Professional Issues Update

See what’s in the Pennsylvania Department of Revenue’s regulatory agenda for 2026 and where the PICPA will be focusing its attention.

This Pennsylvania legislation would allow resident partners to receive a tax credit for pass-through entity taxes paid to other states.

This legislation would give Pennsylvania partnerships and S corporations the option to pay state taxes at the business level instead of the individual level, reducing the impact of the federal cap on state and local tax deductions and aligning Pennsylvania with most other states.

Pennsylvania House Bills 855 and 856 would give taxpayers who make honest mistakes or face unexpected hardships more flexibility with state tax penalties and interest.

Pennsylvania House Bill 1697 (the False Claims Act) would allowing private individuals to file lawsuits on behalf of the state with the potential to receive financial rewards if they win. Unlike similar federal and other state versions, this proposal may allow lawsuits over state and local tax matters, putting CPAs at increased liability risk.