The Minnesota Department of Revenue has issued a bulletin addressing federal conformity updates for tax year 2015. The bulletin reminds taxpayers and tax professionals that the Protecting Americans from Tax Hikes Act of 2015 was signed December 18, 2015, and contained several provisions impacting Minnesota corporate and personal income taxes for tax year 2015.
According to the department, Minnesota Department of Revenue Commissioner Cynthia Bauerly presented the governor's proposal on federal conformity on March 23, 2016, and encouraged members of the legislature to wait to pass a federal conformity bill until after the filing season has ended. Waiting until after the filing season ends allows taxpayers and tax professionals to continue filing tax returns and it provides the department with the opportunity to process the returns filed by the April 18 filing deadline.
The department also notes that Minnesota Form M1NC has been created to aid the department in identifying taxpayers who may be affected by the federal conformity items. If a retroactive federal conformity bill is passed after the filing season, the department will work to identify changes and hold a conference call to provide additional information. Taxpayers affected by the change will receive a notification from the department.
Wisconsin
Sales and Use Tax: Guidance for Funeral Homes Issued
The Wisconsin Department of Revenue has issued a sales and use tax publication for funeral homes. The publication reflects the department's positions regarding laws that have been enacted by the Wisconsin Legislature and are in effect as of March 1, 2016. The publication notes that sales and purchases by funeral homes that are subject to the 5% state sales or use tax may also be subject to the 0.5% county sales or use tax and the 0.1% baseball stadium sales or use tax. The publication discusses the nature of sales and use tax; seller's permits; sales by funeral homes; occasional sales; taxable and nontaxable purchases by funeral homes; and other matters.
Read Updated Publication 246
Multiple Taxes: Publication Regarding Tax Incentives for Conducting Qualified Research Updated
The Wisconsin Department of Revenue has updated a publication regarding the research expense credit against corporation franchise and income and personal income taxes and the sales and use tax exemption for property used in qualified research. The publication reflects the department's interpretations regarding laws that have been enacted by the Wisconsin Legislature and are in effect as of March 1, 2016. The publication defines "qualified research" and describes various tests for determining if an activity is qualified research.
With regard to the research expense credit, the publication discusses the purpose of the credit; the amount of credit available; eligibility for the credit; qualified expenses; credit computation; credit claims; combined groups; unused credits; record keeping; audits; and other matters.
With regard to the sales and use tax exemption for qualified research, the publication provides relevant definitions and discusses who may claim the exemption; what is exempt; businesses primarily engaged in biotechnology in Wisconsin; exemption claims; documentation requirements; the difference between manufacturing and biotechnology; the similarities and differences between the exemption and the research expense credit; record keeping; audits; and other matters.