TaxJockey

Guidelines Published for PA UC Amnesty

noreply@blogger.com (Mary Lew Kehm, CPA) — Fri, 01 Mar 2013 21:09:00 +0000

The PA Department of Labor and Industry has published guidelines for the Unemployment Compensation Amnesty Program in the March 2, 2013 PA Bulletin. To participate, a claimant or employer owing a liability that is eligible for amnesty shall file an amnesty form within the amnesty period. In some cases additional information about the liability must be included. The claimant or employer shall pay a certain portion of the liability; the remaining portion will be waived. UC liabilities paid after the amnesty period ends on August 31, 2013, will not be eligible for amnesty.

Below you will find a link to the complete guidelines as published in the Bulletin.

http://www.pabulletin.com/secure/data/vol43/43-9/361.html

PA UC Amnesty Coming June 2013

noreply@blogger.com (Mary Lew Kehm, CPA) — Thu, 28 Feb 2013 17:39:00 +0000

PA UC Amnesty Coming -- From June 1 through Aug. 31, 2013, Pennsylvania will offer amnesty to UC claimants and employers who owe money to the state's UC fund. Look for more details coming up.

Deadline for Small Games of Chance Reports Extended to 2/1/2014

noreply@blogger.com (Mary Lew Kehm, CPA) — Sat, 12 Jan 2013 16:10:00 +0000

The deadline for nonprofit organizations and charities to submit annual and semi-annual reports as part of the updated Small Games of Chance Act has been extended for one year. Licensees now have until Feb. 1, 2014, to submit the reports to the Pennsylvania Department of Revenue as required by Act 2 of 2012. The previous deadline was Feb. 1, 2013. The delay in the reporting deadline applies only to the annual and semi-annual reports. Licensees are required to continue to maintain other records as outlined in the law. More info and forms are at:

http://www.revenue.state.pa.us/portal/server.pt/community/small_games_of_chance/14500%20

Reminder: Fax Number for 2848 and 8821 Have CHANGED 10/01/2012

noreply@blogger.com (Mary Lew Kehm, CPA) — Mon, 01 Oct 2012 13:33:00 +0000

Just a reminder that the fax numbers for filing IRS Forms 2848 (Power of Attorney) and 8821 (Tax Information Authorization) have changed. Unfortunately, the forms 2848 and 8821 and brochures such as Publication 4245 have not been updated yet, and the old numbers will NOT BE FORWARDED AFTER TODAY. Another good reason to use e-services to file your powers of attorney.

The new numbers are

Memphis 855-214-7519

Ogden 855-214-7522

Philadelphia remains the same (only for taxpayers abroad) 267-941-1017

FYI, 855 is a new toll-free area code (since 2010. Other toll free area codes in use are 800, 866, 877 and 888).

(States west of the Mississippi should submit authorizations to Ogden; states east of the Mississippi should submit authorizations to Memphis. The exceptions are: authorizations related to taxpayers residing abroad, which should be submitted to Philadelphia, and Arkansas and Louisiana submit authorizations to Memphis.)

BE SURE TO CHANGE YOUR FAX MACHINE SPEED-DIAL or Telephone listing!!!

More information including address, the old numbers, and the new numbers is at:
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/CAF-Unit-Addresses,-Fax-Numbers,-and-State-Mapping
(You may have to cut and paste this link)

PA DOR Posts Information on 1099 Submission and Agricultural Inheritance Tax Exemptions

noreply@blogger.com (Mary Lew Kehm, CPA) — Fri, 07 Sep 2012 21:24:00 +0000

PA DOR has posted the following information:

Inheritance Tax Exemptions for Agricultural Commodities, Agricultural Conservation Easements, Agricultural Reserves, Agricultural Use Property and Forest Reserves (2012-01)

Submission of Federal Form 1099-MISC for Payments of Income from Sources within the Commonwealth of Nonemployee Compensation or Under an Oil and Gas Lease (2012-02)

at http://www.revenue.state.pa.us/portal/server.pt/community/informational_noti ces/21061

noreply@blogger.com (Mary Lew Kehm, CPA) — Wed, 18 Jul 2012 16:35:00 +0000

Effective immediately, Berkheimer Tax Administrator has been appointed as the local Earned Income Tax collector for Schuylkill and Susquehanna counties. Central Tax Bureau of Pennsylvania, Inc. - which had collected the local Earned Income Tax at the beginning of this year - has been terminated as the tax collector for these areas. 2012 EIT should be sent to Berkheimer.

