Catalano, Caboor & Co.
Tax Alerts
IRS Opens 2026 Tax Filing Season with Enhanced Digital Tools and Faster Refunds (IR 2026-12)
The IRS has announced the opening of the 2026 tax filing season and has begun accepting and processing federal individual income tax returns for the tax year 2025. Additionally, the IRS encouraged tax...
The IRS has announced the opening of the 2026 tax filing season and has begun accepting and processing federal individual income tax returns for the tax year 2025. Additionally, the IRS encouraged tax...
National Taxpayer Advocate Warns of Filing Challenges for 2026 Season (IR 2026-15)
The National Taxpayer Advocate reported, that most individual taxpayers experienced a smooth filing process during the 2025 tax year, but warned that the 2026 filing season may present greater challen...
The National Taxpayer Advocate reported, that most individual taxpayers experienced a smooth filing process during the 2025 tax year, but warned that the 2026 filing season may present greater challen...
IRS Offers Tips for Choosing Qualified Tax Return Preparers
IRS has advised individual taxpayers that they remain legally responsible for the accuracy of their federal tax returns, even when using a paid preparer. With most tax documents now issued, the agency...
IRS has advised individual taxpayers that they remain legally responsible for the accuracy of their federal tax returns, even when using a paid preparer. With most tax documents now issued, the agency...
IRS Outlines Key Steps for 2026 Filing Season Readiness
The IRS has issued guidance urging taxpayers to take several important steps in advance of the 2026 federal tax filing season, which opens on January 26. Individuals are encouraged to create or access...
The IRS has issued guidance urging taxpayers to take several important steps in advance of the 2026 federal tax filing season, which opens on January 26. Individuals are encouraged to create or access...
IRS Confirms Supplemental Military Housing Payments Are Not Taxable (IR 2026-09)
The IRS has confirmed that supplemental housing payments issued to members of the uniformed services in December 2025 are not subject to federal income tax. These payments, classified as “qualified ...
The IRS has confirmed that supplemental housing payments issued to members of the uniformed services in December 2025 are not subject to federal income tax. These payments, classified as “qualified ...
IRS Announces New Digital Form 211 for Whistleblower Submissions (IR 2025-123)
The IRS announced that its Whistleblower Office has launched a new digital Form 211 to make reporting tax noncompliance faster and easier. Further, the electronic option allows individuals to submit i...
The IRS announced that its Whistleblower Office has launched a new digital Form 211 to make reporting tax noncompliance faster and easier. Further, the electronic option allows individuals to submit i...
IRS Highlights Taxpayer Rights Under the Taxpayer Bill of Rights
The IRS has reminded taxpayers about the legal protections afforded by the Taxpayer Bill of Rights. Organized into 10 categories, these rights ensure taxpayers can engage with the IRS confidently and...
The IRS has reminded taxpayers about the legal protections afforded by the Taxpayer Bill of Rights. Organized into 10 categories, these rights ensure taxpayers can engage with the IRS confidently and...
FinCEN Postpones Investment Adviser Rule Until 2028 (FinCEN Final Rule RIN 1506-AB58 and 1506-AB69)
The Financial Crimes Enforcement Network (FinCEN) has amended the Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) Program and Suspicious Activity Report (SAR) Filing Requirements...
The Financial Crimes Enforcement Network (FinCEN) has amended the Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) Program and Suspicious Activity Report (SAR) Filing Requirements...
AL - Vehicle purchase by grantor trust for beneficiary's use taxable
The Alabama Tax Tribunal upheld a final assessment of consumers' use tax against the a grantor trust for the purchase of a truck that it subsequently leased to an individual who was the beneficiary of...
The Alabama Tax Tribunal upheld a final assessment of consumers' use tax against the a grantor trust for the purchase of a truck that it subsequently leased to an individual who was the beneficiary of...
AK - Governors proposed fiscal plan now with legislature
Alaska Gov. Mike Dunleavy has introduced fiscal plan legislation due to short to medium term forecasts projecting that Alaska will have a revenue shortfall. The core components of the Governor’s fis...
