Knowledge and Insights
From now until June 19, 2017, taxpayers have the opportunity to pay delinquent Pennsylvania state taxes owed – without penalty – through the 2017 Pennsylvania Tax Amnesty Program (the Amnesty Program).
Pennsylvania’s Tax Amnesty Program, established by Act 84 of 2016, ends on June 19, 2017. Individuals, businesses, and other entities with Pennsylvania tax delinquencies as of December 31, 2015, are generally eligible to participate in the Amnesty Program. To participate, taxpayers must file all outstanding tax returns and payments within the amnesty period, including unpaid taxes or unfiled returns for periods not eligible for amnesty (i.e., those due after December 31, 2015). Extensions to participate in the Amnesty Program will not be granted. All penalties and half of the interest owed will be waived for taxpayers who participate in the Amnesty Program.
Taxpayers not eligible to participate in the Amnesty Program include: (1) those currently under criminal investigation for an alleged violation of any tax law; (2) taxpayers with a voluntary disclosure agreement in place covering periods eligible for the Amnesty Program; or (3) those taxpayers who previously participated in the 2010 Pennsylvania Tax Amnesty Program. In addition, the Amnesty Program does not apply to taxes imposed by a political subdivision of Pennsylvania or to taxes administered by another state or the federal government.
Taxpayers who received Amnesty Program letters in the mail detailing outstanding balances due and/or non-filed returns must act quickly. Not all letters generated by the State, however, are correct. All correspondence received must be carefully reviewed to determine the appropriate course of action. No letters should be ignored. Taxpayers who fail to respond to correspondence received may be subject to a 5% non-participation penalty as well as other enforcement actions.
The Amnesty Program provides a great opportunity for taxpayers to address outstanding delinquencies. Navigating the terms of the Amnesty Program can be complicated and little time remains to take advantage of this program. If you received a letter from Pennsylvania detailing the Amnesty Program, you must act quickly.