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Please note that for most Pennsylvania employers (except those that do not have an employer withholding account number) with 10 or more 1099-Misc./1099-R showing zero Pa withholding forms are required to be filed electronically.  Penalties will be assessed if not electronically filed.  Contact SLCC with any questions (01/03/20).

Tax Alerts
Tax Briefing(s)

NOTICE REGARDING COVID-19 (updated 03/23/20):

We have been continuously working to responsibly address the evolving threat of the coronavirus outbreak. The health and safety of our clients and staff are our top priority.  Late on Friday, March 20, 2020 Governor Wolf included us as an essential business and we are directed to remain open.  While we will maintain normal operating hours during this time, we have closed our lobby and suspended all in person meetings until further notice.

The US Department of Treasury announced on March 21, 2020 [link: https://www.irs.gov/newsroom/tax-day-now-july-15-treasury-irs-extend-filing-deadline-and-federal-tax-payments-regardless-of-amount-owed] that all taxpayers will be granted an automatic extension of time to file until July 15, 2020.  Additionally, all taxpayers, regardless of amounts owed can defer amounts due April 15, 2020 until July 15, 2020 without penalties or interest.  This deferral applies to all taxpayers including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.  At this time, the deferral and extension only applies to income taxes and self-employment taxes.  All other federal taxes are currently due under the normal applicable schedule.

The Pennsylvania Department of Revenue also announced on March 21, 2020 [link: https://www.revenue.pa.gov/Pages/AlertDetails.aspx] that all individual taxpayers will granted an additional 90 days to file and pay their taxes until July 15, 2020.  This applies to personal income taxes (PIT) along with the 1st and 2nd quarter estimated payments.  At this time, only individuals are included in this relief and all other taxpayers, including trusts and estates, corporations and other non-corporate tax filers should continue to meet their Pennsylvania filing and payment requirements as usual. 

We are encouraging you to provide us with your income tax information as you have always done, especially if you may be due a refund.  The Internal Revenue Service, the Pennsylvania Department of Revenue and most other states have indicated their intention to process refunds as normal.  Please feel free to contact us via the U.S. Postal Service, the mail slot at our office, phone, email, or via our secure portal. 


All other non tax services will be available but may be modified as needed.


President Trump signed into law the first two phases of the House’s coronavirus economic response package. Meanwhile, the Senate has been developing and negotiating "much bolder" phase three legislation.


"At President Trump’s direction, we are moving Tax Day from April 15 to July 15," Treasury Secretary Steven Mnuchin said in a March 20 tweet. "All taxpayers and businesses will have this additional time to file and make payments without interest or penalties."


The Treasury Department and IRS have extended the due date for the payment of federal income taxes otherwise due on April 15, 2020, until July 15, 2020, as a result of the ongoing coronavirus (COVID-19) emergency. The extension is available to all taxpayers, and is automatic. Taxpayers do not need to file any additional forms or contact the IRS to qualify for the extension. The relief only applies to the payment of federal income taxes. Penalties and interest on any remaining unpaid balance will begin to accrue on July 16, 2020.


The IRS has provided emergency relief for health savings accounts (HSAs) and COVID-19 health plans costs. Under this relief, health plans that otherwise qualify as high-deductible health plans (HDHPs) will not lose that status merely because they cover the cost of testing for or treatment of COVID-19 before plan deductibles have been met. In addition, any vaccination costs will count as preventive care and can be paid for by an HDHP.


The American Institute of CPAs (AICPA) has requested additional guidance on tax reform’s Code Sec. 199A qualified business income (QBI) deduction.


The IRS has issued guidance that:

  • exempts certain U.S. citizens and residents from Code Sec. 6048 information reporting requirements for their transactions with, and ownership of, certain tax-favored foreign retirement trusts and foreign nonretirement savings trusts; and
  • establishes procedures for these individuals to request abatement or refund of penalties assessed or paid under Code Sec. 6677 for failing to comply with the information reporting requirements.

The Treasury and IRS have adopted as final the 2016 proposed regulations on covered assets acquisitions (CAAs) under Code Sec. 901(m) and Code Sec. 704. Proposed regulations issued under Code Sec. 901(m) are adopted with revisions, and the Code Sec. 704 proposed regulations are adopted without revisions. The Code Sec. 901(m) rules were also issued as temporary regulations. The CAA rules impact taxpayers claiming either direct or deemed-paid foreign tax credits.


Although taxes may take a back seat to the basic issue of whether refinancing saves enough money to be worthwhile, you should be aware of the basic tax rules that come into play. Sometimes, you can immediately deduct some of the costs of refinancing.


Q. I converted my regular IRA to a Roth IRA when the account had a high value because the stock market was at an all time high. I paid the required tax on the conversion when the conversion proceeds pushed me up into the 36% tax bracket. The Roth IRA is now worth only about 40% of its original value. Is there any type of tax deduction that I can take based on this loss?


Generally, if you do volunteer work for a charity, you are not entitled to deduct the cost of services you perform for the charity. However, if in connection with the volunteer work you incur out-of-pocket expenses, you may be entitled to deduct some of those expenses.


Q: What tax deductions am I entitled to as an investor?

A: Certain investment-related expenses are deductible, others are specifically restricted. Still others won't get you a deduction, but you will be able to add them to your tax basis in the underlying investment, or net them from the amount you are otherwise considered to have received on its sale.


Q: An extension to file my tax return seems such a painless procedure, is there any good reason for me not to postpone my filing deadline to avoid just one more hassle during the busy start of Spring?


Q. My husband and I have a housekeeper come in to clean once a week; and someone watches our children for about 10 hours over the course of each week to free up our time for chores. Are there any tax problems here that we are missing?


Q: The holidays are approaching and I would like to consider giving gifts of appreciation to my employees. What kinds of gifts can I give my employees that they would not have to declare as income on their tax returns?I also would like to make sure my company would be able to deduct the costs of these gifts.