From April 21 through June 19, 2017, the Pennsylvania Department of Revenue is offering tax amnesty to taxpayers who owe past-due taxes. During this 60-day period, the Pennsylvania Department of Revenue will waive all penalties and half of the interest owed by those who apply and pay delinquent taxes.
Which Taxes Are Eligible or Not Eligible for the Program?
Most taxes administered by the Pennsylvania Department of Revenue will be eligible for tax amnesty, including:
- Personal income tax
- Corporate net income tax
- Capital stock/foreign franchise tax
- Inheritance tax
- Sales and use tax
- Employer withholding tax
A list of more than 30 eligible state taxes, as well as program guidelines, common Q&As and more are available on the Pennsylvania Department of Revenue’s website.
Taxes not eligible for the tax amnesty program include:
- Unemployment compensation administered by the PA Department of Labor and Industry
- Taxes from another state
- Local taxes, including property taxes
- Federal taxes
Who is Eligible for Tax Amnesty?
Individuals and businesses with past-due state taxes as of Dec. 31, 2015, are generally eligible, as well as taxpayers who failed to file for tax periods due on or before Dec. 31, 2015.
Who Isn’t Eligible for Tax Amnesty?
The following criteria disqualifies an individual from participating in the program:
- Taxpayers who participated in the 2010 PA Tax Amnesty program. Those who participated in the 1996 tax amnesty are eligible.
- Taxpayers under criminal investigation, criminal prosecution or criminal restitution for allegedly violating a tax law.
- Taxpayers in bankruptcy — unless the Bankruptcy Court grants permission.
- Taxpayers with a current voluntary disclosure agreement for periods eligible for the program.
What Eligible Taxpayers Should Do
Participants must do the following between April 21 and June 19, 2017:
- Apply at https://www.backtax.pa.gov/
- File all eligible delinquent returns, and pay the tax and half of the interest owed.
- Pay all delinquent taxes and required interest.
If you’re not sure you owe back taxes, check on this website. Register on the site if you’re a first-time user, otherwise, have your User ID and password ready when checking for tax information.
What if an Eligible Taxpayer Doesn’t Participate in the Tax Amnesty Program?
Taxpayers with unpaid delinquent taxes, interest and eligible penalties who do not participate will need to pay an additional 5-percent penalty. These taxpayers may also face enhanced collection actions.
To learn more information about the program, including the guidelines, restrictions and frequently asked questions, visit https://www.backtax.pa.gov/.
If you have any questions or if you would like more information, contact Fred Schutz at (856) 722-5300 ext. 201 or Dave Gill at ext. 210.