Taxes

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Cotton, Colleagues introduce bill to repeal tax on certain firearm purchases

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Washington, D.C. — Senator Tom Cotton (R-Arkansas) today introduced the Repealing Illegal Freedom and Liberty Excises (RIFLE) Act, legislation that would remove a burdensome tax imposed on firearms regulated under the National Firearms Act.

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Senators John Barrasso (R-Wyoming), Marsha Blackburn (R-Tennessee), John Cornyn (R-Texas), Kevin Cramer (R-North Dakota), Steve Daines (R-Montana), Deb Fischer (R-Nebraska), Cynthia Lummis (R-Wyoming), Roger Marshall (R-Kansas), Markwayne Mullin (R-Oklahoma), Pete Ricketts (R-Nebraska), Marco Rubio (R-Florida), and Rick Scott (R-Florida) are co-sponsors of the legislation. Congresswoman Ashley Hinson (Iowa-02) introduced companion legislation in the House.

“Law-abiding Americans who exercise their Second Amendment rights should not be subject to unnecessary taxes and restrictions preventing them from doing so. Passed into law in 1934, the National Firearms Act needs to be amended. Our legislation will remove the red tape that places an undue financial burden on would-be gun owners,” said Senator Cotton.

“The federal government should not be placing financial barriers on the inalienable rights of Americans. This unconstitutional tax on certain firearm purchases is a direct violation of the Second Amendment and must be repealed. As the Biden Administration and Democrats push proposals that unfairly target law-abiding gun owners, I will continue to stand up for Iowans’ right to keep and bear arms,” said Congresswoman Hinson.

Text of the legislation may be found here.

Background:

  • The 1934 National Firearms Act (NFA) regulates short-barreled shotguns and rifles, fully automatic firearms, suppressors, and a catchall category of explosives. In addition to background checks and registration, NFA regulated items have a $200 tax.

  • The ATF has acknowledged the tax was intended “to curtail, if not prohibit, transactions” of firearms. The $200 tax, unchanged since 1934, is equivalent to $4,648 in today’s dollars.

  • Since 2018, ownership of NFA regulated items have grown by more than 250% as more sportsmen, shooters and firearm enthusiasts exercise their Second Amendment right.

  • The RIFLE Act does not modify the current checks and registration; it solely removes the federally mandated financial burden on law-abiding gun owners.

  • The legislation is endorsed by the National Rifle Association and the National Shooting Sports Foundation.

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LEARNS, taxes, transparency split GOP candidates in some Arkansas legislative primaries

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From the Arkansas Advocate:

Tax cuts, school vouchers and the state Freedom of Information Act are all hot-button issues for several Arkansas Republicans vying for seats in the state Legislature, including several incumbents who are fighting to appear on the November ballot.

A few of the challengers in the upcoming primary have run for legislative offices before, have already served in the Legislature or have family ties to former lawmakers.

“This is the people’s job,” said Timmy Reid, a cattle farmer and contractor from Marshall who is running for the House for the fourth time since 2018. “…It doesn’t matter what I want — if the people of my district decide they don’t want [something], I’m not voting for it or supporting it.”

LEARNS, taxes, transparency split GOP candidates in some Arkansas legislative primaries

Dwain Hebda/Arkansas Advocate

The Arkansas State Capitol.

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After the tornado: What to do about insurance, documents, taxes

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By Mary Hightower
U of A System Division of Agriculture

LITTLE ROCK — One of the most difficult parts of disaster recovery is managing the paperwork that follows.

Damage done to a business in Little Rock during the March 31, 2023, tornado. (U of A System Division of Agriculture photo)

Laura Hendrix, an extension personal finance expert for the University of Arkansas System Division of Agriculture, offers this checklist to those trying to figure out what they need to do:

  • Contact your insurance agent — “One of the first things for people with losses or damage is to contact their insurance agent,” she said. “Procedures will vary by company and policy.”

  • Taxes — The tax filing deadline this year is Monday, April 18. Even as you navigate this disaster, “taxpayers can file for an extension,” Hendrix said. “Any losses would fall under next year’s taxes.” The Internal Revenue Service has a page dedicated to taxes and disasters.

  • Replacing lost papers — “Documents such as birth certificates, insurance policies and health records may be lost or destroyed,” she said. “Prompt replacement prevents delays when the documents are needed.”

  • Insurance Policy — Contact your insurance agency for a copy of your policy. If you have any trouble locating the company, contact the Arkansas Department of Insurance at 501-371-2600 or .

