Catalano, Caboor & Co.
Tax Alerts
Information Return Filers Must Move From FIRE to IRIS for 2027 Filing Season (IR 2026-99)
The IRS has reminded information return filers that the Filing Information Returns Electronically (FIRE) system will be retired before the 2027 filing season. Therefore, filers who currently use FIRE ...
The IRS has reminded information return filers that the Filing Information Returns Electronically (FIRE) system will be retired before the 2027 filing season. Therefore, filers who currently use FIRE ...
IRS Urges Taxpayers to Protect Tax Records Before Disasters (IR 2026-104)
The IRS has reminded individuals, businesses and tax professionals to protect important tax and financial records before a disaster occurs. The reminder, issued during National Preparedness Month, exp...
The IRS has reminded individuals, businesses and tax professionals to protect important tax and financial records before a disaster occurs. The reminder, issued during National Preparedness Month, exp...
IRS Highlights Online Tools for Taxpayers, Businesses and Tax Professionals (IR 2026-102)
The president has declared a federal disaster area in Washington due to wildfires that began on July 31, 2026. The disaster areas include the following county:Douglas.Taxpayers who live or have a busi...
The president has declared a federal disaster area in Washington due to wildfires that began on July 31, 2026. The disaster areas include the following county:Douglas.Taxpayers who live or have a busi...
IRS Urges Workers and Employers to Review Payroll Tax Responsibilities (IR 2026-105)
The IRS has encouraged workers and employers to review federal income tax withholding and payroll responsibilities ahead of National Payroll Week. Observed September 7 through 11, the week recognizes ...
The IRS has encouraged workers and employers to review federal income tax withholding and payroll responsibilities ahead of National Payroll Week. Observed September 7 through 11, the week recognizes ...
Direct Pay Offers Free Way to Pay Federal Taxes (IR 2026-109)
The IRS reminded taxpayers with bank accounts that Direct Pay can be used to pay federal taxes from a checking or savings account. The service is available on IRS.gov, and taxpayers do not need to s...
The IRS reminded taxpayers with bank accounts that Direct Pay can be used to pay federal taxes from a checking or savings account. The service is available on IRS.gov, and taxpayers do not need to s...
IRS Warns of Fake Tribal Tax Credits (IR 2026-112)
The IRS warned taxpayers, tribal communities, businesses and tax professionals about promoters selling fake “Tribal Tax Credits” that do not exist under federal law. Promoters may claim these cred...
The IRS warned taxpayers, tribal communities, businesses and tax professionals about promoters selling fake “Tribal Tax Credits” that do not exist under federal law. Promoters may claim these cred...
AL - Department begins administering, collecting local taxes in Brantley
The Town of Brantley announced that the Alabama Department of Revenue will administer and collect its local taxes effective October 1, 2026. The first Town of Woodville tax return to be filed with the...
The Town of Brantley announced that the Alabama Department of Revenue will administer and collect its local taxes effective October 1, 2026. The first Town of Woodville tax return to be filed with the...
AK - Anchorage responsible for natural gas production tax obligations
A dispute arose over how to calculate tax credits for the Municipality of Anchorage’s natural gas production. Alaska law taxes the production of natural gas, while also allowing gas producers to cla...
A dispute arose over how to calculate tax credits for the Municipality of Anchorage’s natural gas production. Alaska law taxes the production of natural gas, while also allowing gas producers to cla...
AZ - Updated local tax rate table released
Arizona's Department of Revenue released the transaction privilege tax (TPT) rate chart effective October 1, 2026. It includes rate changes for San Tan Valley and Tusayan. Transaction Privilege and Ot...
Arizona's Department of Revenue released the transaction privilege tax (TPT) rate chart effective October 1, 2026. It includes rate changes for San Tan Valley and Tusayan. Transaction Privilege and Ot...
AR - Local tax rate changes announced
The following Arkansas local sales tax rate changes are effective January 1, 2027:The city of Harrison decreases its sales and use tax to 1.0%.Boone County decreases its sales and use tax to 1.0%.Lafa...
The following Arkansas local sales tax rate changes are effective January 1, 2027:The city of Harrison decreases its sales and use tax to 1.0%.Boone County decreases its sales and use tax to 1.0%.Lafa...
CA - Definition of “eligible transmission project” revised for tax credit
The definition of an "eligible transmission project" for purposes of the California tax credit for qualified expenditures paid or incurred for eligible transmission projects has been revised to requir...