New York No Longer Accepts 4868 for Extensions

noreply@blogger.com (Mary Lew Kehm, CPA) — Thu, 12 Apr 2012 14:57:00 +0000

Just a reminder as you are preparing extensions that beginning for tax year 2011 and after, New York will no longer accept 4868 (or 7004 for trusts etc.) extensions. You must file IT-370 for Individuals or IT-370-PF for Partnerships and Fiduciaries.

In the past they would accept the 4868 or 7004 if you expected to have no balance due (like PA still does).

http://www.tax.ny.gov/pdf/notices/n11_16.pdf

PA Department of Revenue Announcement for SMLLC Efilers

noreply@blogger.com (Mary Lew Kehm, CPA) — Fri, 03 Feb 2012 21:50:00 +0000

Paper Filing Option for Preparers Whose Software Won't E-File LLC RCT-101s

It has come to the attention of the Pennsylvania Department of Revenue that
third-party preparers using certain software packages are unable to
electronically file the PA Corporate Tax Report (RCT-101) for a
single-member limited liability company whose income is reported on the
personal income tax return of a member.

Any preparer experiencing this problem must file a signed paper original of
the report along with all required schedules. If a preparer is required to
electronically file all corporate tax reports, the preparer must also
include with the paper report a statement as to why the report was not filed
electronically. This procedure is in accordance with the penalty waiver
subparagraph (a)(2) of the Method of Filing; Pennsylvania Corporate Tax
Report, RCT-101 Notice published in the Pennsylvania Bulletin on Sept. 3,
2011.

DCED Posts Act 32 Procedures Manual

noreply@blogger.com (Mary Lew Kehm, CPA) — Mon, 09 Jan 2012 16:28:00 +0000

The Department of Community and Economic Development (DCED) has posted their Act 32 Procedures Manual to its web site at http://www.newpa.com/node/6747 (under Regulation and Procedures). It will be updated as necessary, according to DCED.

PA Unemployement Confirms Late Rate Letters

noreply@blogger.com (Mary Lew Kehm, CPA) — Tue, 20 Dec 2011 19:18:00 +0000

The Pennsylvania Unemployment Compensation Department has confirmed that compensation rate notices which are normally mailed at the end of December will be delayed into 2012. They say they will be mailed prior to April 1, 2012.

This obviously creates problems for employers trying to accrue the proper amount of tax to pay in the first quarter. It will also require changes to rates in software, and adjustments for incorrect accruals.

PA to Stop Mailing Corporate Tax Coupons

noreply@blogger.com (Mary Lew Kehm, CPA) — Tue, 13 Dec 2011 20:56:00 +0000

The PA Department of Revenue will no longer mail REV-857-I coupon packets or specialty taxes coupons, forms and instructions to taxpayers effective 01/01/2012. The forms and instructions will be available on their website. Of course, they encourage everyone to file on e-TIDES if possible.

2011 Tax Year Publication 17 Posted

noreply@blogger.com (Mary Lew Kehm, CPA) — Mon, 05 Dec 2011 16:08:00 +0000

Publication 17 was posted yesterday, and is available for download at

http://www.irs.gov/pub/irs-pdf/p17.pdf

If past years are any guide, there may be revisions, so keep the web address handy. Even if you order a paper copy (which if you tell them you are a tax preparer they will charge you for) the PDF is useful since you can search the document by any word, and there are hyperlinks in the documents to other sections.

IRS Releases 2012 W-4 and W-4P

noreply@blogger.com (Mary Lew Kehm, CPA) — Mon, 05 Dec 2011 15:47:00 +0000

The updated forms are available at http://www.irs.gov/pub/irs-pdf/fw4.pdf and http://www.irs.gov/pub/irs-pdf/fw4p.pdf

PA Dept. of Revenue Tax Seminar Schedule Fall 2011

noreply@blogger.com (Mary Lew Kehm, CPA) — Fri, 22 Jul 2011 19:39:00 +0000

The PA Department of Revenue has finally posted the dates for the update seminars it gives every fall throughout the state at http://bit.ly/muXp2P . Unfortunately the agenda is not posted yet, but normally they cover individual, corporate, inheritance, sales & use, and unemployment taxes. In my area (the Lehigh Valley), the PSPA is sponsoring it on 9/27/11 at the Holiday Inn in Breinigsville. You can get a registration form or register online fot the Lehigh Valley location at www.pspacpe.com . Hope you can make one of the sessions.

