Catalano, Caboor & Co.
Tax Alerts
Tax Briefing(s)
IRS Reminds Newlyweds To Update Tax Information for Smoother Filing
The IRS has advised newly married individuals to review and update their tax information to avoid delays and complications when filing their 2025 income tax returns. Since an individual’s filing sta...
The IRS has advised newly married individuals to review and update their tax information to avoid delays and complications when filing their 2025 income tax returns. Since an individual’s filing sta...
IRS Offers Relief for Individuals Who Missed April Tax Filing Deadline (IR-2025-66)
The IRS has announced several online resources and flexible options for individuals who have not yet filed their federal income tax return for the tax year at issue. Those who owe taxes have been enco...
The IRS has announced several online resources and flexible options for individuals who have not yet filed their federal income tax return for the tax year at issue. Those who owe taxes have been enco...
Court Lacked Jurisdiction to Rule on Innocent Spouse Relief (Fakir, DC Mich.)
A district court lacked jurisdiction to rule on an individual’s innocent spouse relief under Code Sec. 6015(d)(3), in the first instance. The individual and her husband, as taxpayers, were liable f...
A district court lacked jurisdiction to rule on an individual’s innocent spouse relief under Code Sec. 6015(d)(3), in the first instance. The individual and her husband, as taxpayers, were liable f...
LLC Not Entitled to Full Conservation Easement Deduction; Adjusted Basis Limitation Affirmed (Glade Creek Partners, LLC, CA-11)
A limited liability company classified as a TEFRA partnership was not entitled to deduct the full fair market value of a conservation easement under Code Sec. 170. The Court of Appeals affirmed the T...
A limited liability company classified as a TEFRA partnership was not entitled to deduct the full fair market value of a conservation easement under Code Sec. 170. The Court of Appeals affirmed the T...
Married Couple not Entitled to Refund for Depreciation Deduction (Shleifer, DC Fla.)
A married couple was not entitled to a tax refund based on a depreciation deduction for a private jet. The Court found the taxpayers’ amended return failed to state the correct legal basis for the c...
A married couple was not entitled to a tax refund based on a depreciation deduction for a private jet. The Court found the taxpayers’ amended return failed to state the correct legal basis for the c...
AL - Department begins administering, collecting local taxes in Colbert County
Effective July 1, 2025, the Alabama Department of Revenue begins administering and collecting the city of Clanton's local sales and use taxes. The first city of Clanton local tax return filed with dep...
Effective July 1, 2025, the Alabama Department of Revenue begins administering and collecting the city of Clanton's local sales and use taxes. The first city of Clanton local tax return filed with dep...
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 tax rate table released
The Arizona Department of Revenue has announced new local transaction privilege tax (TPT) rate changes.City of Douglas (Effective July 1, 2025) Amusements tax rate decreased from 3.8% to 0.0% (with a...
The Arizona Department of Revenue has announced new local transaction privilege tax (TPT) rate changes.City of Douglas (Effective July 1, 2025) Amusements tax rate decreased from 3.8% to 0.0% (with a...
AR - Tax holiday period announced
The annual Arkansas sales tax holiday will take place from Saturday August 2, 2025 through Sunday August 3, 2025. 2025 Sales Tax Holiday, Arkansas Department of Finance and Administration, May 28, 20...
The annual Arkansas sales tax holiday will take place from Saturday August 2, 2025 through Sunday August 3, 2025. 2025 Sales Tax Holiday, Arkansas Department of Finance and Administration, May 28, 20...
CA - Updated guidance provided on use tax
Updated guidance is provided regarding California use tax. Topics discussed include the application of use tax and the exemption for items purchased in a foreign country. CDTFA Publication 110, Use T...
Updated guidance is provided regarding California use tax. Topics discussed include the application of use tax and the exemption for items purchased in a foreign country. CDTFA Publication 110, Use T...
CO - Alternative transportation options credit rule adopted
The Colorado Department of Revenue has adopted a new rule to provide guidance regarding the requirements for claiming the alternative transportation options income tax credit. The credit may be claime...
