In February, the City of Philadelphia published FAQs regarding expiration of the temporary nexus waiver that had been in place during the COVID-19 pandemic. During the pandemic, the City had temporarily waived its legal nexus threshold that considers the presence of employees working temporarily from home within the City as sufficient to establish nexus for
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PA Supreme Court Says Whistleblower Payments are Taxable Compensation
Recently, in O’Donnell v. Allegheny County North Tax Collection Committee, et al., No. 8 WAP 2021 (Dec. 27, 2021), the Pennsylvania Supreme Court held that whistleblower payments constituted compensation subject to local earned income taxes.
In 2014, the taxpayer had filed an action alleging that his employer violated the federal False Claims Act (“FCA”). …
PA Commonwealth Court affirms that Bankruptcy and Trust Fund Taxes Don’t Play Well Together
On March 3, 2021, the Commonwealth Court in Mandler and Nuclear Imaging Systems, Inc. v. Commw., No. 483 F.R. 2014, overruled taxpayers’ exceptions to the Court’s decision affirming the denial of the taxpayers’ petition for refund of employer withholding taxes paid to the Pennsylvania Department of Revenue (the “Department”) in satisfaction of $180,000 in…
PA Department of Revenue guidance on telecommuting due to COVID-19.
On November 9, 2020, the Pennsylvania Department of Revenue issued guidance relating to telecommuting and related tax implications. If an employee is working from home temporarily due to the COVID-19 pandemic, the Department does not consider that as a change to the sourcing of the employee’s compensation. For non-residents who were working in Pennsylvania before…
PA Announces Additional Relief from Tax Enforcement and Collection Activities
The Pennsylvania Department of Revenue has announced additional relief from tax enforcement and collection activities due to the COVID-19 pandemic. A complete list of newly announced relief for taxpayers is available at https://www.revenue.pa.gov/Pages/Relief-For-Taxpayers.aspx. Some of the highlights are summarized below.
Pause Payments for Existing Payment Plans
Taxpayers with existing installment payment agreements may request…
COVID-19 UPDATE: Waiver of Sales Tax Prepayments and Impact of Employees Temporarily Working from Home
Sales Tax Prepayments
The PA Department of Revenue has announced that businesses that collect Pennsylvania sales tax will not have to make accelerated sales tax prepayments in April, May or June. Businesses that normally have a monthly prepayment requirement will not be charged penalties for missing the prepayment deadline during this three-month period.
Under this …
City of Philadelphia Department of Revenue tax guidance in response to COVID-19
In response to the COVID-19 coronavirus emergency, the City of Philadelphia Department of Revenue has issued the following:
REAL ESTATE TAX:
The deadline to pay 2020 Real Estate Tax has been extended an additional 30 days. The due date for 2020 Real Estate Tax is now April 30, 2020.
Additionally, the Department has extended…
Federal Stimulus Checks Not Subject to PA Tax
The Department of Revenue has announced that the stimulus checks, otherwise known as economic impact payments, being distributed by the Federal government are not subject to Pennsylvania personal income tax. Rather, the payments being distributed as part of the Federal economic stimulus legislation that was signed into law in March in response to the COVID-19…
Pennsylvania Department of Revenue Extends 2019 Personal Income Tax Return Deadline
On March 21, 2020, the Pennsylvania Department of Revenue announced that the deadline for taxpayers to file their 2019 Personal Income Tax Returns is extended to July 15, 2020. This means taxpayers will have an additional 90 days to file from the original deadline of April 15. The Internal Revenue Service also extended the…
Department of Revenue Issues Pennsylvania Sales and Use Tax Letter Ruling No. SUT-20-001 – Regarding Taxation of Membership Fee
On January 31, 2020, the Pennsylvania Department of Revenue (“Revenue”) issued Letter Ruling No. SUT-20-001, which concluded that the taxability of a membership fee in a professional association depends upon what a member receives in exchange for the membership. If the member does not receive any taxable tangible personal property or taxable services in exchange…