Tax News

CCH (cch.taxgroup.com) reports:

  For Massachusetts corporate excise tax purposes, pass-through entities subject to pass-through entity withholding are not required to withhold on members who submit certification, on a form approved by the Commissioner of Revenue, that the member is exempt from withholding. The new date by which members must file their Forms PTE-EX with the pass-through entity is the later of the last day of the fourth month of the entity's taxable year, or within 30 days of the member joining the entity. The due date for this exemption certificate, Form PTE-EX, previously was set as the last day of the first month of the entity's taxable year, or within 30 days of the member joining the entity. This requirement has been changed to allow more time for pass-through entities to comply. Additionally, the Commissioner no longer will require that a new Form PTE-EX be filed annually. Taxpayers who already have signed Form PTE-EX, but who wish to use the Form PTE-EX certification for future years should sign the revised Form PTE-EX. The previous version of Form PTE-EX is valid for the tax year beginning on or after January 1, 2009, but must be renewed, using the revised version, for the next tax year.

Rulings and Regulations , Massachusetts Department of Revenue, December 17, 2008

 

CCH (cch.taxgroup.com) reports:

  Gov. John Baldacci released his supplemental budget, which includes technical tax changes involving Maine personal income taxes and property taxes. Under the plan, individuals who experience "unusual events," such as a capital gain of $500,000 or more, would be required to make an estimated tax payment in the quarter after the event. In addition, the supplemental budget would eliminate the planned reduction of the telecommunications personal property tax, which was scheduled to drop from 22 mills to 21 mills in 2009 (the rate would still fall to 20 mills in 2010 as currently scheduled). The governor will present the 2010-2011 biennial budget to the state Legislature on January 9, 2009.

Press Release , Maine Governor John Baldacci, December 16, 2008
 

CCH (cch.taxgroup.com) reports:

  The IRS has provided tables of covered compensation under Code Sec. 401(l)(5)(E) for the 2009 plan year. Covered compensation with respect to an employee is defined as the average of the contribution and benefit bases in effect under section 230 of the Social Security Act for each year in the 35-year period ending with the year in which the employee attains social security retirement age. The covered compensation amounts from the tables are used in determining contributions to defined benefit plans and permitted disparities under plans that are integrated with Social Security. For purposes of determining covered compensation for the 2009 plan year, the taxable wage base is $106,800.

Rev. Rul. 2009-2, 2009FED ¶46,206

Other References:

 
Code Sec. 401

  CCH Reference - 2008FED ¶18,119.10

  Tax Research Consultant

  CCH Reference - TRC RETIRE: 24,208

 

CCH (cch.taxgroup.com) reports:

  Various prescribed rates for federal income tax purposes for January 2009 have been provided by the IRS. The annual short-term, mid-term, and long-term applicable federal interest rates (AFRs) are 0.81 percent, 2.06 percent and 3.57 percent, respectively. The semiannual short-term, mid-term, and long-term AFRs are 0.81 percent, 2.05 percent and 3.54 percent, respectively. Quarterly short-term, mid-term and long-term AFRs are 0.81 percent, 2.04 percent and 3.52 percent, respectively. Finally, the monthly short-term, mid-term and long-term rates are 0.81 percent, 2.04 percent and 3.51 percent, respectively.

  The short-term, mid-term, and long-term adjusted applicable federal rates (adjusted AFR) for January 2009 for purposes of Code Sec. 1288(b) are 1.81 percent, 3.45 percent, and 5.49 percent, respectively, when annual compounding is used.

  Additionally, the Code Sec. 382 adjusted federal long-term rate is 5.49 percent, as is the long-term tax-exempt rate. The Code Sec. 42(b)(2) appropriate percentage for the 70-percent present-value, low-income housing credit is 7.65 percent, and the appropriate percentage for the 30-percent present-value, low-income housing credit is 3.28 percent. The Code Sec. 7520 AFR for determining the present value of an annuity, an interest for life or a term of years, or a remainder or reversionary interest is 2.40 percent. Finally, the deemed rate of return for transfers during 2009 to pooled income funds that have been in existence for less than three taxable years is 4.8 percent.

Rev. Rul. 2009-1, 2009FED ¶46,205

Rev. Rul. 2009-1, FINH ¶30,609

Other References:

 
Code Sec. 42

  CCH Reference - 2008FED ¶173.02

  CCH Reference - 2008FED ¶176.01

  CCH Reference - 2008FED ¶4305.03

 
Code Sec. 382

  CCH Reference - 2008FED ¶17,115.28

 
Code Sec. 642

  CCH Reference - 2008FED ¶24,308.1885

  CCH Reference - FINH ¶16,801.11

 
Code Sec. 1274

  CCH Reference - 2008FED ¶31,310.05

 
Code Sec. 7520

  CCH Reference - 2008FED ¶42,785.40

  CCH Reference - FINH ¶22,630.05

 
Code Sec. 7872

  CCH Reference - FINH ¶18,950.05

  Tax Research Consultant

  Tax Research Consultant

  CCH Reference - TRC ACCTNG: 36,162.05

Tax Analysts report: