State & Local Tax News

MULTI-STATE RESIDENCY

June 26, 2018 by Frank

MULTI-STATE RESIDENCY

What You Need to Know

To Avoid an Unexpected State Tax Liability

Today, taxpayers may have multiple residencies for a host of reasons. An example could be a “snowbird” . . . a PA resident who lives in FL during the winter months to soothe those aching bones during the chilly winter months. This person is a resident of both PA and FL. Another example could be where the PA resident decides that for state tax-savings reasons that they want to show their primary residency as being in FL which does not have a personal income tax versus PA which has a 3.07% personal income tax rate.

We recently met a taxpayer who maintained their PA home but decided to call their FL winter home their primary residence to save state income taxes. The PA Department of Revenue (DOR) assessed the taxpayer’s income earned as if he had resided in PA, despite the fact that he relocated to FL, had a FL driver’s license, voted in FL and attended church and social groups in both PA and FL. He had unsuccessfully attempted to persuade PA that he was not subject to PA’s personal income tax, but his arguments fell on death ears. This is when he requested a consultation with us.

The important factor [Read more…] about MULTI-STATE RESIDENCY

PA Sales Tax Changes

December 28, 2016 by Frank

Timely Filing Vendor Discount
If you have noticed that your vendor discount has been capped at $25 or an amount lesser than previously received by your company, be sure to thank Governor Wolf. Effective for returns that have a period end date after August 1, 2016, the vendor discount for licensees for timely filed returns and payments is limited to the lesser of $25 or 1 percent of tax collected for a monthly filer, $75 or 1 percent of tax collected for a quarterly filer and $150 or 1 percent of tax collected for a semi-annual filer.

Sales tax base expansion
Effective August 1, 2016, licensees are now required to collect tax on [Read more…] about PA Sales Tax Changes

States Doing Their Best to Extend Their Tax Reach

April 12, 2016 by Frank

In prior blogs, we have shared that states like to audit and tax businesses that are outside of their borders rather than in-state businesses. In-state business owners complain when a state increases its tax rates or audit compliance. However, if the state taxes a business created in another state, it’s a win-win for all in-state parties.

Bloomberg BNA releases a state tax survey every year. We would like to share with you some items in its 2015 survey as it provides business owners with a better perspective as to how aggressive state taxing authorities are. Bloomberg contacted all 50 states (and the District of Columbia and NYC) and questioned them about how they determine nexus. “Nexus” is the minimum amount of contact a company can have in a state to become subject to the state’s taxes.

The “old” rules were that a state would tax businesses [Read more…] about States Doing Their Best to Extend Their Tax Reach

IRS Telephone Scams – and Then There is the PA Office of Unemployment Compensation

January 12, 2016 by Frank

When a tax jurisdiction calls, do you hang up on them or talk to them? One could argue that it depends whether the caller identifies himself with the IRS or PA.

Let’s start with the IRS. If you receive a call from someone claiming to be from the IRS, it likely is an IRS impersonator. Scammers are getter better at their jobs. They often introduce themselves by name and provide the target with a false IRS identity number. When an IRS impersonator calls, they often use high-pressure tactics to demand that payment be remitted immediately . . . or ELSE! The caller will state that failure to remit payment immediately will mean that the person called will suffer immediate harm, such as an arrest or property seizure.

That is a lot of pressure! What should you do in such cases? [Read more…] about IRS Telephone Scams – and Then There is the PA Office of Unemployment Compensation