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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><b><font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black;font-weight:bold">Reports<o:p></o:p></span></font></b></p>
<p class="MsoNormal"><font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black"><o:p> </o:p></span></font></p>
<p class="MsoNormal"><font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black">On Monday, April 30, 2018, the Division of Taxation posted a report on the recently completed tax amnesty. To view a
copy: <o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="3" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif"><a href="http://www.tax.ri.gov/notice/Tax_Amnesty_Report_April_30_2018.pdf">http://www.tax.ri.gov/notice/Tax_Amnesty_Report_April_30_2018.pdf</a><o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black"><o:p> </o:p></span></font></p>
<p class="MsoNormal"><font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black">On Tuesday, May 1, 2018, the Division posted its annual report about the sales tax on alcoholic beverages. To view a
copy:<o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black"><a href="http://www.tax.ri.gov/notice/Alcoholic_beverages_report_05_01_18.pdf">http://www.tax.ri.gov/notice/Alcoholic_beverages_report_05_01_18.pdf</a><o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black"><o:p> </o:p></span></font></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><b><font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black;font-weight:bold">May 10 hearing<o:p></o:p></span></font></b></p>
<p class="MsoNormal"><font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black"><o:p> </o:p></span></font></p>
<p class="MsoNormal"><font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black">On May 10, 2018, the Division of Taxation will hold a public hearing on proposed amendments to four business-related
regulations:<o:p></o:p></span></font></p>
<ul type="disc">
<li class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-list:l0 level1 lfo1">
<b><font size="3" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;font-weight:bold">Consolidated returns</span></font></b><font size="3" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif">. The Division
proposes to include a sunset provision in the regulation, given that mandatory unitary combined reporting took effect for tax years on or after January 1, 2015. (For purposes of Rhode Island combined reporting, an affiliated group can elect to use the same
members that the affiliated group includes in filing its federal consolidated return.) <o:p></o:p></span></font></li><li class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-list:l0 level1 lfo1">
<b><font size="3" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;font-weight:bold">Limited liability companies</span></font></b><font size="3" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif">: The
Division proposes to update the regulation so that it follows the statute (and administrative practice) regarding due dates.
<o:p></o:p></span></font></li><li class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-list:l0 level1 lfo1">
<b><font size="3" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;font-weight:bold">Net operating loss deductions</span></font></b><font size="3" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif">:
The Division proposes to update the regulation to reflect the treatment of NOLs for combined reporting purposes.<o:p></o:p></span></font></li><li class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-list:l0 level1 lfo1">
<b><font size="3" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;font-weight:bold">Qualified subchapter S subsidiary corporations</span></font></b><font size="3" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif">:
The Division proposes that the subchapter S corporation parent and its qualified subchapter S subsidiaries (Qsubs) must each obtain a federal employer identification number. <o:p></o:p></span></font></li></ul>
<p class="MsoNormal"><font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black">Also, for each of the proposed regulations listed above, the format has been modified in accordance with the new Rhode
Island Code of Regulations (a uniform state code). The hearing will be held at the Department of Administration building (the Powers building) at One Capitol Hill in Providence. For more information about the codification process, and for further details about
the hearing and the regulations, see the Rhode Island Department of State (Secretary of State) website:
<a href="http://www.sos.ri.gov/divisions/open-government/state/rules-and-regulations">
http://www.sos.ri.gov/divisions/open-government/state/rules-and-regulations</a>.<o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black"><o:p> </o:p></span></font></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><b><font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black;font-weight:bold">May 16 hearing<o:p></o:p></span></font></b></p>
