The Bottom Line
The Bottom Line is where Klatzkin’s advisors provide analysis and insight into key developments in taxation, accounting, and other issues and how they affect businesses and individual taxpayers.

Annual Report Requirement Coming to Pennsylvania

By ANGELA LAWRENCE

In November 2022, when Pennsylvania Governor Wolf signed into law Act 122 of 2022, it established a new annual report requirement for domestic and foreign filing associations, repealing the previous decennial report requirement.

Keystone Saves Bill Passes Pennsylvania House

By ISHAAN ANAND, CPA

The need for more robust retirement savings for workers is an issue which has been top of mind for legislators over the last several years. Broader access to employer sponsored retirement savings plan along with reduced hurdles to participation are just two of the many issues that have to be considered. Last December, Congress passed the Consolidated Appropriation Act of 2023, which included the SECURE Act 2.0. This legislation, named after the original SECURE Act passed in 2019, delivers several reforms and updates to benefit workers and make it less burdensome for small employers to offer retirement plans. While these reforms offer some measure of relief, many states have elected to make further changes.

Take Advantage of Federal Home Energy Tax Credits

By THOMAS H. MARTIN

The push towards renewable energy has been a priority of President Biden’s since taking office. Not only is it seen as a way to proactively manage climate change, but it ensures the United States remains a global leader in clean energy technology, manufacturing, innovation, and production. In fact, there have been several parcels of legislation, including the Inflation Reduction Act, which offer lucrative incentives for clean energy investments.

Improperly Forgiven PPP Loans Are Now Taxable

By CHRISTOPHER S. MAYNARD

In a memorandum released in September 2022, the IRS has confirmed that if a PPP loan was forgiven based on misrepresentations or omissions by the taxpayer, the taxpayer is not eligible to exclude the forgiven amount from income.  Any portion of the loan proceeds that were forgiven in error must be included in their gross income. 

Pennsylvania Reduces Corporate Net Income Tax Rate

By ALFRED G. MUELLER, CPA

Pennsylvania lawmakers finally reached an agreement this summer to reduce the state’s corporate net income tax (CNIT) rate.  With the enactment of House Bill 1342 as a component of the 2022-2023 fiscal year state budget, signed into law by Governor Wolf in early July, the nation’s second highest state corporate tax rate will see a substantial decrease.

Philadelphia Employers to Provide Commuter Benefits

By KLATZKIN TAX TEAM

In early June, the Philadelphia City Council passed a bill that will soon require certain local businesses to provide employees with benefits towards mass transit or bicycle commuting expenses, as more workers return to offices following COVID-19 closures.

Pennsylvania Voluntary Disclosure Program

By ISHAAN ANAND, CPA

Maintaining compliance with state tax laws can be challenging for individuals and businesses, especially those companies that operate across state lines. Unlike the federal government, each state enacts its own tax laws, which often vary from jurisdiction to jurisdiction. These differences can be confusing and open the door to potential reporting issues with income and other taxes. Not only does this result in missed tax payments, but it can also cause the assessment of additional fines, penalties, and interest.

Proposed Tax Changes for Individuals in the Build Back Better Act

By Klatzkin Tax Team

The Biden Administration’s Build Back Better Act (the Act) is designed to reduce costs, create new jobs, and cut taxes for working families. In addition, there are proposed investments in health and childcare, higher education, workforce training, and teachers and schools. The cost of the legislation, which is estimated at $3.5T, will be paid for by increased taxes on corporations and the wealthiest Americans.

Proposed Business Changes in the Build Back Better Act

By MICHELE D. SLOCUM

Since earlier this year, the Biden Administration has been pursuing a legislative agenda that focuses on COVID-19 economic recovery and re-energizing the American economy. It started with the American Rescue Plan Act and has continued with several other proposals culminating in the Build Back Better Act (the Act). The Act is designed to reduce costs, create new jobs, and cut taxes for working families. There are proposed investments in health and childcare, higher education, workforce training, and teachers and schools.

Tax Relief for Hurricane Ida Victims in New Jersey, New York, and Pennsylvania

By Klatzkin Tax Team

Recently, the IRS announced that victims of Hurricane Ida in various parts of New Jersey, New York, and Pennsylvania now have until January 3, 2022, to file individual and business tax returns and make certain tax payments.  The tax relief is being offered to taxpayers in any areas designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual or public assistance.

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