Tax Headlines

1827

Kansas ~ Personal Income Tax: Guidance Issued Regarding the Application of H.B. 2117 to Certain Income Received by Individuals

The Kansas Department of Revenue has issued a revenue ruling to provide guidance on how the department will administer Section 12 of H.B. 2117, Laws 2012, which added a new personal income tax subtraction modification to §79-32,117, K.S.A., with regard to certain income (such as dividends, interest, capital gains, gain from sale of business assets, income from partnerships, S corporations, trusts and estates, and retirement benefits, such as IRA distributions, pensions and annuities) received by individuals. In order for income to qualify for the subtraction, and therefore be exempt from Kansas income tax, the income must be properly reported on Schedule C, Schedule E, or Schedule F, as well as on Line 12 (in the case of income reported on Schedule C), Line 17 (in the case of income reported on Schedule E), or Line 18 (in the case of income reported on Schedule F) of the taxpayer’s federal Form 1040, pursuant to the IRC and any instructions or regulations promulgated by the IRS.

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IRS Modified Accounting Method Rules Applicable to Corporate Reorganizations or Tax-Free Liquidations, Transporting Electricity, Energy-Efficient Commercial Building Property (Rev. Proc. 2012-39)

The IRS has issued new procedures modifying certain rules applicable to a taxpayer that engages in a corporate reorganization or tax-free liquidation described in Code Sec. 381(a) that occurs on or after August 31, 2011. The new guidance also modifies rules regarding a change to the method of accounting for taxpayers in the business of transporting, delivering, or selling electricity.

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IRS Provides Safe Harbor for Employers to Use to Determine Which Employees Are Full-Time for Shared Employer Responsibility Provisions (Notice 2012-58)

The IRS and Treasury Department have provided guidance, which is being issued in substantially identical form by the Departments of Labor and Health and Human Services, regarding the provisions of the Patient Protection and Affordable Care Act (Affordable Care Act) (P.L. 111-148 ).

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West Virginia ~ Sales and Use Tax: Governor Again Vows Elimination of Tax on Grocery Food

In remarks delivered to West Virginia business leaders at the Greenbrier Resort in White Sulphur Springs, Gov. Earl Ray Tomblin stated that the consumers’ sales and service tax on food and food ingredients will be completely eliminated in 2013 and that with a healthy “Rainy Day” Fund, he is committed to ensuring that tax reductions put in motion become a reality.

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Rhode Island ~ Multiple Taxes: Amnesty Program Launched

The Rhode Island Division of Taxation has issued a notice reminding taxpayers that the state’s tax amnesty program will run from September 2 through November 15, 2012. To qualify for amnesty, a taxpayer must file an amnesty application, file past-due returns, and pay delinquent tax during the amnesty period. The division will waive penalties, reduce interest by 25%, agree not to pursue civil or criminal penalties, and allow a taxpayer to renew licenses. The division has created a website (http://www.taxamnesty.ri.gov/ ) that includes forms and other amnesty program information.

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