Alaska Gov. Mike Dunleavy has introduced fiscal plan legislation due to short to medium term forecasts projecting that Alaska will have a revenue shortfall. The core components of the Governor’s fis...
AZ - Governor hobbs vetoes second conformity bill
Arizona Governor Katie Hobbs vetoed HB 2785, marking the second time she declined to approve a tax conformity bill during the 2026 filing season. Her Veto Letter noted that she will sign The Middle...
Arizona Governor Katie Hobbs vetoed HB 2785, marking the second time she declined to approve a tax conformity bill during the 2026 filing season. Her Veto Letter noted that she will sign The Middle...
AR - Governor presents budget that includes further income tax cuts
Arkansas Governor, Sarah Huckabee Sanders, has presented her budget to the legislature. The budget contains a 3% spending increase and investments in high priority items, such as higher education and ...
Arkansas Governor, Sarah Huckabee Sanders, has presented her budget to the legislature. The budget contains a 3% spending increase and investments in high priority items, such as higher education and ...
CA - Taxpayer met criteria to use three-factor apportionment formula
A taxpayer qualified to use an equally weighted three-factor apportionment formula based on property, payroll, and sales, instead of California's standard single-sales factor formula, to determine the...
A taxpayer qualified to use an equally weighted three-factor apportionment formula based on property, payroll, and sales, instead of California's standard single-sales factor formula, to determine the...
CO - Electronic filing and payment mandated for county lodging tax
Colorado adopted a new rule mandating electronic filing of the county lodging tax and visitor benefit tax return and electronic payment of the county lodging tax. The requirements are phased in as fol...
Colorado adopted a new rule mandating electronic filing of the county lodging tax and visitor benefit tax return and electronic payment of the county lodging tax. The requirements are phased in as fol...
CT - CIGA members must pay portion of their refunded assessments to department
Members insurers of the Connecticut Insurance Guaranty Association (CIGA) are notified that, on or before February 23, 2026, the member insurer must pay a portion of their recently refunded assessment...
Members insurers of the Connecticut Insurance Guaranty Association (CIGA) are notified that, on or before February 23, 2026, the member insurer must pay a portion of their recently refunded assessment...
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 - Guidance provided on registration for natural gas fuel taxes and exemptions
Guidance is provided regarding registration for natural gas fuel taxes and applicable exemptions.RegistrationA natural gas fuel retailer and any business that uses natural gas fuel in a motor vehicle ...
Guidance is provided regarding registration for natural gas fuel taxes and applicable exemptions.RegistrationA natural gas fuel retailer and any business that uses natural gas fuel in a motor vehicle ...
GA - Local rate chart released for Q2 of 2026
The Georgia Department of Revenue has released a local sales and use tax rate chart for the quarter beginning April 1, 2026. Georgia Sales and Use Tax Rate Chart, Georgia Department of Revenue, March ...
The Georgia Department of Revenue has released a local sales and use tax rate chart for the quarter beginning April 1, 2026. Georgia Sales and Use Tax Rate Chart, Georgia Department of Revenue, March ...
HI - New process for pre-certification of tax exemption for rental income from affordable housing
Hawaii has a new process for pre-certification of the general excise tax (GET) exemption for rental income from the leasing of affordable housing units. Pre-certification is an optional process that w...
Hawaii has a new process for pre-certification of the general excise tax (GET) exemption for rental income from the leasing of affordable housing units. Pre-certification is an optional process that w...
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 - Guidance on hotel operators' occupation tax updated
Illinois updated guidance on the hotel operators’ occupation tax, including information on:the types of accommodations subject to the tax;the taxation of short-term rentals, hosting platforms, and r...
Illinois updated guidance on the hotel operators’ occupation tax, including information on:the types of accommodations subject to the tax;the taxation of short-term rentals, hosting platforms, and r...
IN - Penalties that apply if pass-through entity fails to include certain information in composite returns are removed
Penalty provisions that apply if a pass-through entity fails to include in a composite return nonresident partners, nonresident shareholders, or nonresident beneficiaries that do not have distributive...
