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.