Webinar on Gas Tax Issues Recording Available

noreply@blogger.com (Mary Lew Kehm, CPA) — Fri, 18 Feb 2011 21:50:00 +0000

A Penn State Extension webinar, "Dealing with Gas Tax Issues for Marcellus Shale" held 02/16/2011, gave a one hour overview of how to report income, depletion, and expensing opportunities, severance, and property tax. Although it was necessarily brief, I thought the information presented was accurate and informative.

http://extension.psu.edu/naturalgas/webinars/recorded/webinar-gas-tax-issues-for-landowners

Mary Lew Kehm, CPA

Mandatory PUC Electronic Filing Delayed Past First Quarter 2011

noreply@blogger.com (Mary Lew Kehm, CPA) — Thu, 17 Feb 2011 14:29:00 +0000

Because the new Unemployment Compensation Management System, or UCMS, is not yet available, employers and employer representatives should continue to file quarterly report including reports for the quarter ending March 31, 201 using magnetic media or e-TIDES until further notice. Paper return filers will receive first quarter 2011 forms to file on paper for at least one more quarter.

All employers and their representatives will be notified when the new UC system becomes available. At that time, paper forms will be phased out.

Thank goodness for this extension. Those of us who do income taxes and also prepare payroll taxes would have had less than two weeks to register and file all clients on the new system in April.

Note that there is still no projected date for the implementation of UMCS. PA Labor & Industry will be informing us of any updates. Implementation has now been postponed twice. However, I am all for getting it right the FIRST time, especially with something as important as unemployment, which affects nearly every employer and worker in the state.

PSU Marcellus ShaleTax Issues Webinar 2/16/11

noreply@blogger.com (Mary Lew Kehm, CPA) — Mon, 14 Feb 2011 23:03:00 +0000

An upcoming webinar, "Dealing with Gas Tax Issues for Marcellus Shale" will cover how to report income, depletion, and expensing opportunities, severance tax, and property tax. The link to sign up for the "Dealing with Gas Tax Issues" Marcellus Shale seminar is http://t.co/0iQojxz . It is sponsored by Penn State Extension, and will be held 02/16/11 at 1PM.

They also apparently allow replays afterward so hopefully if you can't make it you can watch again when you have more time (or are forced to by a client situation).

Mary Lew Kehm, CPA

Pennsylvania Property Tax Rent Rebate Forms Available

noreply@blogger.com (Mary Lew Kehm, CPA) — Thu, 10 Feb 2011 20:21:00 +0000

Form PA-1000, the application form for rebates on Pennsylvania property taxes or rent paid in 2010 are now available, the PA Department of Revenue said today. All residents who received rebates last year should have received 2010 application forms in the mail by now. Applications are also available online at http://www.revenue.state.pa.us/ or by calling 1-888-222-9190.

Older adults must reapply for rebates by June 30 every year because rebates are based on property taxes or rent paid each year and annual income. (The deadline has been extended to December 31 for the last few years). The rebate program benefits eligible Pennsylvanians age 65 and older; widows and widowers age 50 and older; and people with disabilities age 18 and older. The income limit is $35,000 a year for homeowners and $15,000 annually for renters, and half of Social Security income is excluded. The maximum standard rebate is $650, but supplemental rebates for qualifying homeowners can boost rebates to $975.

The deadline to apply for a rebate on property taxes or rent paid in 2010 is June 30, 2011. Rebates will be distributed beginning on July 1.

Berkheimer lists changes to areas administered

noreply@blogger.com (Mary Lew Kehm, CPA) — Tue, 08 Feb 2011 16:52:00 +0000

Please be advised that the areas listed below have appointed Berkheimer as their Earned Income Tax Administrator. Please update your records accordingly and remit all future Earned Income Tax (EIT) payments for these areas to our office.

