The PA Tax Amnesty program creates an incentive for taxpayers to pay there tax liabilities during a narrow time period that ends on June 19, 2017. While this program is open, the PA Department of Revenue will waive all penalties and half of the interest for anyone who participates in the Tax Amnesty program.
Eligible periods for tax amnesty are those where a delinquency exists as of December 31, 2015, whether the delinquency is known or unknown to the department.
The taxes administered by the department, listed below, are eligible for the Tax Amnesty program:
Note: The Tax Amnesty program does not apply to Unemployment Compensation because it is administered by the Pennsylvania Department of Labor and Industry.
Note: Also, the Tax Amnesty program does not apply to any tax administered by another state, local government or the federal government/Internal Revenue Service.
You may resolve your tax amnesty eligible debt by paying the tax and half of the interest. The benefits of the tax amnesty program are the following:
If you are eligible for the Tax Amnesty program, but choose not to participate, a 5% non-participation penalty will be added to your balance due and you may be subject to other enforcementpenalty will not apply to you:
Individuals, businesses and other entities with state tax delinquencies as of December 31, 2015, are generally eligible to participate in the Tax Amnestytax returns or reports, as well as unpaid or under-reported tax liabilities are eligible delinquencies, whether known or unknown to the PA Department of Revenue.
Important Limitation: Unpaid taxes due after December 31, 2015, are not eligible for the Tax Amnesty program.
However, non-filed or under-reported taxes due after December 31, 2015 must be filed by June 19, 2017, to participate in the Tax Amnesty program.
The following taxpayers are ineligible to participate in the 2017 Tax Amnesty program:
A taxpayer in bankruptcy is not eligible for tax amnesty unless permission is granted by the Bankruptcy Court.
An eligible tax liability under an administrative or judicial appeal may be included in the Tax Amnesty program. However, the appeal of the liability must be withdrawn before tax amnesty will be granted.
No. If you are currently in bankruptcy protection or you have previously received a discharge determination of your Pennsylvania tax liabilities through a bankruptcy proceeding, you may not apply for tax amnesty unless permission to participate in the Tax Amnesty program is granted by the Bankruptcy Court.
Taxpayers who participated in the first Tax Amnesty program held in 1996 are eligible to participate in the 2017 PA Tax Amnesty program. However, under the law authorizing the program, taxpayers who participated in the 2010 Tax Amnesty program are ineligible to participate in the 2017 Tax Amnesty program.
The Tax Amnesty period concludes on June 19, 2017.
Prior to the start of the Tax Amnesty period, the department will mail notices to taxpayers with known tax delinquencies with instructions on how to apply. Business taxpayers may request a statement of account that shows all liabilities by visiting e-TIDES at www.etides.state.pa.us.
Individuals may review account information, including all liabilities by visiting the Personal Income Tax e-Services Center at www.doreservices.state.pa.us. First time users will be required to register for the site.
If you are reporting and paying taxes which are unknown to the department –meaning you have not filed, not paid, or underreported the state taxes, and you have not been contacted by the department about the taxes – you could qualify for a limited filingthis case, only unknown tax delinquencies dating back to January 1, 2011, must be filed and paid before the close of the Tax Amnesty period. Non-filed periods due after December 31, 2015 must be filed by June 19, 2017 to be approved for tax amnesty.
No. All penalty and interest paid before the Tax Amnesty period are non-refundable.
Only state taxes delinquent as of December 31, 2015, are eligible for the Tax Amnesty program.Payments for more recent outstanding tax liabilities are not eligible for tax amnesty.
Critical Condition For Amnesty: In order to retain Tax Amnesty eligibility after an Amnesty application is approved, a taxpayer must remain compliant with state taxes for two years by filing returns and remitting tax payments timely.
Yes. However, the terms of your deferred payment plan, including how payments are applied, will remain in effect. During the Tax Amnesty period, you are eligible to receive relief from penalty and half of the interest that remains due on your account. All remaining tax and half of the interest must be paid in full by the close of the Tax Amnesty period, June 19, 2017.
In order to participate in the Tax Amnesty program, a taxpayer must agree to withdraw any administrative or judicial appeal of the liability eligible for tax amnesty.However, a taxpayer does not need to withdraw all appeals in order to participate in the Tax Amnesty program. Only appeals of liabilities for which the taxpayer would like to take advantage of tax amnesty must be withdrawn.
Further, an appeal on one liability does not affect whether other liabilities are eligible for tax amnesty.
A taxpayer who applies for tax amnesty forfeits all future appeal rights for liabilities paid through the Tax Amnesty program.
Before entering into this tax amnesty program, it is imperative to make sure the liability is correct. In working with some of my clients, we have found that the liability was incorrectly calculated or was totally erroneous. So make sure the taxes claimed to be due are in fact correct before doing anything.