Catalano, Caboor & Co.
Tax Alerts
Applicable Dollar Amount for Health Insurance Plan Fees Announced (Notice 2025-61)
The IRS has announced that the applicable dollar amount used to calculate the fees imposed by Code Secs. 4375 and 4376 for policy and plan years that end on or after October 1, 2025, and before Oc...
The IRS has announced that the applicable dollar amount used to calculate the fees imposed by Code Secs. 4375 and 4376 for policy and plan years that end on or after October 1, 2025, and before Oc...
Partnership Claimed Deduction for Wrong Year, Penalties Imposed (Corning Place Ohio LLC., CA-6)
A partnership (taxpayer) was denied a deduction for an easement donation related to a property (P1). The taxpayer claimed the deduction for the wrong year. Additionally, the taxpayer (1) substantially...
A partnership (taxpayer) was denied a deduction for an easement donation related to a property (P1). The taxpayer claimed the deduction for the wrong year. Additionally, the taxpayer (1) substantially...
IRS Grants Relief to Taxpayers Affected by Terrorist Action in Israel; Deadlines Postponed (Notice 2025-53; IR-2025-97)
The IRS has provided relief under Code Sec. 7508A for persons determined to be affected by the terroristic action in the State of Israel throughout 2024 and 2025. Affected taxpayers have until Septe...
The IRS has provided relief under Code Sec. 7508A for persons determined to be affected by the terroristic action in the State of Israel throughout 2024 and 2025. Affected taxpayers have until Septe...
Office of Appeals Begins Pilot Program on Mediation (IR-2025-100)
The IRS Independent Office of Appeals has launched a two-year pilot program to make Post Appeals Mediation (PAM) more attractive to taxpayers. Under the new PAM pilot, cases will be reassigned to an A...
The IRS Independent Office of Appeals has launched a two-year pilot program to make Post Appeals Mediation (PAM) more attractive to taxpayers. Under the new PAM pilot, cases will be reassigned to an A...
IRS Reminds Taxpayers to Safeguard Financial Records in Emergency Plans
The IRS has reminded taxpayers that emergency readiness has gone beyond food, water and shelter. It also includes safeguarding financial and tax documents. Families and businesses should review their ...
The IRS has reminded taxpayers that emergency readiness has gone beyond food, water and shelter. It also includes safeguarding financial and tax documents. Families and businesses should review their ...
AL - Department begins administering, collecting local taxes in Beatrice
Effective December 1, 2025, the Alabama Department of Revenue begins administering and collecting the town of Beatrice's local taxes. The first town of Beatrice local tax return filed with department ...
Effective December 1, 2025, the Alabama Department of Revenue begins administering and collecting the town of Beatrice's local taxes. The first town of Beatrice local tax return filed with department ...
AK - Integrated transmission systems legislation enacted
Alaska has enacted legislation creating new energy incentives by extending tax-exempt statutes to independent power producers. An electricity generation facility or electricity storage facility that i...
Alaska has enacted legislation creating new energy incentives by extending tax-exempt statutes to independent power producers. An electricity generation facility or electricity storage facility that i...
AZ - Updated combined tax rate chart released for phoenix
Arizona's Department of Revenue released the combined transaction privilege tax (TPT) rate chart for Phoenix that is effective January 1, 2026. Phoenix - Combined Transaction Privilege Tax Rate Table...
Arizona's Department of Revenue released the combined transaction privilege tax (TPT) rate chart for Phoenix that is effective January 1, 2026. Phoenix - Combined Transaction Privilege Tax Rate Table...
AR - Agricultural federal relief payments are exempt
Arkansas Governor, Sarah Huckabee Sanders, announced that payments received by farmers from the Emergency Commodity Assistance Program (ECAP) are exempt from state income tax for tax years beginning J...
Arkansas Governor, Sarah Huckabee Sanders, announced that payments received by farmers from the Emergency Commodity Assistance Program (ECAP) are exempt from state income tax for tax years beginning J...
