Updates in Washington, DC, Maryland and Virginia

Created on Thursday, 17 February 2011 06:39

Written by Billy Thomas

District of Columbia:  Reports have shown that E-filing your return typically results in a quicker refund.  Now DC is allowing individual taxpayers the opportunity to track his or her refund online.  Follow the link to check your refund status: Refund Status Inquiry

Maryland:  The Comptroller of Maryland has announced a ‘Tax Free’ Weekend.  Well tax-free for those individuals and entities purchasing qualified energy efficient equipment.   Qualified energy efficient equipment includes equipment with the ‘energy star’ product seal (refrigerators, heat pumps, furnaces, air conditioners, etc.).  Purchases of ‘energy star’ products between February 19, 2011 through February 21, 2011 will NOT be subject to the 6% sales tax.

Virginia:  Similar to Maryland, Virginia will have a qualified energy efficient equipment sales tax holiday between October 7, 2011 and October 10, 2011.  Conversely, purchases of this nature will only be exempt from sales tax if the equipment is purchased for noncommercial home or personal use.  

In addition, Virginia is following suit with the federal government.   Virginia has again passed legislation for Fixed Date Conformity through 2010.  Fixed Date Conformity simply means in general, the Commonwealth will comply with the current federal tax code.

Virginia Corporate & Passthrough Tax Returns due 4/15

Created on Monday, 14 February 2011 02:34

Written by Brian Wynne

The Virginia Department of Taxation clarified on Friday that calendar-year corporate and passthrough entity tax returns are due Friday, April 15, 2011.  There was some confusion as the Federal and most states filing date was moved to Monday, April 18 this year, due to a holiday in Washington DC (Emancipation Day).  Virginia does not recognize this holiday as a legal holiday and therefore will not move it's due date.

A Second Chance at Voluntary Disclosure of Foreign Assets

Created on Friday, 11 February 2011 04:10

Written by Brian Wynne

On Tuesday, February 8, 2011, the IRS announced another voluntary disclosure program giving taxpayers a second chance to report offshore assets.  The first program began in March of 2009 and allowed taxpayers six months to voluntarily disclose all offshore assets going back six years, offering the chance to avoid criminal prosecution and limiting penalties.  The penalties were 20% of the amount of foreign assets in the year with the highest value, plus all taxes, interest and a 20% accuracy or 25% delinquency penalty. 

Progress on Repeal of Expanded 1099 Reporting

Created on Monday, 07 February 2011 08:35

Written by Brian Wynne

Last Wednesday, the Senate voted 81-17 in favor of an amendment to roll back the expanded 1099 reporting provisions passed as part of the healthcare bill.  The expanded provisions are currently scheduled to take effect after 2011 and would add payments of goods to the list of items that must be reported on Form 1099. The healthcare bill also expands reporting to include payments to corporations (who were previously exempt from the reporting requirements).  Included as a revenue-raiser in the healthcare bill, these new 1099 provisions have been widely criticized due to the burden on small businesses.  After the President signaled his willingness to accept repeal of the expanded provisions in his 2011 State of the Union address, it was widely expected that the new 1099 reporting law would be changed. The Senate has taken that first step toward repeal.  Unfortunately the Senate vote to repeal has no effect on the new 1099 reporting provisions that apply to rental expenses incurred in 2011 and beyond.