<p class="MsoNormal"><font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black"><o:p> </o:p></span></font></p>
<p class="MsoNormal"><font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black">On May 16, 2018, the Division of Taxation will hold a public hearing on proposed amendments to two regulations involving
historic tax credits. The proposed changes include removal of references to the franchise tax, which has been repealed.<o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black"><o:p> </o:p></span></font></p>
<p class="MsoNormal"><font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black">Also, for each of the proposed regulations, the format has been modified in accordance with the new Rhode Island Code
of Regulations (a uniform state code). The hearing will be held at the Department of Administration building (the Powers building) at One Capitol Hill in Providence. For more information about the codification process, and for further details about the hearing
and the regulations, see the Rhode Island Department of State (Secretary of State) website:
<a href="http://www.sos.ri.gov/divisions/open-government/state/rules-and-regulations">
http://www.sos.ri.gov/divisions/open-government/state/rules-and-regulations</a>.<o:p></o:p></span></font></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><b><font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black;font-weight:bold">Warning for small businesses<o:p></o:p></span></font></b></p>
<p class="MsoNormal"><font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black"><o:p> </o:p></span></font></p>
<p class="MsoNormal"><font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black">The Security Summit -- which includes the Internal Revenue Service, state tax agencies, and the nation’s tax industry
– warns small businesses to be on-guard against a growing wave of identity theft attempts against employers.<o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black"><o:p> </o:p></span></font></p>
<p class="MsoNormal"><font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black">Small-business identity theft is big business for identity thieves. When businesses and their employees have their identities
stolen, their sensitive information can be used to open credit card accounts or file fraudulent tax returns for bogus refunds. To read more about this issue:<o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="3" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif"><a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__www.irs.gov_newsroom_for-2Dsmall-2Dbusiness-2Dweek-2Dirs-2Doffers-2Dtips-2Dto-2Dsmall-2Dbusiness-2Downers-2Dabout-2Dthe-2Doverlooked-2Dhome-2Doffice-2Ddeduction&d=DwMFAg&c=tSLbvWYfvulPN3G_n48TUw&r=3N0CXa2u4V7_DU38-YjSBY2i0S2qGG60dynqKUqOstM&m=xgC_DGGf3Yy7s5r2Egayq_FUi-ELcHKBcuoNRXcuH3M&s=w1JnSoFCBRWLiPcCj19oSIoLLsE5oyC4R0g0HAY7yDM&e=">https://www.irs.gov/newsroom/for-small-business-week-irs-offers-tips-to-small-business-owners-about-the-overlooked-home-office-deduction</a>.<o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="3" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif"><o:p> </o:p></span></font></p>
<p class="MsoNormal"><font size="3" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif"><o:p> </o:p></span></font></p>
<p class="MsoNormal"><font size="3" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif"><o:p> </o:p></span></font></p>
<p class="MsoNormal"><font size="4" color="#2f5496" face="Calibri"><span style="font-size:14.0pt;font-variant:small-caps;color:#2F5496">Neil Downing<o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="2" color="#2f5496" face="Calibri"><span style="font-size:11.0pt;font-variant:small-caps;color:#2F5496">Chief Revenue Agent<o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="2" color="#2f5496" face="Calibri"><span style="font-size:11.0pt;font-variant:small-caps;color:#2F5496">Rhode Island Division of Taxation<o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="2" color="#2f5496" face="Calibri"><span style="font-size:11.0pt;font-variant:small-caps;color:#2F5496">One Capitol Hill<o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="2" color="#2f5496" face="Calibri"><span style="font-size:11.0pt;font-variant:small-caps;color:#2F5496">Providence, R.I. 02908<o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="2" color="#2f5496" face="Calibri"><span style="font-size:11.0pt;font-variant:small-caps;color:#2F5496"><o:p> </o:p></span></font></p>
<p class="MsoNormal"><font size="2" color="#2f5496" face="Calibri"><span style="font-size:11.0pt;font-variant:small-caps;color:#2F5496">Email:
<a href="mailto:Neil.Downing@tax.ri.gov"><font color="#2f5496"><span style="color:#2F5496">Neil.Downing@tax.ri.gov</span></font></a><o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="2" color="#2f5496" face="Calibri"><span style="font-size:11.0pt;font-variant:small-caps;color:#2F5496">Phone: (401) 574-8115<o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="2" face="Calibri"><span style="font-size:11.0pt"><o:p> </o:p></span></font></p>
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