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Recent changes in Pennsylvania local sales tax law shifts local sales tax collection from the point of sale to the point of destination. In other words, the applicable local tax is now determined by where the product or service is delivered, rather than where the vendor is located.

Under Act 21 of 2026, businesses that are required to collect Pennsylvania’s 6% sales tax must now also collect the applicable local tax on taxable products or services where they are delivered. This has implications for any local business serving customers in Philadelphia or Allegheny Counties:

• Philadelphia County: An additional 2% must be added to the statewide 6% rate
• Allegheny County: An additional 1% must be added to the statewide 6% rate

This law took effect retroactively for tax years after December 31, 2025. However, the Pennsylvania Department of Revenue will not begin enforcement until October 1, 2026, giving businesses time to update their procedures.

If your business serves customers in Philadelphia or Allegheny Counties, review your customer addresses, invoicing practices, and accounting or point-of-sale systems now so you’re ready by the October 1^st deadline.

Learn more through the Pennsylvania Department of Revenue.

If you have any questions, we are here to help. Contact us online or call 215-723-4881.

The middle of the year is one of the best times to look at your business taxes. It’s when you have enough real-world results to see where revenue, payroll, and expenses are heading but there is still time to make thoughtful adjustments before the fourth quarter.

A mid-year checkup is not a miniature tax-season scramble. It is a planning conversation. Ask:

• Are your estimated payments keeping pace with your income?
• Have changes in your team, ownership, or spending created new tax questions?
• Could upcoming purchases or investments affect cash flow or deductions?

Reviewing these items now can make year-end decisions more deliberate and filing season less surprising.

Update Your Income and Cash-Flow Projection

Start with what has happened through the first half of the year, then build a reasonable projection for the remaining months. Compare year-to-date revenue, gross profit, operating expenses, and owner activity with your budget and prior-year results. A strong new contract, a delayed customer payment, an unexpected expense, or a slower season can all change the tax picture.

The goal is not to predict the exact December 31 result. It is to develop a working estimate that can guide tax payments, hiring, distributions, and purchases. Look at cash flow alongside taxable income; a profitable business can still be short on cash when receivables, inventory, or expansion costs absorb the money.

Recalculate Estimated Tax Payments

Estimated payments based on last year’s results may no longer be accurate. The IRS calculation considers expected income, deductions, and credits, and the correct payment method depends on how your business is taxed. Sole proprietors, partners, and S corporation shareholders generally make individual estimated payments, while C corporations follow corporate rules.

If results are ahead of plan, an increase may help reduce underpayment exposure. If business has slowed, or deductions have increased, the next payment may need to be reconsidered. For calendar-year individual taxpayers, the third installment generally falls in September, making a review before Q4 especially useful.

Confirm Payroll Deposits and Filings

Use the mid-year review as a quick payroll compliance check:

• Review the federal deposit rules, then confirm that deposits, quarterly returns, and payroll records agree.
• Check state and local obligations if you have hired employees, changed work locations, or added remote staff.
• For Pennsylvania employees, verify residency for local earned income tax and local services tax responsibilities.

Discrepancies are easier to fix now rather than later.

Review Deductions and Credits While There Is Time to Act

A mid-year review can uncover expenses that are missing from the books or sitting in the wrong category. Use this time to:

• Reconcile bank and credit card accounts.
• Gather receipts and other supporting records.
• Document the business purpose of travel, vehicle, professional, technology, and other costs.

In general, deductible business expenses must be ordinary and necessary, but the timing and treatment can vary. Good records give your CPA a clearer picture and help support your return.

Credits are worth reviewing separately because they reduce tax differently from deductions. Depending on your business, opportunities may include conducting qualified research, starting a retirement plan, hiring, or other activities. Some credits require specific documentation, elections, or action before year-end. Identifying a potential credit in August is more useful than discovering it after the qualifying window has closed.

Revisit Entity Structure and Owner Compensation

The structure you chose when the company was formed may still fit, but growth, new owners, or new long-term plans can justify another look. Your business structure affects how income is reported, how owners are paid, and which returns are filed. Reviewing it now gives you time to weigh tax, legal, administrative, and cash-flow consequences before next year.

Owner compensation should be part of that discussion. For example, an S corporation generally must pay a shareholder-employee reasonable compensation for services before making non-wage distributions. Review salary, distributions, benefits, and reimbursements together. If an adjustment is appropriate, spreading it across the remaining payrolls is usually easier than a December correction.

