Catalano, Caboor & Co.
Tax Alerts
IRS Issues Whistleblower Alert to Address Potential Fraud (IR 2026-54)
The IRS has issued a Whistleblower Alert highlighting concerns about the misuse, diversion or fraudulent use of federal funds by tax-exempt organizations, individuals and businesses. The IRS encoura...
The IRS has issued a Whistleblower Alert highlighting concerns about the misuse, diversion or fraudulent use of federal funds by tax-exempt organizations, individuals and businesses. The IRS encoura...
Applicable Terminal Charge and SIFL Rates for Determining Value of Noncommercial Flights on Employer-Provided Aircraft Issued (Rev. Rul. 2026-8)
For flights taken during the period from January 1, 2026, through June 30, 2026, the terminal charge is $54.48, and the SIFL rates are: $.2980 per mile for the first 500 miles, $.2272 per mile for 501...
For flights taken during the period from January 1, 2026, through June 30, 2026, the terminal charge is $54.48, and the SIFL rates are: $.2980 per mile for the first 500 miles, $.2272 per mile for 501...
IRS Releases Excludable or Deductible Foreign Housing Expenses for 2026 (Notice 2026-25)
The IRS has provided the foreign housing expense exclusion/deduction amounts for tax year 2026. Generally, a qualified individual whose entire tax year is within the applicable period is limited to ma...
The IRS has provided the foreign housing expense exclusion/deduction amounts for tax year 2026. Generally, a qualified individual whose entire tax year is within the applicable period is limited to ma...
IRS Reports Over 4 Million Children Enrolled in Trump Accounts Pilot Program (IR 2026-42)
The IRS has announced that more than 4 million children were enrolled in tax-favoured Trump Accounts, with over 1 million qualifying for a $1,000 federal contribution under a pilot program. The enrolm...
The IRS has announced that more than 4 million children were enrolled in tax-favoured Trump Accounts, with over 1 million qualifying for a $1,000 federal contribution under a pilot program. The enrolm...
IRS Expands Business Tax Account Access to Partnerships, Governments and Tax-Exempt Organizations (IR 2026-46)
The IRS expanded access to its Business Tax Account platform to partnerships, government entities and tax-exempt organizations. The expansion improved digital service and reduced administrative burden...
The IRS expanded access to its Business Tax Account platform to partnerships, government entities and tax-exempt organizations. The expansion improved digital service and reduced administrative burden...
IRS Reports Timely Refund Processing and Increased Electronic Filing (IR 2026-43)
The IRS delivered timely refund processing during the tax year at issue. Most refunds were issued within 21 days, and returns were processed without delay. The IRS reported that a majority of individu...
The IRS delivered timely refund processing during the tax year at issue. Most refunds were issued within 21 days, and returns were processed without delay. The IRS reported that a majority of individu...
AL - Organ donation leave tax credit created
Alabama has enacted legislation providing a tax credit to employers who give paid leave to employees who are undergoing a medical procedure to donate all or part of an organ to another individual. The...
Alabama has enacted legislation providing a tax credit to employers who give paid leave to employees who are undergoing a medical procedure to donate all or part of an organ to another individual. 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 - Penny rounding rules issued
Arizona has adopted mandatory "Swedish rounding" for certain cash transactions in Arizona. The new rule applies when one-cent coins are not available or are not used by a seller at the point of sale a...
Arizona has adopted mandatory "Swedish rounding" for certain cash transactions in Arizona. The new rule applies when one-cent coins are not available or are not used by a seller at the point of sale a...
AR - Guidance provided on taxability of battery energy storage system equipment
The office of Arkansas' Revenue Legal Counsel has opined that the application of sales and use tax to the purchase of battery energy storage system equipment for a new solar facility is determined on ...
The office of Arkansas' Revenue Legal Counsel has opined that the application of sales and use tax to the purchase of battery energy storage system equipment for a new solar facility is determined on ...
CA - Nonrecognition of gain from sale of storm-damaged property allowed
Owners of commercial property damaged by a storm were entitled to nonrecognition of gain from the sale of the property, the proceeds of which were used to acquire qualified replacement property. The F...
