New Rental Tax Bill - City/County Sourcing Rules

From Bruce Ely of Bradley Law:

"The bill linked here may interest your equipment/vehicle/furniture leasing clients. It was introduced on Tuesday, March 19, 2019.

This one came out of the blue, but you can almost bet it arose from either a local government or Alabama DOR rental tax audit.

Note: it’s retroactive for all open tax years. We’re not sure how your leasing clients are sourcing their rental taxes now, but if it’s any different than the sourcing rules contained in the bill and it passes with retroactive effect, that could be a problem. While the sourcing rules in the bill appear to track informal guidance we have received over the years from the ADOR, that doesn’t necessarily mean all your clients are aware of and follow that guidance. You may wish to forward the bill to and encourage them to read the sourcing rule provisions as soon as possible."

Recent ASCPA News

  • A Fiscal Reality: ASCPA and AICPA Support the Fiscal State of the Nation Resolution

    October 16, 2019
    Recently, Representatives Kathleen Rice (D-N.Y.) and Andy Barr (R-K.Y.) introduced the Fiscal State of the Nation resolution, H. Con. Res. 68, with 103 additional co-sponsors. It provides “for a joint hearing of the Committees on the Budget of the House of Representatives and the Senate to receive a presentation from the Comptroller General of the United States regarding the audited financial statement of the executive branch.” The resolution ensures that members of Congress are made aware of the information in the federal financial statements and helps them to better understand how current and/or future policy may affect the nation’s long-term fiscal health.
  • End of Tax Season Is Near, and Accountants Are (Almost) Ready

    October 3, 2019
    Oct. 15 extended deadline for filing returns is especially challenging this year under new tax law
  • The filing deadline for extension filers is almost here

    September 24, 2019
    Even though time before the extension deadline is dwindling, there’s still time for taxpayers to file a complete and accurate return. Taxpayers should remember they don’t have to wait until October 15 to file. They can file whenever they are ready.
  • Treasury, IRS release final and proposed regulations on new 100% depreciation

    September 13, 2019
    The Treasury Department and the Internal Revenue Service today released final regulations (PDF) and additional proposed regulations (PDF) under section 168(k) of the Internal Revenue Code on the new 100% additional first year depreciation deduction that allows businesses to write off most depreciable business assets in the year they are placed in service by the business.
  • LLCs Taxed as S Corporations: Traps for the Unwary

    September 11, 2019
    Two recent rulings by the Internal Revenue Service should cause Alabama CPAs to seriously consider whether to contact their LLC clients that have elected S status, and to urge clients or friends who are pondering the conversion to think twice or to consider simply forming an S corp. to begin with.
  • ADOR Offering Relief to Coprorate Taxpayers Affected by TCJA

    September 4, 2019
    The Alabama Department of Revenue is providing relief from late-filing penalties for certain corporate taxpayers who are encountering difficulties meeting October state filing deadlines while trying to also file their federal returns by the October federal deadline. Adding to this challenge is the complexity associated with the continued implementation of the Tax Cuts and Jobs Act. 
  • Security Summit warns of new IRS impersonation email scam; reminds taxpayers the IRS does not send unsolicited emails

    August 22, 2019
    The Internal Revenue Service and its Security Summit partners today warned taxpayers and tax professionals about a new IRS impersonation scam campaign spreading nationally on email. Remember: the IRS does not send unsolicited emails and never emails taxpayers about the status of refunds.
  • Deadline Approaching for Online Sellers to Join the SSUT and Receive Amnesty from Previous Year's Tax Liability

    August 14, 2019
    The Alabama Department of Revenue encourages eligible online sellers and marketplace facilitators that are subject to a collection requirement to register for the state’s Simplified Sellers Use Tax (SSUT) remittance program by Oct. 1, 2019. Doing so will relieve such sellers from the obligation of certain tax liability for the previous year.
  • IRS launches new Tax Withholding Estimator; Redesigned online tool makes it easier to do a paycheck checkup

    August 6, 2019
    The Internal Revenue Service today launched the new Tax Withholding Estimator, an expanded, mobile-friendly online tool designed to make it easier for everyone to have the right amount of tax withheld during the year.
  • Gasoline and Undyed Diesel Fuel Excise Tax Law Changes