  • Social Security Card — Order a replacement social security card online at gov/myaccount or visit your nearest Social Security office.

  • Driver’s License — To replace a driver’s license, visit your local revenue office.

  • Property Deeds — Contact your local Circuit Clerk’s office for property deeds.

  • Passport — Visit your local Postal Service office for a new passport.

  • Birth certificate, death, marriage, and divorce certificates — Visit the Arkansas Department of Health’s websites for Certificates & Records or Vital Records.

The American Red Cross also advises victims of natural disasters to:

  • Stop unnecessary expenses — For example, if your home is uninhabitable, notify the utility company and other service companies, such as phone, internet and cable companies, so they can stop billing immediately.

  • Assess your funds — Estimate the amount of income and emergency savings you have to pay bills while you recover from the disaster, then prioritize your bills. Paying your insurance premiums and rent or mortgage should be your top priority.

  • Talk to your creditors — Ask creditors for more time to pay. Most creditors will be willing to work with you, especially if you notify them before a payment is due.

Find additional information from Hendrix:

Find other disaster recovery information:

Beware disaster scammers

Immediately after Friday’s storms, Arkansas Attorney General Tim Griffin said, “Unfortunately, unscrupulous people will already be preying upon our neighbors with offers of quick repair jobs. Arkansans should call their insurance company first and not be pressured into paying a quick deposit to a person who will take off with their money just as quickly.”

Griffin said that insurers will honor their policies and “there is no need to rush or be pressured to sign a contracting agreement.”

Without time pressure, Arkansans should:

  • Obtain more than one estimate.

  • Demand references from contractors and check them.

  • Never let a contractor pressure you into hiring them.

  • Never sign a contract with blanks “to be filled in later.”

  • Never pay a contractor in full until the work is finished.

  • Never let a contractor discourage you from contacting your insurance company.

  • Be sure you review and understand all documents sent to your insurance company.

Arkansans who want to report concerns can contact the attorney general’s office at 800-482-8982.

To learn about extension programs in Arkansas, contact your local Cooperative Extension Service agent or visit www.uaex.uada.edu. Follow us on Twitter and Instagram at @AR_Extension. To learn more about Division of Agriculture research, visit the Arkansas Agricultural Experiment Station website: https://aaes.uada.edu. Follow on Twitter at @ArkAgResearch. To learn more about the Division of Agriculture, visit https://uada.edu/. Follow us on Twitter at @AgInArk.

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Tax filing season opens Jan. 23; extension offers tips for preparation, filing

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By Tracy Courage
U of A System Division of Agriculture

Tax seasons officially starts Jan. 23, when the Internal Revenue Service will begin accepting and processing 2022 tax year returns. For those who haven’t started preparations yet, now is the time to collect documents and understand the changes to tax credits and deductions that may affect their finances.

The IRS expects more than 168 million individual tax returns to be filed, with the majority of those coming before the April 18 tax deadline. People have three extra days to file this year, as April 15 is a Saturday and the Emancipation Day holiday is observed on April 17 in Washington, D.C.

“For tax year 2022, some tax credits that were expanded in 2021 will return to 2019 levels,” said Laura Hendrix, an accredited financial counselor and associate professor of personal finance with the University of Arkansas System Division of Agriculture. “This means that some tax filers could receive a smaller refund than last year.”

Hendrix offers these tips for preparing to file this year:

Be aware of changes for credits and deductions

For tax year 2022 some tax credits that were expanded in 2021 will return to 2019 levels. Changes include amounts for the Child Tax Credit (CTC), Earned Income Tax Credit (EITC) and Child and Dependent Care Credit.

  • Those who received $3,600 per dependent in 2021 for the Child Tax Credit will, if eligible, get $2,000 for the 2022 tax year.

  • For the Earned Income Tax Credit, eligible taxpayers with no children who received roughly $1,500 in 2021 will now get $500 in 2022.

  • The Child and Dependent Care Credit returns to a maximum of $2,100 in 2022 instead of $8,000 in 2021.

Unlike 2020 and 2021, there were no new stimulus payments for 2022 so taxpayers should not expect to get an additional payment in their 2023 tax refund.

During COVID, taxpayers were able to take up to a $600 charitable donation tax deduction on their tax returns. However, for tax year 2022, taxpayers who don’t itemize and who take the standard deduction, won’t be able to deduct their charitable contributions.

