Proposed regulations posted today; hearing set

The Rhode Island Division of Taxation today posted several proposed regulations. The agency will hold a public hearing on them next month. Most involve the sales tax. 

Under the proposals, the agency would: 

* Amend a regulation to reflect the impact of a new law, enacted in 2012, involving a sales tax exemption for the purchase, rental, or lease of certain buses. Under the old law, a bus had to be used 100 percent in interstate commerce to qualify for the exemption. Under the new law, the bus may qualify for the exemption if it is used 80 percent or more of the time in interstate commerce. (Proposed Reg. SU 13-111, to amend and supersede Reg. SU 99-111.)

* Amend a regulation to help ensure Rhode Island's continuing conformity with the Streamlined Sales and Use Tax Agreement. The existing regulation would be updated to reflect current language in the agreement involving the sourcing of direct mail. (Proposed Reg. SST 13-01, to amend and supersede Reg. SST 11-01.)

* Tighten the language in a regulation that involves how long a retailer subject to the sales tax must keep certain records. (Proposed Reg. SU 13-91, to amend and supersede Reg. SU 11-91.)

* Repeal a regulation involving food products because the regulation's contents have been merged into another, making the regulation redundant. (Proposed repeal of Reg. SU 87-50; contents already incorporated in Reg. SU 09-59.)

The proposed regulations were posted today on the Rhode Island Secretary of State's website. The Division of Taxation plans to hold a public hearing on the proposals at 1 p.m. on Wednesday, March 20, 2013, at One Capitol Hill, Providence, R.I. The agency proposes that the regulations take effect May 1, 2013.

Tax Division principal named to national committee

Dan Clemence, a principal revenue agent in the Rhode Island Division of Taxation’s Processing/E-Government section, has been named to serve on a national committee that focuses on electronic tax initiatives.

Clemence is volunteering to serve as a member of the Federal-State Tactical Advisory Group (TAG), a joint effort of the Internal Revenue Service and the Federation of Tax Administrators. The group has a dozen members nationwide – some from the states, some from the IRS. The group coordinates tactical planning for electronic initiatives between the IRS and the states. It also looks to improve communication and cooperation on priorities and strategies.

“Dan is an excellent choice for this post,” said Rhode Island Tax Administrator David M. Sullivan. “His broad knowledge and experience will serve TAG well, and what he learns from the group will serve Rhode Island as well,” Sullivan said.

Dan Clemence

E-filing opens for personal income tax returns

The Rhode Island Division of Taxation today began accepting electronically filed personal income tax returns for tax year 2012. Click here for details.

Penalty relief for farmers, fishermen

The Rhode Island Division of Taxation announced today that it is providing certain relief this season for many farmers and fishermen. The relief has to do with penalty for underpayment of estimated tax. Click here for details.

Practitioner Alert: Form 8453 discontinued

The Rhode Island Division of Taxation has discontinued Form RI-8453, “R.I. Individual Income Tax Declaration for Electronic Filing.” 

Form RI-8453 formerly was associated with an e-filed return. The form was used by a taxpayer to formally give consent for the direct deposit of a refund or the electronic payment of tax. The form was not submitted to the Tax Division; a copy was kept by the taxpayer and his or her preparer.

Effective for the current filing season, the form has been retired. The Rhode Island Division of Taxation will recognize the federal Form 8879, “IRS e-file Signature Authorization,” or its equivalent, as a substitute.

E-filing for tax year 2012 business returns

The Rhode Island Division of Taxation today began accepting electronically filed Forms RI-1065 (filed by partnerships and many LLCs) for tax year 2012.

The agency also began accepting e-filed Forms RI-1120C (for entities taxed as C corps) and Forms RI-1120S (for entities taxed as S corps) for tax year 2012.

The agency later this week is scheduled to start accepting e-filed Forms RI-1040 for tax year 2012.

Raising awareness in Woonsocket

Rhode Island Tax Administrator David M. Sullivan was among a number of federal and state officials who attended an event on Friday at the Museum of Work and Culture in Woonsocket to help raise awareness about the earned income credit.

Besides applying for the federal earned income credit, eligible taxpayers may also apply for the Rhode Island earned income credit, Sullivan said at the event. The credit is aimed at helping low- and moderate-income workers and families.

Tax Administrator David Sullivan