• Newly Proposed Foreign Tax Credit Regulations Offer Potential Relief on Cost-Recovery Requirement

    Mar 21, 2023, 07:00 AM by Andrew M. Bernard Jr., CPA
    New foreign tax credit regulations may provide some relief by creating a safe harbor that relaxes the cost-recovery requirement. A single-country exception was also added for royalties, permitting taxpayers to structure or amend their royalty agreements so foreign taxes withheld on royalty payments may qualify as a creditable foreign income tax.
    Full story
  • Pennsylvania Income Tax Policy: A Comparison to Other States

    Mar 14, 2023, 16:41 PM by Drew VandenBrul, CPA
    Drew VandenBrul, CPA, explores some of the areas where Pennsylvania income tax policy remains an outlier among other states and the possible adjustments needed to better align personal and corporate net income taxes.
    Full story
  • The Rise of the State and Local Tax Specialist

    Mar 12, 2023, 09:36 AM by Matthew D. Melinson, CPA, Vito A. Cosmo Jr., CPA, CGMA, and Patrick K. Skeehan, JD
    A career in state and local tax can be challenging but also rewarding. With 50 states, the District of Columbia, and thousands of localities, there are numerous types of state and local taxes, including income, nonincome-based entity taxes (gross receipts, franchise), sales and use, real and personal property, excise, transfer, and many other industry-specific taxes. Pennsylvania alone has about 34 state-level taxes.
    Full story
  • R&D Tax Credits and M&A Transactions

    Dec 20, 2022, 07:00 AM by Jonathan Forman and Michael Wilshere, JD
    When considering a merger or acquisition, tax attributes are often not a due diligence priority. Incorrect assumptions are often made about the value and utility of these attributes. An acquiring company can be surprised to find out it cannot use any of the target’s R&D tax credits following the acquisition.
    Full story
  • The Inflation Reduction Act of 2022 and the Corporate Alternative Minimum Tax

    Dec 15, 2022, 12:53 PM by Robert E. Duquette, CPA
    The new corporate alternative minimum tax (CAMT) is a significant feature of the Inflation Reduction Act of 2022. There are situations in which the CAMT could apply that would not be obvious at first.
    Full story
  • Mitigate the Tax Impact of the Death of an Owner/Shareholder

    Dec 15, 2022, 07:00 AM by Michael C. DeFillipo, CLU, ChFC
    For many owners of closely held businesses, their largest asset – and the one that is perhaps most difficult to value – is their interest in their business. With the current estate tax exemption levels set to sunset at the end of 2025 (if not before), business owners and their CPAs may need to take appropriate steps in the tax and legacy planning process.
    Full story
  • HSAs: Practical Tax Considerations

    Dec 9, 2022, 07:00 AM by Jeffrey J. Schrader, CPA, MST, and Mary Lew Kehm, CPA
    The tax benefits of health savings accounts and the tax reporting considerations. .
    Full story
  • Historic CNIT Reductions and Small-Business Tax Reform

    Dec 9, 2022, 07:00 AM by Drew VandenBrul, CPA, and Michael Semes, JD
    Gov. Tom Wolf signed House Bill 1342 into law as Act 53 of 2022 marking the first change in Pennsylvania’s corporate net income tax (CNIT) rate since 1995, reducing it by more than 50% over the next nine years: from 9.99% in 2022 down to 4.99% in 2031.
    Full story
  • The GAAP in Accounting for PTE Taxes

    Dec 9, 2022, 07:00 AM by James J. Newhard, CPA
    CPAs specializing in A&A must now hold a lot more tax knowledge so they can truly understand the measurement, reporting, and disclosure necessities of today’s PTEs
    Full story
  • Rise of Cryptocurrency Means Careful Tax Planning Needed

    Dec 5, 2022, 18:16 PM by Cassandra Bennett, CPA, DBA, and Jeffrey Bennett, CPA, MBA
    The phenomenon of cryptocurrency has gained steam over the past few years. The flexibility of this digital, encrypted, and decentralized form of exchange intrigues many, but it is causing consternation on how exactly to tax its use and how to mitigate some of the tax burden derived from its holdings.
    Full story
  • Navigating Pennsylvania Local Business Privilege Taxes

