businesses that the Rhode Island Annual Sales and Use Tax Reconciliation is due on or before Tuesday, January 31, 2023.

More information is Available in Advisory 2023-04.

Filing season opens

The Rhode Island Division of Taxation has announced that it will be following the IRS 2023 tax filing start date of January 23 and due date of April 18 for the filing of Rhode Island Personal Income Tax returns for the 2022 tax year.

Details are available in Advisory 2023-03.

Rhode Island tax changes for 2023

The Rhode Island Division of Taxation reminds tax professionals and others about tax changes that took effect for the calendar year starting January 1, 2023.

The changes are important to keep in mind now for tax-planning purposes throughout the 2023 calendar year.

Many of these changes apply for tax years beginning on or after January 1, 2023, and generally do not affect the tax returns that businesses and individuals will file over the next few months, covering the 2022 tax year.

Read ADV 2023-02 for details.

Rhode Island estate tax credit and threshold set for 2023

The Rhode Island Division of Taxation today published the Rhode Island estate tax credit amount and threshold for the estates of decedents dying on or after January 1, 2023.

More information is Available in Advisory 2023-01.

Deadline for fourth-quarter payments

 Tuesday, January 17, is the deadline for a number of tax types including:

• Fourth-quarter estimated payments of Rhode Island Personal Income Tax;
• Fourth-quarter estimated payments of Income Tax for calendar-year fiduciary filers (involving estates and trusts);
• Pass-through withholding filers; and
• Composite return filers.

Payment must be made or postmarked by 11:59 p.m. on January 17, 2023. 

January 17 is also the reporting deadline for those subject to the Bank Deposits Tax.

Making payments

Those subject to the above taxes may use the Division of Taxation’s Taxpayer 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. If you do not yet have a Portal account, many payments can be made using the Same-day Guest Services feature.

For information about paying by credit card or debit card: https://tax.ri.gov/online-services/make-payment-online.

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