Catalano, Caboor & Co.
Tax Alerts
Applicable Dollar Amount for Health Insurance Plan Fees Announced (Notice 2025-61)
The IRS has announced that the applicable dollar amount used to calculate the fees imposed by Code Secs. 4375 and 4376 for policy and plan years that end on or after October 1, 2025, and before Oc...
The IRS has announced that the applicable dollar amount used to calculate the fees imposed by Code Secs. 4375 and 4376 for policy and plan years that end on or after October 1, 2025, and before Oc...
Partnership Claimed Deduction for Wrong Year, Penalties Imposed (Corning Place Ohio LLC., CA-6)
A partnership (taxpayer) was denied a deduction for an easement donation related to a property (P1). The taxpayer claimed the deduction for the wrong year. Additionally, the taxpayer (1) substantially...
A partnership (taxpayer) was denied a deduction for an easement donation related to a property (P1). The taxpayer claimed the deduction for the wrong year. Additionally, the taxpayer (1) substantially...
IRS Grants Relief to Taxpayers Affected by Terrorist Action in Israel; Deadlines Postponed (Notice 2025-53; IR-2025-97)
The IRS has provided relief under Code Sec. 7508A for persons determined to be affected by the terroristic action in the State of Israel throughout 2024 and 2025. Affected taxpayers have until Septe...
The IRS has provided relief under Code Sec. 7508A for persons determined to be affected by the terroristic action in the State of Israel throughout 2024 and 2025. Affected taxpayers have until Septe...
Office of Appeals Begins Pilot Program on Mediation (IR-2025-100)
The IRS Independent Office of Appeals has launched a two-year pilot program to make Post Appeals Mediation (PAM) more attractive to taxpayers. Under the new PAM pilot, cases will be reassigned to an A...
The IRS Independent Office of Appeals has launched a two-year pilot program to make Post Appeals Mediation (PAM) more attractive to taxpayers. Under the new PAM pilot, cases will be reassigned to an A...
IRS Reminds Taxpayers to Safeguard Financial Records in Emergency Plans
The IRS has reminded taxpayers that emergency readiness has gone beyond food, water and shelter. It also includes safeguarding financial and tax documents. Families and businesses should review their ...
The IRS has reminded taxpayers that emergency readiness has gone beyond food, water and shelter. It also includes safeguarding financial and tax documents. Families and businesses should review their ...
AL - Department begins administering, collecting local taxes in Beatrice
Effective December 1, 2025, the Alabama Department of Revenue begins administering and collecting the town of Beatrice's local taxes. The first town of Beatrice local tax return filed with department ...
Effective December 1, 2025, the Alabama Department of Revenue begins administering and collecting the town of Beatrice's local taxes. The first town of Beatrice local tax return filed with department ...
AK - Integrated transmission systems legislation enacted
Alaska has enacted legislation creating new energy incentives by extending tax-exempt statutes to independent power producers. An electricity generation facility or electricity storage facility that i...
Alaska has enacted legislation creating new energy incentives by extending tax-exempt statutes to independent power producers. An electricity generation facility or electricity storage facility that i...
AZ - Local rate change announced
The Arizona Department of Revenue has announced a new local transaction privilege tax (TPT) rate change. In addition to previously announced local rate changes, the Department announced the following ...
The Arizona Department of Revenue has announced a new local transaction privilege tax (TPT) rate change. In addition to previously announced local rate changes, the Department announced the following ...
AR - Agricultural federal relief payments are exempt
Arkansas Governor, Sarah Huckabee Sanders, announced that payments received by farmers from the Emergency Commodity Assistance Program (ECAP) are exempt from state income tax for tax years beginning J...
Arkansas Governor, Sarah Huckabee Sanders, announced that payments received by farmers from the Emergency Commodity Assistance Program (ECAP) are exempt from state income tax for tax years beginning J...
CA - Revised guidance provided on application of use tax to vehicle and vessel transfers
Revised guidance is provided regarding the application of use tax to vehicle and vessel transfers. The publication provides examples of vehicle and vessel transfers that are not subject to California ...
