Tax Warrior Chronicles

GUEST BLOG – From a Distance: Tax Traps of a Remote Workforce

Posted on Wed, Aug 25, 2021

A pressing question from clients has been around remote workforces and the related tax implications. As businesses weigh their options regarding from where an employee is required to work (home, office, or hybrid) there is a lot to consider. Our guest blogger today is Jennifer Karpchuk, an attorney and co-chair of the state and local tax controversy planning practice at Chamberlain, Hrdlicka, White, Williams & Aughtry in Philadelphia. She describes the issues businesses should know regarding remote workforces. If you have remote employees, this is a must read.

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Guidelines to Adhere to New Philadelphia Ordinance on Reporting Federal Tax Changes

Posted on Mon, Jun 07, 2021

By: Jonathan S. Kandel, CPA

 

On May 6, 2021, the City of Philadelphia passed Bill No. 210139-AA, an ordinance requiring all Philadelphia taxpayers to report changes to their federal taxable income to the Philadelphia Revenue Department. This new ordinance, which was signed by the Mayor on May 19, 2021, is effective immediately.

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Philadelphia Wage Tax Refunds – What’s New for 2020? Plenty!

Posted on Wed, Feb 10, 2021

Among the many issues created by the pandemic, local income tax withholding in Pennsylvania caused administrative headaches for Pennsylvania employers over the last several months (as explained in our previous blog). In today’s blog, we will discuss the Philadelphia Wage Tax Refund process for 2020.

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PPP Update #21 – PPP Tax Treatment for State & Local Taxes

Posted on Wed, Feb 03, 2021

As guidance in this area is being released regularly, we recommend you read all of our blogs on this subject.  All the blogs in the Paycheck Protection Program series are here: #1, #2#3#4#5#6#7,#8,#9,#10,#11,#12,#13, #14, #15#16#17, #18,

#19, #20, #21, #22, #23

 

Is it already February? The 2020 filing season is here and this year brings new challenges compared to other filing seasons. In PPP Update #19, we discussed the federal change to deductibility of expenses using Payroll Protection Program (PPP) funds, but what about states and localities? As we have become accustomed to, the PPP bares unique issues.

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Tax Implications of a Business Move to Another State

Posted on Tue, Dec 29, 2020

By: Clare Porreca, CPA, MT

 

Moving a business to a new state is a complex decision. Among the many factors to consider is the state and local tax (SALT) implications on the business, employees, and owners. In today’s blog, we outline some of the major considerations.

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Pennsylvania EITC vs. Direct Contribution: What Should You Consider?

Posted on Fri, Dec 11, 2020

By: Ashley Menders

 

As if the Tax Cuts and Jobs Act (TCJA) changes to state and local taxes were not enough, the IRS further sought to reduce tax benefits from new and existing workarounds by focusing on charitable contributions that qualify to receive state or local tax credits. Pennsylvania’s popular pre-TCJA program, the Educational Improvement Tax Credit (EITC), is affected by this new IRS regulation. Despite this, many support the program as it still provides cash flow and tax planning benefits in your charitable planning. Today, we discuss what to consider when deciding if you should participate in the PA EITC program.

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Telecommuting - Payroll Issues for Pennsylvania Businesses and Employees

Posted on Fri, Oct 30, 2020

Clare Porreca, CPA, MT

 

Working from home has created a host of state and local tax issues that businesses cannot ignore. Pennsylvania’s numerous local tax jurisdictions create an extra layer of complexity. As pandemic-influenced telecommuting remains prevalent, Pennsylvania employers and employees should revisit their policies regarding PA local tax withholding.

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States Seek Revenue via Business Activity Questionnaires. Be on the Lookout!

Posted on Mon, Nov 04, 2019

By: Brandon Caine, CPA

 

The reach of state taxation greatly broadened on June 21, 2018. On that day, the Supreme Court upheld South Dakota’s “economic nexus” standard in South Dakota v. Wayfair. The court gave the green light for South Dakota’s imposition of a sales tax on an out-of-state seller, even though the seller did not have a physical presence in the state. Today’s post outlines some basics of nexus and Business Activity (Nexus) Questionnaires that states send out to potential taxpayers.

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The Wayfair Decision—Is Your Business Exposed?

Posted on Wed, Jun 27, 2018

By: Chris Barbuto, CPA, MT

 

The U.S. Supreme Court’s (the Court) decision last week in the case of South Dakota v. Wayfair, Inc. brings with it a monumental shift in the way states can assert authority to collect sales tax from sellers located outside of their state.  The Court’s finding in favor of South Dakota may be viewed as unfavorable to many, however it provides some clarity and certainty to sales tax rules that vary greatly state-to-state.

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State & Local Tax Deduction Workarounds in IRS Crosshairs

Posted on Thu, May 24, 2018

Daniel Marques, CPA, MT

Chris Catarino, CPA, MT

 

State and local governments and taxpayers beware - the IRS has its eyes on recent proposals designed to circumvent the new $10,000 limit on state and local tax deductions imposed by the Tax Cuts and Jobs Act (TCJA).  For the time being, you may want to hold off on making contributions to these newly established state and local tax credit funds if you expect to receive a federal charitable contribution deduction in return. Here's why...

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