    July 26, 2019
    The excise tax on gasoline and undyed diesel fuel products increases to $.24 per gallon on gasoline and $.25 per gallon on undyed diesel fuel effective September 1, 2019. Also, the due date for the terminal excise tax return and corresponding payment is changing from the 22nd to the 20th day of the month following the month of activity.
  • Tax Security 2.0 - A "Taxes-Security-Together" Checklist - Step 1

    July 17, 2019
    Using a new “Taxes. Security. Together.” Checklist, the Internal Revenue Service and the Security Summit partners urged tax professionals to review critical security steps to ensure they are fully protecting their computers and email as well as safeguarding sensitive taxpayer data.
  • Taxpayers can still get help tax help this summer

    July 11, 2019
    Taxpayers who received an extension but haven’t filed or those otherwise unable to file their return by the April deadline should visit IRS.gov if they need help completing and filing their return. These taxpayers must file by October 15.
  • Taxpayers can check online to get updates about their tax refund

    July 10, 2019
    Taxpayers who filed an extension and are submitting their 2018 tax return this summer might be waiting for their tax refund. It’s easy for these taxpayers to check on the status of their money. They can just zip over to IRS.gov and use “Where’s My Refund?”
  • Millennials are changing our tax practices. Here’s how.

    June 28, 2019
    Millennials are everywhere. As the largest generation of Americans ever, they seem to be changing every aspect of our society. They’re influencing marketing trends, technological advancements, politics, travel, food — there’s little that isn’t affected by this generation’s unique way of doing things.
  • Back-to-School Sales Tax Holiday starts July 19th

    June 27, 2019
    Alabama’s 14th annual sales tax holiday for school-related items begins at 12:01 a.m. Friday, July 19, 2019, and ends at midnight Sunday, July 21, 2019, giving shoppers the opportunity to purchase certain school supplies, computers, books and clothing free of the state’s four percent sales or use tax. Cities and counties must notify the state that they will participate in the 2019 holiday by June 21.
  • NASBA and the AICPA need CPAs' feedback

    June 18, 2019
    Technological innovation is changing the services CPAs provide and how they provide them. As the knowledge and skills CPAs need evolve, NASBA and the AICPA are exploring if CPA licensure should evolve too.
  • All taxpayers should check their withholding ASAP

    June 10, 2019
    All taxpayers should check their withholding – also known as doing a Paycheck Checkup – as soon as possible. They should do a checkup even if they did one last year.
  • IRS, Treasury unveil proposed W-4 design for 2020

    May 31, 2019
    WASHINGTON – Today the Internal Revenue Service issued a draft of the 2020 Form W-4, Employee's Withholding Allowance Certificate (PDF), that will make accurate withholding easier for employees starting next year.
  • Alabama Society of CPAs Members Visit Lawmakers in Washington, D.C. to Discuss Issues Important to the Accounting Profession

    May 22, 2019
    Montgomery, Alabama, May 21, 2019– Members of the Alabama Society of CPAs visited Alabama lawmakers in Washington, D.C. to discuss the accounting profession’s advocacy agenda. The Alabama CPAs were attending the American Institute of CPAs (AICPA) Spring Meeting of Council and Annual Members’ Meeting from May 19-21. The visits to Capitol Hill were a highlight of the AICPA meeting.
  • Week Ten: Busy Week on Big Issues

    May 17, 2019
    Again this week, lawmakers worked three full meeting days as they took action on broadband expansion, education reform, a state lottery, economic development incentives and budgets.
  • Week Nine: Legislature Takes Up Major Issues: Broadband Expansion and Lottery Advance, Sweeping Education Reform Proposed

    May 10, 2019
    The Legislature worked three full meeting days this week, devoting much of its debate time to topics like abortion, criminal justice reform, medical marijuana and franchisee protection.
  • Week Seven: Lottery Proposal Passes Senate

    April 26, 2019
    The Alabama Legislature capped off another productive week in Montgomery when the Senate narrowly gave the green light to a lottery referendum Thursday afternoon. SB220 by Sen. Greg Albritton (R—Atmore), a constitutional amendment, advanced with the bare minimum needed for passage – 21 votes – only after Sen. Shay Shelnutt (R—Trussville) changed his “nay” to an “aye” at the last minute. Twelve senators voted in opposition.
  • Week Four: Lottery, Ethics and Open Records Introduced

