Regulatory Analysis
The Massachusetts Department of Revenue has released TIR 18-2, which contains the penalty schedule for individuals who fail to obtain health insurance in 2018, as mandated by Massachusetts law. Individuals who are able to afford health insurance coverage, but fail to obtain it, will be subject to penalties for each month of noncompliance. Penalties will be […]
The IRS has published its 2018 version of Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities. This publication provides substantive guidance to those with Form 1042-S filing obligations under FATCA and for payments to nonresident aliens (Chapter 4 and 3 withholding, respectively). There are several revisions and updates of which filers should be aware: […]
The IRS announced a new and regular backup withholding rate for the 2018 Form W-2G. Form W-2G is used to report gambling winnings and any federal income tax withheld on those winnings. Effective for taxable years beginning after December 31, 2017, the withholding rate applicable to winnings of $5,000 or more from sweepstakes, wagering […]
North Carolina's Department of Revenue recently updated Form eNC3, the Specifications for 1099 Reporting. There have been no changes to the specifications. The DOR has changed the deadline for Form 1099-K from March 31 to January 31. To read the specifications in full, please follow the link.
The State of Hawaii Department of Taxation recently published a number of updated forms used for withholding tax reporting and payment purposes. These forms and slips have been updated, but include only minimal changes for Tax Year 2017/Filing Year 2018. HW-2: State Income Tax Withheld and Wages Paid There were no changes made to […]
Maine's Revenue Services recently published a 2018 version of Form W-3ME, the Reconciliation of Maine Income Tax Withheld in 2018. There are no changes to the form itself. Electronic copies of payee statements must be filed with the Maine Revenue Services no later than January 31. The filing date is still February 28. To […]
The Panama Tax Administration (DGI) has issued a massive regulation detailing the requirements surrounding a new eInvoicing mandate that will be imposed on select taxpayers pursuant to a six month pilot program. The pilot will ultimately set the stage for a comprehensive eInvoicing requirement. The new publication (Resolution 201-0697/2018) which is more than 200 pages […]
The Colombian Tax Administration (DIAN) definitively declared its intention to impose a wide-ranging eInvoicing mandate via the issuance of Resolution 000010/2018. In summary, the resolution requires large taxpayers to issue and report electronic invoices by September 1, 2018, with an effective date substantially sooner than expected. This resolution comes as no surprise as the DIAN […]
Pennsylvania has recently enacted legislation requiring certain remote sellers, marketplace facilitators, and referrers to choose between either collecting and remitting Pennsylvania sales tax or complying with notice and reporting requirements. If any of the aforementioned do not collect and remit sales tax, notice must be provided to the purchaser regarding the sales and use tax, […]
On February 14, 2018, the U.K. Upper Tribunal released their decision on an appeal filed by Nestlé UK Ltd., regarding the VAT treatment of strawberry and banana flavoured Nesquik, The ruling validates tax rule applying varying VAT treatment based on the particular flavours. Specifically, Justice Snowden affirmed HMRC and First-Tier Tribunal (FTT) findings that although […]
The State of Hawaii Department of Taxation recently released an updated version of Form N-1, Declaration of Estimated Income Tax for Individuals. This form is used by individuals to submit their estimated tax liability for the year in which that income is earned: this updated form will be used for filing year 2018. There […]
Alabama recently passed Act 2017-294. This Act requires that Payment Settlement Entities (PSEs) file Form 1099-K for payees with an Alabama address. The 1099-K forms are due within 30 days after the Federal due date on or before April 30th each year. To view the announcement, please click here.
The State of Hawaii Department of Taxation recently released an updated version of Form VP-1, Tax Payment Voucher. This form replaces its predecessor form VP-1W, which was a general withholding tax payment voucher. VP-1 expands its applicability by allowing use for a variety of tax types. Specifically, VP-1 may be used to submit payments for […]
Congress recently passed the Bipartisan Budget Act of 2018 (Public Law No. 115-123). As a result of the bill passing, the mortgage insurance premium deduction has been extended for tax year 2017. Mortgage insurance premiums are reported on Box 5 of Form 1098. To view the bill in its entirety, please click here.
West Virginia recently published the final version of IT-105, their Electronic W-2 Reporting Specifications. This publication provides the rules and electronic specifications for reporting W-2 data through the West Virginia MyTax portal. There are a few updates to the 2017 version of these specifications, which are as follows: All 2017 withholding data must be […]
Rhode Island's Division of Taxation recently published W-2 Electronic Filing Requirements for Tax Year 2017. All electronic filings must be submitted in a .txt format. The Division of Taxation reminds filers that while W-2s may be submitted electronically or by magnetic media if appropriate, Form RI-W3 must be submitted by filed by paper. The address for Ri-W3 […]
On February 5, 2018, the European Commission backed Italy's e-invoicing mandate by recommending the EU Council approve Italy's derogation request from the EU VAT Directive. By way of background, Italy's mandate (which would become effective in two stages starting on July 1, 2018) requires taxpayers to provide, in real time, electronic invoices through the Italian […]
The Governor of Puerto Rico introduced a legislative proposal representing a comprehensive new fiscal plan intended to spur economic growth and development. The plan proposes numerous tax changes, including a reduction of a number of sales tax rates. Specifically, the Business to Business Services Rate would fall to 2% in 2019 and be completely eliminated […]