Revised guidance is provided regarding the application of use tax to vehicle and vessel transfers. The publication provides examples of vehicle and vessel transfers that are not subject to California ...
CO - Guidance on filing requirements related to master settlement agreement updated
Colorado updated its guidance on the filing requirements for tobacco product manufacturers and distributors in connection with the Master Settlement Agreement (MSA). Manufacturers selling cigarettes o...
Colorado updated its guidance on the filing requirements for tobacco product manufacturers and distributors in connection with the Master Settlement Agreement (MSA). Manufacturers selling cigarettes o...
CT - The generation of electricity was not manufacturing for purposes of exemption
The generation of electricity is not manufacturing within the meaning of the statutory property tax exemption for machinery and equipment used in manufacturing. The term "machinery and equipment" is...
The generation of electricity is not manufacturing within the meaning of the statutory property tax exemption for machinery and equipment used in manufacturing. The term "machinery and equipment" is...
DE - Split rate taxation based on property classification upheld
The Supreme Court of Delaware upheld the constitutionality of a law that allows New Castle County school districts to implement temporary split-rate property tax assessments based on residential and n...
The Supreme Court of Delaware upheld the constitutionality of a law that allows New Castle County school districts to implement temporary split-rate property tax assessments based on residential and n...
FL - 2026 motor fuels tax rates announced
The 2026 Florida motor fuel and diesel fuel tax rates are announced. The aviation fuel tax is repealed effective January 1, 2026. The adjusted fuel tax rates are effective January 1, 2026, and they ap...
The 2026 Florida motor fuel and diesel fuel tax rates are announced. The aviation fuel tax is repealed effective January 1, 2026. The adjusted fuel tax rates are effective January 1, 2026, and they ap...
GA - County tax rate changes announced for Q1
Multiple Georgia counties have sales and use tax rate change that take effect on January 1, 2026.The following counties will have a rate of 7%:Charlton; andMonroe.The following counties will have a ra...
Multiple Georgia counties have sales and use tax rate change that take effect on January 1, 2026.The following counties will have a rate of 7%:Charlton; andMonroe.The following counties will have a ra...
HI - Temporary rules adopted for cruise fare proceeds
Hawaii adopted new temporary rules regarding the apportionment and allocation for tax purposes of gross income or gross rental proceeds from cruise fares. Effective January 1, 2026, gross income or gr...
Hawaii adopted new temporary rules regarding the apportionment and allocation for tax purposes of gross income or gross rental proceeds from cruise fares. Effective January 1, 2026, gross income or gr...
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 - River edge and apprenticeship credits extended
Illinois enacted legislation extending the sunset dates for corporate and personal income tax credits from:January 1, 2027 to January 1, 2029 for the river edge development zone historic preservation...
Illinois enacted legislation extending the sunset dates for corporate and personal income tax credits from:January 1, 2027 to January 1, 2029 for the river edge development zone historic preservation...
IN - Updated guidance issued regarding leases of motor vehicles and trailers
Updated guidance is issued regarding the leases of motor vehicles and trailers. The guidance has been updated to provide additional guidance on the exclusion of negative equity from tax, credit for ta...
Updated guidance is issued regarding the leases of motor vehicles and trailers. The guidance has been updated to provide additional guidance on the exclusion of negative equity from tax, credit for ta...
IA - Sales tax rounding guidance
The Iowa Department of Revenue has issued guidance regarding the end of production of pennies for circulation, and the effect on sales tax. While existing pennies remain in circulation and are legal t...
The Iowa Department of Revenue has issued guidance regarding the end of production of pennies for circulation, and the effect on sales tax. While existing pennies remain in circulation and are legal t...
KS - Guidance issued on personal exemption changes
Kansas issued guidance discussing changes to personal income tax exemptions for head of household filers, veterans, and unborn children. The state enacted legislation in 2025 that codified the perso...
Kansas issued guidance discussing changes to personal income tax exemptions for head of household filers, veterans, and unborn children. The state enacted legislation in 2025 that codified the perso...
KY - Pro rata distribution of sale proceeds to lien holders required
The Kentucky Supreme Court upheld a property tax decision requiring the distribution of proceeds from a foreclosure sale to lien holders on a pro-rata basis, rather than under the common law rule of ...