    April 5, 2019
    A productive and relatively routine three-day week in the Alabama Legislature included introductions of another state lottery proposal, a comprehensive ethics reform bill and a revision of the open records law. Also, a critical economic development proposal and the General Fund budget progressed.
  • Week Three: Senate Votes to Repeal Education Standards

    March 22, 2019
    The Alabama Senate closed the first full week of the 2019 Regular Session on a loud note, approving a bill to repeal the state’s Common Core standards on a 23-7 vote divided along party lines.
  • Talking to clients about tax extensions

    March 18, 2019
    Tax extensions are a hot topic this month (and this year), and we hope this article helps you share some tips with clients.
  • Week Two: Governor Ivey Signs Rebuild Alabama Act Into Law

    March 13, 2019
    State lawmakers overwhelmingly passed a landmark infrastructure package on Tuesday, and Governor Kay Ivey signed the Rebuild Alabama Act into law within hours.
  • Tax Filing Deadlines Extended for Residents in Lee County

    March 11, 2019
    The Alabama Department of Revenue is offering tax relief to Alabama taxpayers who have been affected by recent severe storms in Lee County. The tax relief measures mirror IRS measures in the same declared disaster areas.
  • How to be a great boss during busy season

    March 8, 2019
    Tips to help your employees power through before AND when the going gets tough.
  • Every voice is needed now to help the Rebuild Alabama Plan.

    March 7, 2019
    Every voice is needed immediately to help resolve the deteriorating conditions of our roads and bridges.
  • IRS extends deadlines for Alabama storm victims

    March 7, 2019
    Victims of Sunday’s tornadoes and severe storms in Alabama have until July 31, 2019, to file certain individual and business tax returns and make certain tax payments, the Internal Revenue Service announced today.
  • Week One: Special Session on Infrastructure Underway

    March 7, 2019
    Governor Kay Ivey called the Alabama Legislature into a Special Session focused on transportation infrastructure, and lawmakers which commenced on Wednesday.
  • Governor Calls Special Legislative Session on Infrastructure

    March 6, 2019
    Last night, Governor Kay Ivey called the Alabama Legislature into a Special Session focused on transportation infrastructure, and lawmakers convened at 9:30 a.m. today. The governor's proclamation specified three issues for consideration.
  • Forms Update from the Alabama Department of Revenue

    February 19, 2019
    The Alabama Department of Revenue will release all software vendors to print forms today, meaning any tax form that remains unapproved will no longer have the watermark or the barcode.
  • Meeting between the ASCPA State Tax Committee and Alabama Department of Revenue Over Recent Common Issues

    February 15, 2019
    Yesterday, several members of the ASCPA State Tax Committee had the privilege to meet with members of the Alabama Department of Revenue Forms and IT sections to discuss a couple of common issues that have been shared with us over the past two weeks.
  • How you can help states protect your CPA license

    February 12, 2019
    Should the government license professions? It’s not a new question, but states across the country are taking new action in 2019. More than 30 states are considering legislation that would reduce or remove professional licensing requirements. CPAs are not exempt from this legislation.
  • Identity protection PIN program expands

    February 8, 2019
    The IRS is expanding to seven additional states its voluntary program for taxpayers who wish to obtain identity protection personal identification numbers (IP PINs) and are not currently victims of tax return identity theft. The pilot program originally involved Washington, D.C., Florida, and Georgia. IP PINs will now be available in seven more states: California, Delaware, Illinois, Maryland, Michigan, Nevada, and Rhode Island. Those states report the highest number of identity thefts to the Federal Trade Commission.
  • Keeping competitive advantage for Alabama, infrastructure key targets for economic developers

    February 6, 2019
    Another proposal the economic development community is supporting is an increase in the gas tax to support infrastructure improvements in the state. “We’ve had great success in bringing great companies into the state,” Canfield said. “That, in turn, means that there’s an awful lot of products and goods and supplies and raw materials that have to flow in and out of our state. We’ve got to be able to accommodate that by having the best roads and bridges we can.”
  • Alabama Department of Revenue and IDEMIA Advance Identity Protection Program to Fight State Income Tax Theft