The Colorado Department of Revenue has adopted a new rule to provide guidance regarding the requirements for claiming the alternative transportation options income tax credit. The credit may be claime...
CT - 2025-2026 prepaid wireless E 9-1-1 fee announced
Effective July 1, 2025, through June 30, 2026, the Connecticut prepaid wireless E 9-1-1 fee that retailers of prepaid wireless telecommunications service are required to collect from consumers is $0.6...
Effective July 1, 2025, through June 30, 2026, the Connecticut prepaid wireless E 9-1-1 fee that retailers of prepaid wireless telecommunications service are required to collect from consumers is $0.6...
DE - Budget proposes rate cuts, new brackets, tobacco tax increase
Delaware Gov. Matt Meyer released his budget for fiscal year 2026 that includes proposals to cut personal income taxes and create 3 new tax brackets. The budget also includes a proposal to increase th...
Delaware Gov. Matt Meyer released his budget for fiscal year 2026 that includes proposals to cut personal income taxes and create 3 new tax brackets. The budget also includes a proposal to increase th...
FL - 2025-2026 indexed tax rate on asphalt for a contractor's own use announced
Effective July 1, 2025, through June 30, 2026, the indexed tax rate for the calculation of Florida use tax due on asphalt manufactured by a contractor for the contractor’s own use is $1.16 (formerly...
Effective July 1, 2025, through June 30, 2026, the indexed tax rate for the calculation of Florida use tax due on asphalt manufactured by a contractor for the contractor’s own use is $1.16 (formerly...
GA - Allocation of gross receipts across nationwide offices upheld
The Georgia Court of Appeals affirmed the trial court's decision granting the taxpayer a partial refund of business occupation taxes, holding that Georgia law requires gross receipts to be divided amo...
The Georgia Court of Appeals affirmed the trial court's decision granting the taxpayer a partial refund of business occupation taxes, holding that Georgia law requires gross receipts to be divided amo...
HI - Delay over for law requiring partnerships, estates, and trusts to withhold nonresident partners income tax
The Hawaii Department of Taxation (department) issued an Announcement that supersedes Announcement No. 2019-08 regarding the “Delay in Implementing the Withholding of Taxes on Income of Nonresident ...
The Hawaii Department of Taxation (department) issued an Announcement that supersedes Announcement No. 2019-08 regarding the “Delay in Implementing the Withholding of Taxes on Income of Nonresident ...
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 hosting platforms for short-term rentals discussed
Illinois provided guidance discussing the taxation of hosting platforms for short-term rentals. Beginning July 1, 2025, hotel operators, including hosting platforms for short-term rentals, that meet t...
Illinois provided guidance discussing the taxation of hosting platforms for short-term rentals. Beginning July 1, 2025, hotel operators, including hosting platforms for short-term rentals, that meet t...
IN - Updated guidance provided on civil service annuity adjustment and military retirement or survivor's benefit deduction
Updated guidance is provided on the civil service annuity adjustment, which is a deduction for a portion of a federal civil service annuity, and the deduction for military retirement pay or survivor's...
Updated guidance is provided on the civil service annuity adjustment, which is a deduction for a portion of a federal civil service annuity, and the deduction for military retirement pay or survivor's...
IA - Correction: upcoming fuel tax rate
A previous story incorrectly stated the Iowa tax rate of Ethanol Blended Gasoline E-15 or higher would remain 25.5 cents per gallon. Effective July 1, 2025, this rate will increase to 26.5 cents per g...
A previous story incorrectly stated the Iowa tax rate of Ethanol Blended Gasoline E-15 or higher would remain 25.5 cents per gallon. Effective July 1, 2025, this rate will increase to 26.5 cents per g...
KS - Local transient guest tax rate changes announced
Kansas announced local transient guest tax rate changes for the second quarter of 2025. Effective July 1, 2025, the transient guest tax rate is 5% in the City of Seneca. Transient Guest Tax Rates, Ka...