CA - Counties may qualify as an exempt bus operator
Beginning January 1, 2026, counties that own and operate a local transit system may register with the California Department of Tax and Fee Administration (CDTFA) as an exempt bus operator and pay a sp...
Beginning January 1, 2026, counties that own and operate a local transit system may register with the California Department of Tax and Fee Administration (CDTFA) as an exempt bus operator and pay a sp...
CO - Guidance on filing requirements related to master settlement agreement updated
Colorado updated its guidance on the filing requirements for tobacco product manufacturers and distributors in connection with the Master Settlement Agreement (MSA). Manufacturers selling cigarettes o...
Colorado updated its guidance on the filing requirements for tobacco product manufacturers and distributors in connection with the Master Settlement Agreement (MSA). Manufacturers selling cigarettes o...
CT - The generation of electricity was not manufacturing for purposes of exemption
The generation of electricity is not manufacturing within the meaning of the statutory property tax exemption for machinery and equipment used in manufacturing. The term "machinery and equipment" is...
The generation of electricity is not manufacturing within the meaning of the statutory property tax exemption for machinery and equipment used in manufacturing. The term "machinery and equipment" is...
DE - Split rate taxation based on property classification upheld
The Supreme Court of Delaware upheld the constitutionality of a law that allows New Castle County school districts to implement temporary split-rate property tax assessments based on residential and n...
The Supreme Court of Delaware upheld the constitutionality of a law that allows New Castle County school districts to implement temporary split-rate property tax assessments based on residential and n...
FL - Information provided on home away from home tax credit
Information is provided on the home away from home tax credit, which was enacted in 2025. Taxpayers may make private monetary contributions to the eligible charitable organization(s) of the Home Away ...
Information is provided on the home away from home tax credit, which was enacted in 2025. Taxpayers may make private monetary contributions to the eligible charitable organization(s) of the Home Away ...
GA - Guidance issued on rounding cash transactions due to penny shortage
Georgia issued guidance on sales and use tax related to cash transactions due to the federal government ending penny production. Dealers may round the total amount due to the next lowest, highest, or ...
Georgia issued guidance on sales and use tax related to cash transactions due to the federal government ending penny production. Dealers may round the total amount due to the next lowest, highest, or ...
HI - Amended rule incorporates withholding tables for tax years beginning after 2025
The Hawaii Department of Taxation announced the adoption of an amended rule incorporating updated income tax formulas and withholding tables for taxable years beginning after December 31, 2025. The ...
The Hawaii Department of Taxation announced the adoption of an amended rule incorporating updated income tax formulas and withholding tables for taxable years beginning after December 31, 2025. The ...
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 - Local tax rate changes for January 2026 updated
Illinois updated guidance showing municipal, county, and business district sales tax rate changes that are effective beginning January 1, 2026. The local rates apply to general merchandise sales repor...
Illinois updated guidance showing municipal, county, and business district sales tax rate changes that are effective beginning January 1, 2026. The local rates apply to general merchandise sales repor...
IN - Information provided on railroad tax credit for qualified infrastructure investment
Legislation enacted in 2025 created a new railroad tax credit for qualified infrastructure investment. "Qualified new rail infrastructure expenditures" are defined as gross expenditures for new rail...
Legislation enacted in 2025 created a new railroad tax credit for qualified infrastructure investment. "Qualified new rail infrastructure expenditures" are defined as gross expenditures for new rail...
IA - Local option sales tax jurisdiction changes announced
Effective January 1, 2026, the Iowa local option sales tax (LOST) has sunset date and hotel and motel tax changes. Specifically, the sunset date changes are as follows:In Black Hawk County, the cities...
Effective January 1, 2026, the Iowa local option sales tax (LOST) has sunset date and hotel and motel tax changes. Specifically, the sunset date changes are as follows:In Black Hawk County, the cities...
KS - Guidance issued on personal exemption changes
Kansas issued guidance discussing changes to personal income tax exemptions for head of household filers, veterans, and unborn children. The state enacted legislation in 2025 that codified the perso...