The definition of an "eligible transmission project" for purposes of the California tax credit for qualified expenditures paid or incurred for eligible transmission projects has been revised to requir...
CO - Bulk address lookup feature temporarily suspended
Colorado will temporarily pause its Sales and Use Tax System (SUTS) bulk address lookup feature beginning September 29, 2026, because system utilization has far exceeded statutory budget allocations. ...
Colorado will temporarily pause its Sales and Use Tax System (SUTS) bulk address lookup feature beginning September 29, 2026, because system utilization has far exceeded statutory budget allocations. ...
CT - Quarterly disaggregated sales tax report filing required beginning October 2026
Beginning October 1, 2026, all retailers in Connecticut that file a consolidated sales and use tax return are required to file a Quarterly Disaggregated Sales Tax Report in addition to their sales and...
Beginning October 1, 2026, all retailers in Connecticut that file a consolidated sales and use tax return are required to file a Quarterly Disaggregated Sales Tax Report in addition to their sales and...
DE - E911 wireless surcharge increases October 1
Delaware is increasing the emergency 911 system surcharge (E911) on the retail sale of prepaid wireless services from $0.60 to $0.90, effective beginning October 1, 2026. Retailers selling prepaid wir...
Delaware is increasing the emergency 911 system surcharge (E911) on the retail sale of prepaid wireless services from $0.60 to $0.90, effective beginning October 1, 2026. Retailers selling prepaid wir...
FL - Guidance provided on new eFile and pay system for reemployment tax
Guidance is provided on the new eFile and Pay system for reemployment tax. On August 24, 2026, the Florida Department of Revenue transitioned reemployment tax filing and payment services to a new eFil...
Guidance is provided on the new eFile and Pay system for reemployment tax. On August 24, 2026, the Florida Department of Revenue transitioned reemployment tax filing and payment services to a new eFil...
GA - 2026 employers tax guide revised again
The September 2026 revision of the 2026 Employer’s Tax Guide primarily adds guidance on Georgia’s new income tax subtractions for qualified overtime compensation and qualified cash tips. The updat...
The September 2026 revision of the 2026 Employer’s Tax Guide primarily adds guidance on Georgia’s new income tax subtractions for qualified overtime compensation and qualified cash tips. The updat...
HI - Rent collection agreement and reporting rules adopted
Hawaii has adopted sales and use tax rules and transient accommodations tax rules on rent collection agreements and the enforcement of reporting requirements for third-party rent collectors. Third par...
Hawaii has adopted sales and use tax rules and transient accommodations tax rules on rent collection agreements and the enforcement of reporting requirements for third-party rent collectors. Third par...
ID: Reminder issued on exemption for small sellers
daho residents are reminded about previously enacted legislation that provides a sales and use tax exemption for certain small sellers with annual sales of $5,000 or less. The exemption is effective J...
daho residents are reminded about previously enacted legislation that provides a sales and use tax exemption for certain small sellers with annual sales of $5,000 or less. The exemption is effective J...
IL - Taxation of job disability payments to nonresidents discussed
Illinois issued a general information letter discussing the taxation of a nonresident taxpayer’s disability payments from employment in Illinois. If a payment is compensation for federal purposes, t...
Illinois issued a general information letter discussing the taxation of a nonresident taxpayer’s disability payments from employment in Illinois. If a payment is compensation for federal purposes, t...
IN - Guidance issued on computation of withholding for State and County income tax
Updated guidance is issued regarding the computation of withholding for state and county income tax to assist withholding agents determine the correct amount of Indiana county income tax to withhold f...
Updated guidance is issued regarding the computation of withholding for state and county income tax to assist withholding agents determine the correct amount of Indiana county income tax to withhold f...
IA - Corporate tax rates remain the same
Iowa has determined that corporate income tax rates for 2027 will remain the same as for tax years beginning in 2026.What are the rates in 2027?The rates for 2027 will be:5.5%, $0 - $25,000;5.5%, $25,...
Iowa has determined that corporate income tax rates for 2027 will remain the same as for tax years beginning in 2026.What are the rates in 2027?The rates for 2027 will be:5.5%, $0 - $25,000;5.5%, $25,...
KS - Guidance issued on alternative fuel and ethanol retailer credits
Kansas issued guidance discussing legislation that:repeals the corporate income tax credit for alternative fuel motor vehicles and fueling stations on January 1, 2027; andestablishes new income tax cr...
Kansas issued guidance discussing legislation that:repeals the corporate income tax credit for alternative fuel motor vehicles and fueling stations on January 1, 2027; andestablishes new income tax cr...