Owners of commercial property damaged by a storm were entitled to nonrecognition of gain from the sale of the property, the proceeds of which were used to acquire qualified replacement property. The F...
CO - Determination process for qualification as charitable organization codified
Colorado has enacted legislation codifying the process for determining whether an organization qualifies as a charitable organization for state sales and use tax purposes. If an organization presents ...
Colorado has enacted legislation codifying the process for determining whether an organization qualifies as a charitable organization for state sales and use tax purposes. If an organization presents ...
CT - 2026 revision announced of required forms for tobacco products manufacturers
Tobacco products manufacturers are notified of the annual revision of the required forms that must be completed and filed with either the Connecticut Department of Revenue Services or the Connecticut ...
Tobacco products manufacturers are notified of the annual revision of the required forms that must be completed and filed with either the Connecticut Department of Revenue Services or the Connecticut ...
DE - Film credit, increase in cigarette and tobacco taxes proposed
Delaware Gov. Matt Meyer delivered a presentation for his fiscal year 2027 budget that includes proposals to increase taxes on cigarettes and other tobacco products and to establish a film tax credit....
Delaware Gov. Matt Meyer delivered a presentation for his fiscal year 2027 budget that includes proposals to increase taxes on cigarettes and other tobacco products and to establish a film tax credit....
FL - Governmental entities prohibited from imposing taxes to advance net zero policies, including carbon taxes
A governmental entity may not impose any charge, including a tax, fee, penalty, offset, or assessment, to advance a net zero policy, including but not limited to a charge:based on the carbon content o...
A governmental entity may not impose any charge, including a tax, fee, penalty, offset, or assessment, to advance a net zero policy, including but not limited to a charge:based on the carbon content o...
GA - Transportation services tax rates adjusted
Georgia updated its transportation services tax rates for hire ground transport and shared for hire ground transport. For the period of April 1, 2026, through March 31, 2027, the rates are $0.64 per t...
Georgia updated its transportation services tax rates for hire ground transport and shared for hire ground transport. For the period of April 1, 2026, through March 31, 2027, the rates are $0.64 per t...
HI - Relief available for taxpayers affected by March 2026 kona low weather event
Taxpayers adversely affected by the March 2026 Kona Low weather event occurring throughout Hawaii between March 10 and March 23, 2026, may be eligible for state income tax return filing and payment re...
Taxpayers adversely affected by the March 2026 Kona Low weather event occurring throughout Hawaii between March 10 and March 23, 2026, may be eligible for state income tax return filing and payment re...
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 - Treatment of Canadian pension income discussed
Illinois issued a general information letter discussing the treatment of Canadian public and private pension income under the U.S.-Canada tax treaty, federal law, and Illinois tax law. The determinati...
Illinois issued a general information letter discussing the treatment of Canadian public and private pension income under the U.S.-Canada tax treaty, federal law, and Illinois tax law. The determinati...
IN - Guidance on employer child care expenditure credit updated to reflect legislation
Guidance regarding the employer child care expenditure credit is updated to reflect legislation enacted earlier this year that amended the definition of "qualified child care expenditures." Income Tax...
Guidance regarding the employer child care expenditure credit is updated to reflect legislation enacted earlier this year that amended the definition of "qualified child care expenditures." Income Tax...
IA - Rules related to endow Iowa tax credits adopted
Iowa announced the adoption of rules related to the Endow Iowa tax credits, effective May 20, 2026. The rule-making adopts a new chapter and describes the policies and procedures applicable to the pro...
Iowa announced the adoption of rules related to the Endow Iowa tax credits, effective May 20, 2026. The rule-making adopts a new chapter and describes the policies and procedures applicable to the pro...
KS - Deductions allowed for contributions to independent contractor benefit plans
Effective for tax years beginning after December 31, 2026, Kansas will allow a subtraction from federal adjusted gross income for contributions during the tax year to voluntary portable benefit plans ...
Effective for tax years beginning after December 31, 2026, Kansas will allow a subtraction from federal adjusted gross income for contributions during the tax year to voluntary portable benefit plans ...