Kansas announced local transient guest tax rate changes for the second quarter of 2025. Effective July 1, 2025, the transient guest tax rate is 5% in the City of Seneca. Transient Guest Tax Rates, Ka...
KY - Disaster relief announced for may storms
Kentucky announced the counties in the state where building owners with property damaged or destroyed by severe storms, straight-line winds, and tornadoes that began on May 2, 2025 are eligible for di...
Kentucky announced the counties in the state where building owners with property damaged or destroyed by severe storms, straight-line winds, and tornadoes that began on May 2, 2025 are eligible for di...
LA - Lab schools included in tax credit program
Effective January 1, 2026, a laboratory school operated by a public college or university is considered a "qualified school" for purposes of the Louisiana school tuition organization income tax credit...
Effective January 1, 2026, a laboratory school operated by a public college or university is considered a "qualified school" for purposes of the Louisiana school tuition organization income tax credit...
ME - Rule amended to impose electronic filing on certain taxpayers
Maine Rule 104, which outlines requirements for filing certain Maine tax returns, including electronic filing requirements, has been amended to require that the following file electronic returns:certa...
Maine Rule 104, which outlines requirements for filing certain Maine tax returns, including electronic filing requirements, has been amended to require that the following file electronic returns:certa...
MD - Bulletin issued explaining tax expansion to data/information services
The Comptroller of Maryland has issued a technical bulletin explaining the imposition of Maryland sales and use tax on data or information technology services and software publishing services. Tax is ...
The Comptroller of Maryland has issued a technical bulletin explaining the imposition of Maryland sales and use tax on data or information technology services and software publishing services. Tax is ...
MA - Assessor did not consider evidence at abatement and appeal stages
The Massachusetts Appellate Tax Board granted an abatement for the appellants, ruling that the assessed property tax value exceeded the subject property's fair cash value. The Board determined that th...
The Massachusetts Appellate Tax Board granted an abatement for the appellants, ruling that the assessed property tax value exceeded the subject property's fair cash value. The Board determined that th...
MI - Tax relief available due to severe weather
The Michigan Department of Treasury has announced that pursuant to Governor Whitmer's emergency declaration for Baraga and Allegan counties and the City of Lansing, individuals and businesses within t...
The Michigan Department of Treasury has announced that pursuant to Governor Whitmer's emergency declaration for Baraga and Allegan counties and the City of Lansing, individuals and businesses within t...
MN - Reminder issued on cannabis tax increase
The Minnesota Department of Revenue issued a reminder that recently enacted legislation increases the cannabis tax rate from 10% to 15%, effective July 1, 2025. These products are also subject to both...
The Minnesota Department of Revenue issued a reminder that recently enacted legislation increases the cannabis tax rate from 10% to 15%, effective July 1, 2025. These products are also subject to both...
MS - Excise tax reporting requirements revised
Mississippi updated its guidance on excise tax for other tobacco products following the enactment of new legislation. Effective July 1, 2025, wholesalers selling products upon which the excuse tax has...
Mississippi updated its guidance on excise tax for other tobacco products following the enactment of new legislation. Effective July 1, 2025, wholesalers selling products upon which the excuse tax has...
MO - Disaster declaration area updated to include the City of St. Louis
The Missouri Department of Revenue announced it is implementing the IRS’s updated disaster area that now includes the city of St. Louis. As previously announced by the Department, this extends certa...
The Missouri Department of Revenue announced it is implementing the IRS’s updated disaster area that now includes the city of St. Louis. As previously announced by the Department, this extends certa...
MT - Property tax relief legislation signed
Montana Gov. Greg Gianforte signed property tax relief legislation created by H.B. 231 and S.B. 542. A tiered tax rate is created for residential and commercial class 4 property beginning in tax year ...
Montana Gov. Greg Gianforte signed property tax relief legislation created by H.B. 231 and S.B. 542. A tiered tax rate is created for residential and commercial class 4 property beginning in tax year ...
