Thursday, July 18, 2013

2014 Rhode Island Income Tax Law Changes

The FY2014 budget bill (enacted July 3, 2013) includes a few notable changes effective for tax year 2014.

  • Section 179 expense deduction – Previously limited to a maximum of $25,000 will now follow whatever the federal maximum may be.
  • Domestic Production Activities Deduction – IRC Sec. 199 (corporate returns) has been repealed. The federal deduction must be added back for RI State return purposes.
  • Paid Preparer Penalties – for paid preparers “…who prepare Rhode Island returns with the intent to wrongfully evade or reduce a tax obligation.”
  • Civil penalties include failure to be diligent in determining EIC eligibility ($500 fine); failure to be diligent in determining eligibility for statewide property tax relief credit ($500 fine); willful preparation of a return with the intent to wrongfully claim property tax relief credit or with the intent to evade or reduce a tax obligation ($500 or $1,000 fine)
  • Criminal penalty may be imposed on top of a civil penalty upon a subsequent court determination of continued willful misconduct (imprisonment of up to five years and a fine of up to $50,000, or both)
The full Summary of the Legislative Changes can be found by clicking here.

- Rhode Island Division of Taxation

No comments:

Post a Comment