KPMG reports: Pennsylvania, Tennessee

KPMG This Week in State Tax focuses on recent state and local tax developments.

KPMG This Week in State Tax focuses on recent state and local tax developments.

KPMG This Week in State Tax—produced weekly by the KPMG State and Local Tax practice—focuses on recent state and local tax developments.

  • Pennsylvania: The Department of Revenue announced that it has revised the lookback period for corporate income taxpayers participating in the state’s voluntary disclosure agreement (VDA) program. The lookback period for corporation taxes was reduced to three years (from five years) plus the current year, which is consistent with the lookback period that applies to other tax types. The change will apply to VDAs entered into on or after August 1, 2023.
  • Tennessee: The Department of Revenue ruled that a taxpayer’s staff augmentation and payment processing services were not subject to sales and use tax because even though customers accessed the taxpayer’s services through an app, which could be considered a taxable sale of computer software, the true object of the taxpayer’s services was connecting businesses and workers for the purpose of arranging short term employment, which was not a taxable service.

Read an August 2023 report prepared by KPMG LLP

 

 

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