Pennsylvania Sales Tax and Economic Nexus

From the Pennsylvania Department of Revenue |

In June 2018, the U.S. Supreme Court issued an opinion in South Dakota v. Wayfair. The opinion overturned the court’s previous ruling in Quill Corp. v. North Dakota, which required a business to have a physical presence in a state in order for the business to be required to collect that state’s sales tax.

Read in conjunction with Pennsylvania’s Tax Reform Code, the Supreme Court’s decision in the Wayfair case creates an economic nexus for certain sellers of products in Pennsylvania, where previously, nexus existed only for those with a physical presence in the commonwealth.
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Pennsylvania Announces 2019 Underpayment and Overpayment Interest Rates

From the PA Department of Revenue | Pennsylvania Bulletin Doc. No. 18-2018 |  December 29, 2018

Pennsylvania announced 2019 interest rates on tax underpayments and overpayments. The interest rates increased by 2% per year in each category.

Interest Rate on Underpayments

The 2019 interest rate on underpayments of all Pennsylvania taxes is 6% per year, up from 4% in 2018.

Interest Rates on Overpayments

The 2019 interest rates for overpayments of taxes are:
  • 6% per year for personal income tax, up from 4% in 2018; and
  • 4% per year for all other taxes, up from 2% in 2018.

Deduction for Business Meals Related to Entertainment

Many businesses consider the occasional wining and dining of customers and clients just to stay in touch with them to be a necessary cost of doing business. The same goes for taking business associates or even employees out to lunch once in a while after an especially tough assignment has been completed successfully. It's easy to think of these entertainment costs as deductible business expenses. However, due to a recent change in the tax law, many of those expenses may not be deductible.
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New PA-100 Online Application Now Available

From the PA Department of Revenue | Tax Update No. 200 | January 2019

The Department of Revenue recently launched an updated online application for the Pennsylvania Enterprise Registration Form (PA-100), which is used by individuals and organizations for certain taxes and services.  The updated online application for the PA-100 requires an e-Signature login, which allows taxpayers to use the same log-in information that they use for e-TIDES, the department’s online system that business taxpayers use to file returns and pay taxes.
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IRS Provides a Safe Harbor Method of Accounting for Passenger Automobiles that Qualify for the 100-Percent Additional First Year Depreciation

From the IRS | IR-2019-14 | February 13, 2019

The Treasury Department and the Internal Revenue Service issued guidance today that provides a safe harbor method for determining depreciation deductions for passenger automobiles that qualify for the 100-percent additional first year depreciation deduction and that are subject to the depreciation limitations for passenger automobiles.

Under the Tax Cuts and Jobs Act (TCJA), the additional first year depreciation deduction applies to qualified property, including passenger automobiles, acquired and placed in service after September 27, 2017, and before January 1, 2027.
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IRS Issues Standard Mileage Rates for 2019

From the IRS | IR-2018-251 | December 14, 2018

The Internal Revenue Service today issued the 2019 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on January 1, 2019, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 58 cents per mile driven for business use, up 3.5 cents from the rate for 2018,
  • 20 cents per mile driven for medical or moving purposes, up 2 cents from the rate for 2018, and
  • 14 cents per mile driven in service of charitable organizations.
The business mileage rate increased 3.5 cents for business travel driven and 2 cents for medical and certain moving expense from the rates for 2018. The charitable rate is set by statute and remains unchanged.
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