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The Rhode Island Division of Taxation has launched an electronic filing system for the annual sales and use tax reconciliation form. Online reconciliation filing is only available to taxpayers who are registered to make electronic sales and use tax payments via ACH debit.
Click here for more information.
Under pre-Act law, the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001, other than those made permanent or extended by subsequent legislation, were set to sunset and no longer apply to tax or limitation years beginning after 2010. Beginning in 2011, the EGTRRA sunset would have wiped out a host of favorable tax rules, such as: favorable income tax rate structure for individuals; marriage penalty relief; and liberal education-related deduction rules. Similarly, under Sec. 303 of the Jobs and Growth Tax Relief Reconciliation Act of 2003, the favorable tax treatment of long-term capital gain and qualified dividends would have ended after 2010.
The alternative minimum tax (AMT) exemption amounts were “temporarily” increased for four years by EGTRRA, and then “temporarily” increased again by a succession of tax laws. The ability of individuals to use most nonrefundable personal credits to offset AMT also is “temporary,” and has been extended over the years by a series of new laws. Under pre-Act law, after 2010, the AMT exemption amounts were to have plummeted to their pre-EGTRRA level, and individuals would not have been able to use most nonrefundable personal credits to offset AMT.
Finally, the American Recovery and Reinvestment Act of 2009 temporarily boosted the credit incentives for higher education (i.e., created the American Opportunity Tax Credit, or AOTC), and liberalized the rules for the refundable child tax credit and the earned income tax credit (EITC). Under pre-Act law, these ARRA incentives would have ended on December 31, 2010.
New law. Under 2010 Tax Relief Act Secs. 101 through 103, the Sec. 901 EGTRRA sunset, the Sec. 303 JGTRRA sunset, and the ARRA sunsets relating to the AOTC, child tax credit, and EITC are extended for two years (one year in case of the adoption rules).
Caution: Unless Congress acts, all of the favorable rules will revert after 2012 to their pre-EGTRRA, pre-EGTRRA, and pre-ARRA rules. For example, the tax rates for individuals in 2013 will be 15%, 28%, 31%, 36%, and 39.6%.
Stay tuned for more posts about this new tax law.
S. 3533, 111th Cong., 2d Sess. (June 23, 2010), the “Responsible Estate Tax Act of 2010,” introduced by Senators Bernard Sanders (I-Vermont), Tom Harkin (D-Iowa) and Sheldon Whitehouse (D-R.I.), would:
According to a recent report in the Boston Business Journal, the 87 new auditors and tax collectors hired by the Massachusetts Department of Revenue last year have paid tremendous dividends to the Commonwealth’s coffers. According to this report by Lisa Van Der Pool, the Massachusetts Department of Revenue invested about $6 million last year and collected about $72 million in additional taxes. Nice return on investment. This article also reports that, according to the Department of Revenue, Gov. Deval Patrick has proposed that the DOR take on 14 more collectors. Click here for the full article.
As more states struggle with budgetary and other fiscal constraints, expect to see more efforts to audit and collect taxes under the current system. Our attorneys at McLaughlin & Quinn, LLC have already felt this renewed effort in both Massachusetts and Rhode Island. The numbers of new cases is at an all-time high. These state efforts are focused not just on personal and corporate income taxes, but sales and use taxes, payroll taxes, and excise taxes, such as the cigarette tax, fuels taxes and others.
Ms. Van Der Pool’s article correctly points out that everyone should pay their taxes according to the law. But, as a tax attorney I can attest that there can certainly be differing opinions as to the proper interpretation of the law. However, merely not paying any taxes, or not filing tax returns, is not the appropriate method to challenge an interpretation of the tax law.
If you have been selected for audit, if you know you owe taxes, or if you have not filed all required tax returns, and if you want to get these matters settled and behind you, you need to seek competant tax advice immediately.
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