    February 6, 2019
    Alabama taxpayers enrolled in the IDEMIA eID app (formerly Alabama eID) can securely approve the legitimacy of their state tax returns and receive refunds up to 60 percent faster.
  • A new quadrennium is underway

    February 5, 2019
    Now that the inaugural ceremonies have concluded and our office holders have settled in, we want to give you a pre-session report on a few agenda items. The 2019 Regular Session will convene on March 5 and will conclude by June 17.
  • Some individual taxpayers get relief from underpayment penalty

    January 22, 2019
    Responding to concerns that individual taxpayers may have found it difficult to correctly estimate their 2018 tax liability because of the many changes enacted in the law known as the Tax Cuts and Jobs Act, P.L. 115-97, the IRS issued relief from the penalty for underpayment of estimated income tax to individual taxpayers who have paid 85% of their 2018 tax liability with withholding and estimated tax payments (Notice 2019-11).
  • 2019 standard mileage rates announced

    December 18, 2018
    The optional standard mileage rates for business use of a vehicle will increase significantly in 2019, after increasing slightly last year, the IRS announced Friday (Notice 2019-2). For business use of a car, van, pickup truck, or panel truck, the rate for 2019 will be 58 cents per mile up from 54.5 cents per mile in 2018. Taxpayers can use the optional standard mileage rates to calculate the deductible costs of operating an automobile.
  • IRS, Security Summit Partners warn tax professionals of high risk of data theft attacks

    December 6, 2018
    Cybercriminals stepped up their attacks on tax professionals during 2018, prompting the Internal Revenue Service and the Security Summit partners to urge practitioners to take steps to protect client data and their computer networks from these threats.
  • IRS sees surge in email phishing scams

    December 4, 2018
    Summit Partners urge taxpayers: 'Don't Take the Bait'
  • Taxpayers Help the Alabama Department of Revenue Protect Their Identity

    November 7, 2018
    The Alabama Department of Revenue (ADOR) partnered with IDEMIA (formerly MorphoTrust® USA) to launch a new pilot program utilizing IDEMIA’s electronic ID (eID) to combat state income tax fraud for 2017 and future filing seasons.
  • Tax Relief for Victims of Hurricane Michael in Alabama

    November 7, 2018
    The President has declared that a major disaster exists in the State of Alabama. Following the recent major disaster declaration issued by the Federal Emergency Management Agency, the IRS announced today that affected taxpayers in certain counties will receive tax relief.
  • Renew expiring ITINs now to file a return next year

    November 5, 2018
    The Internal Revenue Service reminds taxpayers with expiring Individual Taxpayer Identification Numbers (ITINs) to submit their renewal applications as soon as possible. Failing to renew them by the end of this year will cause refund and processing delays in 2019.
  • President Donald J. Trump Approves Alabama Emergency Declaration

    October 13, 2018
    menuALL NEWS Yesterday, President Donald J. Trump declared that an emergency exists in the State of Alabama and ordered Federal assistance to supplement State, Tribal, and local response efforts due to the emergency conditions resulting from Hurricane Michael beginning on October 10, 2018, and continuing.
  • ADOR Providing Tax Relief to Victims of Hurricane Michael

    October 12, 2018
    The Alabama Department of Revenue is offering tax relief to Alabama taxpayers who have been affected by damage caused by Hurricane Michael. The tax relief measures will mirror IRS measures in the same declared disaster areas.
  • EXECUTIVE ORDER – Temporary Suspension of Alabama Terminal Excise Tax Requirements (Hurricane Michael)

    October 11, 2018
    Vernon Barnett, Commissioner of the Alabama Department of Revenue, declared that because there is a state of emergency resulting from Hurricane Michael, it is necessary to assist and expedite all efforts of relief. In order to accommodate this need and provide assistance to the citizens affected by this storm, Commissioner Barnett ordered the temporary suspension of the motor fuel exporter licensing and motor fuel transporter licensing requirements associated with the Alabama Terminal Excise Tax for exporters and transporters supporting disaster relief efforts by engaging in the export of motor fuel from Alabama to other states impacted by Hurricane Michael.
  • Rules issued on paid family and medical leave credit

