Tax administrator named acting DOR director

Rhode Island Tax Administrator David M. Sullivan has been appointed as acting director of
the Rhode Island Department of Revenue (DOR) by Governor Gina M. Raimondo.

David M. Sullivan

Tax Administrator meets with IRS in Washington

Rhode Island Tax Administrator David M. Sullivan met in Washington, D.C., this afternoon with Internal Revenue Service Commissioner John Koskinen and tax preparation software providers to discuss ways to combat tax refund fraud.

“We are encouraged by the cooperation shown here today among the states, the IRS, and the software industry,” Sullivan said after the meeting, which he attended in his role as president of the Federation of Tax Administrators (FTA).

“Tax refund fraud is a huge issue – and it’s not going to be solved by any one group or organization dictating a solution,” Sullivan said. “To rein in this growing problem, we all need to work together, in partnership – sharing information, ideas, and solutions,” Sullivan said following the meeting, which was held at IRS headquarters at 1111 Constitution Avenue NW.

“Such a joint effort – with the IRS, the states, and the industry working together – serves all of our interests, including the interests of the taxpayer,” said Sullivan.

The FTA, which sponsored Sullivan's trip to the meeting, is an association which serves the principal tax collection agencies of the 50 states, the District of Columbia, Philadelphia, and New York City. The FTA also represents the interests of state tax administrators before federal policymakers.

David Sullivan (left) at IRS meeting in Washington, D.C., today.

Corporate tax deadline

The Division of Taxation today issued a reminder that certain corporate tax returns and tax payments are due on or before Monday, March 16, 2014.

New Administrative Decisions: sales tax permit; domicile

The Division of Taxation today posted decisions from two recent administrative hearings:

• The first decision regards an application for a sales permit and cigarette dealer's license.
• The second decision involves a taxpayer prevailing over the issue of domicile.

Decision issued after hearing on cigarette tax

The Division of Taxation has posted a decision from a recent administrative hearing. This one concerns violation of a stipulation involving cigarette tax.

Reminder about estimated payments and combined reporting

Rhode Island Tax Administrator David M. Sullivan today issued a reminder about the calculation of estimated tax payments by corporations that are subject to combined reporting. Corporations must take into account combined reporting when calculating their estimates, he noted.

Administrative Decisions on withholding, use tax

The Division of Taxation yesterday posted two new Administrative Decisions:

• Administrative Decision 2015-03 focuses on whether an employer owes penalty and interest on personal income tax withholding that the employer turned over to its payroll company, which then entered bankruptcy proceedings and did not transmit the withholding to the Division of Taxation.
• Administrative Decision 2015-04 looks at whether a group of restaurants owe use tax, interest, and penalty on the value of complimentary drinks given to patrons or prospective patrons.