Regulatory Analysis
Minnesota has updated Fact Sheet 19: Form 1099-B Municipal Bond Payment Reporting Information There have been instruction updates for “B” Record Position 448-487 “Payee City” and Position 488-489 “Payee State”. You can view Minnesota Fact Sheet 19 here for reference.
As of 2023, file submission by Manual Method or Simple File is only available for 1099-MISC forms. Submission by Manual Method or Simple File not available for all other 1099 forms. Last Year all 1099 forms could be submitted using Manual Method or Simple File. All 1099 forms can be submitted following 1220 format. Only […]
Minnesota has released its 2023 Employer Withholding Guide. If you employ a Minnesota resident who works outside the United States, you are required to withhold Minnesota tax on wages subject to U.S. federal income tax withholding. All wages earned by Minnesota residents (no matter where the work was physically performed, including outside of the United […]
The Ohio Department of Taxation releases electronic filing specifications for forms W-2 and 1099-R for the 2022 tax year. The due date for filing both W-2 and 1099-K has been changed from March 2, 2022 to January 31, 2023. Additionally, the threshold and limits for Social Security wage base, employer and employee tax rate for […]
Montana has recently published the 2022 Employer Withholding Guide. Montana has added a reporting requirement for Form 1042-S for Foreign Persons U.S. Based Income Subject to Withholding. The form must be filed directly with Montana if there is a withholding amount of $600 or more. It is due to Montana by January 31st. The 1042-S […]
West Virginia has released 1099 and W-2 Electronic Submission Specifications for Tax Year 2022. There are no other changes to either 1099 or W2 specifications when compared to the versions released for Tax Year 2021. To view the complete 1099 Specifications, click here. To view the complete W-2 Specifications, click here.
Maryland has released 2022 W-2 Specifications. Maryland made an important announcement that magnetic media is no longer be an accepted method starting in TY2022 (filing year 2023). Further new penalties are imposed. Employers who fail to file the annual reconciliation electronically for 25 or more W2’s are subject to a $100 fine per violation. Failure to […]
12/7/2022 Rockland and Westchester Counties New York have suspended their sales tax on residential energy beginning December 1, 2022. The suspension of sales tax in Rockland County is permanent while in Westchester County the suspension will expire after three months. Sales of non-residential energy are not affected. Please note that the sales taxes imposed on […]
Under HB 2106, Kansas will reduce the state sales and compensating use tax rate on food and food ingredients from 6.5 percent to 4.0 percent beginning January 1, 2023. The rate will be further reduced to 2.0 percent on January 1, 2024, and 0.0 percent on January 1, 2025. Kansas defines “food and food ingredients” […]
As a result of Iowa SF 2367, diapers and feminine hygiene products will be exempt from sales and use tax in Iowa starting on January 1, 2023. The exemption for diapers covers cloth and reusable diapers for both children and adults, while the exemption for feminine hygiene products extends to tampons, panty liners, menstrual cups, […]
12/7/2022 Governor Parson signed SB 153 in 2021 which, among other provisions, enacted marketplace rules to come into effect on January 1, 2023. Missouri is the final US state to enact marketplace rules. Beginning January 1, 2023, marketplace facilitators will be liable to collect and remit sales and use tax on sales made through their […]
12/7/2022 Washington’s Statewide 988 behavioral health crisis response & suicide prevention line tax is scheduled to increase from $0.24 to $0.40 beginning January 1. The tax applies on every retail sale of a prepaid wireless service. The tax also applies on every switched access (wireline) line, radio access (wireless) line, and Voice over Internet Protocol […]
The Colorado Public Utilities Commission set the Emergency 911 Fee to $1.71 per transaction and the Emergency 988 Fee to $0.27 per transaction for 2023. See here for additional information from the Colorado Department of Revenue.
Twice per year Puerto Rico holds a two day back-to-school sales tax holiday. These holidays occur in January and July. During the sales tax holiday periods, uniforms and school materials listed in section 4030.20(b) of the Puerto Rico Internal Revenue Code are exempt. The next holiday period will be from January 13-14, 2023. More information […]
In 2022, Kentucky enacted House Bill 8 extending the state’s sales and use tax to 35 additional services. Effective January 1, 2023, the list of newly taxable services include lapidary services, personal training, parking services, as well as marketing. The full list of newly taxable services can be found here.
Due to changes in Public Act No. 21-58, Connecticut is updating and expanding the applicability of their Bottle Deposit effective January 1, 2023. For the purposes of the Bottle Deposit, “carbonated beverages” will now include hard seltzers and ciders. Additionally, “noncarbonated beverages” will include plant water, juice, juice drinks, tea, coffee, kombucha, plant infused drinks, […]
The state of Virginia has exempted food for human consumption and essential personal hygiene products from state sales tax. Previously, products fitting these descriptions were subject to a reduced rate of 1.5%. Beginning on January 1, 2023, these products will be exempt from state sales tax, but may still be subject to a 1% local […]
The IRS recently released updated ACA forms, 1094-B: Transmittal of Health Coverage Information Returns, 1095-B: Health Coverage, 1094-C: Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns and 1095-C: Employer-Provided Health Insurance Offer and Coverage Below is a summary of the substantial changes: 1095-B and 1095-C – Instructions regarding individuals who do not have the […]