Scams involving stimulus payments

Legislation approved by Congress and signed into law on Friday by President Donald J. Trump authorizes federal stimulus payments to those who qualify. 

The Internal Revenue Service is seeing a significant increase in scams involving criminals trying to gather information needed for the stimulus payments.  

The IRS -- one of the Rhode Island Division of Taxation's partners in the Security Summit -- reports that it is seeing phone calls, text messages, and e-mails phishing for information from individual taxpayers as well as tax preparers.  

The criminals are sending messages such as the following: "In order to receive your  stimulus payment via direct deposit, we need you to confirm the banking information." 

The criminals are gathering the information via telephone, or directing victims to click on a link that takes them to a website where they enter their banking information. The criminals then use the information to raid people's bank accounts or for other illegal purposes.

Government agencies, including the IRS and the Rhode Island Division of Taxation, will not call, text, or email you requesting information about the federal stimulus payments.

Tax preparers are urged to beware of phishing calls, emails, or texts that include language such as: “In order to receive your client’s stimulus payment by direct deposit, you must confirm their bank information.” 

More information

• If you receive a suspicious email or text requesting information, report it. Do not click on links or open any attachments.
• If clients need to file a return to receive a stimulus payment, there may be more fraudulent zero balance or small balance returns filed.
• Due to the extended July 15 tax deadline, criminals may try to obtain clients’ personal information, then file returns before clients do.
• For details on federal stimulus payments, see the IRS's latest announcement. Also, monitor the IRS Coronavirus Tax Relief webpage.
• For information related to Rhode Island state taxes, see the Division's coronavirus webpage.

(Editor's Note: The Rhode Island Division of Taxation does not have a role in issuing the new federal stimulus payments and is providing the information above as a public service for taxpayers and tax preparers.)

Many hearings to be postponed due to coronavirus

In light of the ongoing state of emergency related to the coronavirus pandemic, many Rhode Island Division of Taxation hearings and other matters scheduled to take place in the coming weeks must be postponed and rescheduled.

For information about the impact on preliminary reviews, administrative hearings, and prehearing & status conferences, see Notice 2020-02.

Announcement for hotels and others

The Rhode Island Division of Taxation is asking hotels, owners of vacation properties, and others to let their customers know about Rhode Island’s new self-quarantine requirements and procedures in light of the coronavirus (COVID-19).

The Division’s latest Advisory includes a copy of the notice to hotels and others, as well as a copy of the letter they are asked to provide their guests arriving in Rhode Island, and an addendum. To view the Advisory, which has been revised to include the latest documents, please click here.

Deadline for filings and payments moved to July 15

The deadline for Rhode Island state tax filings and payments, normally April 15, has been postponed to July 15 this year due to the coronavirus pandemic.

No late charges will apply to those who file and pay by the new deadline of July 15, 2020, regardless of the amount. The relief is automatic; no additional steps need be taken by taxpayers or tax preparers. 

For details, please click here.

New ruling posted -- involves estate tax

The Division of Taxation was asked to rule on whether certain settlement proceeds are akin to wrongful death claims or loss of consortium claims and therefore shouldn't count as assets for purposes of a decedent's estate. To view Declaratory Ruling 2020-02, click here.

April filing deadline

In conjunction with announcements made today by United States Treasury Secretary Steven T. Mnuchin and Rhode Island Governor Gina M. Raimondo involving the April 15, 2020, deadline for certain tax filings and tax payments, the Division of Taxation will mirror the federal extensions and is awaiting the issuance of written guidance from the Internal Revenue Service. The Division intends to post further guidance as soon as possible on the agency’s special webpage: www.tax.ri.gov/COVID.

New Administrative Decisions

The Division of Taxation has posted its latest Administrative Decisions.

• Decision 2020-02 concerns whether a taxpayer's request for a refund from its sales and use taxes should be denied.
• Decision 2020-03 focuses on whether the Division should disallow a modification that the taxpayers made for Rhode Island personal income tax purposes.