The Internal Revenue Service over the weekend finished reprogramming and testing of its computer systems, clearing the way for the filing of federal income tax returns – individual and business – that may have been delayed earlier in the filing season.
It also cleared the way for the filing of Rhode Island income tax returns that may have been delayed. The reason has to do with a longstanding federal-state partnership. Under that arrangement, electronically filed Rhode Island personal income tax returns are transmitted to the IRS, then downloaded by the Rhode Island Division of Taxation.
When the IRS system closed for part of January to let the IRS update its computers to reflect last-minute changes in federal tax law, the IRS could not accept e-filed returns – and the Rhode Island Division of Taxation generally couldn’t, either.
That situation was resolved by late January. However, because some other federal returns couldn’t be filed until early March (because certain forms were still being updated and tested), some Rhode Island returns still could not be filed, either. Now, however, it’s open season: the IRS and the Rhode Island Division of Taxation are accepting, without restriction, individual and business returns.
Thursday, March 7, 2013
Online map shows free tax sites
If your income last year was $51,000 or less, and you’re looking for someone to do your tax returns at no charge, check out the interactive map created by The Providence Plan.
The map shows more than 70 sites throughout the state that are run by trained volunteers and that generally provide free preparation and filing of federal and state income tax returns and the Rhode Island property-tax relief claim (Form RI-1040H).
And if you type in your address, the free online tool will narrow your search, showing you just the sites that are within either 10 miles or 20 miles of your location. You can then click on each link for additional information -- including a phone number to call to make an appointment.
The map shows more than 70 sites throughout the state that are run by trained volunteers and that generally provide free preparation and filing of federal and state income tax returns and the Rhode Island property-tax relief claim (Form RI-1040H).
And if you type in your address, the free online tool will narrow your search, showing you just the sites that are within either 10 miles or 20 miles of your location. You can then click on each link for additional information -- including a phone number to call to make an appointment.
Average refund rises 3.8%
The average
Rhode Island personal income tax refund is up 3.8 percent, to $541 so far this filing season, compared
with $521 at the same point a year ago, early filing season figures show.
The figures
also show that the total number of refunds so far is down 11 percent compared
with the corresponding period a year ago. The reason is that the federal and
state filing seasons got off to a late start this year. That’s because of the
last-minute changes to tax law made by President Barack H. Obama and Congress,
which required computer systems to be reprogrammed and tested.
“The number
of refunds issued, and the aggregate amount of refunds issued, are down so far
because of the delay to the start of the filing season,” said Rhode Island Tax Administrator David M. Sullivan. “The
delay was a consequence of the lengthy ‘fiscal cliff’ debate and the compromise
federal tax law that was enacted in January, which also impacted Rhode Island. Nobody is
surprised by the delay, which was well-publicized. But now that all systems are
go, we fully expect to see our number of refunds – and our aggregate dollar amount
of refunds issued – to increase smartly in the weeks ahead,” Sullivan said.
Filing season 2012
|
Filing season 2013
|
Difference
|
|
Number of refunds
|
186,955
|
166,153
|
- 11.13%
|
Total amount refunded
|
$97,421,657
|
$89,808,037
|
- 7.82%
|
Average refund
|
$521
|
$541
|
+ 3.84%
|
Cumulative figures for tax year
2011 through March 2, 2012, and for tax year 2012 through March 1, 2013.
Figures for each filing season are before interest and offset and do not
include returns for tax years other than those stated.
|
|||
Most Rhode Islanders e-file
The overwhelming majority of taxpayers are choosing to file their Rhode Island personal income tax returns electronically instead of on paper.
For the tax-filing season thus far, about 96 percent of taxpayers have e-filed, up from 91 percent at approximately the same point a year ago.
“It’s early in the season, and nearly all returns filed at this time of year are e-filed,” said Rhode Island Tax Administrator David M. Sullivan. “Still, the early results show that e-filing continues to be popular. The more taxpayers learn about e-filing, the more they like it,” Sullivan said. E-filing saves taxpayers money: processing an e-filed return costs far less than processing a paper return, he said.
For the tax-filing season thus far, about 96 percent of taxpayers have e-filed, up from 91 percent at approximately the same point a year ago.
“It’s early in the season, and nearly all returns filed at this time of year are e-filed,” said Rhode Island Tax Administrator David M. Sullivan. “Still, the early results show that e-filing continues to be popular. The more taxpayers learn about e-filing, the more they like it,” Sullivan said. E-filing saves taxpayers money: processing an e-filed return costs far less than processing a paper return, he said.
Filing season 2012
|
Filing season 2013
|
Difference
|
|
E-filed returns
|
207,090
|
212,263
|
+ 2.5%
|
Paper returns
|
15,440
|
6,034
|
- 60.9%
|
2-D barcode returns
|
4,362
|
2,591
|
- 40.6%
|
Total returns:
|
226,892
|
220,888
|
- 2.6%
|
Cumulative figures for tax year
2011 returns filed through February 29, 2012, and tax year 2012 returns filed
through March 6, 2013.
|
|||
Corporate extensions exempt from mandate
The Rhode Island Division of Taxation on January 1, 2013, began enforcing Rhode Island’s corporate tax e-file mandate. The mandate applies to paid preparers. It requires that returns on Form RI-1120C, RI-1120S, and Form RI-1065 be e-filed.
However, Rhode Island’s corporate e-file mandate does not apply to extension requests. Normally, requests for an automatic six-month filing extension are made on Form RI-7004. But the Division of Taxation does not accept e-filed extensions. As a result, Form RI-7004 must be filed on paper. “We don’t accept the 7004 electronically,” said Susan M. Galvin, chief of Tax Processing Services.
Similarly, the corporate e-file mandate does not apply for purposes of seeking an automatic one-month extension, on Form RI-7004-CRS, for the filing of Form RI-1120C and Schedule CRS (for pro forma combined reporting).
However, Rhode Island’s corporate e-file mandate does not apply to extension requests. Normally, requests for an automatic six-month filing extension are made on Form RI-7004. But the Division of Taxation does not accept e-filed extensions. As a result, Form RI-7004 must be filed on paper. “We don’t accept the 7004 electronically,” said Susan M. Galvin, chief of Tax Processing Services.
Similarly, the corporate e-file mandate does not apply for purposes of seeking an automatic one-month extension, on Form RI-7004-CRS, for the filing of Form RI-1120C and Schedule CRS (for pro forma combined reporting).
- Don't forget that you can make an extension payment online. If you do, you won't need to send in an extension form - either the RI-7004 or the RI-7004-CRS.
Thursday, February 14, 2013
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.
Wednesday, February 6, 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.
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| Dan Clemence |
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