This blog addresses money that business owners may owe PA (or another state) and money that may be owed to you. The first part of the blog is addressed to business owners, and the last paragraph discusses what will be of interest to individuals who may unknowningly have money owed to them and how to find it. [Read more…] about Abandoned Property – Money Owed to You?
The IRS announced on February 7, 2012 (SBSE-05-0212-020) that it is changing its procedures regarding its initial review of OIC. [Read more…] about IRS Offer in Compromise (OIC) Procedures
Would you like to fund a Roth IRA regardless of your income or whether you are covered by your employer’s retirement plan?
You want to contribute to an IRA for your retirement. You wish to do so in a very efficient manner for tax planning. You have done your research and find that contributing to a Roth IRA is the way to go for a multitude of reasons. Your enthusiasm begins to wane after you call your tax advisor and are told that you are ineligible to make a contribution to a Roth IRA because you exceed the income limitations to contribute to a Roth. In other words, you make too much money. You then ask your tax advisor if you could make a tax deductible contribution to a traditional IRA. You are further disappointed to learn that because of the amount of money you earn or because of the contributions made to your employer’s retirement plan, you are ineligible to make a tax deductible contribution to a traditional IRA. Your tax advisor tells you that you are eligible to make a contribution to a traditional IRA. While it is explained to you that the earnings of the traditional IRA grow tax deferred, other aspects of a traditional IRA such as required minimum distributions when you are age 70.5 do not appeal to you.
There is another alternative available to you. [Read more…] about IRA PLANNING – HOW TO MAKE THAT PROHIBITED ROTH CONTRIBUTION
The IRS announced on January 20, 2012 by issuing SBSE 05-0112-013 that it has made significant changes to its steamlined installment agreements (SIA). What is a SIA? The IRS has the authority to enter into a written installment agreement that enables a taxpayer [Read more…] about IRS Eases Streamlined Installment Agreements
The IRS has released (IRS Notice 2012-1) the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving expense purposes.
Beginning January 1, 2012, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be: [Read more…] about IRS Announces 2012 Mileage Rates
The PA Department of Revenue has released a reminder to taxpayers that the Act 32 – Local Earned Income Tax Withholding Reform Requirements, will become effective statewide on January 1, 2012. We have reprinted below the PA reminder announcement dated December 28, 2011.
Act 32 – Local Earned
Income Tax Withholding Reform Becomes Effective Statewide
January 1, 2012
REMINDER – Each business that employs individuals at worksites in PA, including
those who work from home, is REQUIRED to withhold the applicable local earned
income tax from employees´ wages and remit the tax to the appropriate tax
Under Act 32, employers are required to withhold the higher of the employee´s
resident earned income tax amount (rate of total resident EIT where they
reside) vs. the employee´s municipal non-resident earned income
tax amount (rate of non-resident EIT where they are employed).
Employers are required to obtain information in the Residency
Certification Form for every new employee and employee who has a change
Please visit http://www.newpa.com/node/6710 for answers to questions about
how Act 32:
- Affects you
- For standard forms
- For tax rates
- For PSD Codes
- For non-traditional work site issues
- For Philadelphia withholding rules that fall outside the scope of Act 32
- For Tax Officer contact information
- For questions regarding withholding and remittance of local earned income taxes, if the Address Search does not provide definitive results