Regulatory Analysis
The Kentucky Department of Revenue has released Form 42A806-CD, Transmitter Report for CD Submission of Electronic Files in EFW2 or Pub 1220 Format. For Tax Years 2018 onward, filers submitting magnetic media reports to Kentucky must submit their media with Form 42A806-CD. The form requires the following information: Withholding account name. Withholding account number. Tax Year […]
The IRS has updated Form 5165, “Guide for Electronically Filing Affordable Care Act (ACA) Information Returns for Software Developers and Transmitters,” for Processing Year 2019. The following changes have been made: More information has been provided regarding the creation of an e-Services account. Additionally, there is a 2-factor authentication process. The List of Authorized Certificate […]
The West Virginia State Tax Department has added a new publication, “Requests for Waiver of Electronic Filing and Payment Requirements.” This publication is retroactively effective to January 1, 2018 and applies to returns and payments for tax periods beginning on or after that date. The instructions provide a clear definition of the term “undue hardship” […]
The West Virginia State Tax Department has updated Form WV-EFT-WR, the Electronic Filing and Payment Waiver Request. The form was last updated in 2014. The updated form requires more information from the taxpayer and includes clearer instructions both on form submission as well as clarifies the meaning of “undue hardship.” Taxpayers must prove undue hardship […]
The South Carolina Department of Revenue recently released SC Information Letter #18-11, which outlines the interest rates applied to underpayments and overpayments of taxes paid to the Department. The applicable interest rate of 5% carries over from the previous quarter, and will persist through December 31, 2018. To review this Information Letter in its entirety, […]
The IRS recently released an updated version of Publication 1586, Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs. This publication details the information related to penalty notices issued by the IRS (Notice 972CG), the procedure for addressing such notices, and the penalties themselves. There are a number of updates to the content of […]
Texas is working on a new post-Wayfair regulation. The current draft proposes to amend 3.286(b)(2) by removing references to “nexus” and replacing them with safe harbor for remote sellers. The draft proposal currently states that the comptroller will not impose collection requirements on remote sellers whose prior year Texas sales are below the safe harbor […]
Maryland has adopted emergency legislation that is effective October 1, 2018. Current regulation under COMAR 03.06.01.33 requires persons engaging in business in Maryland as out-of-state vendors to collect and remit sales and use tax on all taxable sales for use in the state. The current regulations define engaging in business as an out-of-state vendor so […]
The IRS has published the draft instructions for Forms 1094-B and 1095-B, as well as the draft instructions for 1094-C and 1095-C, to be used in conjunction with ACA filings for Tax Year 2018. The following changes have been made to the 1094/1095-B Instructions: “Coverage under a section 1115 demonstration waiver program” has been removed from the […]
The Colorado Department of Revenue recently released an updated version of Form DR 1102, Address Change or Business Closure Form. This form is used by businesses to provide updated information relating to businesses registered with the Colorado Department of Revenue for tax remitting and reporting purposes. Although this form was very recently updated in July […]
The Maryland Department of Taxes recently released an updated version of Form CRA, Combined Registration Application. This form is used by businesses in Maryland to register themselves with the Comptroller’s Office for the purposes of a number of tax types including Withholding Tax. There is only one update to the most recent version of this […]
The Governor of Hawaii has signed into law Act 66: Electronic Filing of Tax Returns. The new law authorizes, but does not mandate, the Department of Taxation to require electronic filing of tax returns from: Employers with annual withholding tax liability of more than $40,000; Taxpayers with annual general excise tax or transient accommodations tax liability […]
The injunction that had been keeping South Dakota from enforcing its 2016 economic nexus law has been lifted. The Governor of South Dakota, Dennis Daugaard, has signed 2018 Special Session Senate Bill 1 into law, which allows the state to finally collect sales tax from certain online sales. Remote sellers with more than 200 transactions or $100,000 or more […]
The IRS recently published a new version of Publication 1220 for tax year 2018. Publication 1220 contains the electronic filing instructions and specifications for Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G. A number of changes were made to Publication 1220 from the previous version issued in February 2018, which include the following: Specifications […]
The IRS recently published an updated version of Publication 1281, Backup Withholding for Missing and Incorrect Name/TIN(s). This publication provides information on backup withholding procedures as they relate to information reporting involving missing or incorrect taxpayer identification numbers, or TINs. This recent update follows an update from July 2018, and provides a number of grammar […]
The Mexican Congress is proposing to re-establish a reduced VAT rate in the border states of Baja California, Baja California Sur, Quintana Roo, and in the municipalities of Caborca and Cananea of the state of Sonora. The new proposed rate for those regions would be 8%, applicable to transactions of goods or services made by inhabitants […]
The Colorado Department of Revenue has adopted temporary emergency regulations to require out-of-state retailers that are doing business in Colorado and have substantial nexus with the state to collect Colorado sales or use tax beginning December 1, 2018. Out-of-state retailers are considered to have a substantial nexus with Colorado for sales tax purposes if the […]
After a meeting with the Confederation of Chambers of Commerce and Tourism (CONCANACO), the Mexican Tax Administration (SAT) decided to postpone for two months the new process of Cancellation of the CFDI (https://www.sat.gob.mx/noticias/54244/se-prorroga-al-1-de-noviembre-de-2018-la-operacion-del-nuevo-proceso-de-cancelacion-de-facturas). The petition of postponement was based on the fact that a lot of taxpayers were not ready from the technological standpoint, to […]