2019 MA / RI NATP Annual State Update Seminar

Massachusetts / Rhode Island NATP Chapter Annual State Update Seminar - January 3rd 2019

Join the Massachusetts / Rhode Island NATP Chapter on Thursday, January 3rd, 2019 for our Annual State Update Seminar. This all day event will be held at the Southbridge Hotel & Conference Center, Southbridge MA. Registration details are below, and are handled online directly by National NATP. A link to the registration website is listed below. Please take a look at the details on our speakers and topics provided in this great update opportunity including continental breakfast, snacks, lunch, vendors and great networking opportunities PLUS even 2 CE Credit Hours. Registration is from 7:30am to 8:30am & Education is from 8:30am to 4:30pm.

• Register online with credit card.
• For more information or to register by phone, fax or mail, use this form.
• After December 28th, please register at the door with the form above.

If you are planning to stay at the hotel, we have secured a room rate of $95/night. The reservations can be made here.

Topics:

Massachusetts State Tax Update presented by Massachusetts Department of Revenue.

Rhode Island State Tax Update presented by Rhode Island Division of Taxation.

Connecticut State Tax update presented by Kristin A. Roberts, MBA, EA, ABD.

Roberts holds the position of Post University’s Assistant Program Manager of Accounting. Her previous position at Post University was as an Associate Faculty in Accounting. Her course specialties at the university level include Financial Accounting, Individual Taxation, and Corporate Taxation. Roberts is actively involved in her local community, volunteering on a variety of councils for the historic district of Torrington.  She is also the Treasurer of the NW CT Chamber Education Foundation, and also serves as the Education Committee Chairperson for the CT Chapter of the National Association of Tax Professionals.  She is also a current member of the CT Department of Revenue External Editorial Board. Roberts is married with grown children.  She enjoys horror movies and classic rock music. When not working, her favorite pastime is spending time with her sons or listening to her husband singing and playing his guitar.


New York State Tax Update presented by Kathryn Keane of New York NATP Chapter.

Federal Tax Update presented by Kathryn Keane of New York NATP Chapter. (2 Hours of CE Credits)

Featured Speaker - Kathryn M. Keane, EA.

Kathryn is a principal of Macanta, a small tax and related services practice located in Brooklyn, NY, serving over 850 individual clients and 50 businesses. In December 2006, Kathryn completed two three-year terms on the National Board of Directors of NATP and was twice awarded Chapter Person of the Year for 2002 and 2008 for her volunteer service to the community at large as well as to NATP. In addition to serving as an Education Committee member for NY NATP, she currently serves as Chair of the IRS Tri-Boro Practitioner Liaison Committee. Kathryn is a frequent speaker for NATP Chapters. She has also presented for VASEA, NCCPAC (Nassau-Suffolk County Chapter) and local chapters of NYSSCPA. Kathryn has a B.S. degree from Brooklyn College.

Security Summit Plans National Tax Security Awareness Week, Dec. 3-7; New Twitter Handle Launched, ‘Dark Web’ Webinar Planned

WASHINGTON – With the approach of the holidays and the upcoming tax season, the Internal Revenue Service, state tax agencies and the nation’s tax industry will sponsor a nationwide campaign in December urging people to better protect their sensitive tax and financial data.

The third annual National Tax Security Awareness campaign, to be held Dec. 3-7, will feature events nationwide, highlight a daily security topic and mark the launch of a special @IRSTaxSecurity Twitter handle that will keep the public aware of emerging threats throughout the 2019 tax filing season.

“This time of year marks an especially risky period for people and their sensitive financial data,” said IRS Commissioner Chuck Rettig. “There are added risks with online holiday shopping and tax scams that could threaten people’s tax data. We encourage people to review some simple steps to protect their data and protect their tax returns during filing season.”

The IRS, states and the tax industry, partners in the Security Summit initiative, will join with consumer, business and community groups to host more than 20 events in 19 states to raise cybersecurity awareness.

The campaign is especially timely as the holiday season brings out online shoppers sharing sensitive financial data as well as online thieves seeking to con people into disclosing information that can be used to file fraudulent tax returns.

Each day starting Dec. 3, National Tax Security Awareness Week will focus daily on a single key issue that poses a threat to individuals, businesses and tax professionals and provides tips to better protect sensitive data from cybercriminals.

The campaign will highlight simple steps taxpayers can take such as using strong security software and strong passwords. It will highlight common tactics used by identity thieves to target taxpayers, businesses and tax professionals. It will also focus on specific threats to businesses and to tax professionals, both of whom are increasingly targeted by crooks.

@IRSTaxSecurity to keep taxpayers, tax professionals aware of scams

The IRS also is launching a special Twitter handle called @IRSTaxSecurity to share the latest scam and security alerts that routinely increase during tax season. Taxpayers can follow @IRSTaxSecurity. The Summit partners encourage people to share security information using the #TaxSecurity hashtag.

Individuals, businesses and tax professionals can get all the information they need during National Tax Security Awareness Week by visiting a special section on IRS.gov, following @IRSTaxSecurity on Twitter or by signing up for news releases and tax tips on IRS.gov.

