Pittsburgh Legal Blog

For some, tax preparation is on their minds all year long. A Pennsylvania worker may have numerous sources of income, run a business or simply fear that again this year, he or she will owe hundreds or thousands more than anticipated. When these tax issues arise, it may help to seek professional guidance. A solution to the issue may begin with understanding which sources of income are taxable and which are not.

In most cases, payment for work is taxable. Whether this is a paycheck from an employer, tips from customers or a bonus for a job well-done, the recipient is required to include these amounts when calculating the income tax he or she owes. However, some work-related benefits are not taxable. For example, workers' compensation benefits, combat pay and any disability benefits when the employee pays the premiums are tax-free.

Starting a business in Pennsylvania means tending to many details. Depending on the industry, an entrepreneur may have many aspects of business law to address, especially when the new company will include employees. Drafting an employee handbook is one effective way to assemble many policies in a usable form for workers to access. However, failing to get the details right in a handbook can open a business owner to costly legal issues.

The high risk involved with many federal policies makes it critical for a business owner to get the facts straight. This includes issues such as harassment and discrimination policies, at-will laws and those policies related to the Fair Labor Standards Act and the Family and Medical Leave Act. Business owners must also account for those regulations set forth for their industries by the Occupational Safety and Health Administration. An employee handbook should contain the most current information about these and other federal laws.

The creation of an estate plan can occur at any stage of a person's life. Some in Pennsylvania choose to do their estate planning when they are young, for example when they start their own business or have children. Others wait until later in life, risking leaving their estate unplanned in the event of an incapacitating illness or untimely death. No matter when one executes an estate plan, it is often beneficial to revisit and perhaps revise the plan at critical junctures in life.

A common mistake spouses make after divorcing is failing to amend their estate plans. While some elements of a plan become invalid automatically after a divorce decree is signed, others remain intact. Likewise, someone whose financial situation changes for better or worse will want that reflected in his or her will or trust. Otherwise, the terms of the documents may make no sense to one's beneficiaries.

With the federal income tax filing deadline coming this week, there are a number of people who lament the reality that they will have to owe Uncle Sam money. For those in this unenviable situation, they might not just have the IRS to deal with in the event they don't pay their tax bill.  Instead, they may have to answer to private collectors.

One of the little known aspects of the huge transportation bill passed by Congress in 2015, the Fixing America's Surface Transportation Act (FAST Act), will allow the IRS to employ private debt collectors to collect billions in back taxes owed to the federal government.