5Q: Neena S. Savage

PREPARED: Neena S. Savage, tax administrator, R.I. Division of Taxation, speaks with R.I. Department of Revenue spokesman Paul Grimaldi. / PBN PHOTO/MICHAEL SALERNO
PREPARED: Neena S. Savage, tax administrator, R.I. Division of Taxation, speaks with R.I. Department of Revenue spokesman Paul Grimaldi. / PBN PHOTO/MICHAEL SALERNO

1 What is the filing volume anticipated for 2016 and how much of that will be business-related?

Most returns are individual returns. We expect to process more than 645,000 personal income tax returns for tax year 2016. Many of those personal income tax returns will include business income for the owners of many sole proprietorships and pass-through entities. We also expect to see more than 30,000 sales tax reconciliation returns. Furthermore, we’ll have thousands of returns filed by C- corporations, S-corporations, limited liability companies and others.

2 Have people gotten the hang of the sales tax for short-term rentals or is that still causing confusion?

We have traveled throughout the state numerous times to spread the word on what the tax is and how it works. At those meetings, and since then by phone and email, we have answered numerous questions about the process. We believe that the issue does not cause confusion any longer.

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3 What is your plan for staffing to review or process tax returns?

Our processing section has begun training and taking other steps to ramp up for the filing season, which starts Jan. 23. We have hired additional staff for the filing season. Most of our workers are full time, some are seasonal.

4 What changes in business taxation took effect in 2016 that may cause confusion?

The annual corporate minimum tax has been reduced by 10 percent for tax year 2016. The annual filing charge for pass-through entities has also been reduced by 10 percent. Also, our “managed audit” program kicked into high gear in 2016. Under the program, a business may enter into an agreement with us regarding Rhode Island sales and use tax obligations, with potential savings on penalties and interest.

5 When is the deadline for filing business-related returns, and what should a business owner do if they are having trouble meeting it?

The federal government has changed the filing deadlines for many business entities. Gov. Gina M. Raimondo and the General Assembly worked together in the 2016 session to change the filing deadlines for many business entities so that businesses and preparers would be able to file their federal and state returns at the same time, resulting in more convenience and less confusion for businesses. The deadline depends on the type of filing and business entity. •

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