No Tax Increases Proposed in Governor’s Budget

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Pennsylvania Governor Tom Wolf recently proposed a 2019 – 2020 state budget.  The good news, initially, is that the Governor did not include any call for increased state income and sales taxes and, in fact, contains proposals to reduce the corporate state income tax as a means of making the Commonwealth more competitive in drawing […]

Analyzing the TCJA’s Impact on States

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Not subject to as much media attention as federal income tax legislation, the state impacts resulting from the enactment of federal legislation always poses budgetary challenges for leadership in those jurisdictions. Oftentimes, federal income tax incentives, such as accelerated and bonus depreciation, can prove unduly costly for states whose income tax regimes are predicated upon […]

IRS Issues Guidance Aimed at Nonprofits’ Parking Expenses

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One of the more controversial provisions of the Tax Cuts and Jobs Act (TCJA) enacted in December, 2017, is the provision affecting the disallowance of certain fringe benefits deductions.  Importantly, the provision also includes a related  requirement that negatively affects many nonprofit organizations. The TCJA added rules to preclude for-profit employers from deducting qualified transportation […]

Final “Corrected” Treasury Regulations Released on QBI Deduction

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The Internal Revenue Service (IRS)  has released corrected final regulations on the new Qualified Business Income (QBI) deduction under Internal Revenue Code (IRC) section 199A. Included in these revised regulations are various corrections to the definition and computation of excess IRC section 743(b) basis adjustments, a correction to the description of a disregarded entity for […]

PA Announces Measurement Dates for Economic Nexus Standards

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Recently, Pennsylvania adopted an economic nexus standard with respect to determining whether an out-of-state entity is required to register for a license and subsequently collect, report and remit Pennsylvania Sales Tax.  The Commonwealth measures its sales and use tax economic nexus threshold by calendar-year sales preceding the collection period. Additionally, after the first year, collection […]

PA Adopts Economic Nexus Standard for Sales Tax Collection

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Sales Tax Background Most states have historically looked to nexus as a condition relevant to their capability to levy sales taxes. For decades, states have been bound by the United States Supreme Court National Bella Hess and Quill decisions in defining the required nexus standard for levying taxes in those states. The most relevant determinant of nexus […]

2019 Payroll Updates and Other Tax Developments

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As you begin the new year, we would like to remind you of a number of important business changes that have been implemented by Congress, the Internal Revenue Service, and other authorities for calendar year 2019. We hope that you will find this information helpful. Please view our 1-19 Payroll Tax Alert for complete information.

IRS Releases Standard Mileage Rates for 2019

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In Notice 2019-2, the Internal Revenue Service released the optional standard mileage rates for calendar year 2019. In most instances, taxpayers may use these rates to compute the tax deductible costs of operating motor vehicles for: business medical charitable purposes Some members of the military may also use these rates to compute their moving expense […]