NE - Motor fuels tax rate announced
The Nebraska Department of Revenue has announced that from July 1 through December 31, 2025, the motor fuel tax rate increases to 31.8 cents per gallon. The notice can be viewed on the department's w...
The Nebraska Department of Revenue has announced that from July 1 through December 31, 2025, the motor fuel tax rate increases to 31.8 cents per gallon. The notice can be viewed on the department's w...
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 reminds taxpayers of interest and dividends tax repeal
The New Hampshire Department of Revenue Administration reminds taxpayers that the Interest and Dividends Tax is repealed effective January 1, 2025. Technical Information Release TIR 2025-001, New Ham...
The New Hampshire Department of Revenue Administration reminds taxpayers that the Interest and Dividends Tax is repealed effective January 1, 2025. Technical Information Release TIR 2025-001, New Ham...
NJ - Petroleum products gross receipt rates unchanged
he New Jersey petroleum products gross receipt tax rates are unchanged for the period July 1 through September 30, 2025. The existing rates are:gasoline and LPG: 34.4 cents per gallon;diesel: 38.4 cen...
he New Jersey petroleum products gross receipt tax rates are unchanged for the period July 1 through September 30, 2025. The existing rates are:gasoline and LPG: 34.4 cents per gallon;diesel: 38.4 cen...
NY - LLC members entitled to nonrecognition of gain from like-kind exchange
In a New York personal income tax case involving an LLC that owned an apartment building, the LLC members qualified for nonrecognition of gain from a like-kind exchange under IRC Sec. 1031 when the bu...
In a New York personal income tax case involving an LLC that owned an apartment building, the LLC members qualified for nonrecognition of gain from a like-kind exchange under IRC Sec. 1031 when the bu...
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 - Coal severance and coal conversion facilities taxes revised
The existing North Dakota coal conversion facilities tax exemption is modified to be a partial exemption from the coal conversion state share of the tax, equal to:90% for taxable production after June...
The existing North Dakota coal conversion facilities tax exemption is modified to be a partial exemption from the coal conversion state share of the tax, equal to:90% for taxable production after June...
OH - Reimbursements received under management contracts taxable
The Supreme Court of Ohio affirmed the denial of a commercial-activity tax (CAT) refund request for reimbursements received under management-fee contracts. The court determined that the taxpayer did n...
The Supreme Court of Ohio affirmed the denial of a commercial-activity tax (CAT) refund request for reimbursements received under management-fee contracts. The court determined that the taxpayer did n...
OK - Transfer of partnership interests was not same as transfer of title to property for valuation purposes
The transfer of partnership interests was not equivalent to the transfer of the title to property for purposes of lifting the five percent limitation on increasing the fair cash value of property for ...
The transfer of partnership interests was not equivalent to the transfer of the title to property for purposes of lifting the five percent limitation on increasing the fair cash value of property for ...
OR - Refund request deadlines amended
Oregon has established uniform statute of limitations for taxpayers to request a refund under the corporate (excise), personal, and corporate activity taxes. Specifically, a tax return filed before th...
Oregon has established uniform statute of limitations for taxpayers to request a refund under the corporate (excise), personal, and corporate activity taxes. Specifically, a tax return filed before th...
PA -Life estate and remainder interest factors updated
The Pennsylvania Department of Revenue announces realty transfer tax factors effective July 1, 2025, for use in the calculation of the taxable value of a life estate and remainder interests in real es...
The Pennsylvania Department of Revenue announces realty transfer tax factors effective July 1, 2025, for use in the calculation of the taxable value of a life estate and remainder interests in real es...
RI - Municipalities may allow amnesty every three years
Effective June 26, 2025, Rhode Island municipalities may, by ordinance, authorize one tax amnesty period every three years. H.B. 5695, Laws 2025, effective as noted...
Effective June 26, 2025, Rhode Island municipalities may, by ordinance, authorize one tax amnesty period every three years. H.B. 5695, Laws 2025, effective as noted...