Discuss Equipment and Software Before You Buy

If equipment, vehicles, computers, or software are on the Q4 wish list, bring those plans into the tax discussion before signing a contract. Start with the business need and cash-flow impact, then consider the tax treatment. Depreciation generally begins when qualifying property is placed in service.

Under current federal law, certain qualified property acquired and placed in service after January 19, 2025, may be eligible for 100% additional first-year depreciation. Section 179 may offer another path for eligible purchases, including some off-the-shelf software. Cloud subscriptions, implementation work, and customized systems can be treated differently, so share the proposal and expected go-live date with your CPA. Tax timing should support the business decision.

Turn the Review into a Q4 Action Plan

A useful checkup should end with clear next steps:

• An updated income and cash-flow projection
• Revised estimated payments, if needed
• Payroll items to correct and records to gather
• Major decisions that require follow-up

Assign an owner and deadline to each task so you enter Q4 with fewer unknowns, better cash-flow visibility, and time to act.

Planning Ahead? Let’s Talk It Through

Tax planning works best alongside the decisions that shape your business. Our CPA and Payroll teams can help review year-to-date results, payment schedules, owner compensation, and upcoming investments before the year-end rush begins.

Have questions? We are happy to talk. Contact us online or call 215-723-4881.

The IRS has announced a midyear increase to the standard business mileage rate, raising it from 72.5 cents per mile to 76 cents per mile, effective July 1, 2026.

The IRS also increased the standard mileage rate for eligible medical and moving purposes from 20.5 cents to 23.5 cents per mile, effective July 1. The charitable mileage rate remains unchanged at 14 cents per mile.

These changes were made in response to recent increases in fuel prices.

For business travel that occurred between January 1 and June 30, 2026, the previous rate of 72.5 cents per mile still applies. The new 76-cent rate applies to qualifying business mileage beginning July 1.

Questions? We are here to help. Call 215-723-4881 or contact us online.

Trump Accounts are a new type of savings account for children with a contribution start date of July 4, 2026. Here’s an overview of the key details families should understand about how these accounts work and who qualifies.

While elections to establish a Trump Account may be made before July 4, 2026, contributions generally cannot begin until that date. This applies to both ordinary contributions and the $1,000 federal pilot program contribution. The pilot contribution is made only after a valid election is processed and the child’s Trump Account has been opened.

Who Is Eligible for a Trump Account?

A child may be eligible for a Trump Account if they meet the definition of an “eligible individual” under IRC §530A(b)(2). In practical terms, the child generally must:

• be under age 18 at the end of the calendar year in which the election is made;
• have a Social Security number issued before the election date;
• have an election made either by the Secretary or by another authorized person; and
• not already have had a prior Trump Account election made on their behalf.

IRS guidance further explains that, for 2026 elections, this generally means a child born after December 31, 2008, may qualify for an initial Trump Account if the Social Security number requirement is met.

Who Can Contribute?

During the growth period, contributions may come from several sources, including:

• the federal $1,000 pilot-program contribution;
• qualified general contributions funded by governments or §501(c)(3) organizations;
• employer contributions under IRC §128;
• qualified rollover contributions from another Trump Account for the same child; and
• other contributors, such as the child, parents, relatives, or any other person.

Ordinary contributions and employer contributions are generally subject to a combined $5,000 annual limit during the growth period, indexed after 2027.

The federal pilot program contribution, qualified general contributions, and qualified rollover contributions do not count against the $5,000 cap.

Separate Eligibility for the $1,000 Pilot-Program Contribution

It’s important to note that eligibility for a Trump Account itself is broader than eligibility for the federal $1,000 seed contribution.

For the pilot contribution under IRC §6434, the child must generally:

• be a qualifying child under IRC §152(c) of the person making the election;
• be born after December 31, 2024 and before January 1, 2029;
• be a U.S. citizen;
• have a Social Security number issued before the election; and
• not have had a prior pilot-program election processed.

The pilot contribution is paid only into an established Trump Account. If the child does not have an account, no cash refund is paid outside of the account.

How Elections Are Made

Although contributions cannot begin until July 4, 2026, elections to establish the account and request the pilot contribution may be made earlier on Form 4547, including with a 2025 tax return, or later through the IRS online process when available.

The Short Version

Contributions begin July 4, 2026. A Trump Account can generally be opened for a child under age 18 with a Social Security number and no prior Trump Account election. The separate $1,000 federal contribution is more limited and generally applies to U.S.-citizen children born in 2025 through 2028 who also meet the qualifying-child and Social Security number requirements.

Additional information about setting up these accounts is available on the official website.

If you have questions about how these rules may apply to your family or specific situation, please feel free to contact us.