Regulatory Analysis
In light of the COVID-19 pandemic the California Franchise Tax Board (“FTB”) has issued extensions for reporting and payment of certain tax types, which include withholding tax. For non-resident/non-wage withholding payments and reporting for the first two pay periods, the new due date for reporting and payment is now July 15, 2020. The third pay […]
New Mexico Taxation & Revenue recently published a bulletin describing withholding tax relief due to the COVID-19 pandemic. For withholding taxes due to be reported and paid between March 25, 2020 and July 25, 2020, taxpayers may report or pay without penalty no later than July 25, 2020. This includes those withholding payments and reports […]
The South Carolina Department of Revenue recently issued extensions as tax relief in light of the COVID-19 pandemic. Tax returns and payments due between April 1, 2020 and June 1, 2020 will now be due on June 1, 2020. Regarding payments, penalties and interest will not be charged if the payments are made by June […]
Making the announcement through Notice 2020-23, the IRS has extended the due date for a number of taxpayer actions which include filing Forms 5498, 5498-QA, 5498-ESA, and 5498-SA. Citing to a list of taxpayer acts found in Revenue Procedure 2018-58, affected taxpayers are granted an extension of time relating to “time-sensitive acts” due to be […]
Washington State recently enacted new legislation which would exempt feminine hygiene products from the retail sales tax. Washington is the latest state to exempt such products in recent years, following in the footsteps of states such as New York, Florida, and Utah who have also recently exempted such products. The new law takes effect beginning July […]
House Bill 7097 was recently passed by the Florida Legislature and approved by Governor DeSantis, paving the way for a new information return requirement in the state. Under Section 212.134 of the Bill, payment settlement entities and other third-party facilitators who handle payment card and third-party network transactions must file a 1099-K return with Florida […]
Tennessee recently enacted legislation requiring marketplace facilitators that meet certain thresholds to collect tax on behalf of their marketplace sellers. Marketplace facilitators must collect tax when they facilitate total sales of more than $500,000 to consumers in Tennessee during the previous 12 months. Additionally, marketplace facilitators must source sales of tangible personal property on their […]
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 Iowa Department of Revenue announced that the due date for certain withholding payment deposits will be extended in light of the evolving situation surrounding the COVID-19 pandemic. Specifically, Iowa residents or other taxpayers doing business in Iowa assigned to the semi-monthly deposit cycle will see an extension: for the period ending on March 15, […]
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 […]