The Kentucky Supreme Court upheld a property tax decision requiring the distribution of proceeds from a foreclosure sale to lien holders on a pro-rata basis, rather than under the common law rule of ...
LA - Guidance issued on changes to child care credit
The Louisiana Department of Revenue has issued a summary of changes to the Workforce Child Care Tax Credit, effective January 1, 2026. The credit is currently known as the School Readiness Tax Credit....
The Louisiana Department of Revenue has issued a summary of changes to the Workforce Child Care Tax Credit, effective January 1, 2026. The credit is currently known as the School Readiness Tax Credit....
ME - Rate schedules, withholding tables issued for 2026
Maine has updated the individual income tax rate schedules and withholding tables for 2026. The 2026 statutory tax rates are 5.8%, 6.75%, and 7.15%. The top rate is imposed on single or married taxpay...
Maine has updated the individual income tax rate schedules and withholding tables for 2026. The 2026 statutory tax rates are 5.8%, 6.75%, and 7.15%. The top rate is imposed on single or married taxpay...
MD - State will defer payment plans for federal employees unable to meet obligations
The Maryland Comptroller announced that the state will defer payment plans for federal employees who are unable to meet their tax obligations due to the federal government shutdown.Federal employees d...
The Maryland Comptroller announced that the state will defer payment plans for federal employees who are unable to meet their tax obligations due to the federal government shutdown.Federal employees d...
MA - Interest rates remain unchanged for the first quarter of 2026
The interest rates on the underpayment and overpayment of Massachusetts taxes are unchanged for the period January 1, 2026, through March 31, 2026. The rates have held steady at 6% for overpayments, a...
The interest rates on the underpayment and overpayment of Massachusetts taxes are unchanged for the period January 1, 2026, through March 31, 2026. The rates have held steady at 6% for overpayments, a...
MI - List of community foundations for Michigan business tax credit released
The Michigan Department of Treasury has released a list of certified community foundations for tax year 2025 for purposes of the Michigan business tax credit for contributions to community foundations...
The Michigan Department of Treasury has released a list of certified community foundations for tax year 2025 for purposes of the Michigan business tax credit for contributions to community foundations...
MN - Pass-through entity tax guidance issued
Minnesota issued guidance on the pass-through entity (PTE) tax election available to qualifying entities for tax years beginning after December 31, 2020, and before January 1, 2026. Qualifying entitie...
Minnesota issued guidance on the pass-through entity (PTE) tax election available to qualifying entities for tax years beginning after December 31, 2020, and before January 1, 2026. Qualifying entitie...
MS - Broadband technology credit limits and allocation process established
Mississippi issued guidance on income and franchise tax credits for broadband technology deployment by telecommunications enterprises. House Bill 1644 enacted in 2025 limits total allowable credits to...
Mississippi issued guidance on income and franchise tax credits for broadband technology deployment by telecommunications enterprises. House Bill 1644 enacted in 2025 limits total allowable credits to...
MO - County tax imposed on marijuana dispensary within city limits overturned
The Missouri Court of Appeals reversed and remanded the trial court's decision granting summary judgment for the county regarding imposition of a local sales tax on non-medical marijuana sales by a li...
The Missouri Court of Appeals reversed and remanded the trial court's decision granting summary judgment for the county regarding imposition of a local sales tax on non-medical marijuana sales by a li...
MT - Revision of reported wages affirmed
The Montana Tax Appeal Board affirmed the Department of Revenue's adjustment to the taxpayer’s 2023 personal income tax liability, concluding the agency acted within its legal authority to revise th...
The Montana Tax Appeal Board affirmed the Department of Revenue's adjustment to the taxpayer’s 2023 personal income tax liability, concluding the agency acted within its legal authority to revise th...
NE - Local sales tax rate chart issued
The Nebraska Department of Revenue has released a table displaying the local sales and use tax rates applicable to the period beginning October 1, 2025. Local Sales and Use Tax Rates, Nebraska Depart...
The Nebraska Department of Revenue has released a table displaying the local sales and use tax rates applicable to the period beginning October 1, 2025. Local Sales and Use Tax Rates, Nebraska Depart...