KY - Standard deduction announced for 2027 tax year
Kentucky announced that the individual income tax standard deduction is $3,470 for the 2027 tax year. News, Kentucky Department of Revenue, September 11, 2026...
Kentucky announced that the individual income tax standard deduction is $3,470 for the 2027 tax year. News, Kentucky Department of Revenue, September 11, 2026...
LA - Change in procedure for roof tax credit announced
The Louisiana Department of Revenue has announced that a preliminary fortified home evaluation is no longer required to qualify for the fortified roof tax credit against personal income tax. Revenue I...
The Louisiana Department of Revenue has announced that a preliminary fortified home evaluation is no longer required to qualify for the fortified roof tax credit against personal income tax. Revenue I...
ME - PTE tax filing and estimated payment information issued
Maine Revenue Services has issued information on pass-through entity tax filing and estimated payments, including revised withholding tables and an estimated payment worksheet.The pass-through entity ...
Maine Revenue Services has issued information on pass-through entity tax filing and estimated payments, including revised withholding tables and an estimated payment worksheet.The pass-through entity ...
MD - Redemption required payment of delinquent taxes but not future taxes
The Appellate Court of Maryland has ruled that to redeem property sold at a tax sale, property taxes delinquent and in arrears must be paid. In this case, because 2024-2025 taxes were not in arrears o...
The Appellate Court of Maryland has ruled that to redeem property sold at a tax sale, property taxes delinquent and in arrears must be paid. In this case, because 2024-2025 taxes were not in arrears o...
MA - Two month suspension for gas and diesel tax proposed
Massachusetts Governor Maura Healey proposed legislation to suspend the state's 24¢ per-gallon motor fuels tax on gas and diesel for two months beginning seven days after the bill is signed. The legi...
Massachusetts Governor Maura Healey proposed legislation to suspend the state's 24¢ per-gallon motor fuels tax on gas and diesel for two months beginning seven days after the bill is signed. The legi...
MI - Interest rate on overpayment and underpayment of taxes announced
The interest rate on the underpayment and overpayment of Michigan taxes for the period of January 1, 2027 through June 30, 2027 is 7.77%. Revenue Administrative Bulletin 2026-10, Michigan Department o...
The interest rate on the underpayment and overpayment of Michigan taxes for the period of January 1, 2027 through June 30, 2027 is 7.77%. Revenue Administrative Bulletin 2026-10, Michigan Department o...
MN - Conformity bill bulletin issued
Minnesota issued a legislative bulletin on the Internal Revenue Code (IRC) conformity-related changes enacted in Article 1 of Ch. 128 (H.F. 2438), Laws 2026. Provisions discussed in the bulletin inclu...
Minnesota issued a legislative bulletin on the Internal Revenue Code (IRC) conformity-related changes enacted in Article 1 of Ch. 128 (H.F. 2438), Laws 2026. Provisions discussed in the bulletin inclu...
MS - Ackerman restaurant tax imposed
Mississippi announced that restaurants within the corporate limits of the City of Ackerman must collect the miscellaneous Ackerman Tourism and Parks and Recreation Tax beginning October 1, 2026. The M...
Mississippi announced that restaurants within the corporate limits of the City of Ackerman must collect the miscellaneous Ackerman Tourism and Parks and Recreation Tax beginning October 1, 2026. The M...
MO - Governor temporarily waives taxes, penalties, and enforcement for agricultural highway use of red-dyed diesel, increases agricultural allowable weight limitations
Missouri Gov. Mike Kehoe issued an executive order that temporarily (i) waives state taxes, penalties, and enforcement related to agricultural highway use of red-dyed diesel; and (ii) increases agricu...
Missouri Gov. Mike Kehoe issued an executive order that temporarily (i) waives state taxes, penalties, and enforcement related to agricultural highway use of red-dyed diesel; and (ii) increases agricu...
MT - Shareholder promissory notes were not straight debt
Taxpayers appealed a final decision by the Montana Department of Revenue (Department) denying a deduction for interest paid on shareholder promissory notes (Subject Transactions). The Department concl...
Taxpayers appealed a final decision by the Montana Department of Revenue (Department) denying a deduction for interest paid on shareholder promissory notes (Subject Transactions). The Department concl...
NE - Rates for property tax credit relief announced
The Nebraska Department of Revenue has announced that property owners will receive tax relief for real property taxes levied in 2026 through the Property Tax Credit Act and the School District Propert...
