New 1099-MISC withholding obligation for Pennsylvania businesses began Jan. 1, 2018, as a result of Act 43 of 2017. The additional administrative burden and compliance costs to businesses is significant, and taxpayers have had limited time to comply with the new requirement. Moreover, the guidance to businesses and practitioners to date has been murky.
In late January the PICPA wrote to the Department of Revenue (DOR) requesting a delay in the requirement.
It is important to note that while the new reporting requirement is cumbersome and complicated, there were other, much more onerous options on the budget table last year during negotiations.
One such option would have made the tax appeals process virtually off-limits to all CPAs. Through the efforts of the PICPA and other business organizations, we were able to keep the worst proposals from the final package.
In response to PICPA’s request to the DOR, the department has agreed to take the following actions:
For more information, contact the PICPA Government Relations Team at governmentrelations@picpa.org or (717) 232-1821.
For more information, contact the PICPA Government Relations Team at governmentrelations@picpa.org or (717) 232-1821.