Tuesday, August 13, 2019

MA DOR Update: Meals NOT Exempt From Tax For Sales Tax Holiday

As previously reported, recent legislation included meals in a list of items to be exempt from sales tax during the Sales Tax Holiday. That legislation was amended on August 1 to remove meals as an item to be exempt from tax during the Sales Tax Holiday.

If you ordinarily charge sales tax on meals that you sell, nothing will change for you during the Sales Tax Holiday. You will continue to charge sales tax on meals. 

The Sales Tax Holiday for 2019 will take place on August 17 and 18.

You can find more information on the sales tax holiday, including FAQs on what’s included, what’s excluded, and what to do if you accidentally charge sales tax on an excluded item.

Friday, August 9, 2019

MA DOR Announces Relief For Taxpayers Affected By The Cape Cod Tornado.

The Department of Revenue has announced it is taking steps to address the concerns of taxpayers in Barnstable, Brewster, Chatham, Dennis, Harwich, Mashpee, Sandwich, and Yarmouth who have been affected by the recent tornadoes.

The Department recognizes that taxpayers in these areas might be unable to comply with their tax filing or payment due dates occurring on or after the date of the tornadoes and would like to assist those taxpayers as much as possible.

The Department is announcing that it will waive any penalties associated with any late-filed return or payment that was due on or after July 23rd, and before November 15th. The Department will waive penalties for four months, and will later revisit whether any further extensions should be granted.

If any taxpayer in the affected areas receives notice of a penalty for this period they should contact the Department of Revenue at (617) 887-6367.

Thursday, August 8, 2019

IRS Changing 1040 Forms, Again, For TY 2019

Form 1040 Returns Looks Similar to Previous Versions

The IRS published a re-formatted form 1040 in its website repository. Among the design changes, the form is no longer two half pages, but two 7.25 inch pages.  The 3rd party designee, taxpayer and preparer signature sections have returns to the bottom of page two. Amounts from wages to taxable income moved to the front page  Foreign address information has returned to the address header of page one, so that Schedule 6 is now obsolete.  IRA and pension income amounts are on separate rows; lines 4a & 4b for IRA and lines 4c & 4d for pensions. In 2019, IRA and Pension incomes were combined on lines 4a for the gross and 4b for the taxable amount. Capital Gains are reported on the front page. Payments and refundable credits have moved to page two of the 1040 making Schedule 5 obsolete.

Senior Citizen 1040 Draft Form

The IRS published a draft version of the new 1040-SR on the forms webpage.  The two page 24 line form has the more traditional 1040 layout. It references support items from Schedule A, B, D, 1, 2, and 3 and forms 8814, 4972, 8863, 8812, 8888, 8995 & 8995-A. At the bottom of page one is a traditional standard deduction chart. Form 1040-SR was mandated by Congress a few years ago.