Internal Revenue Service Temporarily Holding Off on Issuing New Regulations
The Internal Revenue Service is temporarily holding off on issuing new rules while evaluating the impact of executive orders from President Trump.  It is anticipated that no new rulings will be forth coming until Treasury Secretary Steven Mnuchin sets up his tax team.  The executive order requires two regulations to be identified for elimination whenever any new regulation is proposed. The IRS anticipates continuing to issue routine updates such as for interest rates and mileage deduction allowances. Continue Reading Tax Tips

Pennsylvania Department of Revenue: Interest Rates on Overpayment and Underpayment of Taxes

The Pennsylvania Department of Revenue has announced that for the calendar year beginning January 1, 2017, the interest rate for the underpayment of tax is 4% per annum.  The interest rate for the overpayment of personal income tax is 4% per annum.  Overpayment of other taxes will be subject to an interest rate of 2% per annum.  The notice can be viewed on the department’s website at http://www.pabulletin.com/secure/data/vol46/46-52/2268.html.  PA Bulletin Doc. No. 16-2268, Pennsylvania Department of Revenue, December 24, 2016. Continue Reading Tax Tips

An individual’s motivation for making a charitable donation is not necessarily the charitable deduction.  Nonetheless, taking advantage of the deduction is a nice benefit.  Not all charitable donations; however, qualify for a charitable deduction.  The following tips will help ensure the donation qualifies for the charitable deduction: Continue Reading Donations that Qualify for a Charitable Deduction

Tax Tips for January 2017 are listed below.

Rev Rul 2017-02, 2017-3 IRB January 2017 Rates: 

  • Section 7520 Rate: 2.4%
  • Annual Short Term AFR (0‐3 years): 0.96%
  • Annual Mid Term AFR  (3‐9 years): 1.97%
  • Annual Long Term AFR (over 9 years): 2.75%

Continue Reading January Tax Tidbits