Regulatory Analysis
Revenu Québec recently released the RL-3 (Investment Income) for tax year 2024 through Revenu Québec’s Partner program, which provides early access to forms for product developers and other tax professionals. On Copy 1 of the RL-3, the revision date has been updated. On Copy 2, there are several changes related to the capital gains inclusion rate […]
Missouri recently released the 2024 Employer Reporting of 1099 Instructions and Specifications Handbook. The tax year has been updated throughout. The CF/SF guidance has been updated to clarify that only filers who have never been approved to participate in CFS (through IRIS or FIRE) are required to submit a copy of the IRS approval letter […]
The IRS recently updated its Publication 1220. The first version for 2024 was released last week on September 19, 2024. This week, an updated version was released with two changes to the document. A previously omitted section for the Zip Code field positions for the “B” Record of Form 1099-LTC was added, and some new […]
The IRS has revised Publication 5165, “Guide for Electronically Filing Affordable Care Act (ACA) Information Returns.” The document provides guidance on electronic filing of ACA returns to the IRS. In addition to expected updates to years referenced, there are a number of changes. Additional direction on retrieving acknowledgements has been provided. These step-by-step instructions detail […]
The IRS recently released its 2024 Publication 1187, the Specifications for Electronic Filing of Forms 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding. This publication is updated at least annually with later changes occurring occasionally. There were few substantive changes in the publication this year, the only notable one being the use of field […]
The City and Borough of Sitka Assembly has approved a resolution declaring November 29th & November 30th, 2024, as sales tax free days. This tax holiday applies to all sales made within the City and Borough, except any sale of fuel, alcoholic beverages, tobacco products, marijuana, and any sale which is part of a continuing […]
As a part of the November 2024 election in South Dakota, a citizen-initiated ballot measure (Measure 28) will ask voters whether to eliminate the state’s 4.2% sales and use tax on most food items. The proposed change would still allow sales tax on alcoholic beverages and prepared food. It would also allow local governments to […]
New Jersey recently enacted S-721. This law provides an exemption for the sale of certain investment metal bullion and coins and is effective starting January 1, 2025.
Beginning with tax year 2024 returns filed in 2025, Mississippi lowered its electronic filing threshold for filing 1099 and W-2 to 10 or more returns. Previously, Mississippi applied a 25 or more form electronic filing threshold. Mississippi has not yet updated its guidance to reflect this change. The penalty for failure to file electronically when required […]
The IRS recently updated the Instructions for Forms 1099-R and 5498 to reflect that the 10% tax on early distributions does not apply to distributions for emergency personal expenses, terminally ill individuals, and domestic abuse victims. For Form 1099-R, distribution code 1 should not be used in Box 7 to report these types of early […]
The IRS recently re-released the 2024 5498 (IRA Contribution Information). The instructions for Box 14a and Box 14b were updated to reflect that the 10% tax on early distributions does not apply to distributions for emergency personal expenses, terminally ill individuals, and domestic abuse victims. Repayments made after 60 days for these early distribution types […]
The IRS recently released its 2024 Publication 1220. This publication contains the filing specifications for the FIRE system to file forms of the 1097, 1098, 1099, 3921, 3922, 5498, and W-2G series. This year, most changes to the publication were editorial in nature, including updates to the year of the document throughout and minor changes […]
Alabama will exempt honeybees from state sales and use tax starting October 1. The exemption will also apply to honeybee “inputs” and “byproducts”. The exemption will not apply to local taxes, and is set to expire on September 30, 2029.
Alabama will exempt hearing aids from state sales and use tax starting October 1. The exemption will not apply to local taxes, and is set to expire September 30, 2029.
The City of Mekoryuk has completed the process to join the Alaska Remote Sellers Sales Tax Commission (ARSSTC). Sellers must begin collection on 10/1/2024 and forms for filing will be updated to include Mekoryuk on 11/1/2024.
Maine recently released its 2024 Electronic File Specifications for Form W-2. The specifications allow business filers to format their W-2 bulk files for upload and filing with Maine Revenue Services (MRS) on the new Maine Tax Portal (MTP). There were several non-substantive updates to the document including some rearranging of sections and editorial changes and […]
Illinois Governor J.B. Pritzker signed House Bill 3144. In this legislation, Illinois eliminated its 1% grocery tax. However, despite eliminating the tax at the state level, Illinois will allow local authorities to impose their own grocery taxes. These changes will take effect January 1, 2026.
Alabama recently expanded the types of overtime that qualify for an exemption from personal income taxes and withholding. From January 1, 2024 to September 30, 2024, overtime compensation is exempt from Alabama income tax and withholding if it is paid to full-time hourly employees for working more than 40 hours in a week. Beginning October 1, 2024 […]