Penalty provisions that apply if a pass-through entity fails to include in a composite return nonresident partners, nonresident shareholders, or nonresident beneficiaries that do not have distributive...
IA - Modernized e-file program publication issued
The Iowa Department of Revenue has released information for e-File providers and the state's Modernized e-File (MeF) Program. The publication is intended for software companies, transmitters, and elec...
The Iowa Department of Revenue has released information for e-File providers and the state's Modernized e-File (MeF) Program. The publication is intended for software companies, transmitters, and elec...
KS - Local transient guest tax rate changes announced
Kansas announced local transient guest tax rate changes for the first quarter of 2026. Effective April 1, 2026, the transient guest tax rate is:6% in Miami and Osage Counties;10% in Kansas City and th...
Kansas announced local transient guest tax rate changes for the first quarter of 2026. Effective April 1, 2026, the transient guest tax rate is:6% in Miami and Osage Counties;10% in Kansas City and th...
KY - Guidance discusses AI software, power washing services, and other topics
Kentucky's biannual sales facts newsletter includes guidance on the penny shortage and rounding rules, the expiration of agriculture exemption license numbers and the renewal process, the taxation of ...
Kentucky's biannual sales facts newsletter includes guidance on the penny shortage and rounding rules, the expiration of agriculture exemption license numbers and the renewal process, the taxation of ...
LA - Pro forma federal return not required beginning with 2025 tax year
The Louisiana Department of Revenue advises that beginning with the 2025 tax year, shareholders, partners, and members making a state pass-through entity election will not be required to file the pro ...
The Louisiana Department of Revenue advises that beginning with the 2025 tax year, shareholders, partners, and members making a state pass-through entity election will not be required to file the pro ...
ME - Governor issues supplemental budget with income, property tax relief
Maine Governor Janet Mills issued a supplemental budget proposal for Fiscal Year 2026-2027. The budget proposes several areas of income and property tax relief.Corporate income tax relief proposals in...
Maine Governor Janet Mills issued a supplemental budget proposal for Fiscal Year 2026-2027. The budget proposes several areas of income and property tax relief.Corporate income tax relief proposals in...
MD - Guidance issued on capital gains surtax
The Maryland Comptroller has issued guidance regarding the additional 2% capital gains tax on individuals with federal adjusted gross income in excess of $350,000 regardless of filing status, beginnin...
The Maryland Comptroller has issued guidance regarding the additional 2% capital gains tax on individuals with federal adjusted gross income in excess of $350,000 regardless of filing status, beginnin...
MA - Deduction for subcontractor expenses claimed on amended return denied
The Appellate Tax Board of Massachusetts denied the appellant’s appeal for a deduction in subcontractor expenses claimed on its second amended corporate excise tax return for the tax year at issue, ...
The Appellate Tax Board of Massachusetts denied the appellant’s appeal for a deduction in subcontractor expenses claimed on its second amended corporate excise tax return for the tax year at issue, ...
MI - Governor pushes for affordable housing credit in state of the state address
In her State of the State address, Michigan Governor Gretchen Whitmer advocated for new affordable housing tax credit to incentivize construction of more homes for middle- and working-class residents....
In her State of the State address, Michigan Governor Gretchen Whitmer advocated for new affordable housing tax credit to incentivize construction of more homes for middle- and working-class residents....
MN - Restitution order for tax violations affirmed
The Minnesota Court of Appeals affirmed the district court’s restitution order in a case involving personal income tax and sales tax violations, holding that the order was properly calculated and le...
The Minnesota Court of Appeals affirmed the district court’s restitution order in a case involving personal income tax and sales tax violations, holding that the order was properly calculated and le...
MS - Updated fair market values for cannabis excise tax
Effective January 1, 2026, the fair market value of cannabis flower and trim is as follows for purposes of the Mississippi cannabis excise tax: (1) cannabis flower sold to common interest establishmen...
Effective January 1, 2026, the fair market value of cannabis flower and trim is as follows for purposes of the Mississippi cannabis excise tax: (1) cannabis flower sold to common interest establishmen...
MO - Rule on consolidated returns amended
The Missouri Department of Revenue has updated a corporate income rule on consolidated income tax returns. Specifically, the rule is amended to do the following:updates the rule’s references to corp...
