Regulatory Analysis
The IRS recently published an updated version of Publication 1281, Backup Withholding for Missing and Incorrect Name/TIN(s). This publication provides guidance and procedures for issuing and receiving Notice CP2100 and CP2100A, backup withholding relating to incorrect names/TINs, and sample forms for soliciting TINs from information return recipients. There is only one change to the publication, […]
The Virginia legislature recently passed legislation which makes significant changes to the reporting obligations of gig economy participants and specifically third-party settlement organizations. SB 211 makes changes to tax information reporting for gig economy participants, specifically third-party settlement organizations (TPSOs) who must issue Form 1099-K to report payments made to their payees. Under the new […]
The New Jersey Department of Treasury recently issued updated guidance for health coverage filings, extending the due date for coverage providers to file their 1095 health coverage forms for tax year 2019 with the Department of Taxation. Health coverage providers will now have until May 15, 2020 to provide the necessary 1095 forms to the Department of […]
The City of Kodiak, Alaska has enacted a one-day annual sales tax holiday. Under the terms of the Kodiak City Code, the sales tax holiday will take place on the first Saturday in March each year. For 2020, the holiday occurred on March 7th. The holiday applies to all sales and rentals of tangible personal […]
Approximately 25 local governments in Alaska have signed an intergovernmental agreement establishing a Commission that will provide governance over a streamlined, single-level administration of sales tax collection and remittance. The Commission recently adopted their uniform sales tax code which includes provisions requiring remote sellers and marketplace facilitators to collect and remit sales tax if their […]
The Supreme Court announced it would consider a challenge to the Affordable Care Act (ACA) colloquially known as Obamacare. The legal challenge, brought by the Attorney General of Texas, seeks to overturn the landmark healthcare law. The challenge proposes that since the ACA only passes constitutional muster through its tax implications, the 2017’s Tax Cuts and […]
As part of its 2020-2021 Budget Estimates, released on March 18, Saskatchewan revealed that it intends to pass the Provincial Sales Tax Amendment Act, 2020. This bill will enact initiatives to ensure out-of-province e-commerce platforms collect and remit Saskatchewan’s provincial sales tax (PST). Sovos is closely tracking Saskatchewan’s plans as they become available. To view Saskatchewan’s budget […]
As part of its Budget 2020, released on March 19, Manitoba is lowering its general retail sales tax (RST) rate to 6% from the current rate of 7%. This rate decrease becomes effective on July 1, 2020. To view Manitoba’s Budget 2020 in its entirety, please click here.
In response to the COVID-19 crisis, Puerto Rico declared an emergency sales tax holiday on “Items of First Necessity” from Monday, March 23, 2020 until Thursday, April 30, 2020. During this period, the Puerto Rico sales tax will not apply to the following items: hand sanitizers, personal disinfectants, tissues, masks, household cleaning supplies, gloves, pain […]
Eight local governments in Alaska have enacted ordinances implementing the Alaska Remote Seller Sales Tax Commission’s Uniform Sales Tax Code. They include: Juneau, Wasilla, Kenai Peninsula Borough, Kenai, Seward, Soldotna, Homer and Seldovia. Remote sellers and marketplace facilitators doing business in these locations are required to collect and remit sales tax if their statewide gross […]
Puerto Rico’s revenue department, la Hacienda, has announced that its SURI system for electronic payment and filing of taxes will undergo a system upgrade from February 20 to February 24. The system will be unavailable at that time. As a consideration for this upgrade, la Hacienda is extending the due dates for 2019 informatives due […]
Massachusetts Governor Charlie Baker’s recent FY2021 budget proposal includes sections aimed at modernizing and improving the integrity of sales tax collection in the Bay State. The proposal takes a two-phased approach to modernization in order to improve the speed of current collection and remittance methods. Phase 1: Businesses will be required to remit collections from […]
The IRS recently released an updated copy of the 2019 Form W-4P, Withholding Certificate for Pension or Annuity Payments. This form is used by recipients of pensions, annuities, and certain forms of deferred income to communicate the correct federal income tax withholding to withhold from payments. There is no update to the form itself from […]
West Virginia has released an updated Form WV/IT-101A. See below for changes. Address for State Tax Department updated to P.O. Box 3943, Charleston, WV 25339-3943 but only on the top of the form, not at the “Mail To” address. Language removed: Taxpayers required to file electronically will no longer receive returns for the tax types subject […]
A new bill making its way through the Hawaii legislature could impose tax on remote motor vehicle rental marketplaces. The proposed law would deem certain motor vehicle rental marketplaces (such as those popular on online travel websites) to be lessors and operators responsible for the collection and remittance of motor vehicle rental taxes and surcharges […]
Georgia has enacted marketplace legislation under HB 276. Effective April 1, 2020, marketplace facilitators are responsible for collecting and remitting Georgia sales and use tax when their sales equal or exceed $100,000 in the previous or current calendar year. Facilitated sales and sales made directly by the marketplace facilitator both count towards the $100,000 threshold. […]
The IRS recently announced the implementation of provisions from P.L. 116-94, Division Q, which extends the applicability of Section 163(h)(3)(E) for tax years 2018 through 2020 to provide for the deductibility of mortgage insurance premiums (“MIP”) which are reported on Form 1098. More specifically, MIP aggregating in amounts of $600 or more received during a […]
The Vermont Department of Taxes has released updates to their WHT-436, Quarterly Withholding and Reconciliation and Health Care Contribution form, and their WHT-436 Instructions, Quarterly Withholding Reconciliation. WHT-436 Changes In part III, line 6 has been changed to an un-numbered checkbox, shifting lines 7-12 down one number. The HCC Premium per FTE Exemption, on line […]