Taxpayer victory imminent in Pennsylvania.Last December, TEI 1. (communications) TEI - Terminal Endpoint Identifier. 2. (text, project) TEI - Text Encoding Initiative. filed comments with the Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York Department of Revenue taking issue with the department's proposed definition of "Eligible Retirement Benefit Plan." TEI's comments (which were published in the January-February 2004 issue of The Tax Executive) contended that the Commonwealth's expansive view of constructive receipt Constructive receipt The date a taxpayer receives dividends or other income, for use in the determination of taxes. constructive receipt to nonqualified deferred compensation plans (based on rulings in recent court cases) was inappropriate. TEI's comments stressed the advantages of harmonizing Pennsylvania's rules with applicable federal authority relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc retirement plans and also highlighted the administrative and compliance issues that could arise from inconsistencies in the Pennsylvania and federal rules. In acknowledging the Institute's comments, the department observed that the proposed rules had generated significant discussion, and reported that it had deferred final action until later this year to permit more thorough consideration of the issues raised. In a related development, Pennsylvania has conceded con·cede v. con·ced·ed, con·ced·ing, con·cedes v.tr. 1. To acknowledge, often reluctantly, as being true, just, or proper; admit. See Synonyms at acknowledge. 2. two cases involving when deferred compensation becomes subject to personal income tax in the state. The taxpayers in these cases challenged the Commonwealth's position that deferred compensation is subject to Pennsylvania income tax at the time of deferral deferral - Waiting for quiet on the Ethernet. . The taxpayers (plus others whose cases are pending) asserted that deferred compensation is not subject to tax until distribution. Pennsylvania's concession in the two cases likely presages similar action in other cases. Region IV Vice President Lynn B. Jordan of Susquehanna Pfaltzgraff The Susquehanna Pfaltzgraff Company is a conglomerate of companies that started in the 19th century with Johann George Pfaltzgraff's emigration from Germany to York, Pennsylvania (in the Susquehanna Valley). Co. (whose region includes the Institute's Pennsylvania-based chapters) ascribes Pennsylvania's concession to the comments submitted by TEI and others. Ms. Jordan said, "I appreciate the efforts of the Philadelphia Chapter in raising this issue to the Institute level and the committees involved in preparing the comments. This is a great example of the successful results that can be achieved when TEI's chapters and members get involved in the Institute's advocacy efforts." |
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