Regulatory Analysis
The Maryland Department of Taxes recently released an updated version of Form CRA, Combined Registration Application. This form is used by businesses in Maryland to register themselves with the Comptroller’s Office for the purposes of a number of tax types including Withholding Tax. There is only one update to the most recent version of this […]
The Governor of Hawaii has signed into law Act 66: Electronic Filing of Tax Returns. The new law authorizes, but does not mandate, the Department of Taxation to require electronic filing of tax returns from: Employers with annual withholding tax liability of more than $40,000; Taxpayers with annual general excise tax or transient accommodations tax liability […]
The injunction that had been keeping South Dakota from enforcing its 2016 economic nexus law has been lifted. The Governor of South Dakota, Dennis Daugaard, has signed 2018 Special Session Senate Bill 1 into law, which allows the state to finally collect sales tax from certain online sales. Remote sellers with more than 200 transactions or $100,000 or more […]
The IRS recently published a new version of Publication 1220 for tax year 2018. Publication 1220 contains the electronic filing instructions and specifications for Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G. A number of changes were made to Publication 1220 from the previous version issued in February 2018, which include the following: Specifications […]
The IRS recently published an updated version of Publication 1281, Backup Withholding for Missing and Incorrect Name/TIN(s). This publication provides information on backup withholding procedures as they relate to information reporting involving missing or incorrect taxpayer identification numbers, or TINs. This recent update follows an update from July 2018, and provides a number of grammar […]
The Mexican Congress is proposing to re-establish a reduced VAT rate in the border states of Baja California, Baja California Sur, Quintana Roo, and in the municipalities of Caborca and Cananea of the state of Sonora. The new proposed rate for those regions would be 8%, applicable to transactions of goods or services made by inhabitants […]
The Colorado Department of Revenue has adopted temporary emergency regulations to require out-of-state retailers that are doing business in Colorado and have substantial nexus with the state to collect Colorado sales or use tax beginning December 1, 2018. Out-of-state retailers are considered to have a substantial nexus with Colorado for sales tax purposes if the […]
After a meeting with the Confederation of Chambers of Commerce and Tourism (CONCANACO), the Mexican Tax Administration (SAT) decided to postpone for two months the new process of Cancellation of the CFDI (https://www.sat.gob.mx/noticias/54244/se-prorroga-al-1-de-noviembre-de-2018-la-operacion-del-nuevo-proceso-de-cancelacion-de-facturas). The petition of postponement was based on the fact that a lot of taxpayers were not ready from the technological standpoint, to […]
On August 31, 2018, the Indiana Department of Revenue issued a tax bulletin regarding the recently resolved legal challenge to the state's remote sellers law. The department will begin enforcing Indiana's economic nexus law on October 1, 2018. Pursuant to House Enrolled Act (HEA) 1129, Indiana law (IC 6-2.5-2.1(c)) requires a seller without physical presence in Indiana to collect sales […]
Illinois recently published an updated version of Booklet IL-700-T, Illinois Withholding Tax Tables. This publication provides information and instructions relating to withholding tax calculation, remittance, and reporting for those with withholding tax obligations in Illinois. This latest version of the Booklet adjusted the withholding tax tables to account for an increase in the Illinois Standard […]
The IRS has published a 2019 draft version of Form 1099-K, Payment Card and Third Party Network Transactions. This form is used to report payment card transactions or payments received through third party network organizations. The only change to the draft version of this form is to the electronic filing due date, which was adjusted […]
The IRS has published the 2019 draft version of Form 1099-MISC, Miscellaneous Income. This form is used to report various non-wage sources of income. There are two notable changes to the 2019 draft form, which are as follows: Under “Amounts shown may be subject to self-employment (SE) tax”, the instructions state that if you are […]
Maine Revenue Services has published its 2018 version of the Business Tax Registration Application Booklet. The booklet contains forms and instructions for establishing new tax accounts or for EFT for various types of taxes, including Income Tax Withholding. There are no substantive updates to the instructions or forms – but taxpayers should use the versions of […]
The IRS recently published draft instructions for the 2019 Form 1098-F: Fines, Penalties, and Other Amounts. Form 1098-F is a new form created and required by Section 6050X, which was enacted as a part of the Tax Cuts and Jobs Act of 2018. Government or government entities that exercise self-regulatory powers must file a separate […]
The Colorado Department of Revenue recently released an updated version of Form DR 1102, Address Change or Business Closure Form. This form is used by businesses to provide updated information relating to businesses registered with the Colorado Department of Revenue for tax remitting and reporting purposes. Other than minor formatting changes, there is only one […]
The Comptroller of Maryland, Revenue Administration Division recently updated the Maryland Employer Withholding Guide. This guide provides information to employers on how the withholding tax law applies to them, which payments are subject to withholding, determining withholding payments and reporting, and how to file their withholding reports. The guide also provides withholding tax tables based […]
The New York Department of Taxation and Finance has released the interest rate per annum (compounded daily) on refunds and late payments assessments for the period 10/1/2018 thru 12/31/2018. The interest rates on withholding refunds and late payments remain unchanged, at 4% and 9%, respectively.
The Pennsylvania Department of Revenue has released its 2018 W-2 and 1099 Employer Withholding Reporting Instructions and Specifications Handbook, which filers should consult when electronically uploading W-2 and 1099 filings. There are no substantive changes to the specifications. The instructions now clarify that the specifications in this publication aren’t effective until January 3, 2019. Current specifications […]