4th quarter 2010 - forward

• Butler ASD/All Municipalities, except Oakland Township – 4th quarter 2010 forward

• Eldred Township, Jefferson County – ½% municipal only – Effective 4th quarter 2010

• Slippery Rock SD/Franklin Township – effective 4th quarter 2010 forward

• Southern Lehigh SD/Municipalities – effective 4th quarter 2010 and forward

• Sullivan County SD/All Municipalities – effective 4th quarter 2010 and forward

• Upper Perkiomen SD/Municipalities - effective 4th quarter 2010 and forward

1st quarter 2011 – forward

• Conneaut SD/W. Fallowfield & Pine Townships – 1% effective collector, 1st quarter 2011

• Halifax SD/All Municipalities – 1% collector for all, effective 1st quarter 2011

• Henderson Township – ½% municipal only, effective 1st quarter 2011

• Kiski ASD/All Municipalities(except East Vandergrift Township) –1% collector for all, effective 1st quarter of 2011

• North Mahoning Township – ½% municipal only, effective 1st quarter 2011

• North Wales Borough – Full 1% collector as of 1st quarter 2011

• Oliver Township – ½% municipal only, effective 1st quarter 2011

• Springfield Twp/Springfield SD – Montgomery – 1%, collector change effective 1st quarter 2011

Please also be advised there has been a change in the collector for the following areas in which Berkheimer is no longer the collector:

• Chester County – All Municipalities and School Districts – effective 4th quarter 2010 – Berkheimer is no longer the administrator.

• Bucks County – All Municipalities and School Districts – with the exception of Pennridge SD and its Municipalities, (Dublin Borough is the only Municipality in Pennridge SD that Berkheimer is no longer the administrator) - effective 1st quarter 2011.

Mary Lew Kehm, CPA

PA Dept. of State Decennial Report Searchable Database Available

noreply@blogger.com (Mary Lew Kehm, CPA) — Thu, 20 Jan 2011 12:13:00 +0000

The promised Pennsylvania Department of State searchable database for those companies operating in Pennsyvlania that need to file a decennial report is operational.

http://www.corporationdecennial.state.pa.us/DecennialReport.aspx

You can search by Department of State entity number (not the same as the Department of Revenue Box Number) or Name.

The decennial report must be filed every 10 years (as the name implies). 2011 is the year for the reports this time around.

All domestic and foreign profit and nonprofit corporations, limited liability companies, limited partnerships, limited liability partnerships that are not also limited partnerships, business trusts, insignias and "marks used with articles and supplies" that have not made a new or amended filing with the Corporation Bureau from January 1, 2002 through December 31, 2011 shall during the year 2011, file in the Department of State a report that they continue to exist. 54 Pa.C.S. § 503(b)(1), § 1314(b), § 1515(b). Fictitious names and trademarks are not required to make decennial filings.

There are some exceptions -- see the FAQ's on Decennial Filing available at

http://goo.gl/w9Yl5

You may want to check your corporation, LLC etc. as you complete the tax returns this year. (nonprofits must file too if they haven't been sending in their officer reports each year). You must file by 12/31/2011 if you need to file.

CCH Releases 2010 Tax Year in Review Tax Briefing

noreply@blogger.com (Mary Lew Kehm, CPA) — Wed, 29 Dec 2010 20:43:00 +0000

This Tax Briefing provides a review of the key tax law developments of 2010 and their impact on taxpayers -- Only 15 pages - good overview.

http://tax.cchgroup.com/downloads/files/pdfs/legislation/tax-yearend.pdf

Mary Lew Kehm, CPA

FYI: New Jersey no longer mailing 1099-G forms

noreply@blogger.com (Mary Lew Kehm, CPA) — Fri, 24 Dec 2010 17:09:00 +0000

Per the most recent NJ State Tax Update, New Jersey is joining New York in
not mailing 1099-G forms:

"The State of New Jersey is no longer mailing Form 1099-G, Certain
Government Payments, to report the amount of a State tax refund a taxpayer
received. State income tax refunds may be taxable income for Federal
purposes for individuals who itemized their deductions on their Federal tax
return in the previous year. Taxpayers who need this information to complete
their Federal return will be able to view or print their 1099-G information
from the Division's Web site."