The Missouri Department of Revenue has updated a corporate income rule on consolidated income tax returns. Specifically, the rule is amended to do the following:updates the rule’s references to corp...
MT - Governor discusses tax cut priorities
Montana Gov. Greg Gianforte has discussed his priorities for the upcoming 2027 legislative session, emphasizing his commitment to moving Montana to a flat income tax. Gov. Gianforte noted that despite...
Montana Gov. Greg Gianforte has discussed his priorities for the upcoming 2027 legislative session, emphasizing his commitment to moving Montana to a flat income tax. Gov. Gianforte noted that despite...
NE - Local rate changes announced
Beginning July 1, 2026, the city of Edgar, Nebraska, increases its local sales and use tax rate to 1.5%. Furthermore, Blaine County discontinues its 2% county lodging tax. Nebraska Sales and Use Tax, ...
Beginning July 1, 2026, the city of Edgar, Nebraska, increases its local sales and use tax rate to 1.5%. Furthermore, Blaine County discontinues its 2% county lodging tax. Nebraska Sales and Use Tax, ...
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 - Investment income taxability guidance updated
New Jersey has updated its guidance explaining how to report taxable and tax-exempt interest income on New Jersey gross (personal) income tax returns. The bulletin provides a list of obligations that ...
New Jersey has updated its guidance explaining how to report taxable and tax-exempt interest income on New Jersey gross (personal) income tax returns. The bulletin provides a list of obligations that ...
NY - Reminder issued on opt-in deadline for pass-through entity tax
New York issued a reminder that, in order to participate in the optional pass-through entity tax (PTET), taxpayers must opt in each year. A taxpayer wishing to participate in the PTET for 2026 must op...
New York issued a reminder that, in order to participate in the optional pass-through entity tax (PTET), taxpayers must opt in each year. A taxpayer wishing to participate in the PTET for 2026 must op...
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 - Guidance on sales to or by native Americans updated
North Dakota updated its guidance on sales and use tax for transactions involving Native Americans. The guidance discusses tax exemptions for sales made by Native American retailers on reservations, t...
North Dakota updated its guidance on sales and use tax for transactions involving Native Americans. The guidance discusses tax exemptions for sales made by Native American retailers on reservations, t...
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 - Local tax rate changes announced
Oklahoma local sales and use tax and lodging tax rate changes have been announced effective April 1, 2026.Elgin imposes a new lodging tax at a rate of 7.0%.Copan imposes a new use tax at a rate of 3.0...
Oklahoma local sales and use tax and lodging tax rate changes have been announced effective April 1, 2026.Elgin imposes a new lodging tax at a rate of 7.0%.Copan imposes a new use tax at a rate of 3.0...
OR - IRC conformity bill passes house
The Oregon House has passed a bill that would update the state's IRC conformity date, disconnect from certain provisions, and make other changes. The bill previously passed the Oregon Senate and now g...
The Oregon House has passed a bill that would update the state's IRC conformity date, disconnect from certain provisions, and make other changes. The bill previously passed the Oregon Senate and now g...
PA - List of taxable and exempt items revised
Pennsylvania has updated a sales and use notice that lists personal property and services as taxable or nontaxable. The list notes new items, changes and clarifications, along with property subject to...
Pennsylvania has updated a sales and use notice that lists personal property and services as taxable or nontaxable. The list notes new items, changes and clarifications, along with property subject to...
RI - Division issues guidance on informational filings
The Rhode Island Division of Taxation has issued guidance on informational filings, also known as informational documents. Beginning with the 2025 tax year, issuers are required to file an information...
The Rhode Island Division of Taxation has issued guidance on informational filings, also known as informational documents. Beginning with the 2025 tax year, issuers are required to file an information...
SC - Interest rates reduced for second quarter of 2026
From April 1, 2026, through June 30, 2026, the South Carolina interest rate on tax underpayments is 6%. The refund rate for overpayments is 3%. Information Letter No. 26-9, South Carolina Department o...
