Regulatory Analysis

Posted 1 month ago by Paul Ogawa
Iowa Extends W-2 and 1099 Filing Deadline for TY 2018

The Iowa Department of Revenue announced today that due to technical difficulties with a segment of taxpayers attempting to file W-2 and 1099 reports electronically through the Iowa eFile & Pay system, the electronic filing deadline for these forms will be extended until February 28, 2019. Please note that all other functions of the eFile & […]

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Posted 1 month ago by Paul Ogawa
Wisconsin Extends W-2 and 1099 Filing Deadline for TY 2018

The Wisconsin Department of Revenue announced today that it will be extending the deadline for W-2 and 1099 filing automatically from January 31, 2019 to Monday, February 4, 2019. The Department notes that extreme weather conditions leading to business closings and delays with the US Postal Service are factors in this decision to extend the filing deadline. […]

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Posted 1 month ago by Tom Hospod
Massachusetts Publishes TIR 19-1: Individual Mandate Penalties for Tax Year 2019

Massachusetts has released the individual mandate penalties for tax year 2019. Adults deemed able to afford health insurance, but fail to maintain health insurance coverage for any part of the year, may be subject to these penalties. Coverage must meet minimum creditable coverage standards established by the Health Connector. The penalties, which will be imposed through […]

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Posted 2 months ago by Tom Hospod
Idaho Updates Income Tax Withholding Guide

Idaho has revised its Income Tax Withholding Guide. It was last updated in June 2018. The only change to this publication was the addition of the new ID W-4, Employee’s Withholding Allowance Certificate, in the guide’s appendix (page 50). Idaho employees should enter their withholding allowances on this form rather than the federal Form W-4.

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Posted 2 months ago by Tom Hospod
Hawaii Issues Revised Forms for Withholding and Business Registration

The Hawaii Department of Taxation has released revised versions of Form VP-1, Tax Payment Voucher; Form BB-1, Basic Business Application; and Form N-1, Declaration of Estimated Income Tax for Individuals. Filers should use these versions of the forms, as the prior versions are now obsolete. The only change to the VP-1 is that if a payment is submitted […]

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Posted 2 months ago by Tom Hospod
Oregon Publishes Bulletin 2018-02

The Oregon Department of Revenue has published Bulletin 2018-02, containing the interest rates for refunds, deficiencies, and delinquencies for the year 2019. The interest rates will change effective January 1, 2019. Rather than 5% on refunds, deficiencies, and delinquencies, the interest rate will increase to 6%.

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Posted 2 months ago by Tom Hospod
Connecticut Revises Certain Publications and Forms for Tax Year 2018

The Connecticut has published Informational Publication 2018(8), Connecticut Tax Guide For Payers of Nonpayroll Amounts, in addition to revising AU-408, Specifications for Submission of 2018 State and Local Government Tax Exempt Income (TEI) Information and AU-409, Transmittal Form for Submission of State and Local Government Tax Exempt Income (TEI) Information.  The following changes have been […]

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Posted 2 months ago by Tom Hospod
South Carolina Releases New Tax Registration Application

The South Carolina Department of Revenue has issued a new Form SCDOR-111, Tax Registration Application. Taxpayers should note the following changes to the form: There is a new mailing address to which to send the completed form: SC Department of Revenue, P.O. Box 125, Columbia, South Carolina 29214-0850 Clarification that Field 1 should contain the taxpayer’s […]

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Posted 2 months ago by Tom Hospod
Kentucky Updates Withholding Information and Introduces New Form K-5

Kentucky has several updates relative to withholding, including Form 42A808, Authorization to Submit Employees Annual W-2 Information in EFW2 Format via Kentucky Department of Revenue Web Site; Form K-5, Employers Report of Withholding Tax Statement; and Form K-5 Instructions. There are slight changes to Form 42A808: This form can now be used to update contact information. A PIN is […]

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Posted 2 months ago by Tom Hospod
ACA Information Reporting (AIR) Production to Begin January 17th

The IRS has announced that the Production environment for ACA Information Reporting (AIR) will be open beginning Thursday, January 17, for tax year 2018 electronic transmittals. It will go live at 9:00 a.m. EST. Additionally, prior year returns, including corrections and replacements, can be electronically filed once Production goes live.

