Privacy Notice - Smoker Smith & Associates

CPAs, unlike providers of personal financial services, who are required by law to inform their clients of their policies regarding privacy of client information, have been and continue to be bound by professional standards of confidentiality that are even more stringent than those required by law. At Smoker, Smith & Associates, we have always protected our client’s right to privacy and will continue to use our best efforts to do so in the future. We have adopted a privacy notice similar to that as required by financial services to inform you of our practices with regard to your personal financial information.

Types of Nonpublic Personal Information We Collect

We collect non-public personal information about you that is directly provided to us by you or obtained by us only following your direct written authorization. No other or additional non-public personal information will be collected by Smoker, Smith & Associates absent your written direction or approval.

Parties to Whom we Disclose Information

We may share the information we collect through this Site as described below and in any applicable Privacy Notices, except for mobile information. Mobile information will not be shared with third parties/affiliates for marketing/promotional purposes. All of the above categories exclude text messaging originator opt-in data and consent; this information will not be shared with any third parties.

For a current and former client we do not disclose non-public personal information obtained in the course of our services for you except as may be required and permitted by law without your written direction. Thus, we may disclose confidential information made in response to a valid Order of Court or authorized agency of the government and always work to establish a legal means to limit such disclosure to only that segment of personal financial information which must be legally required to be disclosed.

We also may disclose information to our employees and in very limited situations and to unrelated third parties who need to know the information for the purpose of assisting us in providing professional services to you. To the extent reasonably possible, we will notify you in advance and disclose to you any non-public personal information provided to any third parties for such purposes. In all such situations, and at all times, we stress the confidential nature of the information being shared to both employees and third parties.

All disclosure of information to persons other than employees or consultants to Smoker, Smith & Associates is performed by the method of transmission as requested by the client. If facsimile is requested, such is sent only after the fax number is verified to be correct and the fax machine is in secure information with appropriate disclosures regarding IRS Circular 230. If transmission is by mail, normally certified mail or nationally recognized delivery service will be utilized requiring a signature from the receiving party. If information is desired to be transmitted electronically, various and appropriate security devices and practice to prevent improper obtainment or interception of information.

Protecting the Confidentiality and Security of Current and Former Clients’ Information

We retain records relating to professional services that we provide so that we are better able to assist you with your professional needs and, in some cases, to comply with professional guidelines. Such records are retained, however, for so long as necessary to fulfill the stated purposes of our engagement and thereafter either destroyed or returned to the client as directed. In order to guard your nonpublic personal information, we maintain physical, electronic, and procedural safeguards that comply with our professional standards.

Messaging Terms & Conditions

You agree to receive informational messages (appointment reminders, account notifications, marketing, etc.) from Smoker, Smith & Associates, PC. Message frequency varies. Message and data rates may apply. For help, reply HELP or email us at This email address is being protected from spambots. You need JavaScript enabled to view it.. You can opt out at any time by replying STOP.

WE DO NOT DISCLOSE ANY NONPUBLIC PERSONAL INFORMATION ABOUT YOU TO ANYONE FOR ANY PURPOSE THAT IS NOT SPECIFICALLY PERMITTED BY LAW OR SPECIFICALLY DIRECTED BY YOU.

Smoker, Smith & Associates retains the right and obligation to update this privacy policy at any time without advance notice. If you have any questions regarding this privacy policy, our professional ethics and/or the ability to provide you with quality financial services, please contact us immediately.

John Peters, President - ACCUWRITE Forms & Systems Inc.

Jori and the Smoker Smith team have been a very valued partner of ACCUWRITE Print + Promo for over 30 years. Jori's expertise on taxes and planning have been invaluable to us for decades. Her recommendations have been spot on and I would personally recommend her and SSA to anyone, large or small. If Jori says she can handle a client and their needs - she can. And beyond her expertise and advise, her availability and personal service is absolutely the best!

- John Peters, President - ACCUWRITE Forms & Systems Inc.

David L. Morgan, DDS, Owner– Dental Associates of Hershey

As our practice has evolved and grown, the expertise of Smoker, Smith and particularly Jori Culp and Brion Smoker has been invaluable. My questions are always addressed promptly and anything I need to change is brought to my attention rather than me needing to inquire about it. Personalized service with top notch expertise.

- David L. Morgan, DDS, Owner - Dental Associates of Hershey

Norman Twain - Norman Twain Productions

I first met Smoker, Smith and Associates, specifically Jori Culp and Dave Reinhart, as a recommendation for somebody in Pennsylvania to do a state incentives certification on a film I was doing. They couldn't have been more precise or more efficient in the work they did for my company, and since that time, not only have we become friends, but have had an excellent working relationship with regard to all of my production companies, tax needs and on various LLCs. We have also been extremely happy in my wife's and my own personal income taxes as well. Additionally, they now represent my daughter and son-in-law as their tax representative. What could be more of a recommendation than entrusting ones daughter to them!

- Norman Twain - Norman Twain Productions

> See all testimonials....

