Dec 2, 2020, 11:16 AM by Jerry Glynn, CPA, and Patrick K. Skeehan, JD

The Pennsylvania Department of Revenue (DOR) released two separate letter rulings during 2017 that provide guidance on the sales and use tax treatment of information retrieval services and support services related to computer software. The DOR concluded that both are subject to tax based on its interpretation of Act 84, the budgetary legislation enacted in July 2016. These rulings are concerning, since it is questionable whether DOR’s positions are consistent with the statute and the legislative intent of Pennsylvania lawmakers.

Dec 2, 2020, 11:16 AM by Jonathan S. Ziss, JD

In the past, Liability Lessons has examined the teamwork required when multiple professions and disciplines interact with a single client. In this column, the focus is on team play at a very specific moment in the life of a business: the moment of conception. This is a particularly sensitive moment from the standpoint of professional risk.

Sep 2, 2020, 11:14 AM by Patrick J. McCormick, JD

An ever-growing number of businesses and individuals are going global. Familiarity with the U.S. tax forms that are necessary to properly disclose foreign assets and interests is thus paramount. Four critical forms – Foreign Bank Accounting Re-port (FBAR), 8938, 8621, and 3520 – are summarized here, including applicable penalties.

Jun 24, 2020, 16:23 PM by Matthew D. Melinson, CPA, Drew VandenBrul, CPA, and Adam Koelsch, JD

The economic repercussions of the COVID-19 pandemic have some economists forecasting that the U.S. economy will not rebound quickly to precrisis levels. The state and local tax implications, both in the current environment and in the long term, will be wide-ranging and require considerable attention.

Mar 2, 2020, 14:19 PM by Vito A. Cosmo Jr., CPA, CGMA, Patrick K. Skeehan, JD, and Matthew D. Melinson, CPA

Pennsylvania residents of an age commonly known as “baby boomers” are retiring and relocating to warmer and more tax-temperate climates, such as Florida. The Pennsylvania Department of Revenue is aware of this trend, and it is guarding the commonwealth’s coffers by challenging nonresidency status and certain retirement payouts. Simply put: If your client retires and moves, they will have to prove their new status.

Mar 2, 2020, 13:48 PM by Andrew M. Bernard Jr., CPA, and William Long

In the global economy, companies operate foreign business in various currencies. U.S. taxpayers must translate their foreign currency transactions into U.S. dollars. Many times the rules are misunderstood.

Dec 20, 2019, 13:28 PM by Andrew M. Bernard Jr., CPA, and Marc Lim, JD

In response to a number of highly publicized governmental hearings regarding how certain multinationals (including Apple, Hewlett-Packard, and Starbucks) achieve low effective tax rates on their foreign earnings, in 2013 the Organisation for Economic Co-operation and Development, an international economic organization of 34 countries, undertook a major review of international tax policy and best practices via the Base Erosion and Profit Shifting project.

Dec 20, 2019, 13:26 PM by Leonard Schneidman, JD, and Andrew M. Bernard Jr., CPA

This column discusses the key organizational, operational, and repatriation tax issues of foreign-owned U.S. enterprises. We start from the assumption that the foreign corporation is entitled to the benefits available under a U.S. income tax treaty (the tax treaty).

Dec 20, 2019, 13:24 PM by Todd A. Sacco, CPA, PFS, JD

Many tax practitioners who work with high-net-worth families are asked to prepare fiduciary income tax returns for trusts. Preparing fiduciary returns for trust accounts that are invested in basic stocks, bonds, and cash is complicated enough.

Dec 20, 2019, 13:21 PM by Robert E. Duquette, CPA, Andrew M. Bernard Jr., CPA, and Florian Hanslik

The projected deficits for the next 25 years raise concern about how long we can continue deficit spending. But is the country ready for a serious debate about an overhaul of our tax system?

Dec 20, 2019, 13:17 PM by Scott L. Austin, JD, Jennifer T. Loughery, CPA, and Ilya A. Lipin, JD

On Feb. 19, 2016, the Pennsylvania Department of Revenue issued Information Notice Corporation Taxes 2016-01. The notice provides guidance regarding the add-back provision enacted in July 2013. Effective for tax years beginning after Dec. 31, 2014, the add-back disallows certain Pennsylvania corporate net income tax deductions for transactions between affiliates involving intangible expenses and costs.