The Nebraska Department of Revenue has announced that property owners will receive tax relief for real property taxes levied in 2026 through the Property Tax Credit Act and the School District Propert...
NV - Governor signs executive order on data center development
Nevada Gov. Joe Lombardo signed an Executive Order that establishes the Nevada Standard for Responsible Data Center Development. The Order bars the Governor’s Office of Economic Development Board fr...
Nevada Gov. Joe Lombardo signed an Executive Order that establishes the Nevada Standard for Responsible Data Center Development. The Order bars the Governor’s Office of Economic Development Board fr...
NH - Interest rates unchanged for 2027
The interest rates for the underpayment and overpayment of New Hampshire taxes administered by the Department of Revenue Administration are unchanged for calendar year 2027. The interest rate for unde...
The interest rates for the underpayment and overpayment of New Hampshire taxes administered by the Department of Revenue Administration are unchanged for calendar year 2027. The interest rate for unde...
NJ - Net operating loss deduction temporarily capped
New Jersey is temporarily capping the corporate business tax net operating loss deduction at $1 million, for privilege periods ending on or after July 31, 2026 but before July 31, 2030. For privilege ...
New Jersey is temporarily capping the corporate business tax net operating loss deduction at $1 million, for privilege periods ending on or after July 31, 2026 but before July 31, 2030. For privilege ...
NY - Notice of disallowance canceled for lack of rational basis
New York granted a taxpayer’s petition and canceled a notice of disallowance that denied a 2017 refund claim for New York State and New York City personal income taxes. The Division of Taxation had ...
New York granted a taxpayer’s petition and canceled a notice of disallowance that denied a 2017 refund claim for New York State and New York City personal income taxes. The Division of Taxation had ...
NC: Guidance issued on weight-based snuff tax, alternative nicotine products tax, and inventory tax
Guidance is issued regarding recently enacted legislation, effective July 1, 2025, that changed the North Carolina excise tax rate methodology for snuff, imposed a new excise tax on alternative nicoti...
Guidance is issued regarding recently enacted legislation, effective July 1, 2025, that changed the North Carolina excise tax rate methodology for snuff, imposed a new excise tax on alternative nicoti...
ND - Local rate changes announced
North Dakota has announced the following local sales and use tax changes effective October 1, 2026: (1) the city of Kindred will remove its maximum tax (refund cap); (2) the city of Minot will increas...
North Dakota has announced the following local sales and use tax changes effective October 1, 2026: (1) the city of Kindred will remove its maximum tax (refund cap); (2) the city of Minot will increas...
OH - Disbursement service taxability needs clarification
The Ohio Supreme Court vacated in part and remanded a sales-tax refund case because the Ohio Board of Tax Appeals’ lack of clarity concerning the taxability of the taxpayer’s disbursement-authoriz...
The Ohio Supreme Court vacated in part and remanded a sales-tax refund case because the Ohio Board of Tax Appeals’ lack of clarity concerning the taxability of the taxpayer’s disbursement-authoriz...
OK - Dyed diesel fuel temporarily permitted for use in farm vehicles
Governor Stitt has requested that the Oklahoma Tax Commission, Oklahoma Department of Public Safety, and the Oklahoma Corporation Commission pause enforcement of taxes, regulations, and fines levied o...
Governor Stitt has requested that the Oklahoma Tax Commission, Oklahoma Department of Public Safety, and the Oklahoma Corporation Commission pause enforcement of taxes, regulations, and fines levied o...
OR - Multnomah County preschool for all rate increase delayed
Oregon's Multnomah County delayed its Preschool for All personal income tax rate increase from January 2, 2027, to January 1, 2028. The delayed increase will add 0.8%. Ord. No. 2026-053, Laws 2026, ef...
Oregon's Multnomah County delayed its Preschool for All personal income tax rate increase from January 2, 2027, to January 1, 2028. The delayed increase will add 0.8%. Ord. No. 2026-053, Laws 2026, ef...
PA - Utility surcharge set at zero for 2027
Pennsylvania has provided notice that the Public Utility Realty Tax Act (PURTA) surcharge calculation for tax years beginning January 1, 2027 is 0 mills. No PURTA surcharge will be imposed for the tax...
Pennsylvania has provided notice that the Public Utility Realty Tax Act (PURTA) surcharge calculation for tax years beginning January 1, 2027 is 0 mills. No PURTA surcharge will be imposed for the tax...
RI - Report generated through AI and human review was taxable
A report produced by artificial intelligence and human review to help communicate needs of neurodivergent individuals to schools and other settings was subject to Rhode Island sales and use tax as a p...
