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 - New tax levied on leasing or renting tangible personal property in Elmore County
The Alabama Legislature has enacted legislation imposing a new county rental tax in Elmore County. Starting September 1, 2025, a tax will be levied on those leasing or renting tangible personal proper...
The Alabama Legislature has enacted legislation imposing a new county rental tax in Elmore County. Starting September 1, 2025, a tax will be levied on those leasing or renting tangible personal proper...
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 - Court affirms local district couldn't be forced to impose Mill Levy
The Colorado Court of Appeals upheld a ruling that the Marin Metropolitan District (MMD) cannot be forced to impose a 2008 mill levy on vacant land owned by Century at Landmark, LLC. The levy was tied...
The Colorado Court of Appeals upheld a ruling that the Marin Metropolitan District (MMD) cannot be forced to impose a 2008 mill levy on vacant land owned by Century at Landmark, LLC. The levy was tied...
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 - License fee for tobacco retailers increased
Illinois is increasing the annual tobacco retailer license fee for retailers of tobacco products. Effective July 1, 2025, the fee increases from $75 to $150 for each retail location. Informational Bu...
Illinois is increasing the annual tobacco retailer license fee for retailers of tobacco products. Effective July 1, 2025, the fee increases from $75 to $150 for each retail location. Informational Bu...
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 - Cigarette & tobacco electronic filing requirement
Iowa has enacted legislation requiring certain tax returns, permits, bonds, and reports related to cigarettes, tobacco products, alternative nicotine products, and vapor products be filed electronical...
Iowa has enacted legislation requiring certain tax returns, permits, bonds, and reports related to cigarettes, tobacco products, alternative nicotine products, and vapor products be filed electronical...
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 - Withholding tables updated
The Louisiana Department of Revenue has issued updated income tax withholding tables for 2025 reflecting the new flat 3% individual income tax rate enacted during the Third Extraordinary Session of th...
The Louisiana Department of Revenue has issued updated income tax withholding tables for 2025 reflecting the new flat 3% individual income tax rate enacted during the Third Extraordinary Session of th...
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 - Cable television device exemption criteria clarified
Massachusetts issued guidance on the sales and use tax applicable to cable television devices. Devices limited to receiving programming or information from a cable provider for television transmission...
Massachusetts issued guidance on the sales and use tax applicable to cable television devices. Devices limited to receiving programming or information from a cable provider for television transmission...
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 - Third-party booking companies required to collect taxes
Mississippi issued guidance on sales tax collection for third-party booking companies following the enactment of Senate Bill 2805. The bill clarifies that these entities must collect state and local s...
Mississippi issued guidance on sales tax collection for third-party booking companies following the enactment of Senate Bill 2805. The bill clarifies that these entities must collect state and local s...
MO - Local tax rate changes announced
The following local Missouri sales and use tax rate changes take effective July 1, 2025. Also, new rates are listed for each county, city, and special district affected by the rate changes.County Chan...
The following local Missouri sales and use tax rate changes take effective July 1, 2025. Also, new rates are listed for each county, city, and special district affected by the rate changes.County Chan...
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 - Payment in lieu of taxes for lido beach in the town of Hempstead extended
Enacted New York legislation extends the expiration of payments in lieu of taxes for Lido Beach in the town of Hempstead from June 30, 2025, to June 30, 2027. Ch. 153 (S.B. 7806), Laws 2025, effective...
Enacted New York legislation extends the expiration of payments in lieu of taxes for Lido Beach in the town of Hempstead from June 30, 2025, to June 30, 2027. Ch. 153 (S.B. 7806), Laws 2025, effective...
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 - Child tax credit limits updated
Oregon has amended the child tax credit 's qualifying income limits. The qualifying income limit is updated to require the addback of the sum of losses over $20,000 and foreign earned income, as defin...
Oregon has amended the child tax credit 's qualifying income limits. The qualifying income limit is updated to require the addback of the sum of losses over $20,000 and foreign earned income, as defin...
PA - Philadelphia BIRT rates reduced
Philadelphia has amended the Business Income and Receipts Tax (BIRT) to reduce the tax rate on receipts and net income between 2025 and 2038. The receipts tax rate will decrease from 1.415 mills in 20...
Philadelphia has amended the Business Income and Receipts Tax (BIRT) to reduce the tax rate on receipts and net income between 2025 and 2038. The receipts tax rate will decrease from 1.415 mills in 20...
RI - Taxpayers reminded of 2025 LLC filing requirements
The Rhode Island Department of Revenue Division of Taxation has issued a notice summarizing the 2025 income tax filing requirements for LLCs. Notice 2025-01, Rhode Island Division of Taxation, Februa...
The Rhode Island Department of Revenue Division of Taxation has issued a notice summarizing the 2025 income tax filing requirements for LLCs. Notice 2025-01, Rhode Island Division of Taxation, Februa...
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 - Interest rate announced
The interest rate on all taxes collected or administered by the Tennessee Department of Revenue is 11.50% (formerly, 12.50%) effective July 1, 2025, through June 30, 2026. The interest rate on all tax...
The interest rate on all taxes collected or administered by the Tennessee Department of Revenue is 11.50% (formerly, 12.50%) effective July 1, 2025, through June 30, 2026. The interest rate on all tax...
TX - Historic rehabilitation costs incurred by higher education institutions
Texas has enacted legislation allowing costs incurred by higher education institutions to rehabilitate historic property to qualify for Texas franchise tax credit for rehabilitation of historic struct...
Texas has enacted legislation allowing costs incurred by higher education institutions to rehabilitate historic property to qualify for Texas franchise tax credit for rehabilitation of historic struct...
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 - Nonhomestead rate and homestead dollar equivalent yields set for fiscal Year 2026
Vermont has enacted a law setting the property and income dollar equivalent yields for homestead property tax rates and the nonhomestead property tax rate for fiscal year 2026. The law sets the proper...
Vermont has enacted a law setting the property and income dollar equivalent yields for homestead property tax rates and the nonhomestead property tax rate for fiscal year 2026. The law sets the proper...
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 - Broadcast station's retransmission agreements did not qualify for preferential broadcasting rate
A television broadcast station was not engaged in broadcasting when it entered into retransmission consent agreements with multichannel video programming distributors (MVPDs) and therefore did not qua...
A television broadcast station was not engaged in broadcasting when it entered into retransmission consent agreements with multichannel video programming distributors (MVPDs) and therefore did not qua...
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 - Royalty payments disallowed as sham transactions
The Court of Appeals of Wisconsin affirmed the circuit court's decision disallowing the taxpayer's deductions for royalty payments as corporate income taxes due to their classification as sham transac...
The Court of Appeals of Wisconsin affirmed the circuit court's decision disallowing the taxpayer's deductions for royalty payments as corporate income taxes due to their classification as sham transac...
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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