Dec 20, 2019, 11:38 AM by Veronica A. Caputo, CPA, Vito A. Cosmo Jr., CPA, CGMA, Matthew D. Melinson, CPA, and Patrick K. Skeehan, JD

With the advent of economic nexus, out-of-state businesses may now be subject to a state’s taxing jurisdiction merely by selling a threshold amount of goods or services into a state, with or without a physical presence in that state.

Dec 20, 2019, 11:08 AM by Vito A. Cosmo Jr., CPA, CGMA, Matthew D. Melinson, CPA, and Patrick K. Skeehan, JD

The Tax Uniformity Clause of the Pennsylvania Constitution is central in the tax policy debates in the state. Gov. Tom Wolf’s desire to raise the personal income tax rate from a flat 3.07 percent to a graduated system has generated speculation that the state constitution would first need to be amended.

Dec 2, 2019, 11:33 AM by Drew VandenBrul, CPA, and Dan Giorgio, CPA

The benefits and complexity of KOZs derive from the wide array of state and local taxes on which the program is based. Unlike other economic development and incentive programs based on singular activities such as job creation, capital investment, or geographic location, capitalizing on the benefits of the KOZ program requires an underlying knowledge of each of the taxes to which it applies.

Dec 2, 2019, 11:11 AM by James P. Swanick, CPA, and Michael J. Tighe, CPA

On Sept. 9, 2019, the U.S. Treasury and IRS issued proposed regulations under IRC Section 382(h) pertaining to the interaction between built-in gains or losses with Section 382 limitations. Treasury believes the proposed regulations will simplify the application of Section 382, provide needed clarification to taxpayers in determining built-in gains and losses, and address other issues relating to Section 382 that were created as a result of tax reform (the Tax Cuts and Jobs Act of 2017). Taxpayers are not as optimistic about these recent developments, and for good reason.

Sep 4, 2019, 15:15 PM by Harrison A. Pereira, CPA

Form 990 is an annual information return required to be filed with the IRS by most organizations that are exempt from income tax under Section 501(a) of the Internal Revenue Code. Although most tax-exempt organizations do not pay federal taxes, the majority must still file annually with the IRS. Form 990 not only includes financial information such as gross income, receipts, and disbursements, but also nonfinancial information such as mission, programs, and key governance information.

Mar 4, 2019, 11:43 AM by Brendan P. Cox, CPA

The Office of Information and Regulatory Affairs operated with reduced staff during the partial government shutdown, but special funding last year ensured that reviews and other activities stemming from the Tax Cuts and Jobs Act would continue. Other tax updates issued in the latter part of 2018 include the recent release of the Joint Committee on Taxation’s General Explanation of Public Law 115-97, commonly referred to as the bluebook, and the long-awaited guidance on Section 263A negative additional costs.

Jun 18, 2018, 09:44 AM by PICPA

When will the IRS issue guidance on new Internal Revenue Code Section 199A? That’s the top question on CPAs’ minds related to the Tax Cuts and Jobs Act.

Jun 4, 2018, 09:16 AM by Corinne Samler Brennan, JD, and Amanda Dougherty, JD

In March 2018, Philadelphia Mayor Jim Kenney announced that he intended to request a 6 percent increase in the real estate tax rate. Later that same month, the mayor revised the request downward to 4.1 percent because the Philadelphia Office of Property Assessment (OPA) had reassessed all properties across the city for tax year 2019, and those revised values increased property values by 11 percent. However, while the “average” assessment increased by 11 percent, some individual property owners saw increases between 30 percent and 300 percent.

Nov 16, 2015, 09:07 AM by Jenna Bonner

The Pennsylvania Department of Revenue held its annual Q&A forum with the PICPA on Sept. 24, 2015. PICPA members sought guidance on Board of Appeals processes, CNIT, the Wynne decision, e-filing procedures, and more.