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.

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.

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.

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.

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.

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.

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. .

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.

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.