Kansas issued guidance discussing changes to personal income tax exemptions for head of household filers, veterans, and unborn children. The state enacted legislation in 2025 that codified the perso...
KY - Pro rata distribution of sale proceeds to lien holders required
The Kentucky Supreme Court upheld a property tax decision requiring the distribution of proceeds from a foreclosure sale to lien holders on a pro-rata basis, rather than under the common law rule of ...
The Kentucky Supreme Court upheld a property tax decision requiring the distribution of proceeds from a foreclosure sale to lien holders on a pro-rata basis, rather than under the common law rule of ...
LA - Guidance issued on changes to child care credit
The Louisiana Department of Revenue has issued a summary of changes to the Workforce Child Care Tax Credit, effective January 1, 2026. The credit is currently known as the School Readiness Tax Credit....
The Louisiana Department of Revenue has issued a summary of changes to the Workforce Child Care Tax Credit, effective January 1, 2026. The credit is currently known as the School Readiness Tax Credit....
ME - Rate schedules, withholding tables issued for 2026
Maine has updated the individual income tax rate schedules and withholding tables for 2026. The 2026 statutory tax rates are 5.8%, 6.75%, and 7.15%. The top rate is imposed on single or married taxpay...
Maine has updated the individual income tax rate schedules and withholding tables for 2026. The 2026 statutory tax rates are 5.8%, 6.75%, and 7.15%. The top rate is imposed on single or married taxpay...
MD - State will defer payment plans for federal employees unable to meet obligations
The Maryland Comptroller announced that the state will defer payment plans for federal employees who are unable to meet their tax obligations due to the federal government shutdown.Federal employees d...
The Maryland Comptroller announced that the state will defer payment plans for federal employees who are unable to meet their tax obligations due to the federal government shutdown.Federal employees d...
MA - Interest rates remain unchanged for the first quarter of 2026
The interest rates on the underpayment and overpayment of Massachusetts taxes are unchanged for the period January 1, 2026, through March 31, 2026. The rates have held steady at 6% for overpayments, a...
The interest rates on the underpayment and overpayment of Massachusetts taxes are unchanged for the period January 1, 2026, through March 31, 2026. The rates have held steady at 6% for overpayments, a...
MI - Department provides guidance on penny phase out
In regards to the U.S. Treasury phase out of the penny, the Michigan Department of Treasury advises sellers that they may round the total amount due from customers up or down to the nearest $0.05. How...
In regards to the U.S. Treasury phase out of the penny, the Michigan Department of Treasury advises sellers that they may round the total amount due from customers up or down to the nearest $0.05. How...
MN - Guidance on coupons and discounts updated
Minnesota updated its guidance on sales and use taxes related to coupons, discounts, rewards, rebates, and other forms of payment. The guidance explains how these forms of payment impact tax calculati...
Minnesota updated its guidance on sales and use taxes related to coupons, discounts, rewards, rebates, and other forms of payment. The guidance explains how these forms of payment impact tax calculati...
MS - Broadband technology credit limits and allocation process established
Mississippi issued guidance on income and franchise tax credits for broadband technology deployment by telecommunications enterprises. House Bill 1644 enacted in 2025 limits total allowable credits to...
Mississippi issued guidance on income and franchise tax credits for broadband technology deployment by telecommunications enterprises. House Bill 1644 enacted in 2025 limits total allowable credits to...
MO - Local tax rate changes announced
The following local Missouri sales and use tax rate changes take effect January 1, 2026. 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 effect January 1, 2026. Also, new rates are listed for each county, city, and special district affected by the rate changes.County Chan...
MT - Revision of reported wages affirmed
The Montana Tax Appeal Board affirmed the Department of Revenue's adjustment to the taxpayer’s 2023 personal income tax liability, concluding the agency acted within its legal authority to revise th...
The Montana Tax Appeal Board affirmed the Department of Revenue's adjustment to the taxpayer’s 2023 personal income tax liability, concluding the agency acted within its legal authority to revise th...