NV - Tax exemption criteria tightened for nonprofit organizations
Nevada's Department of Taxation has revised the criteria for nonprofit organizations to qualify for sales and use tax exemptions, requiring compliance with enhanced standards. In determining whether a...
Nevada's Department of Taxation has revised the criteria for nonprofit organizations to qualify for sales and use tax exemptions, requiring compliance with enhanced standards. In determining whether a...
NH - Amnesty application steps outlined
New Hampshire has outlined steps that taxpayers must take to apply for the tax amnesty authorized by the New Hampshire Legislature during the 2025 session.Amnesty runs from December 1, 2025, through F...
New Hampshire has outlined steps that taxpayers must take to apply for the tax amnesty authorized by the New Hampshire Legislature during the 2025 session.Amnesty runs from December 1, 2025, through F...
NJ - Research and development credit guidance updated
New Jersey updated its guidance regarding the corporation business tax research and development (R&D) credit. The revision addresses changes to the timing of deductions for qualifying R&D expe...
New Jersey updated its guidance regarding the corporation business tax research and development (R&D) credit. The revision addresses changes to the timing of deductions for qualifying R&D expe...
NY - Tax exemption properly granted based on charitable farming use
The New York Court of Appeals upheld the lower courts’ decisions granting a property tax exemption under RPTL 420-a to a church for two tax years, based on its exclusive use of the property for qual...
The New York Court of Appeals upheld the lower courts’ decisions granting a property tax exemption under RPTL 420-a to a church for two tax years, based on its exclusive use of the property for qual...
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 January 1, 2026: (1) the city of Medina will impose a 1% local lodging and restaurant tax; (2) the city of Sherwood w...
North Dakota has announced the following local sales and use tax changes effective January 1, 2026: (1) the city of Medina will impose a 1% local lodging and restaurant tax; (2) the city of Sherwood w...
OH - Interest rates for taxes updated
Ohio has certified new interest rates for taxes for calendar year 2026. For 2026 the interest rates will decrease to:4%, from 5%, for estate tax and persoanl property tax; and7%, from 8%, for all othe...
Ohio has certified new interest rates for taxes for calendar year 2026. For 2026 the interest rates will decrease to:4%, from 5%, for estate tax and persoanl property tax; and7%, from 8%, for all othe...
OK - Employer’s Withholding Guide Updated
The Oklahoma Tax Commission has released its withholding guide for employers withholding personal income tax from their employees’ wages in 2026. The guide contains general information regarding reg...
The Oklahoma Tax Commission has released its withholding guide for employers withholding personal income tax from their employees’ wages in 2026. The guide contains general information regarding reg...
OR - Oral nicotine products tax begins January 2026
The Oregon Department of Revenue (DOR) is encouraging businesses that distribute and sell oral nicotine products to plan ahead for a new tax that applies to all oral nicotine products sold and distrib...
The Oregon Department of Revenue (DOR) is encouraging businesses that distribute and sell oral nicotine products to plan ahead for a new tax that applies to all oral nicotine products sold and distrib...
PA - Philadelphia amusement license provisions amended
Philadelphia has amended its tax code provisions concerning the amusement tax. The ordinance:removes provisions;updates collection and payment of tax; andremoves the amusement license and weights and ...
Philadelphia has amended its tax code provisions concerning the amusement tax. The ordinance:removes provisions;updates collection and payment of tax; andremoves the amusement license and weights and ...
RI - Inflation adjusted amounts for 2026 issued
The Rhode Island Department of Taxation has issued inflation adjusted amounts for for tax years beginning on or after January 1, 2026 for:standard deduction amounts;tax bracket ranges;Social Security ...
The Rhode Island Department of Taxation has issued inflation adjusted amounts for for tax years beginning on or after January 1, 2026 for:standard deduction amounts;tax bracket ranges;Social Security ...
SC - Interest rates unchanged for first quarter of 2026
From January 1, 2026, through March 31, 2026, the South Carolina interest rate on tax underpayments is 7%. The refund rate for overpayments is 4%. Information Letter 25-22, South Carolina Department ...
