June 26, 2012 by MDOPKIN
As the 2011 filing season is now behind us, here is a summary of some relevant Pennsylvania Tax changes that may impact your returns for 2012. This is not an all inclusive list and will focus on those changes I feel will have the biggest impact on closely held businesses and individuals.
Sales and Use Tax
• Returns and remittances
Taxpayers reporting Sales & Use Tax liabilities of $25,000.00 or more for the third calendar quarter of the preceding year are required to file a return and make a payment by the 20th of the month.
Tax Credits
• R&D tax credit
Total limit on R&D tax credit has been lowered from $60 million to $55 million.
• Job creation tax credit
The total amount of Job Creation Credit award cannot exceed $10,100,000.
• Keystone Special Development Zone Credit
A new program for the designation of Keystone Special Development Zones (“KSDZ”) for real property certified as Special Industrial Area by Department of Environmental Protection has been created. This statute provides a tax credit for employers within a KSDZ for new full-time jobs created beginning in Tax Year 2012 and for a period of ten tax years during the fifteen year period of the zone.
• Local Tax Collection
Act 32 Legislation that amended the Local Tax Enabling Act to consolidate the collection of local income taxes at a county-wide level becomes fully implemented in 2012. Although enacted in 2008, Act 32 has a large impact in 2012.
Personal Income Tax
• Third-party preparer e-file mandate
A third-party preparer who prepares 50 or more Pennsylvania personal income tax returns is now required to electronically file.
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Dopkin Law Firm advises clients on the intricacies of business and tax law matters. To discuss these or other issues with attorney and CPA Matt Dopkin, contact us at 215-519-4269 or via email at mdopkin@dopkinlawfirm.com.
© 2012 Dopkin Law Firm
This Alert is published by Dopkin Law Firm. It is provided solely as legal information, not legal advice. Legal advice depends, to a large extent, upon the particular facts of a matter. For legal advice, contact your legal advisor.