Blog

Pennsylvania Announces 60 Day Tax Amnesty Program

Pennsylvania Announces 60 Day Tax Amnesty Program
On September 9, 2016, the Pennsylvania Department of Revenue announced a tax amnesty program that will run from April 21, 2017 to June 19, 2017. The Pennsylvania Tax Amnesty Program ("PTAP") affords many businesses, individuals, and other entities the opportunity to resolve their outstanding tax liabilities at a reduced cost. All taxes paid under the PTAP are eligible for 100% penalty abatement and 50% interest abatement.  In addition, Pennsylvania would remove all liens and cancel other enforcement actions. The PTAP applies to tax years ending on or before December 31, 2015.

The following taxpayer's cannot participate in the 2016-2017 PTAP:

  • A taxpayer who enrolled in the 2010 Tax Amnesty Program
  • A taxpayer in bankruptcy
  • A taxpayer under criminal investigation
  • A taxpayer named as a defendant in a tax law proceeding

Who is Eligible?
Taxpayers with unknown tax liabilities can mitigate their financial exposure. PTAP limits the number of years the Pennsylvania Department of Revenue can look back and assess tax. A taxpayer would be required to go back five years beginning on or after January 1, 2011. In addition the taxpayer would have all penalties and 50% of the interest expense abated.  An unknown tax liability is defined as an unfiled or unpaid tax return which the Pennsylvania Department of Revenue has not contacted the taxpayer in regards to, and the taxpayer has not filed or made a payment on the tax return.

A taxpayer who has been assessed an outstanding tax liability by the Pennsylvania Department of Revenue or who needs to file an amended tax return can also take advantage of this program. The taxpayer will have the associated penalties abated and 50% of the interest associated with the debt.

Program Conditions
A taxpayer who qualifies for the amnesty program is required to remain current on all Pennsylvania tax filings and payments for the subsequent two year period.  The Pennsylvania Department of Revenue can assess and collect all penalties and interest previously waived through this program if a taxpayer fails to remain current on their tax obligation.

More details on the tax amnesty program can be found on the Pennsylvania Department of Revenue’s website or contact your Herbein tax advisor: http://www.revenue.pa.gov/taxamnesty/Documents/tax_amnesty_qa.pdf

Article written by Christopher Dingman, CPA, contact him with questions at: cdingman@herbein.com