From April 1, 2026, through June 30, 2026, the South Carolina interest rate on tax underpayments is 6%. The refund rate for overpayments is 3%. Information Letter No. 26-9, South Carolina Department o...
SD - Tax modifications for bad debts repealed
South Dakota has repealed the income modifications for the bank franchise tax that previously required adding back bad debt deductions exceeding amounts actually charged off during the tax year. It al...
South Dakota has repealed the income modifications for the bank franchise tax that previously required adding back bad debt deductions exceeding amounts actually charged off during the tax year. It al...
TN - County mineral severance tax rate increases announced
Tennessee announced that the following counties will increase their mineral severance taxes to 20 cents per ton, effective April 1, 2026: Hamblen; Johnson; Meigs; and Union.Also, Sequatchie County has...
Tennessee announced that the following counties will increase their mineral severance taxes to 20 cents per ton, effective April 1, 2026: Hamblen; Johnson; Meigs; and Union.Also, Sequatchie County has...
TX - January 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 January 2026 is $35.23 per barrel for the three-month period beginning on Octobe...
The Texas Comptroller of Public Accounts has determined the average taxable price of crude oil for the reporting period January 2026 is $35.23 per barrel for the three-month period beginning on Octobe...
UT - Koosharem imposes municipality transient room tax
Beginning April 1, 2026, Koosharem in Sevier County, Utah, imposes a 1% municipality transient room tax. This raises the total transient room tax in Koosharem to 6.57%. Those providing short-term publ...
Beginning April 1, 2026, Koosharem in Sevier County, Utah, imposes a 1% municipality transient room tax. This raises the total transient room tax in Koosharem to 6.57%. Those providing short-term publ...
VT - 2026 withholding tables released
Vermont has released its 2026 income tax withholding instructions, tables, and charts. Among other topics, the instructions discuss how Vermont income tax withholding is calculated, adjustments for se...
Vermont has released its 2026 income tax withholding instructions, tables, and charts. Among other topics, the instructions discuss how Vermont income tax withholding is calculated, adjustments for se...
VA - Interest rates changed for second quarter of 2026
The Virginia interest rates for the second quarter of 2026 decrease to 8% for tax underpayments (assessments) and 8% for tax overpayments (refunds).Taxpayers whose taxable year ends on March 31, 2026....
The Virginia interest rates for the second quarter of 2026 decrease to 8% for tax underpayments (assessments) and 8% for tax overpayments (refunds).Taxpayers whose taxable year ends on March 31, 2026....
WA - Guidance provided on taxability of meals in senior living communities
The imposition of Washington sales and use tax on meals provided by senior living communities depends on whether they are included in rent or charged separately. Senior living communities are not requ...
The imposition of Washington sales and use tax on meals provided by senior living communities depends on whether they are included in rent or charged separately. Senior living communities are not requ...
WV - Guidance on taxpayer bill of rights updated
West Virginia updated a publication that provides an overview of important taxpayer rights when dealing with the state on tax matters, including the right to:quality service;privacy and confidentialit...
West Virginia updated a publication that provides an overview of important taxpayer rights when dealing with the state on tax matters, including the right to:quality service;privacy and confidentialit...
WI - Guidance on premier resort area tax updated
Wisconsin has updated its fact sheet providing guidance on premier resort area tax. Topics discussed in question and answer format include who may adopt the tax, when the tax becomes effective, restri...
Wisconsin has updated its fact sheet providing guidance on premier resort area tax. Topics discussed in question and answer format include who may adopt the tax, when the tax becomes effective, restri...
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.
For over 35 years, our firm has provided a wide range of accounting, tax, audit, tax preparation and business consulting services to assist businesses and individuals with their financial needs nationwide.
Our certified public accountants have knowledge and experience in a wide variety of industries. We offer diverse and very unique specialty services that ensure continued growth, success and longevity for decades to come.
We have the ability to offer the best of both a small and large firm to each of our clients, through the personalized attention of a small firm and a wide range of unique specialty services and technical experience of a large firm. To better serve our clients, we have an accountant that speaks Afrikaans.
Contact us today to help us make a positive impact on your financial well being!
