Tax Planning and Compliance
PA Annual Reporting Requirements Implemented
As part of Act 122, which was signed into law in November 2022, all Pennsylvania businesses must complete an annual filing beginning in 2025.
2024 Tax Calendar
Below is a summary of when various tax-related forms, payments and other actions are due. Please review the calendar and let us know if you have any questions about the deadlines or would like assistance in meeting them.
New Mileage Rates Announced
On December 15, 2023, the IRS released the optional standard mileage rates for 2024 in Notice 2024-8.
New Rules on Part-Time Employee 401(k) Plan Participation Starting January 1, 2024
The IRS issued proposed regulations on long-term, part-time employees' eligibility to participate in 401(k) plans.
2024 Inflation Adjustments
On November 9, 2023, the IRS issued Revenue Procedure 2023-34, announcing the 2024 inflation-adjusted amounts for various tax items.
Social Security Changes
The Social Security Administration (SSA) announced that the maximum earnings subject to Social Security tax will increase from $160,200 to $168,600 in 2024 (an increase of $8,400). The maximum Social Security employer contribution will increase by $520.80 in 2024.
IRS suspends processing of ERTC claims
In the face of a flood of illegitimate claims for the Employee Retention Tax Credit (ERTC), the IRS has imposed an immediate moratorium through at least the end of 2023 on processing new claims for the credit.
IRS Announces Transition Period for Mandatory Roth Catch Up Contributions
On August 25, 2023, the IRS announced in Notice 2023-62 that higher-income participants in 401(k) and similar retirement plans have been given a two-year delay on the new requirement that they must designate their catch-up contributions to those plans as after-tax Roth contributions.
IRS Provides Transitional Relief for RMDs and Inherited IRAs
The IRS has issued new guidance providing transitional relief related to recent legislative changes to the age at which taxpayers must begin taking required minimum distributions (RMDs) from retirement accounts.
SECURE Act 2.0 Increases Age for Required Minimum Distributions
The SECURE 2.0 Act of 2022 is designed to build upon the provisions of the original SECURE Act to expand participation and boost retirement savings.
2023 Tax Calendar
To help you make sure you do not miss any important 2023 deadlines, here is a summary of when various tax-related forms, payments and other actions are due.
IRS Reminds Employers and Self-Employed Individuals About Deferred Social Security Tax Payment Deadline
The IRS reminded employers and self-employed individuals who chose to defer paying part of their 2020 Social Security tax liability that their second annual installment of the deferred amount is due on December 31, 2022.
IRS Announces Inflation Adjustments for 2023
On October 18, 2022, the IRS released various inflation adjusted amounts for 2023.
2023 Social Security Wage Cap Jumps
On October 13, 2022, the Social Security Administration announced the 2023 wage cap for purposes of the Social Security tax.
CHIPS Act Poised to Boost U.S. Businesses
The CHIPS Act aims to bolster semiconductor production and economic competitiveness. Among its provisions is an investment tax credit for manufacturing facilities and equipment.
Businesses: Act now to make the most out of bonus depreciation
The Tax Cuts and Jobs Act (TCJA) significantly boosted the potential value of bonus depreciation for taxpayers but only for a limited duration. The amount of first-year depreciation available as a so-called bonus will begin to drop from 100% after 2022, and businesses should plan accordingly.
PA 2022-23 Budget Approves Corporate Tax Rate Cuts and Other Tax Changes
Enacted on July 8, PA House Bill 1342 (H.B. 1342) makes significant changes to the corporate net income tax laws, including a nine year phase-in of a corporate net income tax (CNIT) tax rate reduction.
Temporary 100% Deduction for Business Meals
The Consolidated Appropriations Act of 2021 created a temporary 100% (vs. 50%) deduction for certain food or beverages provided by restaurants. The 100% deduction applies to amounts paid or incurred after December 31, 2020 and before January 1, 2023.
PA ID Validation Letters - Be on the lookout if you requested a refund!
If you are a Pennsylvania taxpayer and are requesting a refund on your Pennsylvania personal income tax return, please be on the lookout for a PA ID validation letter to be issued to you requesting an action be performed to confirm your identity before the refund will be issued.