Petty Pennsylvania tax penalty

Posted Leave a commentPosted in Accounting, Taxes

Tax professionals seem to love sharing bizarre stories of the trade especially when the taxpayer or the government acts in some silly manner. I am no exception. Recently I settled a multi-year complex tax problem for a small business client in Pennsylvania. I figured that, as happened in this case, if I can negotiate a […]

Pennsylvania charity registration and audit requirements

Posted Leave a commentPosted in Nonprofit

The requirement of a Pennsylvania charity to register and submit an CPA attestation depends on a number of factors including the amount of “receipts”, “contributions” or “solicitations”. All three of these terms are used in the applicable code sections. Today I received email confirmation from the Pennsylvania Department of Revenue that, for this purpose, “receipts”, “contributions” […]

How to appeal a Pennsylvania tax penalty

Posted Leave a commentPosted in Taxes

Taxpayers who feel that Pennsylvania tax penalties were improperly applied may appeal those taxes. In many cases the amount of the penalty will exceed the original amount of the tax adjusted. You should explain in detail why your tax relief request should be granted and attach additional documentation, if necessary, of any supporting documents. Petitions for refund […]

PA unreimbursed business expense deduction creates an audit risk

Posted Leave a commentPosted in Accounting, Taxes

For he past few years the Pennsylvania Department of Revenue aggressively audited the tax returns of individuals who took a deduction for unreimbursed employee expenses on Schedule PA-UE. The topic was covered by the Pittsburg Tribune in June 2014. My quick online poll of professional tax preparers last summer indicated that the audit rate was near 100% of […]