New Nonprofit Reporting Requirements in PA

by Joseph M. Delisi, CPA, Principal Changes to Solicitation of Funds for Charitable Purposes Act under Act 71 Recently signed into Pennsylvania law, Act 71 increases the threshold for audits, reviews, and compilations of the financial statements required to be submitted by nonprofit organizations that are registered under the Charities Act in Pennsylvania. The new … Read more

New PA Income Tax Withholding Requirement for Non-Residents

by Rick Tonarelli, CPA, Tax Senior Manager​Effective January 1, 2018, Pennsylvania requires payors of certain PA source income to withhold PA income tax from such payments. The withholding pertains only to non-employee compensation and business income (including royalties and bonuses) paid to non-resident individuals (or disregarded entities with a non-resident owner), for which a Federal … Read more

Major provisions of the new tax legislation

by Bill Bodnar, CPA, MST​, Tax Director The Tax Cuts and Jobs Act was signed by President Trump on December 22, 2017. The Act represents the most comprehensive change to the Internal Revenue Code since 1986. There have been a number of changes affecting all taxpayers, and to assist in identifying those which may impact … Read more

Highlights of the Tax Cuts and Jobs Act

by Rick Tonarelli, CPA, Tax Senior Manager The Tax Cuts and Jobs Act (H.R. 1) has been approved by Congress and awaits the President’s signature. Highlights of both the corporate and individual aspects of the new law are provided below. Note: Leaders in the Congress have signaled that a technical corrections bill may be necessary in 2018 … Read more

Two actions for every taxpayer before year end

​by Paul K. Rudoy, CPA/PFS We are in a period of uncertainty with two tax bills proposed and nothing finalized. However, there are two items that every taxpayer should look at before year-end: state & local tax and charity. State and local tax deductions (SALT)The State and Local tax deduction is very likely going away. Therefore, if … Read more

Tax saving strategies based on the latest tax reform proposal

by Paul K. Rudoy, CPA/PFS ​Based on what we know to date, taxpayers should look at accelerating deductions. Mortgage interest deductions are being proposed to be limited to $500,000 for new debt, property tax deductions limited to $10,000 and with the doubling of the standard deduction, taxpayers’ charitable and medical deductions may not save you … Read more

Estate Tax Repeal could increase income taxes for 99.8% of families

by Paul K. Rudoy, CPA/PFS ​One of the provisions of the Trump Tax Proposal (TTP) is the repeal of the Federal Estate Tax. This is an onerous tax that taxes people’s net worth after they pass away. Taxation begins currently at $5.49M, or married couples have the opportunity to increase this limit to $10.98M. Generally, … Read more

Do your business-provided meals qualify for an increased deduction?

by H2R CPA Team When businesses provide meals to their employees, generally their deduction is limited to 50%. But there are exceptions. One is if the meal qualifies as a de minimis fringe benefit under the Internal Revenue Code. A recent U.S. Tax Court ruling could ultimately mean that more employer-provided meals will be 100% … Read more

How Long Should I Keep Financial Records?

by H2R CPA Team How long should tax returns, credit card statements, loan documents, and other important paperwork be kept? Whether running a household or a business, it is important to know when it is safe to dispose of financial and legal documents. ​​It is extremely important to hold on to financial paperwork in the case … Read more

IRS Warning About Summertime Scams

by H2R CPA Team The IRS has issued a warning regarding several new summertime scams involving the Electronic Federal Tax Payment System (EFTPS), robo-call messages and private debt collectors. It is important to remember that the IRS will never: Call to demand immediate payment using a specific payment method such as a prepaid debit card, … Read more