KY - Electronic filing and payment requirements for local taxes enacted
Kentucky enacted legislation that requires development and implementation of a statewide electronic system for filing and paying local occupational license taxes. Local tax districts must adopt or acc...
Kentucky enacted legislation that requires development and implementation of a statewide electronic system for filing and paying local occupational license taxes. Local tax districts must adopt or acc...
LA - Drugs for medicare patients were exempt
In a series of cases, Louisiana’s Fifth Circuit Court of Appeal has ruled that healthcare providers’ purchases of prescription drugs from wholesalers or distributors that were subsequently adminis...
In a series of cases, Louisiana’s Fifth Circuit Court of Appeal has ruled that healthcare providers’ purchases of prescription drugs from wholesalers or distributors that were subsequently adminis...
ME - Maine decouples from IRC Sec. 168(k)
For tax years beginnning in 2025, Maine decouples from IRC Sec. 168 (k) by requiring a corporate and personal income tax addition to federal gross income equal to the net increase in depreciation attr...
For tax years beginnning in 2025, Maine decouples from IRC Sec. 168 (k) by requiring a corporate and personal income tax addition to federal gross income equal to the net increase in depreciation attr...
MD - Theatrical production credit extended
Maryland's theatrical production credit available against corporate and personal income tax is extended through June 30, 2032. The credit was to expire at the end of 2026. Ch. 18, H.B. 472, Laws 2026,...
Maryland's theatrical production credit available against corporate and personal income tax is extended through June 30, 2032. The credit was to expire at the end of 2026. Ch. 18, H.B. 472, Laws 2026,...
MA - Individual mandate penalty for 2026 announced
Massachusetts issued guidance on personal income taxes regarding individual mandate penalties for 2026 under the Massachusetts Health Care Reform Act. The penalties apply to adults 18 and older who ar...
Massachusetts issued guidance on personal income taxes regarding individual mandate penalties for 2026 under the Massachusetts Health Care Reform Act. The penalties apply to adults 18 and older who ar...
MI - Proration percentages for research and development credit announced
The Michigan Department of Treasury has announced the proration percentages to apply to tentative claims for corporate income tax and withholding tax credits for qualifying research and development ex...
The Michigan Department of Treasury has announced the proration percentages to apply to tentative claims for corporate income tax and withholding tax credits for qualifying research and development ex...
MN - Advances from corporation properly reclassified as taxable shareholder distributions
The Minnesota Tax Court upheld the Commissioner of Revenue's classification of advances made by an S corporation to a shareholder as taxable shareholder distributions rather than bona fide loans. The ...
The Minnesota Tax Court upheld the Commissioner of Revenue's classification of advances made by an S corporation to a shareholder as taxable shareholder distributions rather than bona fide loans. The ...
MS - Extensions for winter storm fern
Mississippi announced extensions for taxpayers impacted by Winter Storm Fern, which took place on January 23, 2026. Impacted taxpayers will have until June 8, 2026 to file and pay individual income ta...
Mississippi announced extensions for taxpayers impacted by Winter Storm Fern, which took place on January 23, 2026. Impacted taxpayers will have until June 8, 2026 to file and pay individual income ta...
MO - Provisions related to cannabis created and modified
Enacted Missouri legislation creates and modifies provisions related to cannabis, including but not limited to the following:modifies the definition of "industrial hemp" and adds definitions of "hemp,...
Enacted Missouri legislation creates and modifies provisions related to cannabis, including but not limited to the following:modifies the definition of "industrial hemp" and adds definitions of "hemp,...
MT - Governor petitions state supreme court
Montana Gov. Greg Gianforte has petitioned the Montana Supreme Court to exercise original jurisdiction and provide an expedited ruling on a recent lawsuit challenging the constitutionality of property...
Montana Gov. Greg Gianforte has petitioned the Montana Supreme Court to exercise original jurisdiction and provide an expedited ruling on a recent lawsuit challenging the constitutionality of property...
