IRS Backlog and Delays Continue
The most recent National Taxpayer Advocate Objectives Report to Congress revealed that the IRS had a backlog of 21.3 million unprocessed paper returns as of May 27, 2022. The report notes that the backlog is up by more than one million returns since the previous May’s reported backlog. At the IRS’s current processing rate, it is estimated that the IRS will take nearly two years to deal with the backlog.
IRS 2022 Standard Mileage Rates Increased
The IRS recently released Announcement 2022-13, increasing the standard mileage rate for business travel to 62.5 cents per mile for July-December 2022
Governor Wolf Highlights Budget Priorities
Governor Wolf recently met with groups in Harrisburg to promote his priorities he’d like to see in the final version of Pennsylvania’s next budget currently being worked out in the state legislature.
PA Department of Revenue Transitioning Business Taxpayers to myPATH
The Pennsylvania Department of Revenue is in the final phase of its modernization project. This includes the transition of all business taxes – including employer withholding tax, sales tax, and corporation taxes – into the Pennsylvania Tax Hub (PATH) system.
PA Legislature Considering Small Business Tax Reform
Under normal circumstances, pass-through entities do not pay tax themselves. Instead, their income is allocated to their owners and reported on the individual income tax returns of the owners. A pass-through entity tax, if implemented, would be paid by the pass-through entity with a corresponding credit for owners to claim on their respective state individual income tax returns.