May 01, 2017
From KPMG TaxWatch
Last year, legislation was enacted in Pennsylvania that made several changes to the Commonwealth’s tax code and established a tax amnesty program. The program, which began on April 21, 2017, will run through June 19, 2017. Amnesty is available for all state and local taxes administered by the Department of Revenue that were delinquent as of December 31, 2015. A participant in the amnesty will be entitled to an abatement of 100 percent of penalties and 50 percent of interest owed. Amnesty is available for tax liabilities that are both and “known” and “unknown” to the Department. A special “look-back” rule applies to tax liabilities that are “unknown,” meaning the taxpayer has not filed tax returns reporting the taxes and has not been contacted by the Department about the taxes. In such cases, the taxpayer will not be liable for unknown taxes due prior to January 1, 2011.
The Department of Revenue has issued guidelines and FAQ documents that outline the steps and requirements for participation in the program. A dedicated website has been established to allow taxpayers to apply for amnesty. A taxpayer with an active administrative or judicial appeal is eligible to participate in the program, but must withdraw any appeal relating to periods accepted under amnesty. A five percent post-amnesty penalty may be applied for taxes owed that are not satisfied during the amnesty period. The penalty will not apply to taxpayers with active appeals or entities that are in bankruptcy. Participation in the 2017 amnesty will bar a taxpayer from participating in any future amnesty, and taxpayers that participated in the Commonwealth’s last amnesty in 2010 are prohibited from participating in the 2017 program. Please contact Howard Sklaroff at 267-256-2891 with questions on the ongoing amnesty opportunity.
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The following information is not intended to be "written advice concerning one or more federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.
The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.