Advocacy that Speaks for Pennsylvania's Tax & Accounting Practitioners
You Can Count on Us to Have Your Back!
At PSTAP, advocacy isn’t just a function—it’s a cornerstone of our mission. We serve as the trusted voice for Pennsylvania’s small accounting and tax firms, ensuring their needs and perspectives are heard where it matters most. We don't just react, we invest in staying ahead of emerging trends, legislative proposals and regulatory shifts that could impact our members and their clients.
Legislative Priorities
View Legislation We're Tracking
Correcting the Income Eligibility Calculation for Special Tax Forgiveness
PSTAP is actively advocating for and providing feedback on draft legislation that will correct inequities in Pennsylvania’s Special Tax Forgiveness program.
- Non-Qualified Annuity:
- Legislation would exempt principals or initial investments withdrawn from a non-retirement annuity from being considered poverty income for SP purposes.
Currently, both the original principal and the interest earned on non-qualified annuities are counted as income when determining a taxpayers eligibility for SP. This approach unfairly penalizes taxpayers by including the initial investment—money on which taxes have already been paid—in the income calculation, but other forms of investment are not. For example, for certificates of deposit (CDs), only the interest earned is considered taxable income for Special Tax Forgiveness purposes.
Our position is that this calculation should be consistent to ensure fairness for all Pennsylvania taxpayers.
2. Widowed Claimant Threshold Increase:
-
- Increased threshold available to the surviving spouse the year AFTER death of the decedent spouse.
- To claim this, the taxpayer would have to have filed Married Filing Single or Married Filing Jointly in the prior year (and be Single this year).
- Widowed claimant would have his/her poverty income limit raised to $13,000.
- Inheritance of Decedent Spouse’s Pension:
- The PSTAP Legislative Committee along with its lobbying team and legislative staff have been working on language to address the code 4 issue.
- We have run into a snag. There is no way to determine who the code 4 distribution (inheritance) is coming from, aka, you cannot prove it is from a decedent spouse in a manner that is administratively feasible.
Repeal of Accelerated Sales Tax Payments
Pennsylvania requires businesses with sales tax liability of at least $25,000 during the third calendar quarter of the preceding year to prepay sales tax. PSTAP supports HB 1316 and SB 729 to simplify tax compliance, promote fairness and to ease the financial burden on businesses.
SALT Cap Work Around
Pennsylvania is one of only a few states with a state income tax that currently has no statutory SALT Cap workaround. This places our business owners and residents at a disadvantage with other states, many of which are neighboring states.
Each year, PSTAP committee members travel to Harrisburg to participate in roundtable discussions with senior leaders from the Pennsylvania Department of Revenue. These meetings—typically held in early December—offer a direct channel for PSTAP to advocate for our members and seek clarity on pressing tax issues.
December 12, 2024 Q&A - Responses from PA DOR
Need Help Resolving a Client Issue?
If you've followed the recommended communication channels with the Pennsylvania Department of Revenue but still haven’t been able to resolve a client matter, PSTAP may be able to assist. While we’re not the first stop in the resolution process, we’re here to support our members when standard avenues fall short. If you’ve exhausted your options and need help navigating a issue, please reach out—we’ll do our best to advocate on your behalf.
How We Helped a Practitioner Facilitate a Change to the Estimated Underpayment Penalty Calculation
In the Fall of 2023, the practitioner community was informed that the PA Department of Revenue would decommission Telefile, a telephone based system for the remittance of some business and employer taxes. Member outcry led to PSTAP leading the charge to preserve Telefile.