From January 1, 2026, through March 31, 2026, the South Carolina interest rate on tax underpayments is 7%. The refund rate for overpayments is 4%. Information Letter 25-22, South Carolina Department ...
SD - City of Clark implements new municipal gross receipts tax
South Dakota announced that the City of Clark will implement a new 1% municipal gross receipts tax effective January 1, 2026. News Release, South Dakota Department of Revenue, November 5, 2025...
South Dakota announced that the City of Clark will implement a new 1% municipal gross receipts tax effective January 1, 2026. News Release, South Dakota Department of Revenue, November 5, 2025...
TN - Unicoi County rate increased
Effective January 1, 2026, the Unicoi County, Tennessee, mineral severance tax rate will increase to 20 cents per ton. This rate will apply to sand, chert, sandstone, limestone, and gravel severed fro...
Effective January 1, 2026, the Unicoi County, Tennessee, mineral severance tax rate will increase to 20 cents per ton. This rate will apply to sand, chert, sandstone, limestone, and gravel severed fro...
TX - Guidance issued on tobacco products tax and nicotine products
The Washington Department of Revenue has reminded taxpayers that beginning January 1, 2026, any product containing nicotine, whether it comes from tobacco or is made synthetically, is subject to the t...
The Washington Department of Revenue has reminded taxpayers that beginning January 1, 2026, any product containing nicotine, whether it comes from tobacco or is made synthetically, is subject to the t...
UT - Insurance premium tax rate on workers compensation premiums decreases
Effective January 1, 2026, the Utah workers’ compensation insurance premium tax rate decreases to 1.15%. The tax rate applies to all taxable workers' compensation premiums for the 2026 calendar year...
Effective January 1, 2026, the Utah workers’ compensation insurance premium tax rate decreases to 1.15%. The tax rate applies to all taxable workers' compensation premiums for the 2026 calendar year...
VT - 2026 interest rate announced
The Vermont annual interest rate for the overpayment and underpayment of tax liabilities for the 2026 calendar year is 7.75%. This rate is effective January 1, 2026, and applies to interest that accru...
The Vermont annual interest rate for the overpayment and underpayment of tax liabilities for the 2026 calendar year is 7.75%. This rate is effective January 1, 2026, and applies to interest that accru...
VA - City of Richmond enacts disposable plastic bag tax
Effective January 1, 2026, the city of Richmond adopts the Virginia disposable plastic bag tax. The tax is imposed at the rate of 5 cents on each disposable plastic bag provided to shoppers in local g...
Effective January 1, 2026, the city of Richmond adopts the Virginia disposable plastic bag tax. The tax is imposed at the rate of 5 cents on each disposable plastic bag provided to shoppers in local g...
WA - Wages paid by property Management Company were subject to tax
A property management company could not obtain a refund of Washington business and occupation (B&O) tax for wages paid to its onsite employees because evidence supported the taxpayer's status as t...
A property management company could not obtain a refund of Washington business and occupation (B&O) tax for wages paid to its onsite employees because evidence supported the taxpayer's status as t...
WV - Employer withholding guidance updated
West Virginia updated guidance for employers on income tax withholding from employee wages. The guidance provides information on:compensation that is subject to withholding;monthly withholding payment...
West Virginia updated guidance for employers on income tax withholding from employee wages. The guidance provides information on:compensation that is subject to withholding;monthly withholding payment...
WI - 2025 withholding tax update released
Wisconsin issued a withholding tax update noting that there are currently no plans to change the withholding tax rates. The update also addresses numerous withholding topics, including: requirements f...
Wisconsin issued a withholding tax update noting that there are currently no plans to change the withholding tax rates. The update also addresses numerous withholding topics, including: requirements f...
WY - Local tax rate changes announced
Wyoming has issued a revised overview of changes in local tax rates effective July 1, 2025, for sales, use, and lodging taxes across various localities. The only change from the chart issued April 1, ...
Wyoming has issued a revised overview of changes in local tax rates effective July 1, 2025, for sales, use, and lodging taxes across various localities. The only change from the chart issued April 1, ...
Catalano, Caboor & Co. is a full service Chicagoland CPA firm located in Lombard, Illinois.
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