IRS Waives 2018 Underpayment Tax Penalties for Many Taxpayers (2/20/19): The IRS has some good news for certain taxpayers it is waiving some underpayment penalties for those whose 2018 federal income tax withholding and estimated tax payments came in under their actual tax liabilities for the year. The waiver recognizes that the Tax Cuts and Jobs Act's (TCJA's) overhaul of the federal income tax regime made it difficult for some taxpayers to determine the proper amount to have withheld from their paychecks or include in their quarterly estimated tax payments for 2018. (Read on.)

1099 PA Withholding Reminder (1/28/19): Beginning on January 1, 2018, and continuing in 2019, Pennsylvania businesses and non-profits are required to withhold Pennsylvania Personal Income Tax on nonemployee compensation that is paid to nonresident individuals and single-member LLCs that have a nonresident owner for "work performed in PA." The withholding payments should be remitted with your quarterly withholding payments filed through your PA e-Tides account. Through clarification from the PA Department of Revenue, you may use your existing PA employer withholding account number or apply for a new 1099 account number using Form PA-100. The withholding threshold and rate have remained the same for 2019. Withholding is required at a rate of 3.07% for any nonresident vendor/contractor to whom you pay $5,000 or more in one calendar year. If you do not withhold and the amount paid exceeds the $5,000 threshold, you will be subject to interest and penalties on the withholding amounts not paid. There is also the possibility of being required to pay the tax in its entirety if the nonresident vendor/contractor does not file in PA. If unsure of whether the amounts paid to these nonresident vendors/contractors will exceed the $5,000 threshold, we would advise to start withholding with their first payment in 2019. For those of you that are not Pennsylvania businesses, other states are requiring nonresident withholding on nonemployee compensation. Not all states will have the same withholding thresholds or withholding percentages, so you should check into your state's withholding requirement or contact us to help you determine if it is required.

IRS Releases 2019 Standard Mileage Rates (12/18/18): The IRS has issued the 2019 standard mileage rates used to calculate the deductible costs of operating an automobile for business and charitable purposes. The optional standard mileage rates for business use of a vehicle will increase significantly in 2019, after increasing slightly last year. For business use of a car, van, pickup truck, or panel truck, the rate for 2019 will be 58 cents per mile up from 54.5 cents per mile in 2018. The rate for service to a charitable organization is unchanged, set by statute at 14 cents per mile.

PA Educational Improvement Tax Credit ("EITC") Program takes a hit from the IRS – Action needed by Monday, August 27 (8/24/18): On August 23, the IRS announced proposed regulations that would reduce the deductible individual charitable contribution by an amount of any state tax credit received as a result of making such contribution. (Read on.)

Do you need to collect sales tax without a physical presence in a state(s)? (7/2/18): In a 5 to 4 decision, the United States Supreme Court decided a case (South Dakota vs. Wayfair) that could require your business to collect and remit sales tax on the "sales of goods and services" regardless of whether your business, as the seller, has a physical presence in the state(s). Expect that other states will attempt to line up with South Dakota. (Read on.)

PA's EITC Tax Credit Program Keeps Getting Better (6/8/18): The state of Pennsylvania recently clarified what category of individuals will be eligible to obtain PA Educational Improvement Tax Credits and it is welcome news. (Read on.)

Could Federal Tax Reform be a Game Changer for PA's EITC Program Participation? (1/24/18): Recall in late 2017 that we presented you with a unique opportunity to lower your taxes and help students in need through participation in PA's Educational Improvement/Opportunity Scholarship Tax Credit Program ("EITC"). Well, the federal tax bill that recently passed just made this opportunity even better. In fact, it could be a game changer for you and for students in need starting in 2018. Why? (Read on.)

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Pugne Promoted to Director, March 2019: Sisterson & Co. LLP has announced the promotion of Melissa A. Pugne to Tax Director. (View News Release.)

Sisterson Again Recognized for Quality Control Standards, December 2016: Sisterson & Co. LLP has achieved the highest level of report following a peer review of the Firm's quality controls for accounting and auditing engagements. This is the ninth consecutive review period for which the Firm has received this rating. (View News Release.)