Combined reporting and Schedule CRS

The Rhode Island Division of Taxation continues to receive and process returns for tax years 2011 and 2012 that were filed by corporations subject to Rhode Island's pro forma combined reporting requirement under Rhode Island General Laws § 44-11-45. Such returns include a completed Schedule CRS, "Required Data for Combined Reporting Study."

In March 2014, the Division largely finished its study and filed its report on pro forma combined reporting, based in part on the data that corporations filed on Schedule CRS. However, the Division continues to refine its data -- and must also be prepared to provide updated information to the General Assembly upon the General Assembly's request. Such updated information would include data from returns of taxpayers that were not filed in time to be included in the March 2014 study.

Therefore, corporations subject to Rhode Island's pro forma combined reporting requirement that have yet to file their returns for tax years 2011 and/or 2012 should still complete Schedule CRS and file it with their returns. Likewise, fiscal-year corporations subject to Rhode Island's pro forma combined reporting requirement that have yet to file their returns for tax year 2012 should still complete Schedule CRS and file it with their returns.

(The Division has a regulation that contains more information about pro forma combined reporting.)

New Administrative Decisions posted

The Division of Taxation recently posted two Administrative Decisions:

• One is about a claim for a refund of personal income tax.
• The other is about a sales tax assessment on a corporation.

Public hearings next month on regulations

The Division of Taxation will hold a public hearing next month on a revised regulation involving the taxation of tobacco products other than cigarettes (sometimes referred to as “other tobacco products” or “OTP”). A regulation proposed earlier this year has since been revised mainly to clarify record-keeping requirements. The public hearing will be held on Tuesday, June 10, 2014, at 9:30 a.m., at the Powers Building, One Capitol Hill, Providence, diagonally across from the State House.

The Division of Taxation will hold a separate public hearing next month on a proposal to repeal two regulations. The Division proposes to repeal regulation EFT 00-01, “Electronic Funds Transfer,” because a more recent regulation covering the same subject is available: EFT 09-01, “Payment of Taxes by Electronic Funds Transfer.” The Division also proposes to repeal regulation CR 02-12, “ISO Certification Credit,” because the underlying statute, Rhode Island General Laws § 44-11-42, was repealed some while ago. The public hearing is to take place on Wednesday, June 18, 2014, at 9:30 a.m., at the Powers Building, One Capitol Hill, Providence, diagonally across from the State House.

Total refunds up this year; average is $544

The Rhode Island Division of Taxation has issued a combined total of more than $224 million in personal income tax refunds so far this year, up 0.3 percent from the same point a year ago.

For the calendar year to date, the average Rhode Island personal income tax refund is $544, up 2.3 percent compared with the corresponding period a year ago, when the average refund was $532.

	Calendar year 2013	Calendar year 2014	Difference
Number of refunds	421,129	413,187	-1.9%
Total amount refunded	$  223,878,294	$  224,579,147	+0.3%
Average refund	$  532	$  544	+2.3%
Cumulative figures for tax year 2012 returns filed through May 17, 2013, and for tax year 2013 returns filed through May 16, 2014. Figures are before interest and offset, and do not include refunds for tax years other than those stated.

Tobacco products (other than cigarettes)

The Rhode Island Division of Taxation today scheduled a public hearing in June on a proposed regulation involving tobacco products other than cigarettes. The hearing will start at 9:30 a.m. on Tuesday, June 10, 2014, at the Powers Building, One Capitol Hill, Providence R.I. 02908.

The Division of Taxation in February 2014 held a public hearing on a proposed regulation on record-keeping and other requirements involving tobacco products other than cigarettes (sometimes called “other tobacco products,” or “OTP”). Based on comments at that hearing from convenience store owners and others, the agency has withdrawn and rewritten the proposed regulation. The proposed regulation as revised was posted today. The public hearing in June will focus on the proposed regulation as revised.

Fraudulent e-mail scheme

Rhode Island Tax Administrator David M. Sullivan today issued an alert to taxpayers and tax practitioners, urging them to beware of a fraudulent e-mail scheme claiming to involve Rhode Island corporate tax penalties.

Tobacco products (other than cigarettes)

The Division of Taxation in February 2014 held a public hearing on a proposed regulation on recordkeeping and other requirements involving tobacco products other than cigarettes (sometimes called “other tobacco products,” or “OTP”). 


Based on comments at the hearing from convenience store owners and others, the agency has withdrawn and rewritten the proposed regulation, hopes to post it soon, and intends to hold a public hearing on it in June. Details will be announced.