Taxpayers looking to spread the word and show their support for this effort can also add a temporary National Tax Security Awareness Week overlay to their profile photos on Facebook through Dec. 7.

Free public webinar on how identity thieves use the Dark Web

In support of Tax Security Awareness Week, a free IRS webinar is being offered to help taxpayers understand the Dark Web and how it is used as a repository for: stolen identities, credit data, tax information and banking/financial information. During this webinar, IRS Criminal Investigation representatives will provide an overview of the Dark Web and answer questions that will help people recognize the risks and use of the Dark Web by cybercriminals.

This 100-minute webinar will be held on Monday, Dec. 3, 2018, at 2 p.m. EST. To register go to https://www.webcaster4.com/Webcast/Page/1148/28472.

Security Summit makes progress, needs help from public

Since forming the Security Summit partnership in 2015, the IRS, state tax agencies and the tax industry have made significant inroads into tax-related identity theft. Learn more about their efforts and their progress at Security Summit on IRS.gov.

While the Summit partners continue to improve their internal defenses, more help is needed from taxpayers, businesses and tax professionals to better protect the data that identity thieves need to file fraudulent tax returns.

Increasing public awareness about people’s role in protecting their own data is a critical part of the Security Summit efforts. Partners launched the “Taxes. Security. Together” awareness campaign in the fall of 2015. Tax professionals can also keep track of alerts, awareness efforts and security news at “Protect Your Clients, Protect Yourself,” an effort that’s included several campaigns including this summer’s “Tax Security 101.”

MA Department of Revenue Announces Updated Filing and Payment Information For Taxpayers Affected by the Merrimack Valley Gas Explosions

BOSTON — The Department of Revenue has announced it is taking additional steps to address the concerns of taxpayers in Lawrence, Andover, and North Andover who have been affected by the September gas explosions.

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

The Department will waive any penalties associated with any late-filed return or payment that was due on or after September 12th and before December 1st. The Department will waive penalties through December 15th, 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 reach out to the Department of Revenue at (617) 887-6367.

Remote Seller Sales Tax Issues (South Dakota v. Wayfair, Overstock and Newegg, US 17-494 06/21/18) Settled to the Satisfaction of the State of South Dakota

William Delaney, EA
Westwood, MA

This is the very big issue of whether or not a state may impose a sales tax collection obligation on a remote seller.  It was thought that, unless you transact business within the state, in some way, you were outside the reach of that state.  If there is no physical presence (warehouse, employees, representatives, etc.). the state could not impose its will on internet (remote) sales.

States now have adopted the concept of economic nexus, which stands for the theory that sales to residents of that state, no matter how generated or originated, are an adequate substitute for the physical presence test.  The only limitation on a state’s authority to assert a sales tax collection obligation is quantity (dollar amount of sales, a percentage of your total sales, or total number of sales).

South Dakota went to court and successfully challenged the Quill concept (physical presence test), as the only applicable standard.  In 2016, the state of South Dakota enacted a sales tax collection obligation on remote sellers when their South Dakota sales exceeded $100,000 or if they completed 200 or more transactions within a year.  The United States Supreme Court upheld the South Dakota statute.

Effective January 1, 2019, Wayfair, Overstock and Newegg will be required to submit to the economic nexus concept and begin to collect sales tax on South Dakota sales.

Mass. has a similar statute which requires a minimum of 100 transactions or $500,000 in sales.  RI also has a similar statute which requires a minimum of 100 transactions or $100,000 in sales.

Does Your State Have a Marriage Penalty?

Katherine Loughead
Policy Analyst
Tax Foundation

Today’s map examines states that have a “marriage penalty” in their individual income tax brackets.

Under a progressive, graduated-rate income tax system, as a taxpayer’s marginal income increases, tax rates also increase. A marriage penalty exists when a state’s income brackets for married taxpayers filing jointly are less than double the bracket widths that apply to single filers. Under this scenario, married couples face a higher effective tax rate filing jointly than they would if filing as two single individuals with the same amount of combined income.

This non-neutral tax treatment is particularly harmful to owners of pass-through businesses, who pay taxes on their business income under the individual income tax system. When a marriage penalty exists, married business owners are subject to higher effective tax rates on their business income than they would be otherwise.

Fifteen states (displayed in yellow on the map below) have a marriage penalty embedded in their bracket structure. Seven additional states (Arkansas, Delaware, Iowa, Mississippi, Missouri, Montana, and West Virginia), as well as the District of Columbia, offset the marriage penalty in their bracket structure by allowing married taxpayers to file separately on the same return to avoid losing credits and exemptions. While this tactic offsets the dollar cost of the marriage penalty, it comes at the cost of added complexity. States that have a graduated-rate income tax but double their brackets to avoid a marriage penalty are Alabama, Arizona, Connecticut, Hawaii, Idaho, Kansas, Louisiana, Maine, Nebraska, and Oregon.

Posted with permission from Katherine Loughead and TaxFoundation.org