SC - Reduction in top marginal rate for 2025 announced
As a result of the recently enacted South Carolina budget (2025/06/18, S.15), the Department of Revenue has advised that the top marginal personal income tax rate is reduced to 6% for tax year 2025, e...
As a result of the recently enacted South Carolina budget (2025/06/18, S.15), the Department of Revenue has advised that the top marginal personal income tax rate is reduced to 6% for tax year 2025, e...
SD - Municipal tax changes announced
South Dakota has announced that two communities will implement a 1% municipal tax on lodging, dining, alcohol sales, and admissions. The communities of Newell and Wagner will implement the tax startin...
South Dakota has announced that two communities will implement a 1% municipal tax on lodging, dining, alcohol sales, and admissions. The communities of Newell and Wagner will implement the tax startin...
TN - Tax relief available to those affected by April storms
Department of Revenue staff will be available at the Tennessee Emergency Management Agency's Disaster Recovery Centers (DRCs) this week to discuss sales and use tax relief available to Tennesseans aff...
Department of Revenue staff will be available at the Tennessee Emergency Management Agency's Disaster Recovery Centers (DRCs) this week to discuss sales and use tax relief available to Tennesseans aff...
TX - May 2025 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 May 2025 is $41.06 per barrel for the three-month period beginning on February 1...
The Texas Comptroller of Public Accounts has determined the average taxable price of crude oil for the reporting period May 2025 is $41.06 per barrel for the three-month period beginning on February 1...
UT - Publication on vehicle property assessment fees revised
The Utah State Tax Commission has updated its publication on vehicle property assessment fees. Utah vehicles are subject to either an age-based uniform fee or a 1.5% uniform fee that must be paid befo...
The Utah State Tax Commission has updated its publication on vehicle property assessment fees. Utah vehicles are subject to either an age-based uniform fee or a 1.5% uniform fee that must be paid befo...
VT - MFTIA and MFTA rates announced for third quarter of 2025
The Vermont motor fuel transportation infrastructure assessment (MFTIA) rate for the third quarter of 2025 (July to September 2025) is $0.0489, and the motor fuel tax assessment (MFTA) rate is $0.1340...
The Vermont motor fuel transportation infrastructure assessment (MFTIA) rate for the third quarter of 2025 (July to September 2025) is $0.0489, and the motor fuel tax assessment (MFTA) rate is $0.1340...
VA - New employer withholding tax tables issued
The Virginia Department of Taxation has released new employer withholding tax tables effective July 1, 2025.What changed?Previously enacted legislation increased the individual income tax standard ded...
The Virginia Department of Taxation has released new employer withholding tax tables effective July 1, 2025.What changed?Previously enacted legislation increased the individual income tax standard ded...
WA - Warehouse that commingled products for retailing and wholesaling activities did not qualify for remittance
A wholesaler and retailer of medical supplies did not qualify for Washington's sales tax remittance for warehouses with 200,000 square footage. The plain language of the statute limits the exemption f...
A wholesaler and retailer of medical supplies did not qualify for Washington's sales tax remittance for warehouses with 200,000 square footage. The plain language of the statute limits the exemption f...
WV - July 2025 acute care tax rate announced
West Virginia announced a change to the tax rate imposed on acute care hospitals that provide Medicaid and Medicare services in the state. The rate is decreasing from 3.86% to 3.85% starting July 1, 2...
West Virginia announced a change to the tax rate imposed on acute care hospitals that provide Medicaid and Medicare services in the state. The rate is decreasing from 3.86% to 3.85% starting July 1, 2...
WI - No valid reason for filing late appeal
The Petitioner did not file her petition for review with the Tax Appeals Commission in a timely manner as required by statute. Therefore, the commission did not have jurisdiction to review the underly...
The Petitioner did not file her petition for review with the Tax Appeals Commission in a timely manner as required by statute. Therefore, the commission did not have jurisdiction to review the underly...
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, ...
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