A report produced by artificial intelligence and human review to help communicate needs of neurodivergent individuals to schools and other settings was subject to Rhode Island sales and use tax as a p...
SC - Service provider exemption discussed
South Carolina issued sales and use tax guidance on the service provider tax exemption for certain items sold to or used by internet access service providers and communications service providers. For ...
South Carolina issued sales and use tax guidance on the service provider tax exemption for certain items sold to or used by internet access service providers and communications service providers. For ...
SD - Guidance on agricultural product exemptions revised
South Dakota revised its sales and use tax guidance on how state and local taxes apply to agricultural products. The guidance states that South Dakota imposes a 4.2% state sales or use tax and a 1% to...
South Dakota revised its sales and use tax guidance on how state and local taxes apply to agricultural products. The guidance states that South Dakota imposes a 4.2% state sales or use tax and a 1% to...
TN - Owner held personally liable for unpaid tax
A business owner was personally liable for Tennessee sales taxes a restaurant failed to remit because she was a responsible person who willfully diverted collected taxes to a source other than the sta...
A business owner was personally liable for Tennessee sales taxes a restaurant failed to remit because she was a responsible person who willfully diverted collected taxes to a source other than the sta...
TX - Marketplace and platform fees no longer taxable
The Texas Comptroller issued an executive order directing the Comptroller's office to remove marketplace and platform fees from the definition of taxable data processing services in its administrative...
The Texas Comptroller issued an executive order directing the Comptroller's office to remove marketplace and platform fees from the definition of taxable data processing services in its administrative...
UT - Local tax rate changes announced
The Utah State Tax Commission announced the following local sales and use tax rate changes, effective October 1, 2026.Emergency Services TaxWashington City and Hildale (Washington County) impose a 0.3...
The Utah State Tax Commission announced the following local sales and use tax rate changes, effective October 1, 2026.Emergency Services TaxWashington City and Hildale (Washington County) impose a 0.3...
VT - MFTIA and MFTA rates announced for fourth quarter of 2026
The Vermont motor fuel transportation infrastructure assessment (MFTIA) rate for the fourth quarter of 2026 (October to December 2026) is $0.0691, and the motor fuel tax assessment (MFTA) rate is $0.1...
The Vermont motor fuel transportation infrastructure assessment (MFTIA) rate for the fourth quarter of 2026 (October to December 2026) is $0.0691, and the motor fuel tax assessment (MFTA) rate is $0.1...
VA - Reminder issued for tax requirements for fairs or festivals
The Virginia Department of Taxation has issued a reminder regarding sales tax requirements for sales of art, pottery, jewelry, or other items at a fair or festival.If a vendor only sells at 3 or fewer...
The Virginia Department of Taxation has issued a reminder regarding sales tax requirements for sales of art, pottery, jewelry, or other items at a fair or festival.If a vendor only sells at 3 or fewer...
WA - Classification of affiliate income was genuine issue of material fact preventing conclusion regarding taxpayer's nexus
A summary judgment in favor of the Washington Department of Revenue was reversed in a case relating to the business and occupation(B&O) tax liability of a Colorado corporation with affiliates invo...
A summary judgment in favor of the Washington Department of Revenue was reversed in a case relating to the business and occupation(B&O) tax liability of a Colorado corporation with affiliates invo...
WV - Acute care hospital tax rate change announced
West Virginia announced a change to the tax rate imposed on acute care hospitals that provide Medicaid and Medicare services in the state. Effective October 1, 2026, the rate is 2.5%. Administrative N...
West Virginia announced a change to the tax rate imposed on acute care hospitals that provide Medicaid and Medicare services in the state. Effective October 1, 2026, the rate is 2.5%. Administrative N...
WI - Municipality not entitled to full party status
The Wisconsin Tax Appeals Commission has determined that when a person is not aggrieved by a decision of the Board of Assessors, the Commission lacks jurisdiction to hear their appeal. Municipalities ...
The Wisconsin Tax Appeals Commission has determined that when a person is not aggrieved by a decision of the Board of Assessors, the Commission lacks jurisdiction to hear their appeal. Municipalities ...
WY - Property tax exemption standards rule amended
Wyoming adopted amendments to its rules regarding property tax exemption standards effective August 26, 2026. These amendments implement legislation effective July 1, 2026. This legislation made vario...
Wyoming adopted amendments to its rules regarding property tax exemption standards effective August 26, 2026. These amendments implement legislation effective July 1, 2026. This legislation made vario...
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