NE - Advantage act tier 6 base-year employee calculations amended
If a taxpayer has met the required levels of employment and investment for a tier 6 project under the Nebraska Advantage Act and sells or transfers a portion of the business to an entity that is not p...
If a taxpayer has met the required levels of employment and investment for a tier 6 project under the Nebraska Advantage Act and sells or transfers a portion of the business to an entity that is not p...
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 - Department shares tax tips and filing guidance for 2026
The New Hampshire Department of Revenue Administration shared updates and reminders for the 2026 filing season, including information on:form adjustments and updated forms;meals and rentals tax guidan...
The New Hampshire Department of Revenue Administration shared updates and reminders for the 2026 filing season, including information on:form adjustments and updated forms;meals and rentals tax guidan...
NJ - Petroleum products gross receipt rates unchanged
The New Jersey petroleum products gross receipt tax rates are unchanged for the period April 1 through June 30, 2026. The current rates are:gasoline and LPG: 38.6 cents per gallon;diesel: 42.6 cents p...
The New Jersey petroleum products gross receipt tax rates are unchanged for the period April 1 through June 30, 2026. The current rates are:gasoline and LPG: 38.6 cents per gallon;diesel: 42.6 cents p...
NY - Reinsurance allocation percentages released
New York has released the current list of reinsurance allocation percentages for insurance franchise tax purposes. The Department of Taxation and Finance advises that the percentage listed for a parti...
New York has released the current list of reinsurance allocation percentages for insurance franchise tax purposes. The Department of Taxation and Finance advises that the percentage listed for a parti...
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 July 1, 2026: (1) the city of Drayton will increase its city sales, use, and gross receipts tax to 3.5%; (2) the city...
North Dakota has announced the following local sales and use tax changes effective July 1, 2026: (1) the city of Drayton will increase its city sales, use, and gross receipts tax to 3.5%; (2) the city...
OH - 2026 second quarter PAT average wholesale prices released
Ohio has released the petroleum activity tax (PAT) statewide average wholesale prices for the second quarter of 2026.The average prices per gallon for the second quarter are:$1.774 for unleaded gasoli...
Ohio has released the petroleum activity tax (PAT) statewide average wholesale prices for the second quarter of 2026.The average prices per gallon for the second quarter are:$1.774 for unleaded gasoli...
OK - Taxpayer bill of rights established
A taxpayer bill of rights for Oklahoma property tax purposes has been established and must be included in the notice provided to a taxpayer whose property is subject to a valuation increase. The bill ...
A taxpayer bill of rights for Oklahoma property tax purposes has been established and must be included in the notice provided to a taxpayer whose property is subject to a valuation increase. The bill ...
OR - Tax credit established for newly chartered banks
Oregon has enacted a corporate income tax credit for Oregon chartered de novo banks that begin operations between January 1, 2027 and January 1, 2033. The credit can offset up to $1 million in taxes a...
Oregon has enacted a corporate income tax credit for Oregon chartered de novo banks that begin operations between January 1, 2027 and January 1, 2033. The credit can offset up to $1 million in taxes a...
PA - Estimated payment policy clarified
Philadelphia has issued guidance on the business income and receipts tax (BIRT) for tax year 2025. The city clarifies its estimated payment policy following the removal of the $100,000 exclusion, requ...
Philadelphia has issued guidance on the business income and receipts tax (BIRT) for tax year 2025. The city clarifies its estimated payment policy following the removal of the $100,000 exclusion, requ...
RI - Division reminds taxpayers that USPS postmark change could affect filing date
The Rhode Island Division ofTaxation reminds taxpayers that United States Postal Service postmarking is now done when mail is processed, not received. Thus, Rhode island taxpayers should ensure that a...
The Rhode Island Division ofTaxation reminds taxpayers that United States Postal Service postmarking is now done when mail is processed, not received. Thus, Rhode island taxpayers should ensure that a...
SC - State per capita income figure announced
South Carolina announced that the most recently available state per capita income figure is $63,179. The figure is important because various income, sales and use, and property tax incentives require ...