    Nov 28, 2022, 11:46 AM by Vito A. Cosmo Jr., CPA, CGMA, Matthew D. Melinson, CPA, and Patrick K. Skeehan, JD
    In addition to federal and state income tax obligations, business taxpayers operating in Pennsylvania also may be responsible for an array of additional local taxes, depending on the localities in which they transact business. These local business privilege or mercantile taxes can be difficult to navigate for the unfamiliar taxpayer.
    Full story
  • Qualified Opportunity Zones: Huge Tax Breaks for Community Investment

    Nov 28, 2022, 11:00 AM by Edward R. Jenkins Jr., CPA, CGMA
    A series of opportunity zones created by the Tax Cuts and Jobs Act of 2017 offers those who invest in projects in these zones a new tax benefit that is unprecedented. The tax benefit could also have a positive impact on targeted communities, but there are risks associated with opportunity zone investments and the regulations involved can be complicated.
    Full story
  • New Regs to Counter Foreign DST Credit May Kill Other Foreign Tax Credits

    Sep 28, 2022, 09:13 AM by Andrew M. Bernard Jr., CPA
    Analyzes the U.S. Treasury Department’s final foreign tax credit regulations under Treasury Regulation Section 1.901-2, which stem primarily from foreign countries enacting new digital service taxes.
    Full story
  • Tax Pitfalls Associated with Closely Held Businesses

    Sep 21, 2022, 15:40 PM by Mark L. Lubin, CPA, JD, LLM
    Explains how knowledge of certain considerations coupled with caution can spare practitioners unnecessary tax expense and exposure when structuring closely held businesses.
    Full story
  • State Income Tax Implications from Federal R&D Law

    Sep 21, 2022, 15:39 PM by John Mertz, Tom Lemon, CPA, and Greg Rineberg, CPA
    Addresses the changes coming to the treatment of research and experimental expenditures effective for tax years beginning after Dec. 31, 2021.
    Full story
  • Consider Section 962 to Mitigate GILTI Inclusions

    Sep 7, 2022, 08:19 AM by Andrew M. Bernard Jr., CPA
    Individuals from the United States who are shareholders (including estates and trusts) of controlled foreign corporations (CFCs) face a difficult path in how to structure these investments in a tax-effective manner. The Tax Cuts and Jobs Act of 2017 (TCJA) treats U.S. corporate shareholders more favorably than U.S. individuals with regard to investments in CFCs. The TCJA has a new global intangible low-taxed income (GILTI) inclusion as part of the U.S. Subpart F anti-deferral rules that expands inclusions from CFCs to individual shareholders who are federally taxed at up to 37%. It also creates a double taxation event because individuals are not entitled to a credit for underlying foreign taxes paid in the income included.
    Full story
  • PICPA’s Pivotal Role in Addressing Federal Tax Issues

    Jun 28, 2022, 16:39 PM by Alexandra C. Fabian
    Explains PICPA’s response to IRS service and staff issues and how it continues to work with the AICPA and Congress on relief for taxpayers and practitioners.
    Full story
  • The Convertible Debt Interest Disallowance Dilemma

    Jun 28, 2022, 16:38 PM by James P. Swanick, CPA, Meredith Thornton, CPA, and Michael J. Tighe, CPA
    Discusses how borrowers who use convertible debt as a financing option need to understand the rules that could limit the tax benefits of this instrument.
    Full story
  • Pennsylvania Local Tax Implications of Remote Work

    Jun 21, 2022, 16:49 PM by Matthew Melinson, CPA, Narj Bhogal, CPA, Patrick Skeehan, JD, and Thomas Boyle, JD
    Covers the additional risks businesses face as remote work arrangements continue to become more commonplace.
    Full story
  • Avoiding Errors in Establishing Basis in Business Interests

    Jun 21, 2022, 16:48 PM by Mark L. Lubin, CPA, JD, LLM
    Discusses the best practices to determine tax basis of interests in business entities, including C corporations, S corporations, and partnerships while avoiding crucial errors.
    Full story