Philadelphia CPA Services
Philadelphia business tax rules can affect a small practice, sole proprietor, or company even when prior years required little local filing work. KAS helps owners review city accounts, reconcile business activity, and coordinate local, Pennsylvania, and federal returns. We deliver the work virtually with a clear list of records and deadlines.
Updated
Philadelphia Business Taxes and Owner Reporting
Update the BIRT review for the ended exemption
Philadelphia eliminated the $100,000 Business Income and Receipts Tax exemption beginning with tax year 2025. A business that relied on that exemption in earlier years needs a fresh filing review. The city also published transition guidance for qualifying first-time filers, so we examine the prior filing history and payments before determining the current account position. Philadelphia BIRT exemption and transition guidance.
Separate gross receipts from taxable net income
BIRT includes distinct gross-receipts and net-income components. We reconcile sales, adjustments, expenses, and the applicable Philadelphia activity rather than using one bank-deposit or profit figure for both. The correct year’s rates and instructions belong with the calculation, especially when reviewing a late return or correcting an earlier period. Philadelphia business tax changes.
Coordinate business and owner city accounts
A business may also need a Net Profits Tax review, with applicable credits considered under the city’s rules. We identify the entity and owners, reconcile local payments, and determine which schedules belong to each taxpayer. Keeping the accounts separate avoids treating one city payment as proof that all local obligations are complete. Philadelphia Net Profits Tax guidance.
How we scope the work
We start with the decision or filing you need to complete, the entities and people involved, and the deadline. After reviewing the available records, we identify missing information and propose the services and deliverables. For ongoing work, we establish a close and filing calendar so bookkeeping, tax projections, and owner reporting use consistent information.
For an audit or other assurance request, bring the lender, grant, board, or regulatory requirement. We confirm the engagement type and applicable professional requirements before accepting the work. Audit, review, and compilation engagements for Pennsylvania entities are accepted under Pennsylvania's CPA firm mobility rules.
CPA services for Philadelphia clients
City, state, and federal business returns
Reconcile BIRT, owner reporting, and related payment schedules.
Local account and bookkeeping cleanup
Organize missing receipts, expenses, filings, and payment evidence.
Owner payment planning
Project city and income tax obligations from the business’s current results.
Philadelphia CPA questions
Can a business below $100,000 of receipts still rely on the old BIRT exemption?
No. Philadelphia ended that exemption beginning with tax year 2025. We review whether another specific exception applies, which returns are required, and any relevant transition treatment. Prior exemption status should not be carried forward automatically.
How do Philadelphia clients work with KAS?
We provide virtual service through secure document exchange, scheduled video meetings, and electronic signatures. The engagement defines the services, responsibilities, and deadlines; this service area does not represent a walk-in office.
Ready to Get Started in Philadelphia?
Schedule a complimentary consultation to discuss your Philadelphia tax situation and how we can help you achieve your financial goals.