Archives for June 2014

GROSS RECEIPTS TAXES PAID BY A PA BUSINESS

June 20, 2014 by Frank

One of the advantages of using an experienced tax professional for tax preparation and tax planning services is that you are kept abreast of new tax law changes and developments.

PA Gov. Corbett has signed into law, effective January 1, 2014, that protects PA businesses from double taxation. House Bill 1513, now Act 42 of 2014, clarifies the assessment of the business privilege tax in PA by restoring predictability and fairness. This law is a response to a 2007 PA Supreme Court decision, Rendina Inc. v. Harrisburg and the Harrisburg School District, that created a great deal of uncertainty, and in some cases, the potential for double taxation of gross receipts. In Redina, the court ruled that a municipality can tax an entity that lacks a permanent base of operations within its borders. The new law will specifically prohibit [Read more…] about GROSS RECEIPTS TAXES PAID BY A PA BUSINESS

IRS ALERTED ABOUT EMAIL SCAM

June 10, 2014 by Frank

One of the advantages of using an experienced tax professional for tax preparation and tax planning services is that you always have someone to call about your tax concerns.

The IRS has been alerted to a new email phishing scam. The emails, while they may appear to be from the IRS, are not, and include a link to a bogus website that is intended to appear to be the official IRS website. These emails contain the direction “you are to update your IRS e-file immediately.” The emails mention USA.gov and IRSgov, but do not mention the IRS’s official website, www.irs.gov.

Taxpayers who get these emails should [Read more…] about IRS ALERTED ABOUT EMAIL SCAM

TAX COURT REFUSES TO ACCEPT DOCUMENT AS TIMELY FILED EVEN THOUGH TAXPAYER HAD PROOF THAT MAILING WAS MADE BEFORE DUE DATE

June 3, 2014 by Frank

When providing tax preparation or tax planning services to our clients, we recommend that all mailings to tax jurisdictions be done using USPS certified mailing with a return receipt or by USPS Priority Mail and request a tracking number. If for any reason the taxpayer needs to prove that the mailing was timely made on or before the due date, the receipts from these mailings will be accepted by the IRS (and the courts) as proof of timely filing.

In the Tax Court case of Eric Lamart Sanders v. Commissioner, U.S. Tax Court, T. C. Summary Opinion 2014-47, (May 12, 2014), the facts were clear that the taxpayer timely mailed a petition to the Tax Court via UPS ground. Since the mailing was received by the Tax Court after the due date, it was dismissed by the Court as an untimely filing. What about the rule that if timely-mailed, it is timely-filed?

The Tax Court agreed with the IRS that although the mailing date which appeared on the UPS ground label affixed to the envelope in which the petition was sent showed that the mailing was made prior to the due date, the only date that counted was the actual delivery date to the Tax Court which was received after the 90-day filing period had expired. Why did the Tax Court reach this decision? [Read more…] about TAX COURT REFUSES TO ACCEPT DOCUMENT AS TIMELY FILED EVEN THOUGH TAXPAYER HAD PROOF THAT MAILING WAS MADE BEFORE DUE DATE