NE - Guidance updated on computer reporting procedures for form 1099
For corporate and personal income tax purposes, the Nebraska Department of Revenue has updated its informational guide on computer reporting procedures for 1099's, 21 CM. The guide provides informatio...
For corporate and personal income tax purposes, the Nebraska Department of Revenue has updated its informational guide on computer reporting procedures for 1099's, 21 CM. The guide provides informatio...
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 - Charitable contribution deduction guidance issued
New Jersey issued guidance for corporation business taxpayers regarding changes to the charitable contribution deductions under the One Big Beautiful Bill Act (OBBBA). New Jersey conforms to federal c...
New Jersey issued guidance for corporation business taxpayers regarding changes to the charitable contribution deductions under the One Big Beautiful Bill Act (OBBBA). New Jersey conforms to federal c...
NY - Publication revised to reflect extended expiration dates of additional taxes in various localities
New York has revised a publication setting out the enactment and effective dates of local New York sales and use tax rates to reflect changes in the expiration dates for additional taxes imposed in va...
New York has revised a publication setting out the enactment and effective dates of local New York sales and use tax rates to reflect changes in the expiration dates for additional taxes imposed in va...
NC: Guidance issued on weight-based snuff tax, alternative nicotine products tax, and inventory tax
Guidance is issued regarding recently enacted legislation, effective July 1, 2025, that changed the North Carolina excise tax rate methodology for snuff, imposed a new excise tax on alternative nicoti...
Guidance is issued regarding recently enacted legislation, effective July 1, 2025, that changed the North Carolina excise tax rate methodology for snuff, imposed a new excise tax on alternative nicoti...
ND - Local rate changes announced
North Dakota has announced the following local sales and use tax changes effective January 1, 2026: (1) the city of Medina will impose a 1% local lodging and restaurant tax; (2) the city of Sherwood w...
North Dakota has announced the following local sales and use tax changes effective January 1, 2026: (1) the city of Medina will impose a 1% local lodging and restaurant tax; (2) the city of Sherwood w...
OH - 2026 first quarter PAT average wholesale prices released
Ohio has released the petroleum activity tax (PAT) statewide average wholesale prices for the first quarter of 2026.The average prices per gallon for the first quarter are:$2.021 for unleaded gasoline...
Ohio has released the petroleum activity tax (PAT) statewide average wholesale prices for the first quarter of 2026.The average prices per gallon for the first quarter are:$2.021 for unleaded gasoline...
OK - Employer’s Withholding Guide Updated
The Oklahoma Tax Commission has released its withholding guide for employers withholding personal income tax from their employees’ wages in 2026. The guide contains general information regarding reg...
The Oklahoma Tax Commission has released its withholding guide for employers withholding personal income tax from their employees’ wages in 2026. The guide contains general information regarding reg...
OR - Oral nicotine products tax begins January 2026
The Oregon Department of Revenue (DOR) is encouraging businesses that distribute and sell oral nicotine products to plan ahead for a new tax that applies to all oral nicotine products sold and distrib...
The Oregon Department of Revenue (DOR) is encouraging businesses that distribute and sell oral nicotine products to plan ahead for a new tax that applies to all oral nicotine products sold and distrib...
PA - Philadelphia amusement license provisions amended
Philadelphia has amended its tax code provisions concerning the amusement tax. The ordinance:removes provisions;updates collection and payment of tax; andremoves the amusement license and weights and ...
Philadelphia has amended its tax code provisions concerning the amusement tax. The ordinance:removes provisions;updates collection and payment of tax; andremoves the amusement license and weights and ...
RI - Inflation adjusted amounts for 2026 issued
The Rhode Island Department of Taxation has issued inflation adjusted amounts for for tax years beginning on or after January 1, 2026 for:standard deduction amounts;tax bracket ranges;Social Security ...
The Rhode Island Department of Taxation has issued inflation adjusted amounts for for tax years beginning on or after January 1, 2026 for:standard deduction amounts;tax bracket ranges;Social Security ...