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Posted 2 months ago by Tom Hospod
North Dakota Publishes 2019 Withholding Tax Tables and Rates and Instructions for Wages Paid

North Dakota has released two publications relative to 2019 withholding: The Withholding Tax Tables and Rates and Instructions for Wages Paid. There are not any changes to the instructions – only to the rates and amounts for the various withholding/payment cycles.  Likewise, the Withholding Tax Tables – which show the amounts to withhold for each tax bracket for […]

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Posted 2 months ago by Nicolette Chasse
Maine Publishes Final Version of 1099 and W-2G Specifications

Maine’s Revenue Services has published the final draft of “Electronic File Specifications for Forms 1099 and W-2G.” Revenue Services published a draft of the specifications in November 2018. No changes have been made from the draft version to the final version. To view the 2018 Electronic File Specifications, please follow the link.

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Posted 2 months ago by Sovos
Rhode Island Governor Recommends Eliminating Online Marketplace Seller’s Loophole

As part of the Fiscal Year 2020 Executive Summary, Rhode Island Governor Gina Raimondo, proposes imposing a sales tax on digital downloads of videos, music, and books.  Additionally, the summary proposes the elimination of a loophole that allowed online third-party marketplaces to avoid sales tax.  At this time, there is no further legislative language describing exactly when or how […]

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Posted 2 months ago by Sovos
New Rules for Taxpayers’ CFDIs Subject to Fiscal Benefits for Mexico’s North Border

By Francisco de la Colina, Legal Counsel, TrustWeaver Francisco de la Colina is a lawyer working on the regulatory team at Sovos TrustWeaver. On 31 December 2018 a decree establishing certain tax benefits for the North Border Zones in Mexico was published in the country’s Official Journal. The benefits aim to bring some stimuli and […]

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Posted 2 months ago by Andrew Decker
New York Announces Sales Tax Obligations for Remote Sellers

The New York Department of Taxation and Finance has issued Notice N-19-1 announcing its intention to enforce collection of sales tax from remote sellers. The Department has found that the United States Supreme Court ruling in South Dakota v. Wayfair (138 S.Ct. 2080 [2018]) has activated New York Tax Law 1101(b)(8)( i )(E) and 1101(b)(8)(iv). […]

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Posted 2 months ago by Sovos
Pennsylvania Announces New Post-Wayfair Sales Tax Collection Requirements for Out-Of-State Retailers

In response to the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Pennsylvania will soon require certain out-of-state retailers to collect and remit sales tax on sales into Pennsylvania. Beginning July 1, 2019, out-of-state retailers are required to collect Pennsylvania state sales tax if their gross sales into Pennsylvania exceed $100,000 during the previous twelve […]

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Posted 2 months ago by Sovos
Wyoming’s New Economic Nexus Rules May Affect DtC Wine Shippers

Last year, the Wyoming Department of Revenue (DOR) announced new “economic nexus” rules, expanding the number of businesses that will be required to collect and remit tax on sales made into the state. We have recently confirmed with the Wyoming Liquor Control Division (LCD) and the DOR that licensed wineries making direct-to-consumer (DtC) sales to […]

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Posted 2 months ago by Tom Hospod
District of Columbia Updates Several Forms and Instructions

The District of Columbia Office of Tax and Revenue has released several forms and instructions related to tax year 2018 withholding for the 2019 filing season. The following forms have been updated with no changes to the form other than the tax year to “2019:” FR-900NP – Annual Return for Withholding Reported on Forms 1099 and/or W-2G FR-900Q – […]

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Posted 2 months ago by Tom Hospod
Delaware Publishes 2019 Withholding Tax Due Dates

The Delaware Division of Revenue has released a publication listing the 2019 withholding tax due dates for Eighth-Monthly (Form W1A), Monthly (Form W1), and Quarterly (Form W1Q) withholding filers. Returns should be received by the due date of each return. For those filing electronically, transactions must be initiated at least one day prior to the due date. […]

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Posted 2 months ago by Tom Hospod
Oklahoma Publishes 2019 Withholding Tax Tables

The Oklahoma Tax Commission has published its 2019 Income Tax Withholding Tables, Packet OW-2. The new tables become effective January 1, 2019. The only change is that employers with Oklahoma withholding/wage details must submit W-2 and W-3 for tax year 2019 by January 31, 2020. Previously, including tax year 2018 (due in 2019), the due date […]

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