Tax Warrior Chronicles

Moving and Relocating Under the New Tax Law

Posted on Thu, Sep 13, 2018

Sorbello1By: Sherri Sorbello, CPA


If you are moving soon, don’t expect to deduct your job-related moving costs on your tax return.  The Tax Cuts and Jobs Act of 2017 (“TCJA”) suspended the moving expense deduction for tax years 2018 through 2025 for most taxpayers.  There is, however, a carve out for a certain category of taxpayer.


For tax years 2018 through 2025, the moving expense deduction is only available to ... Read More

Opportunity Zones - Six Pages of the TCJA Create a Tax-Savings Opportunity for Everyone

Posted on Wed, Sep 05, 2018

TCJA-2017Chris Catarino, CPA, MT, and Steve Rossman, CPA, MT

 

Buried within the mound of legislation affectionately called the Tax Cuts and Jobs Act of 2017 are a measly six pages that create a massive tax-savings opportunity for America. Sections 1400Z-1 and 1400Z-2, so obscure they didn't even get their own section number and settled for the last letter of the alphabet as an identifier, define a completely new tax incentive for Qualified Opportunity Zones and Qualified Opportunity Funds, which until recently have ... Read More

Spouse ‘Forging’ Your Signature on Tax Return May Not Be a Problem…Until It Is!

Posted on Thu, Aug 30, 2018

D&S Marketing_049A district court has held that, where a husband forged his wife's signature on their joint federal tax returns, the returns were still valid joint returns. The court said the wife never objected to his forging. How could she if she never knew about it or gave consent. How is this possible?  Let’s review the case.

 

A little background on the law: The Internal revenue code provides that any return or other document required under any provision of the internal revenue laws or regulations must be signed by ... Read More

Small Window of Opportunity to Combat New Proposed Regulations from IRS Regarding Contributions in Exchange for State and Local Tax Credits

Posted on Fri, Aug 24, 2018

D&S Marketing_021By: Daniel Marques, CPA, MST

 

In May, we blogged on the IRS announcement that state & local tax deduction workarounds created in response to the Tax Cuts and Jobs Act (TCJA) would come under scrutiny.  As promised, the IRS recently released proposed regulations addressing these workarounds and the regulations are not taxpayer friendly.  However, there is a small window of opportunity for some taxpayers to take advantage of these ... Read More

REMINDER: Q3 2018 Estimated Tax Payments Due September 15th (17th)

Posted on Tue, Aug 21, 2018

D&S Marketing_011-1By: Drucker & Scaccetti

 

Don’t forget that 2018 third quarter (Q3-2018) estimated payments are due by Monday, September 17, 2018 (since the normal due date of September 15th falls on a Saturday).  If you expect to owe tax for the 2018 tax year, after subtracting any withholding and credits, you may be required to pay quarterly tax estimates.  You could be subject to potential underpayment penalties if you do not pay adequate quarterly estimated tax throughout the ... Read More

Planning for Expiring KOZ Tax Exemptions

Posted on Tue, Aug 14, 2018

D&S - 2016-Web_090-1

By: Clare Porreca, CPA, MT

 

Many businesses in Pennsylvania have benefitted from the Keystone Opportunity Zone Program(“KOZ”).  Some are set to expire soon.  They can be extended for an additional 10 years if certain job creation and capital investment requirements have been met.  If they are not extended, however, businesses ... Read More

Philadelphia Wage Tax Rate Reduces Again as Planned

Posted on Tue, Aug 07, 2018

city-of-philadelphia-seal-resized-600By: Drucker & Scaccetti

 

As part of a planned schedule to lower the City Wage Tax, The Philadelphia Department of Revenue reduced the tax for residents and non-residents again on July 1, 2018. Any paycheck that businesses issue with a pay date after June 30, 2018 must have Philadelphia City Wage Tax withheld at the new rate.

 

  • The new Wage Tax rate for residents of Philadelphia is 3.8809% (.038809).
  • The ... Read More

Tax Law Changes May Influence Structure of Foreign Subsidiaries

Posted on Tue, Jul 31, 2018

D&S Marketing_021By: Patrick J. McCormick, JD, LLM

 

Implementation of the Tax Cuts and Jobs Act of 2017 has brought both obligations and opportunities for taxpayers.  This has been exacerbated in the international context, where new rules have dramatically affected U.S. shareholders of foreign companies and how they are structured. 

 

The overarching intention of the Act’s international ... Read More

Got a Letter from the IRS? What You Should (and Shouldn’t) Do!

Posted on Thu, Jul 26, 2018

D&S Marketing_023By:  Drucker & Scaccetti

 

Don’t play with fire. Do brush your teeth twice a day. Don’t chew with your mouth open. Do say “please” and “thank you.”  These are some of the basic “Dos and Don’ts” engrained into our memory by our parents. As adults, learning is a trial-and-error exercise.  For example, what are the Dos and Don’ts when you’ve received a letter from the IRS? Before you make a mental list of your answers, read on for some tips on how to proceed.

 

... Read More

UPDATE - PA Department of Revenue Releases New Guidance on New 1099-MISC PA Withholding Requirements

Posted on Tue, Jul 24, 2018

ANA GIOMBETTI - OFFICIAL 2018-1By: Ana Giombetti, CPA, JD

 

Since November 2017, we’ve written several times on the new 1099-MISC PA withholding requirements as information was released by the PA Department of Revenue (PADOR).  Earlier this month, the PADOR launched online guidance to help taxpayers understand the new 1099-MISC withholding requirements. Today, we’ll highlight a few items from the new ... Read More