With the end of tax season only a couple of weeks away, let's not forget that the Pennsylvania Amnesty Program begins on Friday, April 21, 2017 and ends on June 19, 2017.
Eligibility: the Program applies to all taxes administered by the Pennsylvania Department of Revenue and for which a known or unknown delinquency existed as of December 31, 2015. Examples of the more-than-30-types of Pennsylvania taxes eligible for amnesty include the personal income tax, corporate net income tax, capital stock tax, employer withholding tax, inheritance and estate tax, and sale and use tax.
Exceptions: a taxpayer is not eligible to participate in the 2017 Amnesty Program if it is involved in a criminal investigation relating to a tax law violation, signed a voluntary disclosure agreement covering periods eligible for the 2017 Amnesty Program, or participated in the 2010 Pennsylvania Amnesty Program. Additionally, taxpayers involved in a bankruptcy proceeding are eligible only if the Bankruptcy Court grants permission to participate in the Amnesty Program.
Relief Afforded: all penalties, collection and lien fees, as well as one-half of the interest due on the unpaid taxes, will be waived.
Procedures: (i) a proper on-line Amnesty Return must be filed, (ii) all delinquent tax returns must be filed (including returns due after December 31, 2015), (iii) amended returns must be filed for all periods for which the taxpayer underreported its tax liability, and (iv) the "required payment" must be made during the Amnesty Period. The "required payment" is the sum of all taxes due and one-half of the interest due on those taxes. These procedures must be completed, in their entirety, during the period beginning on April 21 and ending on June 19.
Post-Amnesty Penalty: a 5% non-participation penalty will be imposed on all eligible taxes, penalties and interest which go unpaid during the Amnesty Period.
Taxpayers under Current Payment Plans: limited relief is available for those taxpayers currently subject to a payment plan.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