    September 25, 2018
    The IRS on Monday issued 34 questions and answers on new Sec. 45S, which was added by the law known as the Tax Cuts and Jobs Act, P.L. 115-97, to provide a general business credit for employers who provide paid family and medical leave to their employees (Notice 2018-71).
  • IRS proposes regulations that could impact Alabama Accountability Act donors

    August 28, 2018
    The IRS has announced proposed regulations that, if implemented, could negatively impact Alabama Accountability Act donors.
  • Get your groove back: 4 tips to ramp up for fall busy season

    August 27, 2018
    Is there any season more relaxing than summer? The weather is warm. The days are long. Perhaps best of all, busy season is still a ways off. There’s no cause to worry about extensions or business returns or even tax reform, right?
  • Proposed rules would curb avoidance of SALT deduction limit

    August 24, 2018
    Under proposed regulations issued by the IRS on Thursday, transfers to a state agency or charitable organization in lieu of paying state and local taxes would be deductible as a charitable contribution only to the extent that the taxpayer making the donation did not receive a quid pro quo (REG-112176-18).
  • Summary of Newly Released ADOR Analysis of Federal Tax Reform's Impact on Alabama Income Tax Laws

    August 13, 2018
    On July 31, the Alabama Department of Revenue (ADOR) released its long-awaited “Analysis of Federal Tax Law Revisions on the State of Alabama,” a comprehensive review of the changes brought about by the Tax Cuts and Jobs Act of 2017 (TCJA), commonly known as federal tax reform, and how those changes will likely affect Alabama taxpayers.
  • ADOR Publishes Guidance Related to the Federal Tax Cuts and Jobs Act

    August 1, 2018
    The Alabama Department of Revenue has issued its preliminary guidance on the impact of the provisions of the Tax Cuts and Jobs Act (TCJA).
  • Could IRS reform mean smoother waters for tax practitioners?

    July 30, 2018
    This past busy season, increased IRS demands caused even more operational problems, affecting how tax practitioners do business. Here’s how the AICPA is working to change things in Washington.
  • Calling all tax CPAs: help quality reviews take center stage

    July 27, 2018
    Data breaches happen daily. We see it in the news, and we hear it from our clients. Clients trust us with their private information including Social Security numbers, paystubs, birthdays and other data valuable to identity thieves.
  • Election Update

    July 24, 2018
    In the race for House District 38 (Chambers & Lee Counties), Debbie Wood is the Republican nominee. After counting the provisional ballots, Wood beat Todd Rauch by a margin of 7 votes. Wood will face Democrat Brian McGee in November.
  • ADOR Launches Tax Amnesty Website, Application Period Opened July 1

    July 12, 2018
    The Alabama Legislature has enacted the Alabama Tax Delinquency Amnesty Act of 2018 to allow qualifying taxpayers to receive a waiver of penalties and interest on eligible tax types. The application period is now open through September 30, 2018.
  • What to Know About Tax Credits for Workers

    July 5, 2018
    It’s going to cost your small business clients to hire this summer, but at least the wages are deductible on their annual returns. Even better, if they hire workers from one of several “target groups,” a portion of the wages may qualify for a special tax credit.
  • IRS guidance still needed on key tax reform issues

    June 27, 2018
    We’ve identified areas requiring immediate IRS attention and offered comments to the IRS and Treasury to influence guidance in a way that best serves you. These items affect your business, and we hope to influence any Treasury or IRS guidance in a way that serves you best.
  • Form 1040 to be shorter but with more schedules

    June 27, 2018
    The IRS is working on a draft version of the 2018 Form 1040, U.S. Individual Income Tax Return, that reduces the size of the form to two half-pages in length and eliminates more than 50 lines, compared to the 2017 version of the form. The draft form moves many items that in the past have appeared on the face of the 1040 to various new schedules.
  • Supreme Court’s Wayfair decision sidelines Quill

    June 21, 2018
    SCOTUS rules 5-4 to give states greater power to make out-of-state retailers collect online sales taxes.
  • Need for IRS Guidance on New Pass-Through Deduction a Top Member Concern

    June 18, 2018
    When will the Internal Revenue Service (IRS) issue guidance on new Internal Revenue Code s