Also, Form NJ-2450 has been revised for Family Leave Insurance - Excess
family leave insurance contributions can be claimed as a credit on Form
NJ-1040. The maximum contribution for 2010 was 35.64. Taxpayers who had more
than the maximum amount withheld by two or more employers must enclose a
completed Form NJ-2450 with their return to claim the credit, unlike last
year, when many people lost the excess.

The Winter issue of the NJ State Tax Update is available at
http://www.state.nj.us/treasury/taxation/pdf/pubs/stn/winter10.pdf

Mary Lew Kehm, CPA
Whitehall, PA 18052

IRS Commissioner Shulman Speech clarifies some Preparer Registration items; Announces New Preparer Office

noreply@blogger.com (Mary Lew Kehm, CPA) — Tue, 26 Oct 2010 19:52:00 +0000

On October 26, Commissioner Shulman gave a speech in front of the AICPA Tax Division.

He stated that "We are also still refining our rules for people who work in a professional firm, like an accounting firm, who prepare all, or substantially all of a return under the supervision of an accountant, enrolled agent or lawyer. While this is a tricky area, and I can't give you definitive guidance until we publish our final guidance later this year, I will tell you that I am sympathetic to the argument that the rules should be flexible for people who have met a higher professional standard. Therefore, it is highly likely that as we implement the new rules and procedures there will be some relief for testing and continuing education requirements for people who do not sign a return and work in a professional firm under the supervision of an accountant, enrolled agent or lawyer."

He also said IRS is still working on a start date for testing, and an effective date for the 15 hours of continuing education. DURING THE FIRST YEAR OF IMPLEMENTATION, IRS INTEDS TO WAIVE THE REQUIREMENT FOR CONTINUING EDUCATION.

IRS is also creating a Return Preparer Office (separate from OPR) inside of the IRS that will be led by David R. Williams, who is spearheading the return preparer initiative. He will report directly to Steve Miller, Deputy Commissioner for Services and Enforcement.

According to Commissioner Shulman, the new office will have broad responsibility for the return preparer initiative. It will manage all activities related to continuing education and testing of all professionals under IRS jurisdiction. t will also manage the registration system and process, as well as coordinate resource planning for IRS efforts across the organization related to return preparers.

It is the Commissioner's intention to provide Karen Hawkins and her OPR team increased resources to investigate additional cases of improper conduct, ethical violations and other disciplinary issues involving tax professionals falling under Treasury Circular 230. "I think it's fair to say that we could see an appreciable jump in the OPR case load in the foreseeable future as we work to ensure that all return preparers are serving the American people well."

Consider yourself warned.

The full text of the speech is IR 2010-107 available at the link below.

Mary Lew Kehm, CPA

http://www.irs.gov/newsroom/article/0,,id=229675,00.html

EFTPS Scam Rears its Ugly Head Again

noreply@blogger.com (Mary Lew Kehm, CPA) — Thu, 07 Oct 2010 15:46:00 +0000

Yet another wave of the EFTPS Phishing Scam targeting Electronic Federal Tax Payment System (EFTPS) users is going around. The scheme uses an e-mail claiming that a tax payment was rejected and directs the user to a website for more information. The website contains malware that will attempt to infect the user's computer. DO NOT reply to the sender, access links on the site or submit any information to them. IRS does NOT send emails regarding your individual or business account.

I personally received more than 5 of these emails today. If you need to check the status of your payments, log on DIRECTLY to your EFTPS account and click on the left hand side "Check Payment History". You can verify status of all payments there.

Paid preparer Paper Application Up on IRS Website -- Form W-12

noreply@blogger.com (Mary Lew Kehm, CPA) — Thu, 23 Sep 2010 17:41:00 +0000

Apparently there IS a paper application for PTIN - the IRS said previously
there would not be a paper form, but they must have changed their minds.
Form W-12 will replace Form W-7P. The new form is at

http://www.irs.gov/pub/irs-pdf/fw12.pdf

The instructions say it will take 4-6 weeks if filed by mail.

I would still recommend waiting for the web-based system to open - the IRS
has said it will be up by the end of next week, so we won't have to wait
much longer. There is a site up already for the PTIN but it hasn't gone
live. The form might still be of interest to see what questions they will be
asking.