The Pennsylvania Department of Revenue will run a 60 day tax amnesty period from April 21, 2017 to June 19, 2017 for taxes due on or before December 31, 2015. The tax amnesty will cover all taxes administered by the Dept. of Revenue, such as individual income taxes, corporate income/franchise taxes, sales taxes, inheritance taxes, and employer withholding taxes (but not unemployment taxes or property taxes). The amnesty tax application and return(s) will be filed on-line, and all delinquent tax returns and payments must be filed and paid within the amnesty period. In return, all penalties and fees, plus 50% of the interest due will be waived. In addition, the taxpayer must have all tax returns filed and paid for the period(s) due after December 31, 2015 to be able to participate in the Amnesty Program, and have not previously participated in the 2010 PA Tax Amnesty program. If you are eligible for the Amnesty program and do not participate in it, a 5% non-participation penalty, plus the usual interest and penalties, will be assessed for late payments and/or filings after the program ends.
The PA Dept. of Revenue will mail a notice to all delinquent taxpayers regarding the Amnesty Program. If a taxpayer wants to file PA tax returns that have not been filed at all in the past, they can go to the Amnesty website to start the process. If a business was not previously registered with the PA Dept. of Revenue, the taxpayer will have to register on-line with Form PA-100 before filing previously unfiled tax returns. This circumstance could happen, for instance, if a New Jersey business taxpayer that has not previously filed PA taxes is doing enough business in Pennsylvania to establish a “taxable connection” (nexus) for corporate income tax and/or sales tax.
For more details regarding the PA Tax Amnesty Program, go to www.revenue.pa.gov/taxamnesty. At the website, you can download detailed guidelines and Q&A for the Tax Amnesty Program.
BKC is well positioned to help you navigate through the PA Tax Amnesty process so that you are in compliance with the PA Dept. of Revenue and pay the lowest allowable amount of tax and interest due. If you have any questions about the Tax Amnesty Program, please contact us.
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