Reminders & Updates

2025 Standard Mileage Rates

Purpose	Rates per Mile
Business	70 cents
Medical/Moving	21 cents
Charitable	14 cents

2024 Standard Mileage Rates

Purpose	Rates per Mile
Business	67 cents
Medical/Moving	21 cents
Charitable	14 cents

Check It Out!

Check out the article in PICPA CPA Now by Greg Kashella, published November 2021, Enhanced Financial Statement Disclosures for Small Businesses.

https://www.picpa.org/articles/cpa-now-blog/cpa-now/2021/11/19/financial-statement-disclosure-enhancements-for-small-businesses

Check out the article in the Central Penn Business Journal, Women Who Lead, March 2019 article featuring our partner Jori Culp

Tax-Related Identity Theft

The IRS combats tax-related identity theft with aggressive strategies of prevention, detection and victim assistance. To find out more about tax-related identity theft call our office or visit https://www.irs.gov/identity-theft-fraud-scams/identity-protection for information and guidance.

Remember that the IRS will never contact you by electronic means. This includes emails, phone calls, text messages, or social media channels. If you are ever in doubt whether contact by someone claiming to be from the IRS is legitimate, call our office first for verification.

Weekly Tax Brief

Payroll tax implications of new tax breaks on tips and overtime

Before the One Big Beautiful Bill Act (OBBBA), tip income and overtime income were fully taxable for federal income tax purposes. The new law changes that.

Tip income deduction

For 2025–2028, the OBBBA creates a new temporary federal income tax deduction that can offset up to $25,000 of annual qualified tip income. It begins to phase out when modified adjusted gross income (MAGI) is more than $150,000 ($300,000 for married joint filers).

The deduction is available if a worker receives qualified tips in an occupation that’s designated by the IRS as one where tips are customary. However, the U.S. Treasury Department recently released a draft list of occupations it proposes to receive the tax break and there are some surprising jobs on the list, including plumbers, electricians, home heating / air conditioning mechanics and installers, digital content creators, and home movers.

Employees and self-employed individuals who work in certain trades or businesses are ineligible for the tip deduction. These include health, law, accounting, financial services, investment management and more.

Qualified tips can be paid by customers in cash or with credit cards or given to workers through tip-sharing arrangements. The deduction can be claimed whether the worker itemizes or not.

Overtime income deduction

For 2025–2028, the OBBBA creates another new federal income tax deduction that can offset up to $12,500 of qualified overtime income each year or up to $25,000 for a married joint-filer. It begins to phase out when MAGI is more than $150,000 ($300,000 for married joint filers). The limited overtime deduction can be claimed whether or not workers itemize deductions on their tax returns.

Qualified overtime income means overtime compensation paid to a worker as mandated under Section 7 of the Fair Labor Standards Act (FLSA). It requires time-and-a-half overtime pay except for certain exempt workers. If a worker earns time-and-a-half for overtime, only the extra half constitutes qualified overtime income.

Qualified overtime income doesn’t include overtime premiums that aren’t required by Section 7 of the FLSA, such as overtime premiums required under state laws or overtime premiums pursuant to contracts such as union-negotiated collective bargaining agreements. Qualified overtime income also doesn’t include any tip income.

Payroll tax implications

While you may have heard the new tax breaks described as “no tax on tips” and “no tax on overtime,” they’re actually limited, temporary federal income tax deductions as opposed to income exclusions. Therefore, income tax may apply to some of your wages and federal payroll taxes still apply to qualified tip income and qualified overtime income. In addition, applicable federal income tax withholding rules still apply. And tip income and overtime income may still be fully taxable for state and local income tax purposes.

The real issue for employers and payroll management firms is reporting qualified tip income and qualified overtime income amounts so eligible workers can claim their rightful federal income tax deductions.

Reporting details

The tip deduction is allowed to both employees and self-employed individuals. Qualified tip income amounts must be reported on Form W-2, Form 1099-NEC, or another specified information return or statement that’s furnished to both the worker and the IRS.

Qualified overtime income amounts must be reported to workers on Form W-2 or another specified information return or statement that’s furnished to both the worker and the IRS.

IRS announcement about information returns and withholding tables

The IRS recently announced that for tax year 2025, there will be no OBBBA-related changes to federal information returns for individuals, federal payroll tax returns or federal income tax withholding tables. So, Form W-2, Forms 1099, Form 941, and other payroll-related forms and returns won’t be changed. The IRS stated that “these decisions are intended to avoid disruptions during the tax filing season and to give the IRS, business and tax professionals enough time to implement the changes effectively.”

Employers and payroll management firms are advised to begin tracking qualified tip income and qualified overtime income immediately and to implement procedures to retroactively track qualified tip and qualified overtime income amounts that were paid before July 4, 2025, when the OBBBA became law. The IRS is expected to provide transition relief for tax year 2025 and update forms for tax year 2026. Contact us with any questions.

Physical Address: 134 Sipe Avenue Hummelstown, PA 17036

Mailing Address: PO Box 770 Hershey, PA 17033

Phone: (717) 533-5154 • Fax: (717) 533-1442 • info@smokersmith.com