South Carolina announced that the most recently available state per capita income figure is $63,179. The figure is important because various income, sales and use, and property tax incentives require ...
SD - Revised maximum property tax levies for school districts enacted
For South Dakota property taxes payable in 2027, and for each year thereafter, the maximum levy for school district general education funds the limit per $1,000 of taxable valuation is:a total of $4.8...
For South Dakota property taxes payable in 2027, and for each year thereafter, the maximum levy for school district general education funds the limit per $1,000 of taxable valuation is:a total of $4.8...
TN - Refunds available for certain taxpayers affected by winter storm fern
Tennessee issued a reminder that survivors of Winter Storm Fern may be eligible for refunds of up to $2,500 in sales tax paid on certain items purchased to replace or repair property damaged or destro...
Tennessee issued a reminder that survivors of Winter Storm Fern may be eligible for refunds of up to $2,500 in sales tax paid on certain items purchased to replace or repair property damaged or destro...
TX - March 2026 certification of the average closing price of gas and oil released
The Texas Comptroller of Public Accounts has determined the average taxable price of crude oil for the reporting period March 2026 is $35.95 per barrel for the three-month period beginning on December...
The Texas Comptroller of Public Accounts has determined the average taxable price of crude oil for the reporting period March 2026 is $35.95 per barrel for the three-month period beginning on December...
UT - Eligibility for child tax credit expanded
Beginning on and after January 1, 2026, eligibility for the Utah nonrefundable individual income tax credit for qualifying children is expanded by increasing the thresholds for the income-based phaseo...
Beginning on and after January 1, 2026, eligibility for the Utah nonrefundable individual income tax credit for qualifying children is expanded by increasing the thresholds for the income-based phaseo...
VT - New local option taxes announced
Vermont announced that the towns listed below will have new local option taxes, effective July 1, 2026.Local Option Sales Tax. The following municipalities are adding a 1% local option sales tax: Bris...
Vermont announced that the towns listed below will have new local option taxes, effective July 1, 2026.Local Option Sales Tax. The following municipalities are adding a 1% local option sales tax: Bris...
VA - Partial exemption authorized for certain rehabilitated, renovated, or replacement of underutilized structures for residential use
Enacted Virginia legislation authorizes localities to provide a partial real estate tax exemption for a qualifying residential conversion of a building. For purposes of the exemption, a "qualifying re...
Enacted Virginia legislation authorizes localities to provide a partial real estate tax exemption for a qualifying residential conversion of a building. For purposes of the exemption, a "qualifying re...
WA - No property value reduction due to COVID-19 pandemic
A nonprofit hospitality association was not eligible for a reduction in property value for purposes of Washington property taxes due to the COVID-19 pandemic. Washington law provides that a property's...
A nonprofit hospitality association was not eligible for a reduction in property value for purposes of Washington property taxes due to the COVID-19 pandemic. Washington law provides that a property's...
WV - Extension granted to federal homeland security employees
West Virginia announced that it will follow the automatic 30-day extension granted by the IRS to U.S. Department of Homeland Security (DHS) employees for filing 2025 income tax returns and making tax ...
West Virginia announced that it will follow the automatic 30-day extension granted by the IRS to U.S. Department of Homeland Security (DHS) employees for filing 2025 income tax returns and making tax ...
WI - Amended return filed too late
Petitioners owned property damaged by a storm in 2017. They filed their 2017 income tax return on April 14, 2018, but did not include any claim of casualty and/or loss. Petitioners filed an amended 20...
Petitioners owned property damaged by a storm in 2017. They filed their 2017 income tax return on April 14, 2018, but did not include any claim of casualty and/or loss. Petitioners filed an amended 20...
WY - Electronic tax notices authorized
Wyoming has enacted legislation allowing the Department of Revenue to send notices related to sales and use tax electronically if a taxpayer has provided electronic contact information to the Departme...
Wyoming has enacted legislation allowing the Department of Revenue to send notices related to sales and use tax electronically if a taxpayer has provided electronic contact information to the Departme...
Catalano, Caboor & Co. is a full service Chicagoland CPA firm located in Lombard, Illinois.
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