SC - Revised guidance issued on exemptions for farmers
South Carolina revised a recent revenue ruling concerning farmers in order to clarify what evidence retailers must maintain for exempt sales of agricultural items. The revised revenue ruling addresses...
South Carolina revised a recent revenue ruling concerning farmers in order to clarify what evidence retailers must maintain for exempt sales of agricultural items. The revised revenue ruling addresses...
SD - City of Clark implements new municipal gross receipts tax
South Dakota announced that the City of Clark will implement a new 1% municipal gross receipts tax effective January 1, 2026. News Release, South Dakota Department of Revenue, November 5, 2025...
South Dakota announced that the City of Clark will implement a new 1% municipal gross receipts tax effective January 1, 2026. News Release, South Dakota Department of Revenue, November 5, 2025...
TN - Treatment of federal employee retention credit explained
Tennessee issued guidance on the excise tax treatment of the federal employee retention credit (ERC). The ERC is included in the excise tax base because it reduces the federal income tax deduction for...
Tennessee issued guidance on the excise tax treatment of the federal employee retention credit (ERC). The ERC is included in the excise tax base because it reduces the federal income tax deduction for...
TX - Guidance issued on handling cash payments and rounding practices
Texas issued guidance on sales and use tax following the federal government's decision to end penny production. The Texas Comptroller of Public Accounts outlined procedures for handling cash transacti...
Texas issued guidance on sales and use tax following the federal government's decision to end penny production. The Texas Comptroller of Public Accounts outlined procedures for handling cash transacti...
UT - Governor’s budget proposal includes expanding the child tax credit
Utah Gov. Spencer J. Cox released his Fiscal Year 2027 budget proposal that includes:expanding the state child tax credit to provide an additional average benefit of $200 to families with children age...
Utah Gov. Spencer J. Cox released his Fiscal Year 2027 budget proposal that includes:expanding the state child tax credit to provide an additional average benefit of $200 to families with children age...
VT - Projected increase in tax bills announced
Vermont announced the release of the education tax rate letter, which forecasts the education tax yields for resident homeowners and the non-homestead tax rate for upcoming fiscal year 2027. The lette...
Vermont announced the release of the education tax rate letter, which forecasts the education tax yields for resident homeowners and the non-homestead tax rate for upcoming fiscal year 2027. The lette...
VA - City of Richmond enacts disposable plastic bag tax
Effective January 1, 2026, the city of Richmond adopts the Virginia disposable plastic bag tax. The tax is imposed at the rate of 5 cents on each disposable plastic bag provided to shoppers in local g...
Effective January 1, 2026, the city of Richmond adopts the Virginia disposable plastic bag tax. The tax is imposed at the rate of 5 cents on each disposable plastic bag provided to shoppers in local g...
WA - Guidance provided on workforce education investment surcharge
The Washington Department of Revenue has provided guidance on the workforce education investment surcharge applicable to select advanced computing businesses. Beginning January 1, 2026, the surcharge ...
The Washington Department of Revenue has provided guidance on the workforce education investment surcharge applicable to select advanced computing businesses. Beginning January 1, 2026, the surcharge ...
WV - Variable and combined motor excise tax rates announced for 2026
West Virginia announced the variable and combined motor excise fuel tax rates for the 2026 calendar year. The excise tax consists of a flat rate and variable rate based on the average wholesale fuel p...
West Virginia announced the variable and combined motor excise fuel tax rates for the 2026 calendar year. The excise tax consists of a flat rate and variable rate based on the average wholesale fuel p...
WI - Questions remain regarding possible arm's-length relationship
The taxpayer appealed a Wisconsin Department of Revenue finding that funds transferred from the sole shareholders to a business were non-deductible returns of capital contributions. The taxpayer argue...
The taxpayer appealed a Wisconsin Department of Revenue finding that funds transferred from the sole shareholders to a business were non-deductible returns of capital contributions. The taxpayer argue...
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.
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!