If you bought a new, qualified plug-in electric vehicle in 2022 or before, you may be eligible for a clean vehicle tax credit.

Get your refund fast

One of the fastest ways to get your refund is to file electronically and use direct deposit. The IRS discourages people submitting paper forms to avoid potential delays. Tax refunds can be deposited in up to three accounts, and Hendrix recommends people deposit some of their refunds into a savings account to build financial security. Use IRS form 8888 for direct deposit.

Filers should also avoid using advance refund loans, which often have high fees.

Save money by filing for free

Several organizations offer free assistance to filers who meet income and age criteria.

“Taking advantage of these services means you can keep more of your refund because you don’t have to pay a tax-preparation service,” Hendrix said.

 Some of these include the following:

VITA (Volunteer Income Tax Assistance):

AARP Foundation Tax-Aide:

MyFreeTaxes:

IRS Free File:

MilTax

Organize records for tax time

Whether you are doing your own taxes, using a paid tax preparation service, or using one of the free file options, you will need to gather the following information:

  • Birth dates and Social Security numbers for yourself, your spouse and dependents on the tax return.

  • Wage and earning statements (Form W-2, W-2G, 1099-R,1099-Misc) from all employers.

  • Interest and dividend statements from banks (Forms 1099).

  • Health Insurance Exemption Certificate, if received.

  • A copy of last year’s federal and state returns, if available.

  • Bank account routing and account numbers for direct.

  • Total paid for daycare provider and the daycare provider's tax identifying number such as their Social Security number or business Employer Identification Number.

  • Forms 1095-A, B and C, Health Coverage Statements.

  • Copies of income transcripts from IRS and state, if applicable.

  • If using a free or paid tax preparation service, you will need to show proof of identification, such as a driver’s license.

  • If married and filing jointly, both you and your spouse will need to sign the tax return.

For more information, visit IRSgov. For extension resources on personal finance, visit uaex.uada.edu/money. To learn more about extension programs in Arkansas, contact your local Cooperative Extension Service agent or visit www.uaex.uada.edu. Follow us on Twitter and Instagram at @AR_Extension. To learn more about Division of Agriculture research, visit the Arkansas Agricultural Experiment Station website: https://aaes.uada.edu/. Follow on Twitter at @ArkAgResearch. To learn more about the Division of Agriculture, visit https://uada.edu/. Follow us on Twitter at @AgInArk.

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‘High growth’ in sales tax collections pushes Arkansas tax revenue up 6.4%

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by Michael Tilley (mtilley@talkbusiness.net)

If the economy is slowing, no one told Arkansas businesses and consumers. In the December report, fiscal year-to-date Arkansas tax revenue totaled $4.145 billion, up 6.4% compared with the same period in 2021 and 3.3% above forecast.

Individual income tax revenue in the first six months of the fiscal year (July-December) was $1.768 billion, up 4.3% compared with the same period in 2021 and 1.9% above the budget forecast, according to Wednesday’s (Jan. 4) report from the Arkansas Department of Finance and Administration (DFA). The report said the net available revenue – surplus – at the end of the first six months was $125.2 million.

Sales and use tax revenue in the first six months was $1.691 billion, up 8.7% compared with the same period in 2021 and up 1.2% above the forecast. Corporate income tax revenue in the first six months was $406.9 million, up $34.9 million compared to the same period in 2021 and 20.6% million above the forecast.

https://talkbusiness.net/2023/01/high-growth-in-sales-tax-collections-pushes-arkansas-tax-revenue-up-6-4/

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Arkansas’ gubernatorial candidates debate taxes, transgender law, education

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by Michael Tilley (mtilley@talkbusiness.net)

Taxes, transgender laws, media access, and peanut butter and jelly sandwiches were part of Friday’s (Oct. 21) three-person gubernatorial debate in which frontrunner and Republican Sarah Huckabee Sanders and Democrat challenger Dr. Chris Jones focused on education and jobs.

The debate, which also included Libertarian candidate Ricky Dale Harrington Jr., was conducted by Arkansas PBS and televised live Friday morning.

A recent Talk Business & Politics-Hendrix College Poll showed Sanders with a 10-point lead over Jones (51% to 41%) heading into the last weeks of the election cycle. Harrington had support from 3% of poll respondents. The poll was conducted Oct. 17-18 with 974 likely Arkansas voters.

https://talkbusiness.net/2022/10/arkansas-gubernatorial-candidates-debate-taxes-transgender-law-education/